[Congressional Record (Bound Edition), Volume 156 (2010), Part 10]
[Senate]
[Pages 13664-13697]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4494. Mr. WYDEN (for himself and Mr. Chambliss) submitted an 
amendment intended to be proposed to amendment SA 4402 proposed by Mr. 
Reid (for Mr. Baucus (for himself, Ms. Landrieu, and Mr. Reid)) to the 
bill H.R. 5297, to create the Small Business Lending Fund Program to 
direct the Secretary of the Treasury to make capital investments in 
eligible institutions in order to increase the availability of credit 
for small businesses, to amend the Internal Revenue Code of 1986 to 
provide tax incentives for small business job creation, and for other 
purposes; which was ordered to lie on the table; as follows:


[[Page 13665]]

       On page 41, between lines 3 and 4, insert the following:

     SEC. 1137. NATIONAL SMALL BUSINESS TREE PLANTING PROGRAM.

       Section 24(e) of the Small Business Act (15 U.S.C. 651(e)) 
     is amended by striking ``1995 through 1997'' and inserting 
     ``2011 through 2014''.
                                 ______
                                 
  SA 4495. Mr. FEINGOLD (for himself, Mr. Lieberman, and Ms. Collins) 
submitted an amendment intended to be proposed by him to the bill H.R. 
5297, to create the Small Business Lending Fund Program to direct the 
Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page __, between lines __ and __, insert the following:

     SEC. __. ANNUAL REPORT ON AWARDING OF FEDERAL CONTRACTS TO 
                   CONTRACTORS LISTED ON THE EXCLUDED PARTIES LIST 
                   SYSTEM.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, and annually thereafter 
     for four years, the Administrator for Federal Procurement 
     Policy, in consultation with the Administrator of General 
     Services, shall submit to the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Oversight and Government Reform of the House of 
     Representatives a report describing during the previous year 
     the extent to which suspended or debarred contractors on the 
     Excluded Parties List System, including those suspended or 
     debarred for failing to make full or timely payments to 
     subcontractors--
       (1) continued to receive Federal contracts; or
       (2) were granted waivers from Federal agencies from 
     suspension or debarment for purposes of entering into Federal 
     contracts.
       (b) Content.--The report required under subsection (a) 
     shall include, for each contract awarded to a suspended or 
     debarred contractor--
       (1) the name of the Federal agency awarding the contract;
       (2) the name of the contractor;
       (3) the contract value;
       (4) the date of award;
       (5) the period of performance;
       (6) whether a waiver was utilized to award the contract;
       (7) the date of suspension or debarment;
       (8) the reason for suspension or debarment; and
       (9) the period of suspension or debarment.
                                 ______
                                 
  SA 4496. Mr. GRASSLEY submitted an amendment intended to be proposed 
to amendment SA 4402 proposed by Mr. Reid (for Mr. Baucus (for himself, 
Ms. Landrieu, and Mr. Reid)) to the bill H.R. 5297, to create the Small 
Business Lending Fund Program to direct the Secretary of the Treasury 
to make capital investments in eligible institutions in order to 
increase the availability of credit for small businesses, to amend the 
Internal Revenue Code of 1986 to provide tax incentives for small 
business job creation, and for other purposes; which was ordered to lie 
on the table; as follows:

       Section 3107 of the bill is amended--
       (1) by striking ``Inspector General of the Department of 
     the Treasury'' each place that term appears and inserting 
     ``Special Inspector General for the Troubled Asset Relief 
     Program'';
       (2) by striking ``Inspector General'' each place that term 
     appears (other than as provided in paragraph (1)) and 
     inserting ``Special Inspector General''; and
       (3) by adding at the end the following:
       (f) Conforming Amendments to the Emergency Economic 
     Stabilization Act of 2008.--Section 121(c)(1) of the 
     Emergency Economic Stabilization Act of 2008 (12 U.S.C. 
     5231(c)(1)) is amended--
       (1) by striking ``section 101, and'' and inserting 
     ``section 101,''; and
       (2) by inserting before ``including'' the following: ``and 
     activities under subtitle A of title III of the Small 
     Business Jobs Act of 2010,''.
                                 ______
                                 
  SA 4497. Mr. REID proposed an amendment to amendment SA 4425 proposed 
by Mr. Reid to the bill H.R. 4213, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
as follows:

       Beginning on page 7, line 14, strike through page 11, line 
     18.
                                 ______
                                 
  SA 4498. Mr. REID (for Ms. Klobuchar) proposed an amendment to the 
bill S. 1376, to restore immunization and sibling age exemptions for 
children adopted by United States citizens under the Hague Convention 
on Intercountry Adoption to allow their admission into the United 
States; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as ``International Adoption 
     Simplification Act''.

     SEC. 2. EXEMPTION FROM VACCINATION DOCUMENTATION REQUIREMENT.

       Section 212(a)(1)(C)(ii) of the Immigration and Nationality 
     Act (8 U.S.C. 1182(a)(1)(C)(ii)) is amended by striking 
     ``section 101(b)(1)(F),'' and inserting ``subparagraph (F) or 
     (G) of section 101(b)(1);''.

     SEC. 3. SIBLING ADOPTIONS.

       Section 101(b)(1)(G) of the Immigration and Nationality Act 
     (8 U.S.C. 1101(b)(1)(G)) is amended to read as follows:
       ``(G)(i) a child, younger than 16 years of age at the time 
     a petition is filed on the child's behalf to accord a 
     classification as an immediate relative under section 201(b), 
     who has been adopted in a foreign state that is a party to 
     the Convention on Protection of Children and Co-operation in 
     Respect of Intercountry Adoption, done at The Hague on May 
     29, 1993, or who is emigrating from such a foreign state to 
     be adopted in the United States by a United States citizen 
     and spouse jointly or by an unmarried United States citizen 
     who is at least 25 years of age, Provided, That--
       ``(I) the Secretary of Homeland Security is satisfied that 
     proper care will be furnished the child if admitted to the 
     United States;
       ``(II) the child's natural parents (or parent, in the case 
     of a child who has one sole or surviving parent because of 
     the death or disappearance of, abandonment or desertion by, 
     the other parent), or other persons or institutions that 
     retain legal custody of the child, have freely given their 
     written irrevocable consent to the termination of their legal 
     relationship with the child, and to the child's emigration 
     and adoption;
       ``(III) in the case of a child having two living natural 
     parents, the natural parents are incapable of providing 
     proper care for the child;
       ``(IV) the Secretary of Homeland Security is satisfied that 
     the purpose of the adoption is to form a bona fide parent-
     child relationship, and the parent-child relationship of the 
     child and the natural parents has been terminated (and in 
     carrying out both obligations under this subclause the 
     Secretary of Homeland Security may consider whether there is 
     a petition pending to confer immigrant status on one or both 
     of such natural parents); and
       ``(V) in the case of a child who has not been adopted--

       ``(aa) the competent authority of the foreign state has 
     approved the child's emigration to the United States for the 
     purpose of adoption by the prospective adoptive parent or 
     parents; and
       ``(bb) the prospective adoptive parent or parents has or 
     have complied with any pre-adoption requirements of the 
     child's proposed residence; and

       ``(ii) except that no natural parent or prior adoptive 
     parent of any such child shall thereafter, by virtue of such 
     parentage, be accorded any right, privilege, or status under 
     this chapter; or
       ``(iii) subject to the same provisos as in clauses (i) and 
     (ii), a child who--
       ``(I) is a natural sibling of a child described in clause 
     (i), subparagraph (E)(i), or subparagraph (F)(i);
       ``(II) was adopted abroad, or is coming to the United 
     States for adoption, by the adoptive parent (or prospective 
     adoptive parent) or parents of the sibling described in 
     clause (i), subparagraph (E)(i), or subparagraph (F)(i); and
       ``(III) is otherwise described in clause (i), except that 
     the child is younger than 18 years of age at the time a 
     petition is filed on his or her behalf for classification as 
     an immediate relative under section 201(b).''.

     SEC. 4. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this Act shall take effect on the date of 
     the enactment of this Act.
       (b) Exception.--An alien who is described in section 
     101(b)(1)(G)(iii) of the Immigration and Nationality Act, as 
     added by section 3, and attained 18 years of age on or after 
     April 1, 2008, shall be deemed to meet the age requirement 
     specified in subclause (III) of such section if a petition 
     for classification of the alien as an immediate relative 
     under section 201(b) of the Immigration and Nationality Act 
     (8 U.S.C. 1151(b)) is filed not later than 2 years after the 
     date of the enactment of this Act.
                                 ______
                                 
  SA 4499. Mr. REID (for Mr. Baucus) proposed an amendment to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; as 
follows:


[[Page 13666]]

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Jobs Act of 
     2010''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                       TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.

              Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.

         PART I--Next Steps for Main Street Credit Availability

Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Loan guarantee enhancement extensions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.

               PART II--Small Business Access to Capital

Sec. 1122. Low-interest refinancing under the local development 
              business loan program.

                        PART III--Other Matters

Sec. 1131. Small business intermediary lending pilot program.
Sec. 1132. Public policy goals.
Sec. 1133. Floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or 
              economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax increases.

             Subtitle B--Small Business Trade and Exporting

Sec. 1201. Short title.
Sec. 1202. Definitions.
Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business 
              development centers.

                 Subtitle C--Small Business Contracting

                       PART I--Contract Bundling

Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.

                   PART II--Subcontracting Integrity

Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.

                     PART III--Acquisition Process

Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration 
              Program.

           PART IV--Small Business Size and Status Integrity

Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.

    Subtitle D--Small Business Management and Counseling Assistance

Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.

                 Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.

              Subtitle F--Small Business Regulatory Relief

Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.

                 Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program 
              account.
Sec. 1704. Small business loan guarantee enhancement extensions.

                        TITLE II--TAX PROVISIONS

Sec. 2001. Short title.

                   Subtitle A--Small Business Relief

                  PART I--Providing Access to Capital

Sec. 2011. Temporary exclusion of 100 percent of gain on certain small 
              business stock.
Sec. 2012. General business credits of eligible small businesses for 
              2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in 
              2010 not subject to alternative minimum tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains 
              tax.

                    PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain 
              real property treated as section 179 property.
Sec. 2022. Additional first-year depreciation for 50 percent of the 
              basis of certain qualified property.
Sec. 2023. Special rule for long-term contract accounting.

                  PART III--Promoting Entrepreneurship

Sec. 2031. Increase in amount allowed as deduction for start-up 
              expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade 
              Representative to develop market access opportunities for 
              United States small- and medium-sized businesses and to 
              enforce trade agreements.

               PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable 
              transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
              employment taxes in 2010.
Sec. 2043. Removal of cellular telephones and similar 
              telecommunications equipment from listed property.

                     Subtitle B--Revenue Provisions

                      PART I--Reducing the Tax Gap

Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other 
              enforcement actions.
Sec. 2104. Application of continuous levy to tax liabilities of certain 
              Federal contractors.

               PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to 
              treat elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth 
              accounts.
Sec. 2113. Special rules for annuities received from only a portion of 
              a contract.

                 PART III--Closing Unintended Loopholes

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer 
              credit.
Sec. 2122. Source rules for income on guarantees.

         PART IV--Time for Payment of Corporate Estimated Taxes

Sec. 2131. Time for payment of corporate estimated taxes.

           TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE

Sec. 3001. Short title.
Sec. 3002. Definitions.
Sec. 3003. Federal funds allocated to States.
Sec. 3004. Approving States for participation.
Sec. 3005. Approving State capital access programs.
Sec. 3006. Approving collateral support and other innovative credit 
              access and guarantee initiatives for small businesses and 
              manufacturers.
Sec. 3007. Reports.
Sec. 3008. Remedies for State program termination or failures.
Sec. 3009. Implementation and administration.
Sec. 3010. Regulations.
Sec. 3011. Oversight and audits.

                     TITLE IV--BUDGETARY PROVISIONS

Sec. 4001. Determination of budgetary effects.

                       TITLE I--SMALL BUSINESSES

     SEC. 1001. DEFINITIONS.

       In this title--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).

[[Page 13667]]



              Subtitle A--Small Business Access to Credit

     SEC. 1101. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Job 
     Creation and Access to Capital Act of 2010''.

         PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

     SEC. 1111. SECTION 7(A) BUSINESS LOANS.

       (a) Amendment.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``75 percent'' and inserting 
     ``90 percent''; and
       (B) in clause (ii), by striking ``85 percent'' and 
     inserting ``90 percent''; and
       (2) in paragraph (3)(A), by striking ``$1,500,000 (or if 
     the gross loan amount would exceed $2,000,000'' and inserting 
     ``$4,500,000 (or if the gross loan amount would exceed 
     $5,000,000''.
       (b) Prospective Repeal.--Effective January 1, 2011, section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``90 percent'' and inserting 
     ``75 percent''; and
       (B) in clause (ii), by striking ``90 percent'' and 
     inserting ``85 percent''; and
       (2) in paragraph (3)(A), by striking ``$4,500,000'' and 
     inserting ``$3,750,000''.

     SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.

       Section 502(2)(A) of the Small Business Investment Act of 
     1958 (15 U.S.C. 696(2)(A)) is amended--
       (1) in clause (i), by striking ``$1,500,000'' and inserting 
     ``$5,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000'';
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000'';
       (4) in clause (iv), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''; and
       (5) in clause (v), by striking ``$4,000,000'' and inserting 
     ``$5,500,000''.

     SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended--
       (1) in paragraph (1)(B)(iii), by striking ``$35,000'' and 
     inserting ``$50,000'';
       (2) in paragraph (3)--
       (A) in subparagraph (C), by striking ``$3,500,000'' and 
     inserting ``$5,000,000''; and
       (B) in subparagraph (E), by striking ``$35,000'' each place 
     that term appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

     SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS.

       (a) Fees.--Section 501 of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 151) is 
     amended by striking ``September 30, 2010'' each place that 
     term appears and inserting ``December 31, 2010''.
       (b) Loan Guarantees.--Section 502(f) of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 153) is amended by striking ``May 31, 2010'' 
     and inserting ``December 31, 2010''.

     SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
                   LIMITATIONS.

