[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.
____________________