[Congressional Record Volume 159, Number 181 (Thursday, December 19, 2013)]
[Senate]
[Pages S9054-S9064]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REID:
  S. 1859. A bill to amend the Internal Revenue Code of 1986 to extend 
certain expiring provisions, and for other purposes.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1859

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Tax 
     Extenders Act of 2013''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title, etc.

                   TITLE I--INDIVIDUAL TAX EXTENDERS

       Subtitle A--Extensions Relating to Certain Health Coverage

Sec. 101. Health care tax credit.
Sec. 102. TAA pre-certification rule for purposes of determining 
              whether there is a 63-day lapse in creditable coverage.
Sec. 103. Extension of COBRA benefits for certain TAA-eligible 
              individuals and PBGC recipients.

                     Subtitle B--General Extensions

Sec. 111. Extension of deduction for certain expenses of elementary and 
              secondary school teachers.
Sec. 112. Extension of exclusion from gross income of discharge of 
              qualified principal residence indebtedness.
Sec. 113. Extension of parity for exclusion from income for employer-
              provided mass transit and parking benefits.
Sec. 114. Extension of mortgage insurance premiums treated as qualified 
              residence interest.
Sec. 115. Extension of deduction of State and local general sales 
              taxes.
Sec. 116. Extension of special rule for contributions of capital gain 
              real property made for conservation purposes.
Sec. 117. Extension of above-the-line deduction for qualified tuition 
              and related expenses.
Sec. 118. Extension of tax-free distributions from individual 
              retirement plans for charitable purposes.

                    TITLE II--BUSINESS TAX EXTENDERS

Sec. 201. Extension of research credit.
Sec. 202. Extension of temporary minimum low-income tax credit rate for 
              non-federally subsidized new buildings.
Sec. 203. Extension of housing allowance exclusion for determining area 
              median gross income for qualified residential rental 
              project exempt facility bonds.
Sec. 204. Extension of Indian employment tax credit.
Sec. 205. Extension of new markets tax credit.
Sec. 206. Extension of railroad track maintenance credit.
Sec. 207. Extension of mine rescue team training credit.
Sec. 208. Extension of employer wage credit for employees who are 
              active duty members of the uniformed services.
Sec. 209. Extension of work opportunity tax credit.
Sec. 210. Extension of qualified zone academy bonds.
Sec. 211. Extension of classification of certain race horses as 3-year 
              property.
Sec. 212. Extension of 15-year straight-line cost recovery for 
              qualified leasehold improvements, qualified restaurant 
              buildings and improvements, and qualified retail 
              improvements.
Sec. 213. Extension of 7-year recovery period for motorsports 
              entertainment complexes.
Sec. 214. Extension of accelerated depreciation for business property 
              on an Indian reservation.
Sec. 215. Extension of bonus depreciation.
Sec. 216. Extension of enhanced charitable deduction for contributions 
              of food inventory.
Sec. 217. Extension of increased expensing limitations and treatment of 
              certain real property as section 179 property.
Sec. 218. Extension of election to expense mine safety equipment.
Sec. 219. Extension of special expensing rules for certain film and 
              television productions.
Sec. 220. Extension of deduction allowable with respect to income 
              attributable to domestic production activities in Puerto 
              Rico.
Sec. 221. Extension of modification of tax treatment of certain 
              payments to controlling exempt organizations.
Sec. 222. Extension of treatment of certain dividends of regulated 
              investment companies.
Sec. 223. Extension of RIC qualified investment entity treatment under 
              FIRPTA.
Sec. 224. Extension of subpart F exception for active financing income.
Sec. 225. Extension of look-thru treatment of payments between related 
              controlled foreign corporations under foreign personal 
              holding company rules.
Sec. 226. Extension of temporary exclusion of 100 percent of gain on 
              certain small business stock.
Sec. 227. Extension of basis adjustment to stock of S corporations 
              making charitable contributions of property.
Sec. 228. Extension of reduction in S-corporation recognition period 
              for built-in gains tax.
Sec. 229. Extension of empowerment zone tax incentives.

[[Page S9055]]

Sec. 230. Extension of temporary increase in limit on cover over of rum 
              excise taxes to Puerto Rico and the Virgin Islands.
Sec. 231. Extension of American Samoa economic development credit.

                    TITLE III--ENERGY TAX EXTENDERS

Sec. 301. Extension of credit for energy-efficient existing homes.
Sec. 302. Extension of credit for alternative fuel vehicle refueling 
              property.
Sec. 303. Extension of credit for 2- or 3-wheeled plug-in electric 
              vehicles.
Sec. 304. Extension of second generation biofuel producer credit.
Sec. 305. Extension of incentives for biodiesel and renewable diesel.
Sec. 306. Extension of production credit for Indian coal facilities 
              placed in service before 2009.
Sec. 307. Extension of credits with respect to facilities producing 
              energy from certain renewable resources.
Sec. 308. Extension of credit for energy-efficient new homes.
Sec. 309. Extension of credits for energy-efficient appliances.
Sec. 310. Extension of special allowance for second generation biofuel 
              plant property.
Sec. 311. Extension of placed in service date for election to expense 
              certain refineries.
Sec. 312. Extension of energy efficient commercial buildings deduction.
Sec. 313. Extension of special rule for sales or dispositions to 
              implement FERC or State electric restructuring policy for 
              qualified electric utilities.
Sec. 314. Extension of alternative fuels excise tax credits.
Sec. 315. Extension of alternative fuels excise tax credits relating to 
              liquefied hydrogen.

                   TITLE I--INDIVIDUAL TAX EXTENDERS

       Subtitle A--Extensions Relating to Certain Health Coverage

     SEC. 101. HEALTH CARE TAX CREDIT.

       (a) In General.--Subparagraph (B) of section 35(b)(1) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to coverage months beginning after December 31, 
     2013.

     SEC. 102. TAA PRE-CERTIFICATION RULE FOR PURPOSES OF 
                   DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN 
                   CREDITABLE COVERAGE.

       (a) In General.--The following provisions are each amended 
     by striking ``January 1, 2014'' and inserting ``January 1, 
     2015'':
       (1) Section 9801(c)(2)(D).
       (2) Section 701(c)(2)(C) of the Employee Retirement Income 
     Security Act of 1974.
       (3) Section 2701(c)(2)(C) of the Public Health Service Act 
     (as in effect for plan years beginning before January 1, 
     2014).
       (4) Section 2704(c)(2)(C) of the Public Health Service Act 
     (as in effect for plan years beginning on or after January 1, 
     2014).
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2013.

     SEC. 103. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-
                   ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS.

       (a) In General.--The following provisions are each amended 
     by striking ``January 1, 2014'' and inserting ``January 1, 
     2015'':
       (1) Section 4980B(f)(2)(B)(i)(V).
       (2) Section 4980B(f)(2)(B)(i)(VI).
       (3) Section 602(2)(A)(v) of the Employee Retirement Income 
     Security Act of 1974.
       (4) Section 602(2)(A)(vi) of such Act.
       (5) Section 2202(2)(A)(iv) of the Public Health Service 
     Act.
       (b) Effective Date.--The amendments made by this section 
     shall apply to periods of coverage which would (without 
     regard to the amendments made by this section) end on or 
     after December 31, 2013.

                     Subtitle B--General Extensions

     SEC. 111. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
                   ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2013'' and inserting ``2013, or 
     2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 112. EXTENSION OF EXCLUSION FROM GROSS INCOME OF 
                   DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE 
                   INDEBTEDNESS.

       (a) In General.--Subparagraph (E) of section 108(a)(1) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to indebtedness discharged after December 31, 
     2013.

     SEC. 113. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR 
                   EMPLOYER-PROVIDED MASS TRANSIT AND PARKING 
                   BENEFITS.

       (a) In General.--Paragraph (2) of section 132(f) is amended 
     by striking ``January 1, 2014'' and inserting ``January 1, 
     2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to months after December 31, 2013.

     SEC. 114. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS 
                   QUALIFIED RESIDENCE INTEREST.

       (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) 
     is amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or accrued after December 31, 
     2013.

     SEC. 115. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL 
                   SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 116. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF 
                   CAPITAL GAIN REAL PROPERTY MADE FOR 
                   CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2013'' and inserting ``December 31, 
     2014''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2013.

     SEC. 117. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 
                   TUITION AND RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 118. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
                   RETIREMENT PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2013.

                    TITLE II--BUSINESS TAX EXTENDERS

     SEC. 201. EXTENSION OF RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Conforming Amendment.--Subparagraph (D) of section 
     45C(b)(1) is amended by striking ``December 31, 2013'' and 
     inserting ``December 31, 2014''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2013.

     SEC. 202. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX 
                   CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED NEW 
                   BUILDINGS.

       (a) In General.--Subparagraph (A) of section 42(b)(2) is 
     amended by striking ``before January 1, 2014'' and inserting 
     ``before January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on January 1, 2014.

     SEC. 203. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR 
                   DETERMINING AREA MEDIAN GROSS INCOME FOR 
                   QUALIFIED RESIDENTIAL RENTAL PROJECT EXEMPT 
                   FACILITY BONDS.