       Section 355 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689d) is amended by adding at the end the 
     following:
       ``(e) Investment Limitations.--
       ``(1) Definition.--In this subsection, the term `covered 
     New Markets Venture Capital company' means a New Markets 
     Venture Capital company--
       ``(A) granted final approval by the Administrator under 
     section 354(e) on or after March 1, 2002; and
       ``(B) that has obtained a financing from the Administrator.
       ``(2) Limitation.--Except to the extent approved by the 
     Administrator, a covered New Markets Venture Capital company 
     may not acquire or issue commitments for securities under 
     this title for any single enterprise in an aggregate amount 
     equal to more than 10 percent of the sum of--
       ``(A) the regulatory capital of the covered New Markets 
     Venture Capital company; and
       ``(B) the total amount of leverage projected in the 
     participation agreement of the covered New Markets Venture 
     Capital.''.

     SEC. 1116. ALTERNATIVE SIZE STANDARDS.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following:
       ``(5) Alternative Size Standard.--
       ``(A) In general.--The Administrator shall establish an 
     alternative size standard for applicants for business loans 
     under section 7(a) and applicants for development company 
     loans under title V of the Small Business Investment Act of 
     1958 (15 U.S.C. 695 et seq.), that uses maximum tangible net 
     worth and average net income as an alternative to the use of 
     industry standards.
       ``(B) Interim rule.--Until the date on which the 
     alternative size standard established under subparagraph (A) 
     is in effect, an applicant for a business loan under section 
     7(a) or an applicant for a development company loan under 
     title V of the Small Business Investment Act of 1958 may be 
     eligible for such a loan if--
       ``(i) the maximum tangible net worth of the applicant is 
     not more than $15,000,000; and
       ``(ii) the average net income after Federal income taxes 
     (excluding any carry-over losses) of the applicant for the 2 
     full fiscal years before the date of the application is not 
     more than $5,000,000.''.

     SEC. 1117. SALE OF 7(A) LOANS IN SECONDARY MARKET.

       Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) 
     is amended by adding at the end the following:
       ``(6) If the amount of the guaranteed portion of any loan 
     under section 7(a) is more than $500,000, the Administrator 
     shall, upon request of a pool assembler, divide the loan 
     guarantee into increments of $500,000 and 1 increment of any 
     remaining amount less than $500,000, in order to permit the 
     maximum amount of any loan in a pool to be not more than 
     $500,000. Only 1 increment of any loan guarantee divided 
     under this paragraph may be included in the same pool. 
     Increments of loan guarantees to different borrowers that are 
     divided under this paragraph may be included in the same 
     pool.''.

     SEC. 1118. ONLINE LENDING PLATFORM.

       It is the sense of Congress that the Administrator of the 
     Small Business Administration should establish a website 
     that--
       (1) lists each lender that makes loans guaranteed by the 
     Small Business Administration and provides information about 
     the loan rates of each such lender; and
       (2) allows prospective borrowers to compare rates on loans 
     guaranteed by the Small Business Administration.

     SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.

       Section 503(f) of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is 
     amended by striking ``on the date 2 years after the date of 
     enactment of this section'' and inserting ``2 years after the 
     date of the first sale of a pool of first lien position 504 
     loans guaranteed under this section to a third-party 
     investor''.

               PART II--SMALL BUSINESS ACCESS TO CAPITAL

     SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL 
                   DEVELOPMENT BUSINESS LOAN PROGRAM.

       (a) Refinancing.--Section 502(7) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(7)) is amended by 
     adding at the end the following:
       ``(C) Refinancing not involving expansions.--
       ``(i) Definitions.--In this subparagraph--

       ``(I) the term `borrower' means a small business concern 
     that submits an application to a development company for 
     financing under this subparagraph;
       ``(II) the term `eligible fixed asset' means tangible 
     property relating to which the Administrator may provide 
     financing under this section; and
       ``(III) the term `qualified debt' means indebtedness--

       ``(aa) that--
       ``(AA) was incurred not less than 2 years before the date 
     of the application for assistance under this subparagraph;
       ``(BB) is a commercial loan;
       ``(CC) is not subject to a guarantee by a Federal agency;
       ``(DD) the proceeds of which were used to acquire an 
     eligible fixed asset;
       ``(EE) was incurred for the benefit of the small business 
     concern; and
       ``(FF) is collateralized by eligible fixed assets; and
       ``(bb) for which the borrower has been current on all 
     payments for not less than 1 year before the date of the 
     application.
       ``(ii) Authority.--A project that does not involve the 
     expansion of a small business concern may include the 
     refinancing of qualified debt if--

       ``(I) the amount of the financing is not more than 90 
     percent of the value of the collateral for the financing, 
     except that, if the appraised value of the eligible fixed 
     assets serving as collateral for the financing is less than 
     the amount equal to 125 percent of the amount of the 
     financing, the borrower may provide additional cash or other 
     collateral to eliminate any deficiency;
       ``(II) the borrower has been in operation for all of the 2-
     year period ending on the date of the loan; and
       ``(III) for a financing for which the Administrator 
     determines there will be an additional cost attributable to 
     the refinancing of the qualified debt, the borrower agrees to 
     pay a fee in an amount equal to the anticipated additional 
     cost.

       ``(iii) Financing for business expenses.--

       ``(I) Financing for business expenses.--The Administrator 
     may provide financing to a borrower that receives financing 
     that includes a refinancing of qualified debt under clause 
     (ii), in addition to the refinancing under clause (ii), to be 
     used solely for the payment of business expenses.
       ``(II) Application for financing.--An application for 
     financing under subclause (I) shall include--

       ``(aa) a specific description of the expenses for which the 
     additional financing is requested; and
       ``(bb) an itemization of the amount of each expense.

       ``(III) Condition on additional financing.--A borrower may 
     not use any part of the financing under this clause for non-
     business purposes.

[[Page 13668]]

       ``(iv) Loans based on jobs.--

       ``(I) Job creation and retention goals.--

       ``(aa) In general.--The Administrator may provide financing 
     under this subparagraph for a borrower that meets the job 
     creation goals under subsection (d) or (e) of section 501.
       ``(bb) Alternate job retention goal.--The Administrator may 
     provide financing under this subparagraph to a borrower that 
     does not meet the goals described in item (aa) in an amount 
     that is not more than the product obtained by multiplying the 
     number of employees of the borrower by $65,000.

       ``(II) Number of employees.--For purposes of subclause (I), 
     the number of employees of a borrower is equal to the sum 
     of--

       ``(aa) the number of full-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; and
       ``(bb) the product obtained by multiplying--
       ``(AA) the number of part-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; by
       ``(BB) the quotient obtained by dividing the average number 
     of hours each part time employee of the borrower works each 
     week by 40.
       ``(v) Nondelegation.--Notwithstanding section 508(e), the 
     Administrator may not permit a premier certified lender to 
     approve or disapprove an application for assistance under 
     this subparagraph.
       ``(vi) Total amount of loans.--The Administrator may 
     provide not more than a total of $7,500,000,000 of financing 
     under this subparagraph for each fiscal year.''.
       (b) Prospective Repeal.--Effective 2 years after the date 
     of enactment of this Act, section 502(7) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended 
     by striking subparagraph (C).
       (c) Technical Correction.--Section 502(2)(A)(i) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 
     696(2)(A)(i)) is amended by striking ``subparagraph (B) or 
     (C)'' and inserting ``clause (ii), (iii), (iv), or (v)''.

                        PART III--OTHER MATTERS

     SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

       (a) In General.--Section 7 of the Small Business Act (15 
     U.S.C. 636) is amended by striking subsection (l) and 
     inserting the following:
       ``(l) Small Business Intermediary Lending Pilot Program.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `eligible intermediary'--
       ``(i) means a private, nonprofit entity that--

       ``(I) seeks or has been awarded a loan from the 
     Administrator to make loans to small business concerns under 
     this subsection; and
       ``(II) has not less than 1 year of experience making loans 
     to startup, newly established, or growing small business 
     concerns; and

       ``(ii) includes--

       ``(I) a private, nonprofit community development 
     corporation;
       ``(II) a consortium of private, nonprofit organizations or 
     nonprofit community development corporations; and
       ``(III) an agency of or nonprofit entity established by a 
     Native American Tribal Government; and

       ``(B) the term `Program' means the small business 
     intermediary lending pilot program established under 
     paragraph (2).
       ``(2) Establishment.--There is established a 3-year small 
     business intermediary lending pilot program, under which the 
     Administrator may make direct loans to eligible 
     intermediaries, for the purpose of making loans to startup, 
     newly established, and growing small business concerns.
       ``(3) Purposes.--The purposes of the Program are--
       ``(A) to assist small business concerns in areas suffering 
     from a lack of credit due to poor economic conditions or 
     changes in the financial market; and
       ``(B) to establish a loan program under which the 
     Administrator may provide loans to eligible intermediaries to 
     enable the eligible intermediaries to provide loans to 
     startup, newly established, and growing small business 
     concerns for working capital, real estate, or the acquisition 
     of materials, supplies, or equipment.
       ``(4) Loans to eligible intermediaries.--
       ``(A) Application.--Each eligible intermediary desiring a 
     loan under this subsection shall submit an application to the 
     Administrator that describes--
       ``(i) the type of small business concerns to be assisted;
       ``(ii) the size and range of loans to be made;
       ``(iii) the interest rate and terms of loans to be made;
       ``(iv) the geographic area to be served and the economic, 
     poverty, and unemployment characteristics of the area;
       ``(v) the status of small business concerns in the area to 
     be served and an analysis of the availability of credit; and
       ``(vi) the qualifications of the applicant to carry out 
     this subsection.
       ``(B) Loan limits.--No loan may be made to an eligible 
     intermediary under this subsection if the total amount 
     outstanding and committed to the eligible intermediary by the 
     Administrator would, as a result of such loan, exceed 
     $1,000,000 during the participation of the eligible 
     intermediary in the Program.
       ``(C) Loan duration.--Loans made by the Administrator under 
     this subsection shall be for a term of 20 years.
       ``(D) Applicable interest rates.--Loans made by the 
     Administrator to an eligible intermediary under the Program 
     shall bear an annual interest rate equal to 1.00 percent.
       ``(E) Fees; collateral.--The Administrator may not charge 
     any fees or require collateral with respect to any loan made 
     to an eligible intermediary under this subsection.
       ``(F) Delayed payments.--The Administrator shall not 
     require the repayment of principal or interest on a loan made 
     to an eligible intermediary under the Program during the 2-
     year period beginning on the date of the initial disbursement 
     of funds under that loan.
       ``(G) Maximum participants and amounts.--During each of 
     fiscal years 2011, 2012, and 2013, the Administrator may make 
     loans under the Program--
       ``(i) to not more than 20 eligible intermediaries; and
       ``(ii) in a total amount of not more than $20,000,000.
       ``(5) Loans to small business concerns.--
       ``(A) In general.--The Administrator, through an eligible 
     intermediary, shall make loans to startup, newly established, 
     and growing small business concerns for working capital, real 
     estate, and the acquisition of materials, supplies, 
     furniture, fixtures, and equipment.
       ``(B) Maximum loan.--An eligible intermediary may not make 
     a loan under this subsection of more than $200,000 to any 1 
     small business concern.
       ``(C) Applicable interest rates.--A loan made by an 
     eligible intermediary to a small business concern under this 
     subsection, may have a fixed or a variable interest rate, and 
     shall bear an interest rate specified by the eligible 
     intermediary in the application of the eligible intermediary 
     for a loan under this subsection.
       ``(D) Review restrictions.--The Administrator may not 
     review individual loans made by an eligible intermediary to a 
     small business concern before approval of the loan by the 
     eligible intermediary.
       ``(6) Termination.--The authority of the Administrator to 
     make loans under the Program shall terminate 3 years after 
     the date of enactment of the Small Business Job Creation and 
     Access to Capital Act of 2010.''.
       (b) Rulemaking Authority.--Not later than 180 days after 
     the date of enactment of this Act, the Administrator shall 
     issue regulations to carry out section 7(l) of the Small 
     Business Act, as amended by subsection (a).
       (c) Availability of Funds.--Any amounts provided to the 
     Administrator for the purposes of carrying out section 7(l) 
     of the Small Business Act, as amended by subsection (a), 
     shall remain available until expended.

     SEC. 1132. PUBLIC POLICY GOALS.

       Section 501(d)(3) of the Small Business Investment Act of 
     1958 (15 U.S.C. 695(d)(3)) is amended--
       (1) in subparagraph (J), by striking ``or'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``, or''; and
       (3) by adding at the end the following:
       ``(L) reduction of rates of unemployment in labor surplus 
     areas, as such areas are determined by the Secretary of 
     Labor.''.

     SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) by redesignating paragraph (32), relating to increased 
     veteran participation, as added by section 208 of the 
     Military Reservist and Veteran Small Business Reauthorization 
     and Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 
     631), as paragraph (33); and
       (2) by adding at the end the following:
       ``(34) Floor plan financing program.--
       ``(A) Definition.--In this paragraph, the term `eligible 
     retail good'--
       ``(i) means a good for which a title may be obtained under 
     State law; and
       ``(ii) includes an automobile, recreational vehicle, boat, 
     and manufactured home.
       ``(B) Program.--The Administrator may guarantee the timely 
     payment of an open-end extension of credit to a small 
     business concern, the proceeds of which may be used for the 
     purchase of eligible retail goods for resale.
       ``(C) Amount.--An open-end extension of credit guaranteed 
     under this paragraph shall be in an amount not less than 
     $500,000 and not more than $5,000,000.
       ``(D) Term.--An open-end extension of credit guaranteed 
     under this paragraph shall have a term of not more than 5 
     years.
       ``(E) Guarantee percentage.--The Administrator may 
     guarantee--
       ``(i) not less than 60 percent of an open-end extension of 
     credit under this paragraph; and
       ``(ii) not more than 75 percent of an open-end extension of 
     credit under this paragraph.
       ``(F) Advance rate.--The lender for an open-end extension 
     of credit guaranteed under this paragraph may allow the 
     borrower to draw funds on the line of credit in an amount 
     equal to not more than 100 percent of the value of the 
     eligible retail goods to be purchased.''.

[[Page 13669]]

       (b) Sunset.--Effective September 30, 2013, section 7(a) of 
     the Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) by striking paragraph (34); and
       (2) by redesignating paragraph (35), as added by section 
     1206 of this Act, as paragraph (34).

     SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       The Riegle Community Development and Regulatory Improvement 
     Act of 1994 (12 U.S.C. 4701 et seq.) is amended by inserting 
     after section 114 (12 U.S.C. 4713) the following:

     ``SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Eligible community development financial 
     institution.--The term `eligible community development 
     financial institution' means a community development 
     financial institution (as described in section 1805.201 of 
     title 12, Code of Federal Regulations, or any successor 
     thereto) certified by the Secretary that has applied to a 
     qualified issuer for, or been granted by a qualified issuer, 
     a loan under the Program.
       ``(2) Eligible community or economic development purpose.--
     The term `eligible community or economic development 
     purpose'--
       ``(A) means any purpose described in section 108(b); and
       ``(B) includes the provision of community or economic 
     development in low-income or underserved rural areas.
       ``(3) Guarantee.--The term `guarantee' means a written 
     agreement between the Secretary and a qualified issuer (or 
     trustee), pursuant to which the Secretary ensures repayment 
     of the verifiable losses of principal, interest, and call 
     premium, if any, on notes or bonds issued by a qualified 
     issuer to finance or refinance loans to eligible community 
     development financial institutions.
       ``(4) Loan.--The term `loan' means any credit instrument 
     that is extended under the Program for any eligible community 
     or economic development purpose.
       ``(5) Master servicer.--
       ``(A) In general.--The term `master servicer' means any 
     entity approved by the Secretary in accordance with 
     subparagraph (B) to oversee the activities of servicers, as 
     provided in subsection (f)(4).
       ``(B) Approval criteria for master servicers.--The 
     Secretary shall approve or deny any application to become a 
     master servicer under the Program not later than 90 days 
     after the date on which all required information is submitted 
     to the Secretary, based on the capacity and experience of the 
     applicant in--
       ``(i) loan administration, servicing, and loan monitoring;
       ``(ii) managing regional or national loan intake, 
     processing, or servicing operational systems and 
     infrastructure;
       ``(iii) managing regional or national originator 
     communication systems and infrastructure;
       ``(iv) developing and implementing training and other risk 
     management strategies on a regional or national basis; and
       ``(v) compliance monitoring, investor relations, and 
     reporting.
       ``(6) Program.--The term `Program' means the guarantee 
     Program for bonds and notes issued for eligible community or 
     economic development purposes established under this section.
       ``(7) Program administrator.--The term `Program 
     administrator' means an entity designated by the issuer to 
     perform administrative duties, as provided in subsection 
     (f)(2).
       ``(8) Qualified issuer.--
       ``(A) In general.--The term `qualified issuer' means a 
     community development financial institution (or any entity 
     designated to issue notes or bonds on behalf of such 
     community development financial institution) that meets the 
     qualification requirements of this paragraph.
       ``(B) Approval criteria for qualified issuers.--
       ``(i) In general.--The Secretary shall approve a qualified 
     issuer for a guarantee under the Program in accordance with 
     the requirements of this paragraph, and such additional 
     requirements as the Secretary may establish, by regulation.
       ``(ii) Terms and qualifications.--A qualified issuer 
     shall--

       ``(I) have appropriate expertise, capacity, and experience, 
     or otherwise be qualified to make loans for eligible 
     community or economic development purposes;
       ``(II) provide to the Secretary--

       ``(aa) an acceptable statement of the proposed sources and 
     uses of the funds; and
       ``(bb) a capital distribution plan that meets the 
     requirements of subsection (c)(1); and

       ``(III) certify to the Secretary that the bonds or notes to 
     be guaranteed are to be used for eligible community or 
     economic development purposes.

       ``(C) Department opinion; timing.--
       ``(i) Department opinion.--Not later than 30 days after the 
     date of a request by a qualified issuer for approval of a 
     guarantee under the Program, the Secretary shall provide an 
     opinion regarding compliance by the issuer with the 
     requirements of the Program under this section.
       ``(ii) Timing.--The Secretary shall approve or deny a 
     guarantee under this section after consideration of the 
     opinion provided to the Secretary under clause (i), and in no 
     case later than 90 days after receipt of all required 
     information by the Secretary with respect to a request for 
     such guarantee.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(10) Servicer.--The term `servicer' means an entity 
     designated by the issuer to perform various servicing duties, 
     as provided in subsection (f)(3).
       ``(b) Guarantees Authorized.--The Secretary shall guarantee 
     payments on bonds or notes issued by any qualified issuer, if 
     the proceeds of the bonds or notes are used in accordance 
     with this section to make loans to eligible community 
     development financial institutions--
       ``(1) for eligible community or economic development 
     purposes; or
       ``(2) to refinance loans or notes issued for such purposes.
       ``(c) General Program Requirements.--
       ``(1) In general.--A capital distribution plan meets the 
     requirements of this subsection, if not less than 90 percent 
     of the principal amount of guaranteed bonds or notes (other 
     than costs of issuance fees) are used to make loans for any 
     eligible community or economic development purpose, measured 
     annually, beginning at the end of the 1-year period beginning 
     on the issuance date of such guaranteed bonds or notes.
       ``(2) Relending account.--Not more than 10 percent of the 
     principal amount of guaranteed bonds or notes, multiplied by 
     an amount equal to the outstanding principal balance of 
     issued notes or bonds, minus the risk-share pool amount under 
     subsection (d), may be held in a relending account and may be 
     made available for new eligible community or economic 
     development purposes.
       ``(3) Limitations on unpaid principal balances.--The 
     proceeds of guaranteed bonds or notes under the Program may 
     not be used to pay fees (other than costs of issuance fees), 
     and shall be held in--
       ``(A) community or economic development loans;
       ``(B) a relending account, to the extent authorized under 
     paragraph (2); or
       ``(C) a risk-share pool established under subsection (d).
       ``(4) Repayment.--If a qualified issuer fails to meet the 
     requirements of paragraph (1) by the end of the 90-day period 
     beginning at the end of the annual measurement period, 
     repayment shall be made on that portion of bonds or notes 
     necessary to bring the bonds or notes that remain outstanding 
     after such repayment into compliance with the 90 percent 
     requirement of paragraph (1).
       ``(5) Prohibited uses.--The Secretary shall, by 
     regulation--
       ``(A) prohibit, as appropriate, certain uses of amounts 
     from the guarantee of a bond or note under the Program, 
     including the use of such funds for political activities, 
     lobbying, outreach, counseling services, or travel expenses; 
     and
       ``(B) provide that the guarantee of a bond or note under 
     the Program may not be used for salaries or other 
     administrative costs of--
       ``(i) the qualified issuer; or
       ``(ii) any recipient of amounts from the guarantee of a 
     bond or note.
       ``(d) Risk-Share Pool.--Each qualified issuer shall, during 
     the term of a guarantee provided under the Program, establish 
     a risk-share pool, capitalized by contributions from eligible 
     community development financial institution participants an 
     amount equal to 3 percent of the guaranteed amount 
     outstanding on the subject notes and bonds.
       ``(e) Guarantees.--
       ``(1) In general.--A guarantee issued under the Program 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable to the capital 
     market, on terms and conditions that are consistent with 
     comparable Government-guaranteed bonds, and satisfactory to 
     the Secretary;
       ``(C) represent the full faith and credit of the United 
     States; and
       ``(D) not exceed 30 years.
       ``(2) Limitations.--
       ``(A) Annual number of guarantees.--The Secretary shall 
     issue not more than 10 guarantees in any calendar year under 
     the Program.
       ``(B) Guarantee amount.--The Secretary may not guarantee 
     any amount under the Program equal to less than $100,000,000, 
     but the total of all such guarantees in any fiscal year may 
     not exceed $1,000,000,000.
       ``(f) Servicing of Transactions.--
       ``(1) In general.--To maximize efficiencies and minimize 
     cost and interest rates, loans made under this section may be 
     serviced by qualified Program administrators, bond servicers, 
     and a master servicer.
       ``(2) Duties of program administrator.--The duties of a 
     Program administrator shall include--
       ``(A) approving and qualifying eligible community 
     development financial institution applications for 
     participation in the Program;

[[Page 13670]]

       ``(B) compliance monitoring;
       ``(C) bond packaging in connection with the Program; and
       ``(D) all other duties and related services that are 
     customarily expected of a Program administrator.
       ``(3) Duties of servicer.--The duties of a servicer shall 
     include--
       ``(A) billing and collecting loan payments;
       ``(B) initiating collection activities on past-due loans;
       ``(C) transferring loan payments to the master servicing 
     accounts;
       ``(D) loan administration and servicing;
       ``(E) systematic and timely reporting of loan performance 
     through remittance and servicing reports;
       ``(F) proper measurement of annual outstanding loan 
     requirements; and
       ``(G) all other duties and related services that are 
     customarily expected of servicers.
       ``(4) Duties of master servicer.--The duties of a master 
     servicer shall include--
       ``(A) tracking the movement of funds between the accounts 
     of the master servicer and any other servicer;
       ``(B) ensuring orderly receipt of the monthly remittance 
     and servicing reports of the servicer;
       ``(C) monitoring the collection comments and foreclosure 
     actions;
       ``(D) aggregating the reporting and distribution of funds 
     to trustees and investors;
       ``(E) removing and replacing a servicer, as necessary;
       ``(F) loan administration and servicing;
       ``(G) systematic and timely reporting of loan performance 
     compiled from all bond servicers' reports;
       ``(H) proper distribution of funds to investors; and
       ``(I) all other duties and related services that are 
     customarily expected of a master servicer.
       ``(g) Fees.--
       ``(1) In general.--A qualified issuer that receives a 
     guarantee issued under this section on a bond or note shall 
     pay a fee to the Secretary, in an amount equal to 10 basis 
     points of the amount of the unpaid principal of the bond or 
     note guaranteed.
       ``(2) Payment.--A qualified issuer shall pay the fee 
     required under this subsection on an annual basis.
       ``(3) Use of fees.--Fees collected by the Secretary under 
     this subsection shall be used to reimburse the Department of 
     the Treasury for any administrative costs incurred by the 
     Department in implementing the Program established under this 
     section.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary, such sums as are necessary to carry out 
     this section.
       ``(2) Use of fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     the fees collected under subsection (g) for the cost of 
     providing guarantees of bonds and notes under this section.
       ``(i) Investment in Guaranteed Bonds Ineligible for 
     Community Reinvestment Act Purposes.--Notwithstanding any 
     other provision of law, any investment by a financial 
     institution in bonds or notes guaranteed under the Program 
     shall not be taken into account in assessing the record of 
     such institution for purposes of the Community Reinvestment 
     Act of 1977 (12 U.S.C. 2901).
       ``(j) Administration.--
       ``(1) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(2) Implementation.--Not later than 2 years after the 
     date of enactment of this section, the Secretary shall 
     implement this section.
       ``(k) Termination.--This section is repealed, and the 
     authority provided under this section shall terminate, on 
     September 30, 2014.''.

     SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.

       (a) In General.--Section 7(a)(31)(D) of the Small Business 
     Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$350,000'' and inserting ``$1,000,000''.
       (b) Prospective Repeal.--Effective 1 year after the date of 
     enactment of this Act, section 7(a)(31)(D) of the Small 
     Business Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$1,000,000'' and inserting ``$350,000''.

     SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX INCREASES.

       (a) In General.--Except as provided in subsection (b), 
     nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections, 
     shall be construed to limit the ability of Congress to 
     appropriate funds.
       (b) TARP Funds and Tax Increases.--
       (1) In general.--Any covered amounts may not be used to 
     carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections.
       (2) Definition.--In this subsection, the term ``covered 
     amounts'' means--
       (A) the amounts made available to the Secretary of the 
     Treasury under title I of the Emergency Economic 
     Stabilization Act of 2008 S.C. 5201 et seq.) to purchase 
     (under section 101) or guarantee (under section 102) assets 
     under that Act; and
       (B) any revenue increase attributable to any amendment to 
     the Internal Revenue Code of 1986 made during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2010.

             Subtitle B--Small Business Trade and Exporting

     SEC. 1201. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Export 
     Enhancement and International Trade Act of 2010''.

     SEC. 1202. DEFINITIONS.

       (a) Definitions.--In this subtitle--
       (1) the term ``Associate Administrator'' means the 
     Associate Administrator for International Trade appointed 
     under section 22(a)(2) of the Small Business Act, as amended 
     by this subtitle;
       (2) the term ``Export Assistance Center'' means a one-stop 
     shop referred to in section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and
       (3) the term ``rural small business concern'' means a small 
     business concern located in a rural area, as that term is 
     defined in section 1393(a)(2) of the Internal Revenue Code of 
     1986.
       (b) Technical and Conforming Amendments.--
       (1) Definitions.--Section 3 of the Small Business Act (15 
     U.S.C. 632) is amended by adding at the end the following:
       ``(t) Small Business Development Center.--In this Act, the 
     term `small business development center' means a small 
     business development center described in section 21.
       ``(u) Region of the Administration.--In this Act, the term 
     `region of the Administration' means the geographic area 
     served by a regional office of the Administration established 
     under section 4(a).''.
       (2) Conforming amendment.--Section 4(b)(3)(B)(x) of the 
     Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
     striking ``Administration district and region'' and inserting 
     ``district and region of the Administration''.

     SEC. 1203. OFFICE OF INTERNATIONAL TRADE.

       (a) Establishment.--Section 22 of the Small Business Act 
     (15 U.S.C. 649) is amended--
       (1) by striking ``Sec. 22. (a) There'' and inserting the 
     following:

     ``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

       ``(a) Establishment.--
       ``(1) Office.--There''; and
       (2) in subsection (a)--
       (A) in paragraph (1), as so designated, by striking the 
     period and inserting ``for the primary purposes of 
     increasing--
       ``(A) the number of small business concerns that export; 
     and
       ``(B) the volume of exports by small business concerns.''; 
     and
       (B) by adding at the end the following:
       ``(2) Associate administrator.--The head of the Office 
     shall be the Associate Administrator for International Trade, 
     who shall be responsible to the Administrator.''.
       (b) Authority for Additional Associate Administrator.--
     Section 4(b)(1) of the Small Business Act (15 U.S.C. 
     633(b)(1)) is amended--
       (1) in the fifth sentence, by striking ``five Associate 
     Administrators'' and inserting ``Associate Administrators''; 
     and
       (2) by adding at the end the following: ``One such 
     Associate Administrator shall be the Associate Administrator 
     for International Trade, who shall be the head of the Office 
     of International Trade established under section 22.''.
       (c) Discharge of International Trade Responsibilities of 
     Administration.--Section 22 of the Small Business Act (15 
     U.S.C. 649) is amended by adding at the end the following:
       ``(h) Discharge of International Trade Responsibilities of 
     Administration.--The Administrator shall ensure that--
       ``(1) the responsibilities of the Administration regarding 
     international trade are carried out by the Associate 
     Administrator;
       ``(2) the Associate Administrator has sufficient resources 
     to carry out such responsibilities; and
       ``(3) the Associate Administrator has direct supervision 
     and control over--
       ``(A) the staff of the Office; and
       ``(B) any employee of the Administration whose principal 
     duty station is an Export Assistance Center, or any successor 
     entity.''.
       (d) Role of Associate Administrator in Carrying Out 
     International Trade Policy.--Section 2(b)(1) of the Small 
     Business Act (15 U.S.C. 631(b)(1)) is amended in the matter 
     preceding subparagraph (A)--
       (1) by inserting ``the Administrator of'' before ``the 
     Small Business Administration''; and
       (2) by inserting ``through the Associate Administrator for 
     International Trade, and'' before ``in cooperation with''.
       (e) Implementation Date.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator of the Small 
     Business Administration shall appoint an Associate 
     Administrator for International Trade under section 22(a) of 
     the Small Business Act (15 U.S.C. 649(a)), as added by this 
     section.

     SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.

       (a) Amendments to Section 22.--Section 22 of the Small 
     Business Act (15 U.S.C. 649) is amended--
       (1) by striking subsection (b) and inserting the following:

[[Page 13671]]

       ``(b) Trade Distribution Network.--The Associate 
     Administrator, working in close cooperation with the 
     Secretary of Commerce, the United States Trade 
     Representative, the Secretary of Agriculture, the Secretary 
     of State, the President of the Export-Import Bank of the 
     United States, the President of the Overseas Private 
     Investment Corporation, Director of the United States Trade 
     and Development Agency, and other relevant Federal agencies, 
     small business development centers engaged in export 
     promotion efforts, Export Assistance Centers, regional and 
     district offices of the Administration, the small business 
     community, and relevant State and local export promotion 
     programs, shall--
       ``(1) maintain a distribution network, using regional and 
     district offices of the Administration, the small business 
     development center network, networks of women's business 
     centers, the Service Corps of Retired Executives authorized 
     by section 8(b)(1), and Export Assistance Centers, for 
     programs relating to--
       ``(A) trade promotion;
       ``(B) trade finance;
       ``(C) trade adjustment assistance;
       ``(D) trade remedy assistance; and
       ``(E) trade data collection;
       ``(2) aggressively market the programs described in 
     paragraph (1) and disseminate information, including 
     computerized marketing data, to small business concerns on 
     exporting trends, market-specific growth, industry trends, 
     and international prospects for exports;
       ``(3) promote export assistance programs through the 
     district and regional offices of the Administration, the 
     small business development center network, Export Assistance 
     Centers, the network of women's business centers, chapters of 
     the Service Corps of Retired Executives, State and local 
     export promotion programs, and partners in the private 
     sector; and
       ``(4) give preference in hiring or approving the transfer 
     of any employee into the Office or to a position described in 
     subsection (c)(9) to otherwise qualified applicants who are 
     fluent in a language in addition to English, to--
       ``(A) accompany small business concerns on foreign trade 
     missions; and
       ``(B) translate documents, interpret conversations, and 
     facilitate multilingual transactions, including by providing 
     referral lists for translation services, if required.'';
       (2) in subsection (c)--
       (A) by striking ``(c) The Office'' and inserting the 
     following:
       ``(c) Promotion of Sales Opportunities.--The Associate 
     Administrator'';
       (B) by redesignating paragraphs (1) through (8) as 
     paragraphs (2) through (9), respectively;
       (C) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) establish annual goals for the Office relating to--
       ``(A) enhancing the exporting capability of small business 
     concerns and small manufacturers;
       ``(B) facilitating technology transfers;
       ``(C) enhancing programs and services to assist small 
     business concerns and small manufacturers to compete 
     effectively and efficiently against foreign entities;
       ``(D) increasing the ability of small business concerns to 
     access capital; and
       ``(E) disseminating information concerning Federal, State, 
     and private programs and initiatives;'';
       (D) in paragraph (2), as so redesignated, by striking 
     ``mechanism for'' and all that follows through ``(D) 
     assisting'' and inserting the following: ``mechanism for--
       ``(A) identifying subsectors of the small business 
     community with strong export potential;
       ``(B) identifying areas of demand in foreign markets;
       ``(C) prescreening foreign buyers for commercial and credit 
     purposes; and
       ``(D) assisting'';
       (E) in paragraph (3), as so redesignated, by striking 
     ``assist small businesses in the formation and utilization 
     of'' and inserting ``assist small business concerns in 
     forming and using'';
       (F) in paragraph (4), as so redesignated--
       (i) by striking ``local'' and inserting ``district'';
       (ii) by striking ``existing'';
       (iii) by striking ``Small Business Development Center 
     network'' and inserting ``small business development center 
     network''; and
       (iv) by striking ``Small Business Development Center 
     Program'' and inserting ``small business development center 
     program'';
       (G) in paragraph (5), as so redesignated--
       (i) in subparagraph (A), by striking ``Gross State 
     Produce'' and inserting ``Gross State Product'';
       (ii) in subparagraph (B), by striking ``SIC'' each place it 
     appears and inserting ``North American Industry 
     Classification System''; and
       (iii) in subparagraph (C), by striking ``small businesses'' 
     and inserting ``small business concerns'';
       (H) in paragraph (6), as so redesignated, by striking the 
     period at the end and inserting a semicolon;
       (I) in paragraph (7), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by inserting ``concerns'' after ``small business''; and
       (II) by striking ``current'' and inserting ``up to date'';

       (ii) in subparagraph (A), by striking ``Administration's 
     regional offices'' and inserting ``regional and district 
     offices of the Administration'';
       (iii) in subparagraph (B) by striking ``current'';
       (iv) in subparagraph (C), by striking ``current''; and
       (v) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns'';
       (J) in paragraph (8), as so redesignated, by striking and 
     at the end;
       (K) in paragraph (9), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``full-time export development specialists 
     to each Administration regional office and assigning''; and
       (II) by striking ``person in each district office. Such 
     specialists'' and inserting ``individual in each district 
     office and providing each Administration regional office with 
     a full-time export development specialist, who'';

       (ii) in subparagraph (B)--

       (I) by striking ``current''; and
       (II) by striking ``with'' and inserting ``in'';

       (iii) in subparagraph (D)--

       (I) by striking ``Administration personnel involved in 
     granting'' and inserting ``personnel of the Administration 
     involved in making''; and
       (II) by striking ``and'' at the end;

       (iv) in subparagraph (E)--

       (I) by striking ``small businesses' needs'' and inserting 
     ``the needs of small business concerns''; and
       (II) by striking the period at the end and inserting a 
     semicolon;

       (v) by adding at the end the following:
       ``(F) participate, jointly with employees of the Office, in 
     an annual training program that focuses on current small 
     business needs for exporting; and
       ``(G) develop and conduct training programs for exporters 
     and lenders, in cooperation with the Export Assistance 
     Centers, the Department of Commerce, the Department of 
     Agriculture, small business development centers, women's 
     business centers, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, and 
     other relevant Federal agencies;''; and
       (vi) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns''; and
       (L) by adding at the end the following:
       ``(10) make available on the website of the Administration 
     the name and contact information of each individual described 
     in paragraph (9);
       ``(11) carry out a nationwide marketing effort using 
     technology, online resources, training, and other strategies 
     to promote exporting as a business development opportunity 
     for small business concerns;
       ``(12) disseminate information to the small business 
     community through regional and district offices of the 
     Administration, the small business development center 
     network, Export Assistance Centers, the network of women's 
     business centers, chapters of the Service Corps of Retired 
     Executives authorized by section 8(b)(1), State and local 
     export promotion programs, and partners in the private sector 
     regarding exporting trends, market-specific growth, industry 
     trends, and prospects for exporting; and
       ``(13) establish and carry out training programs for the 
     staff of the regional and district offices of the 
     Administration and resource partners of the Administration on 
     export promotion and providing assistance relating to 
     exports.'';
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (5) as clauses 
     (i) through (v), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``(d) The Office'' and inserting the 
     following:
       ``(d) Export Financing Programs.--
       ``(1) In general.--The Associate Administrator''; and
       (C) by striking ``To accomplish this goal, the Office shall 
     work'' and inserting the following:
       ``(2) Trade finance specialist.--To accomplish the goal 
     established under paragraph (1), the Associate Administrator 
     shall--
       ``(A) designate at least 1 individual within the 
     Administration as a trade finance specialist to oversee 
     international loan programs and assist Administration 
     employees with trade finance issues; and
       ``(B) work'';
       (4) in subsection (e), by striking ``(e) The Office'' and 
     inserting the following:
       ``(e) Trade Remedies.--The Associate Administrator'';
       (5) by amending subsection (f) to read as follows:
       ``(f) Reporting Requirement.--The Associate Administrator 
     shall submit an annual report to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives that 
     contains--
       ``(1) a description of the progress of the Office in 
     implementing the requirements of this section;

[[Page 13672]]

       ``(2) a detailed account of the results of export growth 
     activities of the Administration, including the activities of 
     each district and regional office of the Administration, 
     based on the performance measures described in subsection 
     (i);
       ``(3) an estimate of the total number of jobs created or 
     retained as a result of export assistance provided by the 
     Administration and resource partners of the Administration;
       ``(4) for any travel by the staff of the Office, the 
     destination of such travel and the benefits to the 
     Administration and to small business concerns resulting from 
     such travel; and
       ``(5) a description of the participation by the Office in 
     trade negotiations.'';
       (6) in subsection (g), by striking ``(g) The Office'' and 
     inserting the following:
       ``(g) Studies.--The Associate Administrator''; and
       (7) by adding after subsection (h), as added by section 
     1203 of this subtitle, the following:
       ``(i) Export and Trade Counseling.--
       ``(1) Definition.--In this subsection--
       ``(A) the term `lead small business development center' 
     means a small business development center that has received a 
     grant from the Administration; and
       ``(B) the term `lead women's business center' means a 
     women's business center that has received a grant from the 
     Administration.
       ``(2) Certification program.--The Administrator shall 
     establish an export and trade counseling certification 
     program to certify employees of lead small business 
     development centers and lead women's business centers in 
     providing export assistance to small business concerns.
       ``(3) Number of certified employees.--The Administrator 
     shall ensure that the number of employees of each lead small 
     business development center who are certified in providing 
     export assistance is not less than the lesser of--
       ``(A) 5; or
       ``(B) 10 percent of the total number of employees of the 
     lead small business development center.
       ``(4) Reimbursement for certification.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall reimburse a lead 
     small business development center or a lead women's business 
     center for costs relating to the certification of an employee 
     of the lead small business center or lead women's business 
     center in providing export assistance under the program 
     established under paragraph (2).
       ``(B) Limitation.--The total amount reimbursed by the 
     Administrator under subparagraph (A) may not exceed $350,000 
     in any fiscal year.
       ``(j) Performance Measures.--
       ``(1) In general.--The Associate Administrator shall 
     develop performance measures for the Administration to 
     support export growth goals for the activities of the Office 
     under this section that include--
       ``(A) the number of small business concerns that--
       ``(i) receive assistance from the Administration;
       ``(ii) had not exported goods or services before receiving 
     the assistance described in clause (i); and
       ``(iii) export goods or services;
       ``(B) the number of small business concerns receiving 
     assistance from the Administration that export goods or 
     services to a market outside the United States into which the 
     small business concern did not export before receiving the 
     assistance;
       ``(C) export revenues by small business concerns assisted 
     by programs of the Administration;
       ``(D) the number of small business concerns referred to an 
     Export Assistance Center or a small business development 
     center by the staff of the Office;
       ``(E) the number of small business concerns referred to the 
     Administration by an Export Assistance Center or a small 
     business development center; and
       ``(F) the number of small business concerns referred to the 
     Department of Commerce, the Department of Agriculture, the 
     Department of State, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, or the 
     United States Trade and Development Agency by the staff of 
     the Office, an Export Assistance Center, or a small business 
     development center.
       ``(2) Joint performance measures.--The Associate 
     Administrator shall develop joint performance measures for 
     the district offices of the Administration and the Export 
     Assistance Centers that include the number of export loans 
     made under--
       ``(A) section 7(a)(16);
       ``(B) the Export Working Capital Program established under 
     section 7(a)(14);
       ``(C) the Preferred Lenders Program, as defined in section 
     7(a)(2)(C)(ii); and
       ``(D) the export express program established under section 
     7(a)(34).
       ``(3) Consistency of tracking.--The Associate 
     Administrator, in coordination with the departments and 
     agencies that are represented on the Trade Promotion 
     Coordinating Committee established under section 2312 of the 
     Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small 
     business development center network, shall develop a system 
     to track exports by small business concerns, including 
     information relating to the performance measures developed 
     under paragraph (1), that is consistent with systems used by 
     the departments and agencies and the network.''.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives on any travel by the 
     staff of the Office of International Trade of the 
     Administration, during the period beginning on October 1, 
     2004, and ending on the date of enactment of the Act, 
     including the destination of such travel and the benefits to 
     the Administration and to small business concerns resulting 
     from such travel.

     SEC. 1205. EXPORT ASSISTANCE CENTERS.