       (a) In General.--Subsection (b) of section 3005 of the 
     Housing Assistance Tax Act of 2008 is amended by striking 
     ``January 1, 2014'' each place it appears and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of section 
     3005 of the Housing Assistance Tax Act of 2008.

     SEC. 204. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 205. EXTENSION OF NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (G) of section 45D(f)(1) is 
     amended by striking ``and 2013'' and inserting ``2013, and 
     2014''.
       (b) Carryover of Unused Limitation.--Paragraph (3) of 
     section 45D(f) is amended by striking ``2018'' and inserting 
     ``2019''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2013.

     SEC. 206. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2014'' and inserting ``January 1, 
     2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2013.

     SEC. 207. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 208. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO 
                   ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED 
                   SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.

[[Page S9056]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2013.

     SEC. 209. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

       (a) In General.--Subparagraph (B) of section 51(c)(4) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2013.

     SEC. 210. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

       (a) Extension.--
       (1) In general.--Paragraph (1) of section 54E(c) is amended 
     by striking ``and 2013'' and inserting ``2013, and 2014''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to obligations issued after December 31, 2013.
       (b) Technical Correction and Conforming Amendment.--
       (1) In general.--Clause (iii) of section 6431(f)(3)(A) is 
     amended--
       (A) by striking ``2011'' and inserting ``years after 
     2010'', and
       (B) by striking ``of such allocation'' and inserting ``of 
     any such allocation''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in section 310 of the 
     American Taxpayer Relief Act of 2012.

     SEC. 211. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES 
                   AS 3-YEAR PROPERTY.

       (a) In General.--Clause (i) of section 168(e)(3)(A) is 
     amended--
       (1) by striking ``January 1, 2014'' in subclause (I) and 
     inserting ``January 1, 2015'', and
       (2) by striking ``December 31, 2013'' in subclause (II) and 
     inserting ``December 31, 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 212. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY 
                   FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED 
                   RESTAURANT BUILDINGS AND IMPROVEMENTS, AND 
                   QUALIFIED RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2014'' 
     and inserting ``January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 213. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 214. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS 
                   PROPERTY ON AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 215. EXTENSION OF BONUS DEPRECIATION.

       (a) In General.--Paragraph (2) of section 168(k) is 
     amended--
       (1) by striking ``January 1, 2015'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2016'', and
       (2) by striking ``January 1, 2014'' each place it appears 
     and inserting ``January 1, 2015''.
       (b) Special Rule for Federal Long-Term Contracts.--Clause 
     (ii) of section 460(c)(6)(B) is amended by striking ``January 
     1, 2014 (January 1, 2015'' and inserting ``January 1, 2015 
     (January 1, 2016''.
       (c) Extension of Election To Accelerate the AMT Credit in 
     Lieu of Bonus Depreciation.--
       (1) In general.--Subclause (II) of section 
     168(k)(4)(D)(iii) is amended by striking ``2014'' and 
     inserting ``2015''.
       (2) Round 4 extension property.--Paragraph (4) of section 
     168(k) is amended by adding at the end the following new 
     subparagraph:
       ``(K) Special rules for round 4 extension property.--
       ``(i) In general.--In the case of round 4 extension 
     property, this paragraph shall be applied without regard to--

       ``(I) the limitation described in subparagraph (B)(i) 
     thereof, and
       ``(II) the business credit increase amount under 
     subparagraph (E)(iii) thereof.

       ``(ii) Taxpayers previously electing acceleration.--In the 
     case of a taxpayer who made the election under subparagraph 
     (A) for its first taxable year ending after March 31, 2008, a 
     taxpayer who made the election under subparagraph (H)(ii) for 
     its first taxable year ending after December 31, 2008, a 
     taxpayer who made the election under subparagraph (I)(iii) 
     for its first taxable year ending after December 31, 2010, or 
     a taxpayer who made the election under subparagraph (J)(iii) 
     for its first taxable year ending after December 31, 2012--

       ``(I) the taxpayer may elect not to have this paragraph 
     apply to round 4 extension property, but
       ``(II) if the taxpayer does not make the election under 
     subclause (I), in applying this paragraph to the taxpayer the 
     bonus depreciation amount, maximum amount, and maximum 
     increase amount shall be computed and applied to eligible 
     qualified property which is round 4 extension property.

     The amounts described in subclause (II) shall be computed 
     separately from any amounts computed with respect to eligible 
     qualified property which is not round 4 extension property.
       ``(iii) Taxpayers not previously electing acceleration.--In 
     the case of a taxpayer who neither made the election under 
     subparagraph (A) for its first taxable year ending after 
     March 31, 2008, nor made the election under subparagraph 
     (H)(ii) for its first taxable year ending after December 31, 
     2008, nor made the election under subparagraph (I)(iii) for 
     its first taxable year ending after December 31, 2010, nor 
     made the election under subparagraph (J)(iii) for its first 
     taxable year ending after December 31, 2012--

       ``(I) the taxpayer may elect to have this paragraph apply 
     to its first taxable year ending after December 31, 2013, and 
     each subsequent taxable year, and
       ``(II) if the taxpayer makes the election under subclause 
     (I), this paragraph shall only apply to eligible qualified 
     property which is round 4 extension property.

       ``(iv) Round 4 extension property.--For purposes of this 
     subparagraph, the term `round 4 extension property' means 
     property which is eligible qualified property solely by 
     reason of the extension of the application of the special 
     allowance under paragraph (1) pursuant to the amendments made 
     by section 215(a) of the Tax Extenders Act of 2013 (and the 
     application of such extension to this paragraph pursuant to 
     the amendment made by section 215(c) of such Act).''.
       (d) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) is 
     amended by striking ``pre-january 1, 2014'' and inserting 
     ``pre-january 1, 2015''.
       (3) Subparagraph (C) of section 168(n)(2) is amended by 
     striking ``January 1, 2014'' and inserting ``January 1, 
     2015''.
       (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
     striking ``January 1, 2014'' and inserting ``January 1, 
     2015''.
       (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
     striking ``January 1, 2014'' and inserting ``January 1, 
     2015''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2013, in taxable years ending after such date.

     SEC. 216. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                   CONTRIBUTIONS OF FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2013.

     SEC. 217. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND 
                   TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 
                   179 PROPERTY.

       (a) In General.--
       (1) Dollar limitation.--Section 179(b)(1) is amended--
       (A) by striking ``or 2013'' in subparagraph (B) and 
     inserting ``2013, or 2014'', and
       (B) by striking ``2013'' in subparagraph (C) and inserting 
     ``2014''.
       (2) Reduction in limitation.--Section 179(b)(2) is 
     amended--
       (A) by striking ``or 2013'' in subparagraph (B) and 
     inserting ``2013, or 2014'', and
       (B) by striking ``2013'' in subparagraph (C) and inserting 
     ``2014''.
       (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended 
     by striking ``2014'' and inserting ``2015''.
       (c) Election.--Section 179(c)(2) is amended by striking 
     ``2014'' and inserting ``2015''.
       (d) Special Rules for Treatment of Qualified Real 
     Property.--
       (1) In general.--Section 179(f)(1) is amended by striking 
     ``or 2013'' and inserting ``2013, or 2014''.
       (2) Carryover limitation.--
       (A) In general.--Section 179(f)(4) is amended by striking 
     ``2013'' each place it appears and inserting ``2014''.
       (B) Conforming amendment.--The heading of subparagraph (C) 
     of section 179(f)(4) is amended by striking ``2011 and 2012'' 
     and inserting ``2011, 2012, and 2013''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 218. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY 
                   EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 219. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN 
                   FILM AND TELEVISION PRODUCTIONS.

       (a) In General.--Subsection (f) of section 181 is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to productions commencing after December 31, 
     2013.

     SEC. 220. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO 
                   INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION 
                   ACTIVITIES IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) is 
     amended--
       (1) by striking ``first 8 taxable years'' and inserting 
     ``first 9 taxable years'', and

[[Page S9057]]

       (2) by striking ``January 1, 2014'' and inserting ``January 
     1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 221. EXTENSION OF MODIFICATION OF TAX TREATMENT OF 
                   CERTAIN PAYMENTS TO CONTROLLING EXEMPT 
                   ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2013.

     SEC. 222. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of 
     section 871(k) are each amended by striking ``December 31, 
     2013'' and inserting ``December 31, 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 223. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY 
                   TREATMENT UNDER FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on January 1, 2014.

     SEC. 224. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE 
                   FINANCING INCOME.

       (a) Exempt Insurance Income.--Paragraph (10) of section 
     953(e) is amended--
       (1) by striking ``January 1, 2014'' and inserting ``January 
     1, 2015'', and
       (2) by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Special Rule for Income Derived in the Active Conduct 
     of Banking, Financing, or Similar Businesses.--Paragraph (9) 
     of section 954(h) is amended by striking ``January 1, 2014'' 
     and inserting ``January 1, 2015''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2013, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 225. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS 
                   BETWEEN RELATED CONTROLLED FOREIGN CORPORATIONS 
                   UNDER FOREIGN PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2013, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 226. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF 
                   GAIN ON CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) is 
     amended--
       (1) by striking ``January 1, 2014'' and inserting ``January 
     1, 2015'', and
       (2) by striking ``and 2013'' in the heading and inserting 
     ``2013, and 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after December 31, 2013.