       (a) Export Assistance Centers.--Section 22 of the Small 
     Business Act (15 U.S.C. 649), as amended by this subtitle, is 
     amended by adding at the end the following:
       ``(k) Export Assistance Centers.--
       ``(1) Export finance specialists.--
       ``(A) Minimum number of export finance specialists.--On and 
     after the date that is 90 days after the date of enactment of 
     this subsection, the Administrator, in coordination with the 
     Secretary of Commerce, shall ensure that the number of export 
     finance specialists is not less than the number of such 
     employees so assigned on January 1, 2003.
       ``(B) Export finance specialists assigned to each region of 
     the administration.--On and after the date that is 2 years 
     after the date of enactment of this subsection, the 
     Administrator, in coordination with the Secretary of 
     Commerce, shall ensure that there are not fewer than 3 export 
     finance specialists in each region of the Administration.
       ``(2) Placement of export finance specialists.--
       ``(A) Priority.--The Administrator shall give priority, to 
     the maximum extent practicable, to placing employees of the 
     Administration at any Export Assistance Center that--
       ``(i) had an Administration employee assigned to the Export 
     Assistance Center before January 2003; and
       ``(ii) has not had an Administration employee assigned to 
     the Export Assistance Center during the period beginning 
     January 2003, and ending on the date of enactment of this 
     subsection, either through retirement or reassignment.
       ``(B) Needs of exporters.--The Administrator shall, to the 
     maximum extent practicable, strategically assign 
     Administration employees to Export Assistance Centers, based 
     on the needs of exporters.
       ``(C) Rule of construction.--Nothing in this subsection may 
     be construed to require the Administrator to reassign or 
     remove an export finance specialist who is assigned to an 
     Export Assistance Center on the date of enactment of this 
     subsection.
       ``(3) Goals.--The Associate Administrator shall work with 
     the Department of Commerce, the Export-Import Bank of the 
     United States, and the Overseas Private Investment 
     Corporation to establish shared annual goals for the Export 
     Assistance Centers.
       ``(4) Oversight.--The Associate Administrator shall 
     designate an individual within the Administration to oversee 
     all activities conducted by Administration employees assigned 
     to Export Assistance Centers.
       ``(l) Definitions.--In this section--
       ``(1) the term `Associate Administrator' means the 
     Associate Administrator for International Trade described in 
     subsection (a)(2);
       ``(2) the term `Export Assistance Center' means a one-stop 
     shop for United States exporters established by the United 
     States and Foreign Commercial Service of the Department of 
     Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
       ``(3) the term `export finance specialist' means a full-
     time equivalent employee of the Office assigned to an Export 
     Assistance Center to carry out the duties described in 
     subsection (e); and
       ``(4) the term `Office' means the Office of International 
     Trade established under subsection (a)(1).''.
       (b) Study and Report on Filling Gaps in High-and-Low-Export 
     Volume Areas.--
       (1) Study and report.--Not later than 6 months after the 
     date of enactment of this Act, and every 2 years thereafter, 
     the Administrator shall--
       (A) conduct a study of--
       (i) the volume of exports for each State;
       (ii) the availability of export finance specialists in each 
     State;
       (iii) the number of exporters in each State that are small 
     business concerns;
       (iv) the percentage of exporters in each State that are 
     small business concerns;
       (v) the change, if any, in the number of exporters that are 
     small business concerns in each State--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced;

       (vi) the total value of the exports in each State by small 
     business concerns;

[[Page 13673]]

       (vii) the percentage of the total volume of exports in each 
     State that is attributable to small business concerns; and
       (viii) the change, if any, in the percentage of the total 
     volume of exports in each State that is attributable to small 
     business concerns--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced; and

       (B) submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report 
     containing--
       (i) the results of the study under subparagraph (A);
       (ii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     greatest volume of exports, based upon the most recent data 
     available from the Department of Commerce;
       (iii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     lowest volume of exports, based upon the most recent data 
     available from the Department of Commerce; and
       (iv) such additional information as the Administrator 
     determines is appropriate.
       (2) Definition.--In this subsection, the term ``export 
     finance specialist'' has the meaning given that term in 
     section 22(l) of the Small Business Act, as added by this 
     title.

     SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.

       (a) Loan Limits.--
       (1) Total amount outstanding.--Section 7(a)(3)(B) of the 
     Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
     striking ``$1,750,000, of which not more than $1,250,000'' 
     and inserting ``$4,500,000 (or if the gross loan amount would 
     exceed $5,000,000), of which not more than $4,000,000''.
       (2) Participation.--Section 7(a)(2) of the Small Business 
     Act (15 U.S.C. 636(a)(2)) is amended--
       (A) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``subparagraph (B)'' and inserting 
     ``subparagraphs (B), (D), and (E)'';
       (B) in subparagraph (D), by striking ``Notwithstanding 
     subparagraph (A), in'' and inserting ``In''; and
       (C) by adding at the end the following:
       ``(E) Participation in international trade loan.--In an 
     agreement to participate in a loan on a deferred basis under 
     paragraph (16), the participation by the Administration may 
     not exceed 90 percent.''.
       (b) Working Capital.--Section 7(a)(16)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(16)(A)) is amended--
       (1) in the matter preceding clause (i), by striking ``in--
     '' and inserting ``--'';
       (2) in clause (i)--
       (A) by inserting ``in'' after ``(i)''; and
       (B) by striking ``or'' at the end;
       (3) in clause (ii)--
       (A) by inserting ``in'' after ``(ii)''; and
       (B) by striking the period at the end and inserting ``, 
     including any debt that qualifies for refinancing under any 
     other provision of this subsection; or''; and
       (4) by adding at the end the following:
       ``(iii) by providing working capital.''.
       (c) Collateral.--Section 7(a)(16)(B) of the Small Business 
     Act (15 U.S.C. 636(a)(16)(B)) is amended--
       (1) by striking ``Each loan'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), each 
     loan''; and
       (2) by adding at the end the following:
       ``(ii) Exception.--A loan under this paragraph may be 
     secured by a second lien position on the property or 
     equipment financed by the loan or on other assets of the 
     small business concern, if the Administrator determines the 
     lien provides adequate assurance of the payment of the 
     loan.''.
       (d) Export Working Capital Program.--Section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(D), by striking ``not exceed'' and 
     inserting ``be''; and
       (2) in paragraph (14)--
       (A) by striking ``(A) The Administration'' and inserting 
     the following: ``Export working capital program.--
       ``(A) In general.--The Administrator'';
       (B) by striking ``(B) When considering'' and inserting the 
     following:
       ``(C) Considerations.--When considering'';
       (C) by striking ``(C) The Administration'' and inserting 
     the following:
       ``(D) Marketing.--The Administrator''; and
       (D) by inserting after subparagraph (A) the following:
       ``(B) Terms.--
       ``(i) Loan amount.--The Administrator may not guarantee a 
     loan under this paragraph of more than $5,000,000.
       ``(ii) Fees.--

       ``(I) In general.--For a loan under this paragraph, the 
     Administrator shall collect the fee assessed under paragraph 
     (23) not more frequently than once each year.
       ``(II) Untapped credit.--The Administrator may not assess a 
     fee on capital that is not accessed by the small business 
     concern.''.

       (e) Participation in Preferred Lenders Program.--Section 
     7(a)(2)(C) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) 
     is amended--
       (1) by redesignating clause (ii) as clause (iii); and
       (2) by inserting after clause (i) the following:
       ``(ii) Export-import bank lenders.--Any lender that is 
     participating in the Delegated Authority Lender Program of 
     the Export-Import Bank of the United States (or any successor 
     to the Program) shall be eligible to participate in the 
     Preferred Lenders Program.''.
       (f) Export Express Program.--Section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) is amended by adding at the 
     end the following:
       ``(35) Export express program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `export development activity' includes--

       ``(I) obtaining a standby letter of credit when required as 
     a bid bond, performance bond, or advance payment guarantee;
       ``(II) participation in a trade show that takes place 
     outside the United States;
       ``(III) translation of product brochures or catalogues for 
     use in markets outside the United States;
       ``(IV) obtaining a general line of credit for export 
     purposes;
       ``(V) performing a service contract from buyers located 
     outside the United States;
       ``(VI) obtaining transaction-specific financing associated 
     with completing export orders;
       ``(VII) purchasing real estate or equipment to be used in 
     the production of goods or services for export;
       ``(VIII) providing term loans or other financing to enable 
     a small business concern, including an export trading company 
     and an export management company, to develop a market outside 
     the United States; and
       ``(IX) acquiring, constructing, renovating, modernizing, 
     improving, or expanding a production facility or equipment to 
     be used in the United States in the production of goods or 
     services for export; and

       ``(ii) the term `express loan' means a loan in which a 
     lender uses to the maximum extent practicable the loan 
     analyses, procedures, and documentation of the lender to 
     provide expedited processing of the loan application.
       ``(B) Authority.--The Administrator may guarantee the 
     timely payment of an express loan to a small business concern 
     made for an export development activity.
       ``(C) Level of participation.--
       ``(i) Maximum amount.--The maximum amount of an express 
     loan guaranteed under this paragraph shall be $500,000.
       ``(ii) Percentage.--For an express loan guaranteed under 
     this paragraph, the Administrator shall guarantee--

       ``(I) 90 percent of a loan that is not more than $350,000; 
     and
       ``(II) 75 percent of a loan that is more than $350,000 and 
     not more than $500,000.''.

       (g) Annual Listing of Export Finance Lenders.--Section 
     7(a)(16) of the Small Business Act (15 U.S.C. 636(a)(16)) is 
     amended by adding at the end the following:
       ``(F) List of export finance lenders.--
       ``(i) Publication of list required.--The Administrator 
     shall publish an annual list of the banks and participating 
     lending institutions that, during the 1-year period ending on 
     the date of publication of the list, have made loans 
     guaranteed by the Administration under--

       ``(I) this paragraph;
       ``(II) paragraph (14); or
       ``(III) paragraph (34).

       ``(ii) Availability of list.--The Administrator shall--

       ``(I) post the list published under clause (i) on the 
     website of the Administration; and
       ``(II) make the list published under clause (i) available, 
     upon request, at each district office of the 
     Administration.''.

       (h) Applicability.--The amendments made by subsections (a) 
     through (f) shall apply with respect to any loan made after 
     the date of enactment of this Act.

     SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``eligible small business concern'' means a 
     small business concern that--
       (A) has been in business for not less than the 1-year 
     period ending on the date on which assistance is provided 
     using a grant under this section;
       (B) is operating profitably, based on operations in the 
     United States;
       (C) has demonstrated understanding of the costs associated 
     with exporting and doing business with foreign purchasers, 
     including the costs of freight forwarding, customs brokers, 
     packing and shipping, as determined by the Associate 
     Administrator; and
       (D) has in effect a strategic plan for exporting;
       (2) the term ``program'' means the State Trade and Export 
     Promotion Grant Program established under subsection (b);
       (3) the term ``small business concern owned and controlled 
     by women'' has the meaning

[[Page 13674]]

     given that term in section 3 of the Small Business Act (15 
     U.S.C. 632);
       (4) the term ``socially and economically disadvantaged 
     small business concern'' has the meaning given that term in 
     section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
     6537(a)(4)(A)); and
       (5) the term ``State'' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, and American Samoa.
       (b) Establishment of Program.--The Associate Administrator 
     shall establish a 3-year trade and export promotion pilot 
     program to be known as the State Trade and Export Promotion 
     Grant Program, to make grants to States to carry out export 
     programs that assist eligible small business concerns in--
       (1) participation in a foreign trade mission;
       (2) a foreign market sales trip;
       (3) a subscription to services provided by the Department 
     of Commerce;
       (4) the payment of website translation fees;
       (5) the design of international marketing media;
       (6) a trade show exhibition;
       (7) participation in training workshops; or
       (8) any other export initiative determined appropriate by 
     the Associate Administrator.
       (c) Grants.--
       (1) Joint review.--In carrying out the program, the 
     Associate Administrator may make a grant to a State to 
     increase the number of eligible small business concerns in 
     the State that export or to increase the value of the exports 
     by eligible small business concerns in the State.
       (2) Considerations.--In making grants under this section, 
     the Associate Administrator may give priority to an 
     application by a State that proposes a program that--
       (A) focuses on eligible small business concerns as part of 
     an export promotion program;
       (B) demonstrates success in promoting exports by--
       (i) socially and economically disadvantaged small business 
     concerns;
       (ii) small business concerns owned or controlled by women; 
     and
       (iii) rural small business concerns;
       (C) promotes exports from a State that is not 1 of the 10 
     States with the highest percentage of exporters that are 
     small business concerns, based upon the latest data available 
     from the Department of Commerce; and
       (D) promotes new-to-market export opportunities to the 
     People's Republic of China for eligible small business 
     concerns in the United States.
       (3) Limitations.--
       (A) Single application.--A State may not submit more than 1 
     application for a grant under the program in any 1 fiscal 
     year.
       (B) Proportion of amounts.--The total value of grants under 
     the program made during a fiscal year to the 10 States with 
     the highest number of exporters that are small business 
     concerns, based upon the latest data available from the 
     Department of Commerce, shall be not more than 40 percent of 
     the amounts appropriated for the program for that fiscal 
     year.
       (4) Application.--A State desiring a grant under the 
     program shall submit an application at such time, in such 
     manner, and accompanied by such information as the Associate 
     Administrator may establish.
       (d) Competitive Basis.--The Associate Administrator shall 
     award grants under the program on a competitive basis.
       (e) Federal Share.--The Federal share of the cost of an 
     export program carried out using a grant under the program 
     shall be--
       (1) for a State that has a high export volume, as 
     determined by the Associate Administrator, not more than 65 
     percent; and
       (2) for a State that does not have a high export volume, as 
     determined by the Associate Administrator, not more than 75 
     percent.
       (f) Non-Federal Share.--The non-Federal share of the cost 
     of an export program carried using a grant under the program 
     shall be comprised of not less than 50 percent cash and not 
     more than 50 percent of indirect costs and in-kind 
     contributions, except that no such costs or contributions may 
     be derived from funds from any other Federal program.
       (g) Reports.--
       (1) Initial report.--Not later than 120 days after the date 
     of enactment of this Act, the Associate Administrator shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report, which 
     shall include--
       (A) a description of the structure of and procedures for 
     the program;
       (B) a management plan for the program; and
       (C) a description of the merit-based review process to be 
     used in the program.
       (2) Annual reports.--The Associate Administrator shall 
     submit an annual report to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the 
     program, which shall include--
       (A) the number and amount of grants made under the program 
     during the preceding year;
       (B) a list of the States receiving a grant under the 
     program during the preceding year, including the activities 
     being performed with grant; and
       (C) the effect of each grant on exports by eligible small 
     business concerns in the State receiving the grant.
       (h) Reviews by Inspector General.--
       (1) In general.--The Inspector General of the 
     Administration shall conduct a review of--
       (A) the extent to which recipients of grants under the 
     program are measuring the performance of the activities being 
     conducted and the results of the measurements; and
       (B) the overall management and effectiveness of the 
     program.
       (2) Report.--Not later than September 30, 2012, the 
     Inspector General of the Administration shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report regarding the review conducted under 
     paragraph (1).
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the program $30,000,000 for 
     each of fiscal years 2011, 2012, and 2013.
       (j) Termination.--The authority to carry out the program 
     shall terminate 3 years after the date on which the Associate 
     Administrator establishes the program.

     SEC. 1208. RURAL EXPORT PROMOTION.

       Not later than 6 months after the date of enactment of this 
     Act, the Administrator, in consultation with the Secretary of 
     Agriculture and the Secretary of Commerce, shall submit to 
     the Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report that contains--
       (1) a description of each program of the Administration 
     that promotes exports by rural small business concerns, 
     including--
       (A) the number of rural small business concerns served by 
     the program;
       (B) the change, if any, in the number of rural small 
     business concerns as a result of participation in the program 
     during the 10-year period ending on the date of enactment of 
     this Act;
       (C) the volume of exports by rural small business concerns 
     that participate in the program; and
       (D) the change, if any, in the volume of exports by rural 
     small businesses that participate in the program during the 
     10-year period ending on the date of enactment of this Act;
       (2) a description of the coordination between programs of 
     the Administration and other Federal programs that promote 
     exports by rural small business concerns;
       (3) recommendations, if any, for improving the coordination 
     described in paragraph (2);
       (4) a description of any plan by the Administration to 
     market the international trade financing programs of the 
     Administration through lenders that--
       (A) serve rural small business concerns; and
       (B) are associated with financing programs of the 
     Department of Agriculture;
       (5) recommendations, if any, for improving coordination 
     between the counseling programs and export financing programs 
     of the Administration, in order to increase the volume of 
     exports by rural small business concerns; and
       (6) any additional information the Administrator determines 
     is necessary.

     SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS 
                   DEVELOPMENT CENTERS.

       Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) 
     is amended--
       (1) by striking ``(2) The Small Business Development 
     Centers'' and inserting the following:
       ``(2) Cooperation to provide international trade 
     services.--
       ``(A) Information and services.--The small business 
     development centers''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), as so designated, by inserting 
     ``(including State trade agencies),'' after ``local 
     agencies''; and
       (B) by adding at the end the following:
       ``(B) Cooperation with state trade agencies and export 
     assistance centers.--A small business development center that 
     counsels a small business concern on issues relating to 
     international trade shall--
       ``(i) consult with State trade agencies and Export 
     Assistance Centers to provide appropriate services to the 
     small business concern; and
       ``(ii) as necessary, refer the small business concern to a 
     State trade agency or an Export Assistance Center for further 
     counseling or assistance.
       ``(C) Definition.--In this paragraph, the term `Export 
     Assistance Center' has the same meaning as in section 22.''.

                 Subtitle C--Small Business Contracting

                       PART I--CONTRACT BUNDLING

     SEC. 1311. SMALL BUSINESS ACT.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1202, is amended by adding at the end the 
     following:
       ``(v) Multiple Award Contract.--In this Act, the term 
     `multiple award contract' means--
       ``(1) a multiple award task order contract or delivery 
     order contract that is entered

[[Page 13675]]

     into under the authority of sections 303H through 303K of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253h through 253k); and
       ``(2) any other indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with 2 or more sources pursuant to the same solicitation.''.

     SEC. 1312. LEADERSHIP AND OVERSIGHT.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by adding at the end the following:
       ``(q) Bundling Accountability Measures.--
       ``(1) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any multiple award contract 
     above the substantial bundling threshold of the Federal 
     agency a provision soliciting bids from any responsible 
     source, including responsible small business concerns and 
     teams or joint ventures of small business concerns.
       ``(2) Policies on reduction of contract bundling.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 4219(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) establish a Government-wide policy regarding contract 
     bundling, including regarding the solicitation of teaming and 
     joint ventures under paragraph (1); and
       ``(ii) require that the policy established under clause (i) 
     be published on the website of each Federal agency.
       ``(B) Rationale for contract bundling.--Not later than 30 
     days after the date on which the head of a Federal agency 
     submits data certifications to the Administrator for Federal 
     Procurement Policy, the head of the Federal agency shall 
     publish on the website of the Federal agency a list and 
     rationale for any bundled contract for which the Federal 
     agency solicited bids or that was awarded by the Federal 
     agency.
       ``(3) Reporting.--Not later than 90 days after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     the Administrator shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives a report 
     regarding procurement center representatives and commercial 
     market representatives, which shall--
       ``(A) identify each area for which the Administration has 
     assigned a procurement center representative or a commercial 
     market representative;
       ``(B) explain why the Administration selected the areas 
     identified under subparagraph (A); and
       ``(C) describe the activities performed by procurement 
     center representatives and commercial market 
     representatives.''.
       (b) Technical Correction.--Section 15(g) of the Small 
     Business Act (15 U.S.C. 644(g)) is amended by striking 
     ``Administrator of the Office of Federal Procurement Policy'' 
     each place it appears and inserting ``Administrator for 
     Federal Procurement Policy''.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report regarding the 
     procurement center representative program of the 
     Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) address ways to improve the effectiveness of the 
     procurement center representative program in helping small 
     business concerns obtain Federal contracts;
       (B) evaluate the effectiveness of procurement center 
     representatives and commercial marketing representatives; and
       (C) include recommendations, if any, on how to improve the 
     procurement center representative program.
       (d) Electronic Procurement Center Representative.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall implement a 3-
     year pilot electronic procurement center representative 
     program.
       (2) Report.--Not later than 30 days after the pilot program 
     under paragraph (1) ends, the Comptroller General of the 
     United States shall submit to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     the pilot program.

     SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       ``(a) Definitions.--In this section--
       ``(1) the term `Chief Acquisition Officer' means the 
     employee of a Federal agency designated as the Chief 
     Acquisition Officer for the Federal agency under section 
     16(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 414(a));
       ``(2) the term `consolidation of contract requirements', 
     with respect to contract requirements of a Federal agency, 
     means a use of a solicitation to obtain offers for a single 
     contract or a multiple award contract to satisfy 2 or more 
     requirements of the Federal agency for goods or services that 
     have been provided to or performed for the Federal agency 
     under 2 or more separate contracts lower in cost than the 
     total cost of the contract for which the offers are 
     solicited; and
       ``(3) the term `senior procurement executive' means an 
     official designated under section 16(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(c)) as the 
     senior procurement executive for a Federal agency.
       ``(b) Policy.--The head of each Federal agency shall ensure 
     that the decisions made by the Federal agency regarding 
     consolidation of contract requirements of the Federal agency 
     are made with a view to providing small business concerns 
     with appropriate opportunities to participate as prime 
     contractors and subcontractors in the procurements of the 
     Federal agency.
       ``(c) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--
       ``(1) In general.--Subject to paragraph (4), the head of a 
     Federal agency may not carry out an acquisition strategy that 
     includes a consolidation of contract requirements of the 
     Federal agency with a total value of more than $2,000,000, 
     unless the senior procurement executive or Chief Acquisition 
     Officer for the Federal agency, before carrying out the 
     acquisition strategy--
       ``(A) conducts market research;
       ``(B) identifies any alternative contracting approaches 
     that would involve a lesser degree of consolidation of 
     contract requirements;
       ``(C) makes a written determination that the consolidation 
     of contract requirements is necessary and justified;
       ``(D) identifies any negative impact by the acquisition 
     strategy on contracting with small business concerns; and
       ``(E) certifies to the head of the Federal agency that 
     steps will be taken to include small business concerns in the 
     acquisition strategy.
       ``(2) Determination that consolidation is necessary and 
     justified.--
       ``(A) In general.--A senior procurement executive or Chief 
     Acquisition Officer may determine that an acquisition 
     strategy involving a consolidation of contract requirements 
     is necessary and justified for the purposes of paragraph 
     (1)(C) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under paragraph 
     (1)(B).
       ``(B) Savings in administrative or personnel costs.--For 
     purposes of subparagraph (A), savings in administrative or 
     personnel costs alone do not constitute a sufficient 
     justification for a consolidation of contract requirements in 
     a procurement unless the expected total amount of the cost 
     savings, as determined by the senior procurement executive or 
     Chief Acquisition Officer, is expected to be substantial in 
     relation to the total cost of the procurement.
       ``(3) Benefits to be considered.--The benefits considered 
     for the purposes of paragraphs (1) and (2) may include cost 
     and, regardless of whether quantifiable in dollar amounts--
       ``(A) quality;
       ``(B) acquisition cycle;
       ``(C) terms and conditions; and
       ``(D) any other benefit.
       ``(4) Department of defense.--
       ``(A) In general.--The Department of Defense and each 
     military department shall comply with this section until 
     after the date described in subparagraph (C).
       ``(B) Rule.--After the date described in subparagraph (C), 
     contracting by the Department of Defense or a military 
     department shall be conducted in accordance with section 2382 
     of title 10, United States Code.
       ``(C) Date.--The date described in this subparagraph is the 
     date on which the Administrator determines the Department of 
     Defense or a military department is in compliance with the 
     Government-wide contracting goals under section 15.''.
       (b) Technical and Conforming Amendment.--Section 2382(b)(1) 
     of title 10, United States Code, is amended by striking ``An 
     official'' and inserting ``Subject to section 44(c)(4), an 
     official''.

     SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``Pilot Program'' means the Small Business 
     Teaming Pilot Program established under subsection (b); and
       (2) the term ``eligible organization'' means a well-
     established national organization for small business concerns 
     with the capacity to provide assistance to small business 
     concerns (which may be provided with the assistance of the 
     Administrator) relating to--
       (A) customer relations and outreach;
       (B) team relations and outreach; and
       (C) performance measurement and quality assurance.
       (b) Establishment.--The Administrator shall establish a 
     Small Business Teaming Pilot Program for teaming and joint 
     ventures involving small business concerns.
       (c) Grants.--Under the Pilot Program, the Administrator may 
     make grants to eligible

[[Page 13676]]

     organizations to provide assistance and guidance to teams of 
     small business concerns seeking to compete for larger 
     procurement contracts.
       (d) Contracting Opportunities.--The Administrator shall 
     work with eligible organizations receiving a grant under the 
     Pilot Program to recommend appropriate contracting 
     opportunities for teams or joint ventures of small business 
     concerns.
       (e) Report.--Not later than 1 year before the date on which 
     the authority to carry out the Pilot Program terminates under 
     subsection (f), the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report on the effectiveness of the Pilot 
     Program.
       (f) Termination.--The authority to carry out the Pilot 
     Program shall terminate 5 years after the date of enactment 
     of this Act.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated for grants under subsection (c) $5,000,000 
     for each of fiscal years 2010 through 2015.

                   PART II--SUBCONTRACTING INTEGRITY

     SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.

       Not later than 1 year after the date of enactment of this 
     Act, the Administrator, in consultation with the 
     Administrator for Federal Procurement Policy, shall 
     promulgate regulations relating to, and the Federal 
     Acquisition Regulatory Council established under section 
     25(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 421(a)) shall amend the Federal Acquisition Regulation 
     issued under section 25 of such Act to establish a policy on, 
     subcontracting compliance relating to small business 
     concerns, including assignment of compliance responsibilities 
     between contracting offices, small business offices, and 
     program offices and periodic oversight and review activities.

     SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       Section 8(d)(6) of the Small Business Act (15 U.S.C. 
     637(d)(6)) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end;
       (2) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end, the following:
       ``(G) a representation that the offeror or bidder will--
       ``(i) make a good faith effort to acquire articles, 
     equipment, supplies, services, or materials, or obtain the 
     performance of construction work from the small business 
     concerns used in preparing and submitting to the contracting 
     agency the bid or proposal, in the same amount and quality 
     used in preparing and submitting the bid or proposal; and
       ``(ii) provide to the contracting officer a written 
     explanation if the offeror or bidder fails to acquire 
     articles, equipment, supplies, services, or materials or 
     obtain the performance of construction work as described in 
     clause (i).''.

                     PART III--ACQUISITION PROCESS

     SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
                   BUSINESSES.

       Section 15 of the Small Business Act (15 U.S.C. 644), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(r) Multiple Award Contracts.--Not later than 1 year 
     after the date of enactment of this subsection, the 
     Administrator for Federal Procurement Policy and the 
     Administrator, in consultation with the Administrator of 
     General Services, shall, by regulation, establish guidance 
     under which Federal agencies may, at their discretion--
       ``(1) set aside part or parts of a multiple award contract 
     for small business concerns, including the subcategories of 
     small business concerns identified in subsection (g)(2);
       ``(2) notwithstanding the fair opportunity requirements 
     under section 2304c(b) of title 10, United States Code, and 
     section 303J(b) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders 
     placed against multiple award contracts for small business 
     concerns, including the subcategories of small business 
     concerns identified in subsection (g)(2); and
       ``(3) reserve 1 or more contract awards for small business 
     concerns under full and open multiple award procurements, 
     including the subcategories of small business concerns 
     identified in subsection (g)(2).''.

     SEC. 1332. MICRO-PURCHASE GUIDELINES.

       Not later than 1 year after the date of enactment of this 
     Act, the Director of the Office of Management and Budget, in 
     coordination with the Administrator of General Services, 
     shall issue guidelines regarding the analysis of purchase 
     card expenditures to identify opportunities for achieving and 
     accurately measuring fair participation of small business 
     concerns in purchases in an amount not in excess of the 
     micro-purchase threshold, as defined in section 32 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 428) (in 
     this section referred to as ``micro-purchases''), consistent 
     with the national policy on small business participation in 
     Federal procurements set forth in sections 2(a) and 15(g) of 
     the Small Business Act (15 U.S.C. 631(a) and 644(g)), and 
     dissemination of best practices for participation of small 
     business concerns in micro-purchases.

     SEC. 1333. AGENCY ACCOUNTABILITY.

       Section 15(g)(2) of the Small Business Act (15 U.S.C. 
     644(g)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by striking ``Goals established'' and inserting the 
     following:
       ``(B) Goals established'';
       (3) by striking ``Whenever'' and inserting the following:
       ``(C) Whenever'';
       (4) by striking ``For the purpose of'' and inserting the 
     following:
       ``(D) For the purpose of'';
       (5) by striking ``The head of each Federal agency, in 
     attempting to attain such participation'' and inserting the 
     following:
       ``(E) The head of each Federal agency, in attempting to 
     attain the participation described in subparagraph (D)''.
       (6) in subparagraph (E), as so designated--
       (A) by striking ``(A) contracts'' and inserting ``(i) 
     contracts''; and
       (B) by striking ``(B) contracts'' and inserting ``(ii) 
     contracts''; and
       (7) by adding at the end the following:
       ``(F)(i) Each procurement employee or program manager 
     described in clause (ii) shall communicate to the 
     subordinates of the procurement employee or program manager 
     the importance of achieving small business goals.
       ``(ii) A procurement employee or program manager described 
     in this clause is a senior procurement executive, senior 
     program manager, or Director of Small and Disadvantaged 
     Business Utilization of a Federal agency having contracting 
     authority.''.