     SEC. 227. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S 
                   CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF 
                   PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2013.

     SEC. 228. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION 
                   PERIOD FOR BUILT-IN GAINS TAX.

       (a) In General.--Subparagraph (C) of section 1374(d)(7) is 
     amended--
       (1) by striking ``2012 or 2013'' and inserting ``2012, 
     2013, or 2014'', and
       (2) by striking ``2012 and 2013'' in the heading and 
     inserting ``2012, 2013, and 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 229. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

       (a) In General.--Clause (i) of section 1391(d)(1)(A) is 
     amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of an empowerment 
     zone the nomination for which included a termination date 
     which is contemporaneous with the date specified in 
     subparagraph (A)(i) of section 1391(d)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation if, after the date of the 
     enactment of this section, the entity which made such 
     nomination amends the nomination to provide for a new 
     termination date in such manner as the Secretary of the 
     Treasury (or the Secretary's designee) may provide.
       (c) Effective Date.--The amendment made by this section 
     shall apply to periods after December 31, 2013.

     SEC. 230. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER 
                   OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
                   VIRGIN ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2013.

     SEC. 231. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT 
                   CREDIT.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``January 1, 2014'' each place it appears 
     and inserting ``January 1, 2015'',
       (2) by striking ``first 8 taxable years'' in paragraph (1) 
     and inserting ``first 9 taxable years'', and
       (3) by striking ``first 2 taxable years'' in paragraph (2) 
     and inserting ``first 3 taxable years''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

                    TITLE III--ENERGY TAX EXTENDERS

     SEC. 301. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING 
                   HOMES.

       (a) In General.--Paragraph (2) of section 25C(g) is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 302. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                   REFUELING PROPERTY.

       (a) In General.--Subsection (g) of section 30C is amended 
     by striking ``placed in service'' and all that follows and 
     inserting ``placed in service after December 31, 2014.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 303. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN 
                   ELECTRIC VEHICLES.

       (a) In General.--Subparagraph (E) of section 30D(g)(3) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to vehicles acquired after December 31, 2013.

     SEC. 304. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER 
                   CREDIT.

       (a) In General.--Clause (i) of section 40(b)(6)(J) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this subsection 
     shall apply to fuel sold or used after December 31, 2013.

     SEC. 305. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE 
                   DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A is amended by striking 
     ``December 31, 2013'' and inserting ``December 31, 2014''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) is amended by striking 
     ``December 31, 2013'' and inserting ``December 31, 2014''.
       (2) Subparagraph (B) of section 6427(e)(6) is amended by 
     striking ``December 31, 2013'' and inserting ``December 31, 
     2014''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2013.

     SEC. 306. EXTENSION OF PRODUCTION CREDIT FOR INDIAN COAL 
                   FACILITIES PLACED IN SERVICE BEFORE 2009.

       (a) In General.--Subparagraph (A) of section 45(e)(10) is 
     amended by striking ``8-year period'' each place it appears 
     and inserting ``9-year period''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to coal produced after December 31, 2013.

     SEC. 307. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES 
                   PRODUCING ENERGY FROM CERTAIN RENEWABLE 
                   RESOURCES.

       (a) In General.--The following provisions of section 45(d) 
     are each amended by striking ``January 1, 2014'' each place 
     it appears and inserting ``January 1, 2015'':
       (1) Paragraph (1).
       (2) Paragraph (2)(A).
       (3) Paragraph (3)(A).
       (4) Paragraph (4)(B).
       (5) Paragraph (6).
       (6) Paragraph (7).
       (7) Paragraph (9).
       (8) Paragraph (11)(B).
       (b) Extension of Election to Treat Qualified Facilities as 
     Energy Property.--Clause (ii) of section 48(a)(5)(C) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (c) Effective Dates.--The amendments made by this section 
     shall take effect on January 1, 2014.

     SEC. 308. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

       (a) In General.--Subsection (g) of section 45L is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to homes acquired after December 31, 2013.

     SEC. 309. EXTENSION OF CREDITS FOR ENERGY-EFFICIENT 
                   APPLIANCES.

       (a) In General.--Subsection (b) of section 45M is amended 
     by striking ``or 2013'' each place it appears in paragraphs 
     (1)(E), (2)(F), and (3)(F) and inserting ``2013, or 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2013.

[[Page S9058]]

     SEC. 310. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND 
                   GENERATION BIOFUEL PLANT PROPERTY.

       (a) In General.--Subparagraph (D) of section 168(l)(2) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 311. EXTENSION OF PLACED IN SERVICE DATE FOR ELECTION TO 
                   EXPENSE CERTAIN REFINERIES.

       (a) In General.--Subparagraph (B) of section 179C(c)(1) is 
     amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 312. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                   DEDUCTION.

       (a) In General.--Subsection (h) of section 179D is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.

     SEC. 313. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS 
                   TO IMPLEMENT FERC OR STATE ELECTRIC 
                   RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC 
                   UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2014'' and inserting ``January 1, 
     2015''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to dispositions after December 31, 2013.

     SEC. 314. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

       (a) In General.--Sections 6426(d)(5) and 6426(e)(3) are 
     each amended by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (b) Outlay Payments for Alternative Fuels.--Subparagraph 
     (C) of section 6427(e)(6) is amended by striking ``December 
     31, 2013'' and inserting ``December 31, 2014''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2013.

     SEC. 315. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS 
                   RELATING TO LIQUEFIED HYDROGEN.

       (a) In General.--Sections 6426(d)(5) and 6426(e)(3), as 
     amended by this Act, are each amended by striking ``2014 
     (September 30, 2014 in the case of any sale or use involving 
     liquefied hydrogen)'' and inserting ``2014''.
       (b) Outlay Payments for Alternative Fuels.--Paragraph (6) 
     of section 6427(e) is amended--
       (1) by striking ``except as provided in subparagraph (D), 
     any'' in subparagraph (C), as amended by this Act, and 
     inserting ``any'', and
       (2) by striking subparagraph (D) and redesignating 
     subparagraph (E) as subparagraph (D).
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuels sold or used after September 30, 2014.
                                 ______
                                 
      By Mr. CORNYN (for himself and Mr. Toomey):
  S. 1861. A bill to save taxpayer money and end bailouts of financial 
institutions by providing for a process to allow financial institutions 
to go bankrupt; to the Committee on the Judiciary.
  Mr. CORNYN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1861

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Taxpayer Protection and 
     Responsible Resolution Act''.

     SEC. 2. REPEAL OF TITLE II OF DODD-FRANK WALL STREET REFORM 
                   AND CONSUMER PROTECTION ACT.

       (a) In General.--Title II of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (Public Law 111-203) is 
     repealed and any Federal law amended by such title shall, on 
     and after the date of enactment of this Act, be effective as 
     if title II of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act had not been enacted.
       (b) Conforming Amendments.--
       (1) Dodd-frank wall street reform and consumer protection 
     act.--The Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended--
       (A) in the table of contents, by striking all items 
     relating to title II;
       (B) in section 165(d)(6), by striking ``, a receiver 
     appointed under title II,'';
       (C) in section 716(g), by striking ``or a covered financial 
     company under title II'';
       (D) in section 1105(e)(5), by striking ``amount of any 
     securities issued under that chapter 31 for such purpose 
     shall be treated in the same manner as securities issued 
     under section 208(n)(5)(E)'' and inserting ``issuances of 
     such securities under that chapter 31 for such purpose shall 
     by treated as public debt transactions of the United States, 
     and the proceeds from the sale of any obligations acquired by 
     the Secretary under this paragraph shall be deposited into 
     the Treasury of the United States as miscellaneous 
     receipts''; and
       (E) in section 1106(c)(2)(A)--
       (i) in clause (i), by inserting ``, other than a covered 
     financial corporation (as defined in section 101(9A) of title 
     11, United States Code),'' after ``company''; and
       (ii) in clause (ii), by inserting ``, other than a covered 
     financial corporation (as defined in section 101(9A) of title 
     11, United States Code),'' after ``company''.
       (2) Federal deposit insurance act.--Section 10(b)(3)(A) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)(A)) 
     is amended by striking ``, or of such nonbank financial 
     company supervised by the Board of Governors or bank holding 
     company described in section 165(a) of the Financial 
     Stability Act of 2010, for the purpose of implementing its 
     authority to provide for orderly liquidation of any such 
     company under title II of that Act''.
       (3) Federal reserve act.--Section 13(3) of the Federal 
     Reserve Act (12 U.S.C. 343(3)) is amended--
       (A) in subparagraph (B)--
       (i) in clause (ii), by striking ``, resolution under title 
     II of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act, or'' and inserting ``or is subject to 
     resolution under''; and
       (ii) in clause (iii), by striking ``, resolution under 
     title II of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act, or'' and inserting ``or resolution under''; 
     and
       (B) by striking subparagraph (E).