     SEC. 1334. PAYMENT OF SUBCONTRACTORS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended by adding at the end the following:
       ``(12) Payment of Subcontractors.--
       ``(A) Definition.--In this paragraph, the term `covered 
     contract' means a contract relating to which a prime 
     contractor is required to develop a subcontracting plan under 
     paragraph (4) or (5).
       ``(B) Notice.--
       ``(i) In general.--A prime contractor for a covered 
     contract shall notify in writing the contracting officer for 
     the covered contract if the prime contractor pays a reduced 
     price to a subcontractor for goods and services upon 
     completion of the responsibilities of the subcontractor or 
     the payment to a subcontractor is more than 90 days past due 
     for goods or services provided for the covered contract for 
     which the Federal agency has paid the prime contractor.
       ``(ii) Contents.--A prime contractor shall include the 
     reason for the reduction in a payment to or failure to pay a 
     subcontractor in any notice made under clause (i).
       ``(C) Performance.--A contracting officer for a covered 
     contract shall consider the unjustified failure by a prime 
     contractor to make a full or timely payment to a 
     subcontractor in evaluating the performance of the prime 
     contractor.
       ``(D) Control of funds.--If the contracting officer for a 
     covered contract determines that a prime contractor has a 
     history of unjustified, untimely payments to contractors, the 
     contracting officer shall record the identity of the 
     contractor in accordance with the regulations promulgated 
     under subparagraph (E).
       ``(E) Regulations.--Not later than 1 year after the date of 
     enactment of this paragraph, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) describe the circumstances under which a contractor 
     may be determined to have a history of unjustified, untimely 
     payments to subcontractors;
       ``(ii) establish a process for contracting officers to 
     record the identity of a contractor described in clause (i); 
     and
       ``(iii) require the identity of a contractor described in 
     clause (i) to be incorporated in, and made publicly available 
     through, the Federal Awardee Performance and Integrity 
     Information System, or any successor thereto.''.

     SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
                   DEMONSTRATION PROGRAM.

       (a) In General.--The Business Opportunity Development 
     Reform Act of 1988 (Public Law 100-656) is amended by 
     striking title VII (15 U.S.C. 644 note).
       (b) Effective Date and Applicability.--The amendment made 
     by this section--
       (1) shall take effect on the date of enactment of this Act; 
     and
       (2) apply to the first full fiscal year after the date of 
     enactment of this Act.

           PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 1341. POLICY AND PRESUMPTIONS.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1311, is amended by adding at the end the 
     following:
       ``(w) Presumption.--
       ``(1) In general.--In every contract, subcontract, 
     cooperative agreement, cooperative research and development 
     agreement, or grant which is set aside, reserved, or 
     otherwise classified as intended for award to small business 
     concerns, there shall be a presumption of loss to the United 
     States based on the

[[Page 13677]]

     total amount expended on the contract, subcontract, 
     cooperative agreement, cooperative research and development 
     agreement, or grant whenever it is established that a 
     business concern other than a small business concern 
     willfully sought and received the award by misrepresentation.
       ``(2) Deemed certifications.--The following actions shall 
     be deemed affirmative, willful, and intentional 
     certifications of small business size and status:
       ``(A) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement reserved, set aside, or 
     otherwise classified as intended for award to small business 
     concerns.
       ``(B) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement which in any way 
     encourages a Federal agency to classify the bid or proposal, 
     if awarded, as an award to a small business concern.
       ``(C) Registration on any Federal electronic database for 
     the purpose of being considered for award of a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research agreement, as a small business concern.
       ``(3) Certification by signature of responsible official.--
       ``(A) In general.--Each solicitation, bid, or application 
     for a Federal contract, subcontract, or grant shall contain a 
     certification concerning the small business size and status 
     of a business concern seeking the Federal contract, 
     subcontract, or grant.
       ``(B) Content of certifications.--A certification that a 
     business concern qualifies as a small business concern of the 
     exact size and status claimed by the business concern for 
     purposes of bidding on a Federal contract or subcontract, or 
     applying for a Federal grant, shall contain the signature of 
     an authorized official on the same page on which the 
     certification is contained.
       ``(4) Regulations.--The Administrator shall promulgate 
     regulations to provide adequate protections to individuals 
     and business concerns from liability under this subsection in 
     cases of unintentional errors, technical malfunctions, and 
     other similar situations.''.

     SEC. 1342. ANNUAL CERTIFICATION.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1341, is amended by adding at the end the 
     following:
       ``(x) Annual Certification.--
       ``(1) In general.--Each business certified as a small 
     business concern under this Act shall annually certify its 
     small business size and, if appropriate, its small business 
     status, by means of a confirming entry on the Online 
     Representations and Certifications Application database of 
     the Administration, or any successor thereto.
       ``(2) Regulations.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Inspector General and the Chief Counsel 
     for Advocacy of the Administration, shall promulgate 
     regulations to ensure that--
       ``(A) no business concern continues to be certified as a 
     small business concern on the Online Representations and 
     Certifications Application database of the Administration, or 
     any successor thereto, without fulfilling the requirements 
     for annual certification under this subsection; and
       ``(B) the requirements of this subsection are implemented 
     in a manner presenting the least possible regulatory burden 
     on small business concerns.''.

     SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT 
                   PERSONNEL.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Federal Acquisition Institute, in 
     consultation with the Administrator for Federal Procurement 
     Policy, the Defense Acquisition University, and the 
     Administrator, shall develop courses for acquisition 
     personnel concerning proper classification of business 
     concerns and small business size and status for purposes of 
     Federal contracts, subcontracts, grants, cooperative 
     agreements, and cooperative research and development 
     agreements.
       (b) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Section 3 of the Small Business Act (15 U.S.C. 
     632), as amended by section 1342, is amended by adding at the 
     end the following:
       ``(y) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Attorney General, shall issue a 
     Government-wide policy on prosecution of small business size 
     and status fraud, which shall direct Federal agencies to 
     appropriately publicize the policy.''.

     SEC. 1344. UPDATED SIZE STANDARDS.

       (a) Rolling Review.--
       (1) In general.--The Administrator shall--
       (A) during the 18-month period beginning on the date of 
     enactment of this Act, and during every 18-month period 
     thereafter, conduct a detailed review of not less than \1/3\ 
     of the size standards for small business concerns established 
     under section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)), which shall include holding not less than 2 
     public forums located in different geographic regions of the 
     United States;
       (B) after completing each review under subparagraph (A) 
     make appropriate adjustments to the size standards 
     established under section 3(a)(2) of the Small Business Act 
     to reflect market conditions;
       (C) make publicly available--
       (i) information regarding the factors evaluated as part of 
     each review conducted under subparagraph (A); and
       (ii) information regarding the criteria used for any 
     revised size standards promulgated under subparagraph (B); 
     and
       (D) not later than 30 days after the date on which the 
     Administrator completes each review under subparagraph (A), 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives and make publicly 
     available a report regarding the review, including why the 
     Administrator--
       (i) used the factors and criteria described in subparagraph 
     (C); and
       (ii) adjusted or did not adjust each size standard that was 
     reviewed under the review.
       (2) Complete review of size standards.--The Administrator 
     shall ensure that each size standard for small business 
     concerns established under section 3(a)(2) of the Small 
     Business Act (15 U.S.C. 632(a)(2)) is reviewed under 
     paragraph (1) not less frequently than once every 5 years.
       (b) Rules.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     rules for conducting the reviews required under subsection 
     (a).

     SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the mentor-protege program of 
     the Administration for small business concerns participating 
     in programs under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)), and other relationships and strategic 
     alliances pairing a larger business and a small business 
     concern partner to gain access to Federal Government 
     contracts, to determine whether the programs and 
     relationships are effectively supporting the goal of 
     increasing the participation of small business concerns in 
     Government contracting.
       (b) Matters To Be Studied.--The study conducted under this 
     section shall include--
       (1) a review of a broad cross-section of industries; and
       (2) an evaluation of--
       (A) how each Federal agency carrying out a program 
     described in subsection (a) administers and monitors the 
     program;
       (B) whether there are systems in place to ensure that the 
     mentor-protege relationship, or similar affiliation, promotes 
     real gain to the protege, and is not just a mechanism to 
     enable participants that would not otherwise qualify under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to 
     receive contracts under that section; and
       (C) the degree to which protege businesses become able to 
     compete for Federal contracts without the assistance of a 
     mentor.
       (c) Report to Congress.--Not later than 180 days after the 
     date of enactment of this Act, the Comptroller General shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report on the 
     results of the study conducted under this section.

     SEC. 1346. CONTRACTING GOALS REPORTS.

       Section 15(h)(2) of the Small Business Act (15 U.S.C. 
     644(h)(2)) is amended by striking ``submit them'' and all 
     that follows through ``the following:'' and inserting 
     ``submit to the President and the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives the compilation and 
     analysis, which shall include the following:''.

     SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.

       (a) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the terms ``HUBZone small business concern'', ``small 
     business concern'', ``small business concern owned and 
     controlled by service-disabled veterans'', and ``small 
     business concern owned and controlled by women'' have the 
     same meanings as in section 3 of the Small Business Act (15 
     U.S.C. 632).
       (b) Contracting Improvements.--
       (1) Contracting opportunities.--Section 31(b)(2)(B) of the 
     Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by 
     striking ``shall'' and inserting ``may''.
       (2) Contracting goals.--Section 15(g)(1) of the Small 
     Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth 
     sentence by inserting ``and subcontract'' after ``not less 
     than 3 percent of the total value of all prime contract''.
       (3) Mentor-protege programs.--The Administrator may 
     establish mentor-protege programs for small business concerns 
     owned and controlled by service-disabled veterans, small 
     business concerns owned and controlled by women, and HUBZone 
     small business concerns modeled on the mentor-protege program 
     of the Administration for small business concerns 
     participating in programs under section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)).

[[Page 13678]]

       (c) Small Business Contracting Programs Parity.--Section 
     31(b)(2) of the Small Business Act (15 U.S.C. 657a(b)(2)) is 
     amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``Notwithstanding any other provision of law--'';
       (2) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking ``a 
     contracting'' and inserting ``Sole source contracts.--A 
     contracting''; and
       (B) in clause (iii), by striking the semicolon at the end 
     and inserting a period;
       (3) in subparagraph (B)--
       (A) by striking ``a contract opportunity shall'' and 
     inserting ``Restricted competition.--A contract opportunity 
     may''; and
       (B) by striking ``; and'' and inserting a period; and
       (4) in subparagraph (C), by striking ``not later'' and 
     inserting ``Appeals.--Not later''.

    Subtitle D--Small Business Management and Counseling Assistance

     SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS 
                   PROGRAMS.

       (a) Microloan Program.--Section 7(m) of the Small Business 
     Act (15 U.S.C. 636(m)) is amended--
       (1) in paragraph (3)(B)--
       (A) by striking ``As a condition'' and inserting the 
     following:
       ``(i) In general.--Subject to clause (ii), as a 
     condition'';
       (B) by striking ``the Administration'' and inserting ``the 
     Administrator''; and
       (C) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''; and
       (2) in paragraph (4)(B)--
       (A) by striking ``As a condition'' and all that follows 
     through ``the Administration shall require'' and inserting 
     the following:
       ``(i) In general.--Subject to clause (ii), as a condition 
     of a grant made under subparagraph (A), the Administrator 
     shall require''; and
       (B) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''.
       (b) Women's Business Center Program.--Section 29(c) of the 
     Small Business Act (15 U.S.C. 656(c)) is amended--
       (1) in paragraph (1), by striking ``As a condition'' and 
     inserting ``Subject to paragraph (5), as a condition''; and
       (2) by adding at the end the following:
       ``(5) Waiver of non-federal share relating to technical 
     assistance and counseling.--
       ``(A) In general.--Upon request by a recipient 
     organization, and in accordance with this paragraph, the 
     Administrator may waive, in whole or in part, the requirement 
     to obtain non-Federal funds under this subsection for the 
     technical assistance and counseling activities of the 
     recipient organization carried out using financial assistance 
     under this section for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     paragraph for successive fiscal years.
       ``(B) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this paragraph, 
     the Administrator shall consider--
       ``(i) the economic conditions affecting the recipient 
     organization;
       ``(ii) the impact a waiver under this clause would have on 
     the credibility of the women's business center program under 
     this section;
       ``(iii) the demonstrated ability of the recipient 
     organization to raise non-Federal funds; and
       ``(iv) the performance of the recipient organization.
       ``(C) Limitations.--
       ``(i) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     if granting the waiver would undermine the credibility of the 
     women's business center program under this section.
       ``(ii) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     for fiscal year 2013 or any fiscal year thereafter.''.
       (c) Prospective Repeals.--Effective October 1, 2012, the 
     Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 7(m) (15 U.S.C. 636(m))--
       (A) in paragraph (3)(B)--
       (i) by striking ``Intermediary contribution.--'' and all 
     that follows through ``Subject to clause (ii), as'' and 
     inserting ``Intermediary contribution.--As''; and
       (ii) by striking clause (ii); and
       (B) in paragraph (4)(B)--
       (i) by striking ``Contribution.--'' and all that follows 
     through ``Subject to clause (ii), as'' and inserting 
     ``Contribution.--As''; and
       (ii) by striking clause (ii); and
       (2) in section 29(c) (15 U.S.C. 656(c))--
       (A) in paragraph (1), by striking ``Subject to paragraph 
     (5), as'' and inserting ``As''; and
       (B) by striking paragraph (5).

     SEC. 1402. GRANTS FOR SBDCS.

       (a) In General.--The Administrator may make grants to small 
     business development centers under section 21 of the Small 
     Business Act (15 U.S.C. 648) to provide targeted technical 
     assistance to small business concerns seeking access to 
     capital or credit, Federal procurement opportunities, energy 
     efficiency audits to reduce energy bills, opportunities to 
     export products or provide services to foreign customers, 
     adopting, making innovations in, and using broadband 
     technologies, or other assistance.
       (b) Allocation.--
       (1) In general.--Subject to paragraph (2), and 
     notwithstanding the requirements of section 21(a)(4)(C)(iii) 
     of the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the 
     amount appropriated to carry out this section shall be 
     allocated under the formula under section 21(a)(4)(C)(i) of 
     that Act.
       (2) Minimum funding.--The amount made available under this 
     section to each State shall be not less than $325,000.
       (3) Types of uses.--Of the total amount of the grants 
     awarded by the Administrator under this section--
       (A) not less than 80 percent shall be used for counseling 
     of small business concerns; and
       (B) not more than 20 percent may be used for classes or 
     seminars.
       (c) No Non-Federal Share Required.--Notwithstanding section 
     21(a)(4)(A) of the Small Business Act (15 U.S.C. 
     648(a)(4)(A)), the recipient of a grant made under this 
     section shall not be required to provide non-Federal matching 
     funds.
       (d) Distribution.--Not later than 30 days after the date on 
     which amounts are appropriated to carry out this section, the 
     Administrator shall disburse the total amount appropriated.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator $50,000,000 to carry 
     out this section.