     SEC. 3. GENERAL PROVISIONS RELATING TO COVERED FINANCIAL 
                   CORPORATIONS.

       (a) Definition.--Section 101 of title 11, United States 
     Code, is amended by inserting the following after paragraph 
     (9):
       ``(9A) The term `covered financial corporation' means any 
     corporation incorporated or organized under any Federal or 
     State law, other than a stockbroker, a commodity broker, or 
     an entity of the kind specified in paragraph (2) or (3) of 
     section 109(b), that is--
       ``(A) a bank holding company, as that term is defined in 
     section 2(a) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841(a)); or
       ``(B) predominantly engaged in activities that the Board of 
     Governors of the Federal Reserve System has determined are 
     financial in nature or incidental to such financial activity 
     for purposes of section 4(k) of the Bank Holding Company Act 
     of 1956 (12 U.S.C. 1843(k)).''.
       (b) Applicability of Chapters.--Section 103 of title 11, 
     United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``section 1161'' and inserting ``sections 
     1161 and 1401''; and
       (B) by striking ``or 13'' and inserting ``13, or 14''; and
       (2) by adding at the end the following:
       ``(l) Chapter 14 of this title applies only in a case under 
     this title concerning a covered financial corporation.
       ``(m) Except as otherwise provided in chapter 14 of this 
     title, chapter 11 of this title applies in a case under 
     chapter 14 of this title.''.
       (c) Who May Be a Debtor.--Section 109 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by striking ``or'' at the end;
       (B) in paragraph (3)(B), by striking the period at the end 
     and inserting ``; or'';
       (C) by adding at the end the following:
       ``(4) a covered financial corporation.''; and
       (2) by adding at the end the following:
       ``(i) An entity may be a debtor under chapter 14 of this 
     title only if the entity is a covered financial 
     corporation.''.

     SEC. 4. LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A 
                   COVERED FINANCIAL CORPORATION.

       (a) In General.--Title 11, United States Code, is amended 
     by inserting before chapter 15 the following:

  ``CHAPTER 14--LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A 
                     COVERED FINANCIAL CORPORATION

``Sec.
``1401. Inapplicability of other sections.
``1402. Definitions for this chapter.
``1403. Commencement of a case concerning a covered financial 
              corporation.
``1404. Regulators.
``1405. Special trustee and bridge company.
``1406. Special transfer of property of the estate.
``1407. Automatic stay; assumed debt.
``1408. Treatment of qualified financial contracts and affiliate 
              contracts.
``1409. Licenses, permits, and registrations.
``1410. Exemption from securities laws.
``1411. Inapplicability of certain avoiding powers.

     ``Sec. 1401. Inapplicability of other sections

       ``Sections 321(c) and 322(b) do not apply in a case under 
     this chapter.

     ``Sec. 1402. Definitions for this chapter

       ``In this chapter, the following definitions shall apply:
       ``(1) The term `Board' means the Board of Governors of the 
     Federal Reserve System.
       ``(2) The term `bridge company' means a newly-formed 
     corporation the equity securities of which are transferred to 
     a special trustee under section 1405(a).
       ``(3) The term `capital structure debt' means debt, other 
     than a qualified financial contract, of the debtor for 
     borrowed money with an original maturity of at least 1 year.
       ``(4) The term `contractual right' means a contractual 
     right as defined in section 555, 556, 559, or 560.
       ``(5) The term `qualified financial contract' means any 
     contract of a kind specified in paragraph (25), (38A), (47), 
     or (53B) of section

[[Page S9059]]

     101, section 741(7), or paragraph (4), (5), (11), or (13) of 
     section 761.

     ``Sec. 1403. Commencement of a case concerning a covered 
       financial corporation

       ``(a) A case under this chapter may be commenced by the 
     filing of a petition with the bankruptcy court--
       ``(1) under section 301; or
       ``(2) by the Board, only if--
       ``(A) the Board certifies in the petition that it has 
     determined that--
       ``(i) the covered financial corporation--

       ``(I) has incurred losses that will deplete all or 
     substantially all of the capital of the covered financial 
     corporation, and there is no reasonable prospect for the 
     covered financial corporation to avoid such depletion;
       ``(II) is insolvent;
       ``(III) is not paying or is unable to pay the debts of the 
     covered financial corporation (other than debts subject to a 
     bona fide dispute as to liability or amount) as they become 
     due; or
       ``(IV) is likely to be in a financial condition specified 
     in subclause (I), (II), or (III) sufficiently soon such that 
     the immediate commencement of a case under this chapter 
     concerning the covered financial corporation is necessary to 
     prevent imminent substantial harm to financial stability in 
     the United States; and

       ``(ii) the commencement of a case under this chapter 
     concerning the covered financial corporation and the effect 
     of a transfer under section 1406 is necessary to prevent 
     imminent substantial harm to financial stability in the 
     United States; and
       ``(B) the bankruptcy court determines, after a hearing 
     described in subsection (b), that the Board has shown by a 
     preponderance of the evidence that the requirements under 
     subparagraph (A) have been satisfied.
       ``(b)(1) A hearing described in this subsection is a 
     hearing held not later than 12 hours after the Board makes a 
     certification under subsection (a)(2)(A), with notice only 
     to--
       ``(A) the covered financial corporation;
       ``(B) the Federal Deposit Insurance Corporation; and
       ``(C) the Secretary of the Treasury.
       ``(2) Only the Board and the entities listed in paragraph 
     (1) may attend or participate in a hearing described in this 
     subsection. Transcripts of such hearing shall be sealed until 
     the end of the case.
       ``(c)(1) The covered financial corporation may file an 
     appeal in the district court of a determination made by the 
     bankruptcy court under subsection (a)(2)(B) not later than 12 
     hours after the bankruptcy court makes such determination, 
     with notice only to the entities listed in subsection (b)(1) 
     and the Board.
       ``(2) The district judge specified under section 298(c)(1) 
     of title 28 for the judicial circuit in which the case is 
     pending shall hear the appeal under paragraph (1) and review 
     within 12 hours the determination of the bankruptcy court 
     under subsection (a)(2)(B) for abuse of discretion.
       ``(d)(1) The commencement of a case under subsection (a)(1) 
     constitutes an order for relief under this chapter.
       ``(2) In a case commenced under subsection (a)(2), the 
     bankruptcy court shall immediately order relief under this 
     chapter if--
       ``(A) the bankruptcy court makes a determination under 
     subsection (a)(2)(B) that the requirements of subsection 
     (a)(2)(A) have been satisfied; and
       ``(B)(i) the period for appeal under subsection (c)(1) has 
     passed without an appeal having been filed; or
       ``(ii) the district court affirms the determination of the 
     bankruptcy court under subsection (c)(2).
       ``(3) Notwithstanding paragraph (2), the bankruptcy court 
     shall order relief in a case commenced under subsection 
     (a)(2) if the debtor consents to the order.

     ``Sec. 1404. Regulators

       ``(a) The Board may raise and may appear and be heard on 
     any issue in any case or proceeding under this title relevant 
     to the regulation of the debtor by the Board or to financial 
     stability in the United States.
       ``(b) The Federal Deposit Insurance Corporation may raise 
     and may appear and be heard on any issue in any case or 
     proceeding under this title in connection with a transfer 
     under section 1406.

     ``Sec. 1405. Special trustee and bridge company

       ``(a) On request of the trustee or the Board, the court may 
     order the trustee to appoint 1 special trustee and transfer 
     to the special trustee all of the equity securities in a 
     corporation to hold in trust for the sole benefit of the 
     estate, if--
       ``(1) the corporation does not have any property, executory 
     contracts, unexpired leases, or debts, other than any 
     property acquired or executory contracts, unexpired leases, 
     or debts assumed when acting as a transferee of a transfer 
     under section 1406;
       ``(2) the equity securities of the corporation are property 
     of the estate; and
       ``(3) the court approves--
       ``(A) the trust agreement governing the special trustee;
       ``(B) the governing documents of the corporation; and
       ``(C) the identity of--
       ``(i) the special trustee; and
       ``(ii) the directors and senior officers of the 
     corporation.
       ``(b) The trust agreement governing the special trustee 
     shall provide--
       ``(1) for the payment of the costs and expenses of the 
     special trustee from the assets of the trust and not from the 
     property of the estate;
       ``(2) that the special trustee provide--
       ``(A) periodic reporting to the estate; and
       ``(B) information about the bridge company as reasonably 
     requested by a party in interest to prepare a disclosure 
     statement for a plan providing for distribution of any 
     securities of the bridge company, if such information is 
     necessary to prepare such disclosure statement;
       ``(3) that the special trustee provide notice to and 
     consult with parties in interest in the case in connection 
     with--
       ``(A) any change in a director or senior officer of the 
     bridge company;
       ``(B) any modification to the governing documents of the 
     bridge company; and
       ``(C) any major corporate action of the bridge company, 
     including--
       ``(i) recapitalization;
       ``(ii) a liquidity borrowing;
       ``(iii) termination of an intercompany debt or guarantee;
       ``(iv) a transfer of a substantial portion of the assets of 
     the bridge company; or
       ``(v) the issuance or sale of any securities of the bridge 
     company;
       ``(4) that the proceeds of the sale of any equity 
     securities of the bridge company by the special trustee be 
     held in trust for the benefit of or transferred to the 
     estate; and
       ``(5) that the property held in trust by the special 
     trustee is subject to distribution in accordance with the 
     plan and subsection (c).
       ``(c) The special trustee shall distribute the assets held 
     in trust in accordance with the plan on the effective date of 
     the plan, after which time the office of the special trustee 
     shall terminate, except as may be necessary to wind up and 
     conclude the business and financial affairs of the trust.
       ``(d) After a transfer under section 1406, the special 
     trustee shall be subject only to applicable nonbankruptcy 
     law, and the actions and conduct of the special trustee shall 
     no longer be subject to approval by the court in the case 
     under this chapter.

     ``Sec. 1406. Special transfer of property of the estate

       ``(a) On request of the trustee or the Board, and after 
     notice and hearing and not less than 24 hours after the 
     commencement of the case, the court may order a transfer 
     under this section of property of the estate to a bridge 
     company. Except as provided under this section, the 
     provisions of section 363 shall apply to a transfer under 
     this section.
       ``(b) Unless the court orders otherwise, notice of a 
     request for an order under subsection (a) shall consist of 
     electronic or telephonic notice of not less than 24 hours 
     to--
       ``(1) the debtor;
       ``(2) the trustee;
       ``(3) the holders of the 20 largest secured claims against 
     the debtor;
       ``(4) the holders of the 20 largest unsecured claims 
     against the debtor;
       ``(5) the Board;
       ``(6) the Federal Deposit Insurance Corporation;
       ``(7) the Secretary of the Treasury;
       ``(8) the United States trustee; and
       ``(9) each primary financial regulatory agency, as defined 
     in section 2(12) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act (12 U.S.C. 5301(12)), with respect to 
     any affiliate that is proposed to be transferred under this 
     section.
       ``(c) The court may not order a transfer under this section 
     unless the court determines, based upon a preponderance of 
     the evidence, that--
       ``(1) the transfer under this section is necessary to 
     prevent imminent substantial harm to financial stability in 
     the United States;
       ``(2) the proposed transfer does not provide for the 
     assumption of any capital structure debt by the bridge 
     company;
       ``(3) the proposed transfer provides for the transfer of 
     any accounts of depositors of the debtor that are insured by 
     the Federal Deposit Insurance Company to the bridge company; 
     and
       ``(4) the Board certifies to the court that the Board has 
     determined that the bridge company provides adequate 
     assurance of future performance of any executory contract or 
     unexpired leased assumed and assigned to the bridge company, 
     and of payment of any debt assumed by the bridge company, in 
     the transfer under this section.

     ``Sec. 1407. Automatic stay; assumed debt

       ``(a)(1) A petition filed under section 301 or 1403 
     operates as a stay, applicable to all entities, of the 
     termination or modification of any debt, contract, lease, or 
     agreement described in paragraph (2), or of any right or 
     obligation under any such debt, contract, lease or agreement, 
     solely because of--
       ``(A) a default by the debtor under any such debt, 
     contract, lease, or agreement; or
       ``(B) a provision in such debt, contract, lease, or 
     agreement or in applicable nonbankruptcy law that is 
     conditioned on--
       ``(i) the insolvency or financial condition of the debtor 
     at any time before the closing of the case;
       ``(ii) the commencement of a case under this title 
     concerning the debtor;
       ``(iii) the appointment of or taking possession by a 
     trustee in a case under this title concerning the debtor or 
     by a custodian before the commencement of the case; or
       ``(iv) a credit rating agency rating, or absence or 
     withdrawal of a credit rating agency rating--
       ``(I) of the debtor at any time after the commencement of 
     the case;

[[Page S9060]]

       ``(II) of an affiliate during the 48 hours after the 
     commencement of the case; or
       ``(III) while the special trustee is a direct or indirect 
     beneficial holder of more than 50 percent of the equity 
     securities of the bridge company--

       ``(aa) of the bridge company; or
       ``(bb) of an affiliate, if all of the direct or indirect 
     interests in the affiliate that are property of the estate 
     are transferred under section 1406.

       ``(2) A debt, contract, lease, or agreement described in 
     this paragraph is--
       ``(A) any debt (other than capital structure debt), 
     executory contract (other than a qualified financial 
     contract), or unexpired lease of the debtor;
       ``(B) any agreement under which the debtor issued or is 
     obligated for debt (other than capital structure debt);
       ``(C) any debt, executory contract (other than a qualified 
     financial contract), or unexpired lease of an affiliate; or
       ``(D) any agreement under which an affiliate issued or is 
     obligated for debt.
       ``(3) The stay under this subsection terminates--
       ``(A) as to the debtor, upon the earliest of--
       ``(i) 48 hours after the commencement of the case;
       ``(ii) assumption of the debt, contract, or lease under an 
     order authorizing a transfer under section 1406; or
       ``(iii) a determination by the court not to order a 
     transfer under section 1406; and
       ``(B) as to an affiliate, upon the earliest of--
       ``(i) entry of an order authorizing a transfer under 
     section 1406 in which the direct or indirect interests in the 
     affiliate that are property of the estate are not transferred 
     under section 1406;
       ``(ii) a determination by the court not to order a transfer 
     under section 1406; or
       ``(iii) 48 hours after the commencement of the case, if the 
     court has not ordered a transfer under section 1406.
       ``(4) Sections 362(d), 362(e), 362(f), and 362(g) apply to 
     a stay under this subsection.
       ``(b) A debt, executory contract (other than a qualified 
     financial contract), or unexpired lease of the debtor, or an 
     agreement under which the debtor has issued or is obligated 
     for any debt, may be assumed by a bridge company in a 
     transfer under section 1406 notwithstanding any provision in 
     an agreement or in applicable nonbankruptcy law that--
       ``(1) prohibits, restricts, or conditions the assignment of 
     the debt, contract, lease, or agreement; or
       ``(2) terminates or modifies, or permits a party other than 
     the debtor to terminate or modify, the debt, contract, lease, 
     or agreement on account of--
       ``(A) the assignment of the debt, contract, lease, or 
     agreement; or
       ``(B) a change in control of any party to the debt, 
     contract, lease, or agreement.
       ``(c)(1) A debt, contract, lease, or agreement of the kind 
     described in subsection (a)(2)(A) or (a)(2)(B) may not be 
     terminated or modified, and any right or obligation under 
     such debt, contract, lease, or agreement may not be 
     terminated or modified, as to the bridge company solely 
     because of a provision in the debt, contract, lease, or 
     agreement or in applicable nonbankruptcy law--
       ``(A) of the kind described in subsection (a)(1)(B) as 
     applied to the debtor;
       ``(B) that prohibits, restricts, or conditions the 
     assignment of the debt, contract, lease, or agreement; or
       ``(C) that terminates or modifies, or permits a party other 
     than the debtor to terminate or modify, the debt, contract, 
     lease or agreement, on account of--
       ``(i) the assignment of the debt, contract, lease, or 
     agreement; or
       ``(ii) a change in control of any party to the debt, 
     contract, lease, or agreement.
       ``(2) If there has been a default by the debtor of a 
     provision other than the kind described in paragraph (1) in a 
     debt, contract, lease or agreement of the kind described in 
     subsection (a)(2)(A) or (a)(2)(B), the bridge company may 
     assume such debt, contract, lease, or agreement only if the 
     bridge company--
       ``(A) cures, or provides adequate assurance to the court in 
     connection with a transfer under section 1406 that the bridge 
     company will promptly cure, the default;
       ``(B) compensates, or provides adequate assurance to the 
     court in connection with a transfer under section 1406 that 
     the bridge company will promptly compensate, a party other 
     than the debtor to the debt, contract, lease, or agreement, 
     for any actual pecuniary loss to the party resulting from the 
     default; and
       ``(C) provides adequate assurance to the court in 
     connection with a transfer under section 1406 of future 
     performance under the debt, contract, lease, or agreement.

     ``Sec. 1408. Treatment of qualified financial contracts and 
       affiliate contracts

       ``(a) Notwithstanding sections 362(b)(6), 362(b)(7), 
     362(b)(17), 362(b)(27), 555, 556, 559, 560, and 561, a 
     petition filed under section 301 or 1403 operates as a stay, 
     during the period specified in section 1407(a)(3)(A), 
     applicable to all entities, of the exercise of a contractual 
     right--
       ``(1) to cause the liquidation or termination of a 
     qualified financial contract of the debtor or an affiliate; 
     or
       ``(2) to offset or net out any termination value, payment 
     amount, or other transfer obligation arising under or in 
     connection with a qualified financial contract of the debtor 
     or an affiliate; or
       ``(3) under any security agreement or arrangement or other 
     credit enhancement forming a part of or related to a 
     qualified financial contract of the debtor or an affiliate.
       ``(b)(1) During the period specified in section 
     1407(a)(3)(A), the trustee or the affiliate shall perform all 
     payment and delivery obligations under a qualified financial 
     contract of the debtor or the affiliate, respectively, that 
     become due after the commencement of the case. The stay 
     provided under subsection (a) terminates as to a qualified 
     financial contract of the debtor or an affiliate immediately 
     upon the failure of the trustee or the affiliate, 
     respectively, to perform any such obligation during such 
     period.
       ``(2) A counterparty to any qualified financial contract of 
     the debtor that is assumed and assigned in a transfer under 
     section 1406 may perform any unperformed payment or delivery 
     obligation under the qualified financial contract promptly 
     after the assumption and assignment with the same effect as 
     if the counterparty had timely performed such obligations.
       ``(c) A qualified financial contract between an entity and 
     the debtor may not be assigned to or assumed by the bridge 
     company in a transfer under section 1406 unless--
       ``(1) all qualified financial contracts between the entity 
     and the debtor are assigned to and assumed by the bridge 
     company in the transfer under section 1406;
       ``(2) all claims of the entity against the debtor under any 
     qualified financial contract between the entity and the 
     debtor (other than any claim that, under the terms of the 
     qualified financial contract, is subordinated to the claims 
     of general unsecured creditors) are assigned to and assumed 
     by the bridge company;
       ``(3) all claims of the debtor against the entity under any 
     qualified financial contract between the entity and the 
     debtor are assigned to and assumed by the bridge company; and
       ``(4) all property securing or any other credit enhancement 
     furnished by the debtor for any qualified financial contract 
     described in paragraph (1) or any claim described in 
     paragraph (2) or (3) under any qualified financial contract 
     between the entity and the debtor is assigned to and assumed 
     by the bridge company.
       ``(d) Section 365(b)(1) does not apply to a default under a 
     qualified financial contract of the debtor that is assumed 
     and assigned in a transfer under section 1406 if the 
     default--
       ``(1) is a breach of a provision of the kind specified in 
     section 1407(a)(1)(B)(iv); and
       ``(2) in the case of a breach of a provision of the kind 
     specified in section 1407(a)(1)(B)(iv)(III), occurs while the 
     bridge company is a direct or indirect beneficial holder of 
     more than 50 percent of the equity securities of the 
     affiliate.
       ``(e) Notwithstanding any provision in a qualified 
     financial contract or in applicable nonbankruptcy law, a 
     qualified financial contract of the debtor that is assumed or 
     assigned in a transfer under section 1406 may not be 
     terminated or modified, and any right or obligation under the 
     qualified financial contract may not be terminated or 
     modified, for a breach of a provision of the kind specified 
     in section 1407(b) at any time after the entry of an order 
     under section 1406 until such time as the special trustee is 
     no longer the direct or indirect beneficial holder of more 
     than 50 percent of the equity securities of the bridge 
     company.
       ``(f) Notwithstanding any provision in any agreement or in 
     applicable nonbankruptcy law, an agreement of an affiliate 
     (including an executory contract, unexpired lease, or 
     agreement under which the affiliate issued or is obligated 
     for debt), and any right or obligation under such agreement, 
     may not be terminated or modified at any time after the 
     commencement of the case solely because of a condition 
     described in section 1407(b) if--
       ``(1) all direct or indirect interests in the affiliate 
     that are property of the estate are transferred under section 
     1406 to the bridge company within the period specified in 
     subsection (a);
       ``(2) the bridge company assumes--
       ``(A) any guarantee or other credit enhancement issued by 
     the debtor relating to the agreement of the affiliate; and
       ``(B) any right of setoff, netting arrangement, or debt of 
     the debtor that directly arises out of or directly relates to 
     the guarantee or credit enhancement; and
       ``(3) any property of the estate that directly serves as 
     collateral for the guarantee or credit enhancement is 
     transferred to the bridge company.

     ``Sec. 1409. Licenses, permits, and registrations

       ``(a) Notwithstanding any otherwise applicable 
     nonbankruptcy law, if a request is made under section 1406 
     for a transfer of property of the estate, any Federal, State, 
     or local license, permit, or registration that the debtor or 
     an affiliate had immediately before the commencement of the 
     case and that is proposed to be transferred under section 
     1406 may not be terminated or modified at any time after the 
     request solely on account of--
       ``(1) the insolvency or financial condition of the debtor 
     at any time before the closing of the case;
       ``(2) the commencement of a case under this title 
     concerning the debtor;
       ``(3) the appointment of or taking possession by a trustee 
     in a case under this title concerning the debtor or by a 
     custodian before the commencement of the case; or
       ``(4) a transfer under section 1406.
       ``(b) Notwithstanding any otherwise applicable 
     nonbankruptcy law, any Federal,

[[Page S9061]]

     State, or local license, permit, or registration that the 
     debtor had immediately before the commencement of the case 
     that is included in a transfer under section 1406 shall vest 
     in the bridge company.

     ``Sec. 1410. Exemption from securities laws

       ``For purposes of section 1145, a security of the bridge 
     company shall be deemed to be a security of a successor to 
     the debtor under a plan if the court approves the disclosure 
     statement for the plan as providing adequate information (as 
     defined in section 1125(a)) about the bridge company and the 
     security.

     ``Sec. 1411. Inapplicability of certain avoiding powers

       ``Except with respect to a capital structure debt, a 
     transfer made or an obligation incurred by the debtor, 
     including any obligation released by the debtor or the 
     estate, to or for the benefit of an affiliate in a transfer 
     under section 1406, is not avoidable under section 544, 547, 
     548(a)(1)(B), or 549, or under any similar nonbankruptcy 
     law.''.
       (b) Technical and Conforming Amendment.--The table of 
     chapters for title 11, United States Code, is amended by 
     inserting after the item relating to chapter 13 the 
     following:

``14 Liquidation, reorganization, or recapitalization of a covered 
    financial corporation...................................1401''.....

     SEC. 5. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

       (a) Amendment to Chapter 13.--Chapter 13 of title 28, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 298. Judge for a case under chapter 14 of title 11

       ``(a) Notwithstanding section 295, the Chief Justice of the 
     United States shall designate not less than 1 district judge 
     from each circuit to be available to hear an appeal under 
     section 158(a) in a case under title 11 concerning a covered 
     financial corporation or under section 1403(c) of title 11.
       ``(b)(1) Notwithstanding section 295, the Chief Justice of 
     the United States shall designate a panel of not less than 10 
     bankruptcy judges, who are experts in cases under title 11 in 
     which a financial institution is a debtor, to be available to 
     hear a case under chapter 14 of title 11.
       ``(2) Notwithstanding section 295, a case under chapter 14 
     of title 11 shall be heard under section 157 by a bankruptcy 
     judge designated under paragraph (1), who shall be assigned 
     to hear such case by the chief judge of the court of appeals 
     for the circuit embracing the district in which the case is 
     pending.
       ``(3) If the bankruptcy judge designated and assigned to 
     hear a case under paragraphs (1) and (2) is not assigned to 
     the district in which the case is pending, the bankruptcy 
     judge shall be temporarily assigned to the district.
       ``(c)(1) Notwithstanding section 295, an appeal under 
     section 158(a) in a case under title 11 concerning a covered 
     financial corporation or under section 1403(c) of title 11 
     shall be heard by a district judge who--
       ``(A) is the district judge designated under subsection (a) 
     from the circuit in which the case is pending;
       ``(B) if more than 1 district judge has been designated 
     under subsection (a) from the circuit in which the case is 
     pending, is 1 such district judge who is designated by the 
     chief judge of that circuit to hear the case; or
       ``(C) if none of the district judges designated under 
     subsection (a) for the circuit in which the case is pending 
     are immediately available, is designated under subsection (a) 
     from another circuit and has been designated by the Chief 
     Justice of the United States to hear the case.
       ``(2) If the district judge specified in paragraph (1) is 
     not assigned to the district in which the case is pending, 
     the district judge shall be temporarily assigned to the 
     district.
       ``(d) A case under chapter 14 of title 11, and all 
     proceedings in the case, shall take place in the district in 
     which the case is pending.
       ``(e) In this section, the terms `covered financial 
     corporation' and `financial institution' have the meaning 
     given such terms in section 101 of title 11.''.
       (b) Amendment to Section 1334.--Section 1334 of title 28, 
     United States Code, is amended by adding at the end the 
     following:
       ``(f) This section does not grant jurisdiction to the 
     district courts after a transfer pursuant to an order under 
     section 1406 of title 11--
       ``(1) of any proceeding related to a special trustee 
     appointed, or to a bridge company formed, under section 1405 
     of title 11; or
       ``(2) over the property held in trust by the special 
     trustee, the bridge company, or the property of the bridge 
     company.''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for chapter 13 of title 28, United States Code, is 
     amended by adding at the end the following:

``298. Judge for a case under chapter 14 of title 11.''.

     SEC. 6. LIMITATION ON ADVANCES FROM A FEDERAL RESERVE BANK.

       Section 10B(b) of the Federal Reserve Act (12 U.S.C. 
     347b(b)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6);
       (2) by inserting after paragraph (4) the following:
       ``(5) Limitation on advances to covered financial 
     corporations and bridge companies.--Notwithstanding paragraph 
     (2), a Federal Reserve bank may not make advances to any 
     covered financial corporation that is a debtor in a pending 
     case under chapter 14 of title 11, United States Code, or to 
     a bridge company, for the purpose of providing debtor-in-
     possession financing pursuant to section 364 of such 
     title.''; and
       (3) in paragraph (6), as redesignated--
       (A) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (D) through (G), respectively; and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Bridge company.--The term `bridge company' has the 
     same meaning as in section 1402(2) of title 11, United States 
     Code.
       ``(C) Covered financial corporation.--The term `covered 
     financial corporation' has the same meaning as in section 
     101(9A) of title 11, United States Code.''.
                                 ______
                                 
      By Mr. HARKIN:
  S. 1864. A bill to require a demonstration program on the accession 
as Air Force officers of candidates with auditory impairments; to the 
Committee on Armed Services.
  Mr. HARKIN. Mr. President, ensuring equal opportunities and equal 
rights for individuals with disabilities has been one of my highest 
priorities during my time in Congress. As the lead Senate sponsor of 
the Americans with Disabilities Act, I still remember the day that 
legislation was signed into law, July 26, 1990, as one of the proudest 
days of my legislative career.
  The Americans with Disabilities Act is one of the landmark civil 
rights laws of the 20th century--a long overdue emancipation 
proclamation for Americans with disabilities. The ADA has played a huge 
role in making our country more accessible and more inclusive, in 
raising the expectations of people with disabilities about what they 
can hope to achieve at work and in life, and in inspiring Americans to 
view disability issues through the lens of equality and opportunity.
  Before the ADA, life was very different for people with disabilities 
in Iowa and across the country. Being an American with a disability 
meant not being able to ride on a bus because there was no lift, not 
being able to attend a concert or ballgame because there was no 
accessible seating, and not being able to cross the street in a 
wheelchair because there were no curb cuts. In short, it meant not 
being able to work or participate in community life. Discrimination was 
both commonplace and accepted.
  Since then, we have made amazing progress. The ADA literally 
transformed the American landscape by requiring that architectural and 
communications barriers be removed and replaced with accessible 
features such as ramps, lifts, curb cuts, widening doorways, and closed 
captioning. More importantly, the ADA gave millions of Americans the 
opportunity to participate in their communities.
  The ADA stands for a simple, universal proposition--that disability 
is a natural part of the human experience and that all people with 
disabilities have a right to make choices, pursue meaningful careers, 
and participate fully in all aspects of society.
  One of the four great goals of the ADA is to assure equality of 
opportunity. The opportunity for an individual to be judged based on 
his or her talents, skills, and abilities rather than stigmatizing 
labels; to be included with non-disabled peers; and ultimately, the 
opportunity to be successful. That is the minimum that any individual 
with a disability should expect, and it is our responsibility to make 
that happen.
  More than two years ago I met Keith Nolan, a young man who is deaf 
and whose life goal is to be a military officer. Keith enrolled in and 
completed the first two levels of Army ROTC in California.
  As a ROTC cadet Keith participated in all classes, labs, and physical 
training. He had interpreters provided by his school program for 
classes and training, but not for physical training which he did 
without an interpreter. Still, he participated fully in a Fall Field 
Training Exercise where the cadets spent a weekend working on tactics. 
He also earned a German Army Forces Badge for Military Proficiency 
becoming the only cadet in his squad to get the highest decoration. 
Overall, he excelled in the ROTC program.
  However, Keith was not allowed to continue in ROTC due to Department 
of Defense rules that exclude individuals who are deaf or hard of 
hearing. Keith has a master's degree, and if not for Department of 
Defense rules excluding individuals who are deaf, would have qualified 
for Officer Candidate School.

[[Page S9062]]

  My experience with Keith, as well as my long-standing advocacy to 
provide to persons with disabilities the same rights as every other 
American, have convinced me that individuals with disabilities can 
meaningfully contribute to our Armed Forces and should have the 
opportunity to do so.
  I know that there is some hesitation among the service branches in 
having individuals who are deaf or hard of hearing serve in the active 
military. But I know, just as we have found under the ADA for the last 
23 years, people with disabilities can accomplish great things if they 
are provided with the same opportunities the rest of us take for 
granted. Keith Nolan is one exceptional young man, the kind the 
military would be proud to have among its ranks and I bet there are 
probably a few other Keith Nolans out there eager to serve.
  That is why today, on the day the Senate considers the National 
Defense Authorization Act, I am introducing legislation which would 
create a small demonstration program for 15-20 highly intelligent, deaf 
and hard of hearing men and women, in top physical condition, to enter 
the Air Force's Basic Officer Training course or the Commissioned 
Officer Training course at Maxwell AFB. The individuals who participate 
in this demonstration program will meet all the essential 
qualifications for accession as an officer in the Air Force--except for 
the one related to having a hearing impairment.
  I had filed this legislation as an amendment to the Defense 
Authorization bill; unfortunately, because that amendment process was 
cut short, I was not able to have it considered. But I am filing this 
legislation today to make clear that I intend to press forward in this 
effort to create a demonstration program.
  If this program is successful, as I believe it will be, then we will 
have created an opportunity for talented individuals like Keith Nolan 
in the military. We will have reiterated our commitment to equal 
opportunity for all Americans, including people with disabilities.
  I hope my fellow Members will join me as cosponsors of this small, 
but important, demonstration program.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1864

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DEMONSTRATION PROGRAM ON ACCESSION OF CANDIDATES 
                   WITH AUDITORY IMPAIRMENTS AS AIR FORCE 
                   OFFICERS.

       (a) Demonstration Program Required.--Beginning not later 
     than 90 days after the date of the enactment of this Act, the 
     Secretary of the Air Force shall carry out a demonstration 
     program to assess the feasibility and advisability of 
     permitting individuals with auditory impairments (including 
     deafness) to access as officers of the Air Force.
       (b) Candidates.--
       (1) Number of candidates.--The total number of individuals 
     with auditory impairments who may participate in the 
     demonstration program shall be not fewer than 15 individuals 
     or more than 20 individuals.
       (2) Mix and range of auditory impairments.--The individuals 
     who participate in the demonstration program shall include 
     individuals who are deaf and individuals who have a range of 
     other auditory impairments.
       (3) Qualification for accession.--Any individual who is 
     chosen to participate in the demonstration program shall meet 
     all essential qualifications for accession as an officer in 
     the Air Force, other than those related to having an auditory 
     impairment.
       (c) Selection of Participants.--
       (1) In general.--The Secretary of the Air Force shall--
       (A) publicize the demonstration program nationally, 
     including to individuals who have auditory impairments and 
     would be otherwise qualified for officer training;
       (B) create a process whereby interested individuals can 
     apply for the demonstration program; and
       (C) select the participants for the demonstration program, 
     from among the pool of applicants, based on the criteria in 
     subsection (b).
       (2) No prior service as air force officers.--Participants 
     selected for the demonstration program shall be individuals 
     who have not previously served as officers in the Air Force.
       (d) Basic Officer Training.--
       (1) In general.--The participants in the demonstration 
     program shall undergo, at the election of the Secretary of 
     the Air Force, the Basic Officer Training course or the 
     Commissioned Officer Training course at Maxwell Air Force 
     Base, Alabama.
       (2) Number of participants.--Once individuals begin 
     participating in the demonstration program, each Basic 
     Officer Training course or Commissioned Officer Training 
     course at Maxwell Air Force Base, Alabama, shall include not 
     fewer than 4, or more than 6, participants in the 
     demonstration program until all participants have completed 
     such training.
       (3) Auxiliary aids and services.--The Secretary of Defense 
     shall ensure that participants in the demonstration program 
     have the necessary auxiliary aids and services (as that term 
     is defined in section 4 of the Americans With Disabilities 
     Act of 1990 (42 U.S.C. 12103)) in order to fully participate 
     in the demonstration program.
       (e) Coordination.--
       (1) Special advisor.--The Secretary of the Air Force shall 
     designate a special advisor to the demonstration program to 
     act as a resource for participants in the demonstration 
     program, as well as a liaison between participants in the 
     demonstration program and those providing the officer 
     training.
       (2) Qualifications.--The special advisor shall be a member 
     of the Armed Forces on active duty--
       (A) who--
       (i) if a commissioned officer, shall be in grade O-3 or 
     higher; or
       (ii) if an enlisted member, shall be in grade E-5 or 
     higher; and
       (B) who is knowledgeable about issues involving, and 
     accommodations for, individuals with auditory impairments 
     (including deafness).
       (3) Responsibilities.--The special advisor shall be 
     responsible for facilitating the officer training for 
     participants in the demonstration program, intervening and 
     resolving issues and accommodations during the training, and 
     such other duties as the Secretary of the Air Force may 
     assign to facilitate the success of the demonstration program 
     and participants.
       (f) Report.--Not later than two years after the date of the 
     enactment of this Act, the Secretary of the Air Force shall 
     submit to the appropriate committees of Congress a report on 
     the demonstration program. The report shall include the 
     following:
       (1) A description of the demonstration program and the 
     participants in the demonstration program.
       (2) The outcome of the demonstration program, including--
       (A) the number of participants in the demonstration program 
     that successfully completed the Basic Officer Training course 
     or the Commissioned Officer Training course;
       (B) the number of participants in the demonstration program 
     that were recommended for continued military service;
       (C) the issues that were encountered during the program; 
     and
       (D) such recommendation for modifications to the 
     demonstration program as the Secretary considers appropriate 
     to increase further inclusion of individuals with auditory 
     disabilities serving as officers in the Air Force or other 
     Armed Forces.
       (3) Such recommendations for legislative or administrative 
     action as the Secretary considers appropriate in light of the 
     demonstration program.
       (g) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Armed Services, the Committee on 
     Health, Education, Labor, and Pensions, and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Durbin, and Ms. Warren):
  S. 1873. A bill to provide for institutional risk-sharing in the 
Federal student loan programs; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. REED. Mr. President, student loan debt continues to climb. 
According to an analysis by the Institute for College Access, average 
student loan debt has increased by 6 percent each year since 2008. In 
2012, over 70 percent of college graduates had debt, owing an average 
of $29,400.
  This is a growing drag on our economy.
  In this summer's National Association of Realtors survey, 49 percent 
of the respondents identified student loan debt as a huge obstacle to 
home ownership--more than those who identified having enough money for 
a down payment or having enough confidence in their job security.
  It is clear that the more than $1.2 trillion in outstanding student 
loan debt has serious implications for the broader economy.
  We know that student loan borrowers are struggling. Default rates are 
on the rise. 13.4 percent of borrowers entering repayment in 2009 
defaulted within three years. The rate jumped to 14.7 percent for 
borrowers entering repayment in 2010.
  We cannot tackle the student loan debt crisis without States and 
institutions stepping up and taking greater

[[Page S9063]]

responsibility for college costs and student borrowing.
  States are critical partners in making college accessible and 
affordable. However, state support for higher education has declined in 
recent years, contributing to rising tuition costs at public colleges 
and universities. According to the latest State Higher Education 
Finance report published by the State Higher Education Executive 
Officers, state spending per full-time equivalent student reached its 
lowest point in 25 years in 2011.
  In the Partnerships for Affordability and Student Success, PASS, Act 
that I am introducing today, we will re-establish a robust, Federal-
State partnership for college affordability and student success. I long 
worked to fund the Leveraging Educational Assistance Partnership, LEAP, 
program, an initiative that engaged the states in matching federal 
funds to provide need-based grants to students. LEAP was modest in 
scale. The legislation I am introducing today calls for a more 
ambitious and comprehensive Federal-State partnership for higher 
education.
  The PASS Act will authorize $1 billion for a State formula grant 
program. In order to participate, states must make a commitment to 
maintain their investment in higher education and must have a 
comprehensive plan for higher education with measurable goals for 
access, affordability, and student outcomes. At least 70 percent of the 
funding must be dedicated to need-based student financial aid. States 
also have the option of awarding grants to colleges and universities or 
partnerships between institutions of higher education and non-profit 
organizations to improve student outcomes, including enrollment, 
completion, and employment, and to develop innovative methods for 
reducing college costs. I am pleased to have the support of the 
National Association of State Student Grant and Aid Programs, the 
National Association of Independent Colleges and Universities, and U.S 
PIRG in advancing this legislation.
  Institutions also have a critical role to play in curbing student 
loan debt. To ensure that institutions have more skin in the game, so 
they provide a better and more affordable education to students, which 
will in turn help put the brakes on rising student loan defaults, I am 
proud to be introducing the Protect Student Borrowers Act with Senators 
Durbin and Warren.
  The Protect Student Borrowers Act will hold colleges and universities 
accountable for student loan default by requiring them to repay a 
percentage of defaulted loans. Only institutions that have 25 percent 
or more of their students borrow would be included in risk sharing 
based on their cohort default rate. Risk-sharing requirements would 
kick in when default rate exceeds 15 percent. As the institutional 
default rate rises, so too will the institution's risk-share payment.
  The Protect Student Borrowers Act also provides incentives for 
institutions to take proactive steps to ease student loan debt burdens 
and reduce default rates. Colleges and universities can reduce or 
eliminate their payments if they implement a comprehensive student loan 
management plan. The Secretary may waive or reduce the payments for 
institutions whose mission is to serve low-income and minority students 
such as community colleges, Historically Black Institutions, or 
Hispanic-Serving Institutions, provided that they are making progress 
in their student loan management plans.
  The risk-sharing payments will be invested in helping struggling 
borrowers, preventing future default and delinquency, and reducing 
shortfalls in the Pell Grant program.
  With the stakes so high for students and taxpayers, it is only fair 
that institutions bear some of the risk in the student loan program.
  We need to tackle student loan debt and college affordability from 
multiple angles. We need all stakeholders in the system to do their 
part. With the PASS Act and the Protect Student Borrowers Act, we are 
providing the resources and incentives for states and institutions to 
take more responsibility to address college affordability and student 
loan debt and improve student outcomes. I urge my colleagues to 
cosponsor these bills and look forward to working with them to include 
these and other key reforms in the upcoming reauthorization of the 
Higher Education Act.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Crapo):
  S. 1875. A bill to provide for wildfire suppression operations, and 
for other purposes; to the Committee on the Budget.
  Mr. WYDEN. Mr. President, today I am introducing the Wildfire 
Disaster Funding Act of 2013 to end the destructive cycle of 
underfunding wildfire prevention and then having to spend even greater 
amounts fighting wildfires than if our forests were properly managed.
  For some time now, our country has witnessed tragic wildfire seasons 
that have put American lives and our treasured public lands in harm's 
way. Sadly, this year 19 firefighters lost their lives fighting the 
Yarnell Hill Fire in Arizona. Due to climate change, drought, and other 
factors, the risks from these infernos are likely to increase in the 
future.
  Federal fire suppression spending has increased substantially over 
the past 20 years. In the case of the Forest Service, the proportion of 
their budget devoted to wildland fire management has increased steadily 
from 13 percent of the total budget in 1991 to 41 percent of the budget 
in 2013. Most recent fire seasons have cost upwards of $1 billion, 
compared to $200 million in the 1990's. This leads to an unfortunate 
new reality: our Forest Service is turning into the Fire Service.
  In 8 of the past 10 years, the Forest Service has exceeded its budget 
for wildfire suppression, requiring the agency to conduct what is known 
as ``fire borrowing'' to cover wildfire suppression costs. ``Fire 
robbery'' would be a more accurate term because in many cases, the 
borrowed funds are never repaid. These transfers are incredibly 
disruptive and are undermining the core mission of the Forest Service.
  What is worse, in order to fund the costs of fighting these infernos, 
the agencies responsible for fighting fires are underfunding the very 
programs designed to prevent fires. The 2013 President's Budget Request 
included significant cuts to hazardous fuels treatments for both the 
Department of the Interior, 50 percent cut, and the Forest Service, 30 
percent cut.
  Studies confirm that hazardous fuels treatments are effective at 
reducing fire risk and lowering costs. For example, a recent study 
published by Northern Arizona University's Ecological Restoration 
Institute concluded that treatments ``. . . can reduce fire severity . 
. .'', and ``. . . successfully reduce fire risk to communities.''
  It is clear that our Nation needs a new path forward on fire 
budgeting to make sure that there is adequate funding for fire 
prevention work. For much of 2013, I have been urging the Office of 
Management and Budget, OMB, to help the Congress develop a new path 
forward through oversight hearings, letters, and numerous discussions.
  Therefore, today I am introducing the Wildfire Disaster Funding Act 
to provide a better path forward on wildfire funding and fire 
prevention.
  This bill will establish parity for wildfire funding to how the 
Federal Government funds other major natural disasters such as floods 
and hurricanes. Specifically, the bill would move any spending above 70 
percent of the 10-year rolling average for fire suppression outside of 
the agencies' baseline budget by making these additional costs eligible 
to be funded under a separate disaster account.
  Based on Department of the Interior and Department of Agriculture 
analysis, 1 percent of wildland fires represent 30 percent of costs, so 
in essence my legislation would be moving the true emergency fire 
events to be funded under disaster programs, and the routine wildland 
firefighting costs--would be funded through the normal budgeting and 
appropriations process.
  Most importantly, this legislation would free up as much as $412 
million in discretionary funding to fund hazardous fuels projects and 
make sure urgently needed work is done in the forests to prevent 
wildland fires.
  I am pleased to be joined by Senator Crapo in introducing the bill 
today. This legislation also has the support of Secretary of 
Agriculture Tom Vilsack and Secretary of the Interior Sally Jewell. I 
look forward to working towards enactment of the Wildfire Disaster 
Funding Act in the 113th Congress through any possible avenue. 
Together, the Congress and the Administration must work to guarantee 
that

[[Page S9064]]

our country has the necessary tools to both combat and prevent wildland 
fires.

                          ____________________