                 Subtitle E--Disaster Loan Improvement

     SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1343, is amended by adding at the end the 
     following:
       ``(z) Aquaculture Business Disaster Assistance.--Subject to 
     section 18(a) and notwithstanding section 18(b)(1), the 
     Administrator may provide disaster assistance under section 
     7(b)(2) to aquaculture enterprises that are small 
     businesses.''.

              Subtitle F--Small Business Regulatory Relief

     SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.

       Section 604(a) of title 5, United States Code, is amended--
       (1) in paragraph (1), by striking ``succinct'';
       (2) in paragraph (2), by striking ``summary'' each place it 
     appears and inserting ``statement'';
       (3) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (4) by inserting after paragraph (2) the following:
       ``(3) the response of the agency to any comments filed by 
     the Chief Counsel for Advocacy of the Small Business 
     Administration

[[Page 13679]]

     in response to the proposed rule, and a detailed statement of 
     any change made to the proposed rule in the final rule as a 
     result of the comments;''.

     SEC. 1602. OFFICE OF ADVOCACY.

       (a) In General.--Section 203 of Public Law 94-305 (15 
     U.S.C. 634c) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(6) carry out the responsibilities of the Office of 
     Advocacy under chapter 6 of title 5, United States Code.''.
       (b) Budgetary Line Item and Authorization of 
     Appropriations.--Title II of Public Law 94-305 (15 U.S.C. 
     634a et seq.) is amended by striking section 207 and 
     inserting the following:

     ``SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) Appropriation Requests.--Each budget of the United 
     States Government submitted by the President under section 
     1105 of title 31, United States Code, shall include a 
     separate statement of the amount of appropriations requested 
     for the Office of Advocacy of the Small Business 
     Administration, which shall be designated in a separate 
     account in the General Fund of the Treasury.
       ``(b) Administrative Operations.--The Administrator of the 
     Small Business Administration shall provide the Office of 
     Advocacy with appropriate and adequate office space at 
     central and field office locations, together with such 
     equipment, operating budget, and communications facilities 
     and services as may be necessary, and shall provide necessary 
     maintenance services for such offices and the equipment and 
     facilities located in such offices.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this title. Any amount appropriated under this 
     subsection shall remain available, without fiscal year 
     limitation, until expended.''.

                 Subtitle G--Appropriations Provisions

     SEC. 1701. SALARIES AND EXPENSES.

       (a) Appropriation.--There is appropriated, out of any money 
     in the Treasury not otherwise appropriated, for the fiscal 
     year ending September 30, 2010, $150,000,000, to remain 
     available until September 30, 2012, for an additional amount 
     for the appropriations account appropriated under the heading 
     ``salaries and expenses'' under the heading ``Small Business 
     Administration'', of which--
       (1) $50,000,000 is for grants to small business development 
     centers authorized under section 1402;
       (2) $1,000,000 is for the costs of administering grants 
     authorized under section 1402;
       (3) $30,000,000 is for grants to States for fiscal year 
     2011 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (4) $30,000,000 is for grants to States for fiscal year 
     2012 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (5) $2,500,000 is for the costs of administering grants 
     authorized under section 1207;
       (6) $5,000,000 is for grants for fiscal year 2011 under the 
     Small Business Teaming Pilot Program under section 1314; and
       (7) $5,000,000 is for grants for fiscal year 2012 under the 
     Small Business Teaming Pilot Program under section 1314.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Appropriations of the Senate and the Committee 
     on Appropriations of the House of Representatives a detailed 
     expenditure plan for using the funds provided under 
     subsection (a).

     SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.

       (a) In General.--There is appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2010, for an additional amount for the 
     appropriations account appropriated under the heading 
     ``business loans program account'' under the heading ``Small 
     Business Administration''--
       (1) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2011 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (2) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2012 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (3) $6,500,000, to remain available until September 30, 
     2012, for administrative expenses to carry out the direct 
     loan program authorized under section 7(l) of the Small 
     Business Act, as added by section 1131 of this title, which 
     may be transferred to and merged with the appropriations 
     account appropriated under the heading ``salaries and 
     expenses'' under the heading ``Small Business 
     Administration''; and
       (4) $15,000,000, to remain available until September 30, 
     2011, for the cost of guaranteed loans as authorized under 
     section 7(a) of the Small Business Act, including the cost of 
     modifying the loans.
       (b) Definition.--In this section, the term ``cost'' has the 
     meaning given that term in section 502 of the Congressional 
     Budget Act of 1974.

     SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND 
                   PROGRAM ACCOUNT.

       There is appropriated, out of any money in the Treasury not 
     otherwise appropriated, for the fiscal year ending September 
     30, 2010, for an additional amount for the appropriations 
     account appropriated under the heading ``community 
     development financial institutions fund program account'' 
     under the heading ``DEPARTMENT OF THE TREASURY'', 
     $13,500,000, to remain available until September 30, 2012, 
     for the costs of administering guarantees for bonds and notes 
     as authorized under section 114A of the Riegle Community 
     Development and Regulatory Improvement Act of 1994, as added 
     by section 1134 of this Act.

     SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT 
                   EXTENSIONS.

       (a) Extension of Programs.--
       (1) In general.--There is appropriated, out of any funds in 
     the Treasury not otherwise appropriated, for an additional 
     amount for ``Small Business Administration--Business Loans 
     Program Account'', $505,000,000, to remain available through 
     December 31, 2010, for the cost of--
       (A) fee reductions and eliminations under section 501 of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 151), as amended by this 
     Act; and
       (B) loan guarantees under section 502 of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 152), as amended by this Act.
       (2) Cost.--For purposes of this subsection, the term 
     ``cost'' has the same meaning as in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a).
       (b) Administrative Expenses.--There is appropriated for an 
     additional amount, out of any funds in the Treasury not 
     otherwise appropriated, for administrative expenses to carry 
     out sections 501 and 502 of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5), 
     $5,000,000, to remain available until expended, which may be 
     transferred and merged with the appropriation for ``Small 
     Business Administration--Salaries and Expenses''.

                        TITLE II--TAX PROVISIONS

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``Creating Small Business 
     Jobs Act of 2010''.

                   Subtitle A--Small Business Relief

                  PART I--PROVIDING ACCESS TO CAPITAL

     SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
                   CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Subsection (a) of section 1202 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) 100 percent exclusion for stock acquired during 
     certain periods in 2010.--In the case of qualified small 
     business stock acquired after the date of the enactment of 
     the Creating Small Business Jobs Act of 2010 and before 
     January 1, 2011--
       ``(A) paragraph (1) shall be applied by substituting `100 
     percent' for `50 percent',
       ``(B) paragraph (2) shall not apply, and
       ``(C) paragraph (7) of section 57(a) shall not apply.''.
       (b) Conforming Amendment.--Paragraph (3) of section 1202(a) 
     of the Internal Revenue Code of 1986 is amended--
       (1) by inserting ``certain periods in'' before ``2010'' in 
     the heading, and
       (2) by striking ``before January 1, 2011'' and inserting 
     ``on or before the date of the enactment of the Creating 
     Small Business Jobs Act of 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after the date of the enactment 
     of this Act.

     SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES FOR 2010 CARRIED BACK 5 YEARS.

       (a) In General.--Section 39(a) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(4) 5-year carryback for eligible small business 
     credits.--
       ``(A) In general.--Notwithstanding subsection (d), in the 
     case of eligible small business credits determined in the 
     first taxable year of the taxpayer beginning in 2010--
       ``(i) paragraph (1) shall be applied by substituting `each 
     of the 5 taxable years' for `the taxable year' in 
     subparagraph (A) thereof, and
       ``(ii) paragraph (2) shall be applied--

       ``(I) by substituting `25 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and
       ``(II) by substituting `24 taxable years' for `20 taxable 
     years' in subparagraph (B) thereof.

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     has the meaning given such term by section 38(c)(5)(B).''.
       (b) Conforming Amendment.--Section 39(a)(3)(A) of the 
     Internal Revenue Code of 1986 is amended by inserting ``or 
     the eligible small business credits'' after ``credit)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to credits

[[Page 13680]]

     determined in taxable years beginning after December 31, 
     2009.

     SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES IN 2010 NOT SUBJECT TO ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Section 38(c) of the Internal Revenue Code 
     of 1986 is amended by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:
       ``(5) Special rules for eligible small business credits in 
     2010.--
       ``(A) In general.--In the case of eligible small business 
     credits determined in taxable years beginning in 2010--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credits, and
       ``(ii) in applying paragraph (1) to such credits--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the eligible 
     small business credits).

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     means the sum of the credits listed in subsection (b) which 
     are determined for the taxable year with respect to an 
     eligible small business. Such credits shall not be taken into 
     account under paragraph (2), (3), or (4).
       ``(C) Eligible small business.--For purposes of this 
     subsection, the term `eligible small business' means, with 
     respect to any taxable year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,
     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.
       ``(D) Treatment of partners and s corporation 
     shareholders.--Credits determined with respect to a 
     partnership or S corporation shall not be treated as eligible 
     small business credits by any partner or shareholder unless 
     such partner or shareholder meets the gross receipts test 
     under subparagraph (C) for the taxable year in which such 
     credits are treated as current year business credits.''.
       (b) Technical Amendment.--Section 55(e)(5) of the Internal 
     Revenue Code of 1986 is amended by striking ``38(c)(3)(B)'' 
     and inserting ``38(c)(6)(B)''.
       (c) Conforming Amendments.--
       (1) Subclause (II) of section 38(c)(2)(A)(ii) of the 
     Internal Revenue Code of 1986 is amended by inserting ``the 
     eligible small business credits,'' after ``the New York 
     Liberty Zone business employee credit,''.
       (2) Subclause (II) of section 38(c)(3)(A)(ii) of such Code 
     is amended by inserting ``, the eligible small business 
     credits,'' after ``the New York Liberty Zone business 
     employee credit''.
       (3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code 
     is amended by inserting ``the eligible small business credits 
     and'' before ``the specified credits''.
       (d) Effective Date.--The amendments made by subsection (a) 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009, and to carrybacks of such credits.

     SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
                   BUILT-IN GAINS TAX.

       (a) In General.--Subparagraph (B) of section 1374(d)(7) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) Special rules for 2009, 2010, and 2011.--No tax shall 
     be imposed on the net recognized built-in gain of an S 
     corporation--
       ``(i) in the case of any taxable year beginning in 2009 or 
     2010, if the 7th taxable year in the recognition period 
     preceded such taxable year, or
       ``(ii) in the case of any taxable year beginning in 2011, 
     if the 5th year in the recognition period preceded such 
     taxable year.
     The preceding sentence shall be applied separately with 
     respect to any asset to which paragraph (8) applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    PART II--ENCOURAGING INVESTMENT

     SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; 
                   CERTAIN REAL PROPERTY TREATED AS SECTION 179 
                   PROPERTY.

       (a) Increased Limitations.--Subsection (b) of section 179 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``shall not exceed'' and all that follows 
     in paragraph (1) and inserting ``shall not exceed--
       ``(A) $250,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $500,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $25,000 in the case of taxable years beginning after 
     2011.'', and
       (2) by striking ``exceeds'' and all that follows in 
     paragraph (2) and inserting ``exceeds--
       ``(A) $800,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $2,000,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $200,000 in the case of taxable years beginning after 
     2011.''.
       (b) Inclusion of Certain Real Property.--Section 179 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subsection:
       ``(f) Special Rules for Qualified Real Property.--
       ``(1) In general.--If a taxpayer elects the application of 
     this subsection for any taxable year beginning in 2010 or 
     2011, the term `section 179 property' shall include any 
     qualified real property which is--
       ``(A) of a character subject to an allowance for 
     depreciation,
       ``(B) acquired by purchase for use in the active conduct of 
     a trade or business, and
       ``(C) not described in the last sentence of subsection 
     (d)(1).
       ``(2) Qualified real property.--For purposes of this 
     subsection, the term `qualified real property' means--
       ``(A) qualified leasehold improvement property described in 
     section 168(e)(6),
       ``(B) qualified restaurant property described in section 
     168(e)(7) (without regard to the dates specified in 
     subparagraph (A)(i) thereof), and
       ``(C) qualified retail improvement property described in 
     section 168(e)(8) (without regard to subparagraph (E) 
     thereof).
       ``(3) Limitation.--For purposes of applying the limitation 
     under subsection (b)(1)(B), not more than $250,000 of the 
     aggregate cost which is taken into account under subsection 
     (a) for any taxable year may be attributable to qualified 
     real property.
       ``(4) Carryover limitation.--
       ``(A) In general.--Notwithstanding subsection (b)(3)(B), no 
     amount attributable to qualified real property may be carried 
     over to a taxable year beginning after 2011.
       ``(B) Treatment of disallowed amounts.--Except as provided 
     in subparagraph (C), to the extent that any amount is not 
     allowed to be carried over to a taxable year beginning after 
     2011 by reason of subparagraph (A), this title shall be 
     applied as if no election under this section had been made 
     with respect to such amount.
       ``(C) Amounts carried over from 2010.--If subparagraph (B) 
     applies to any amount (or portion of an amount) which is 
     carried over from a taxable year other than the taxpayer's 
     last taxable year beginning in 2011, such amount (or portion 
     of an amount) shall be treated for purposes of this title as 
     attributable to property placed in service on the first day 
     of the taxpayer's last taxable year beginning in 2011.
       ``(D) Allocation of amounts.--For purposes of applying this 
     paragraph and subsection (b)(3)(B) to any taxable year, the 
     amount which is disallowed under subsection (b)(3)(A) for 
     such taxable year which is attributed to qualified real 
     property shall be the amount which bears the same ratio to 
     the total amount so disallowed as--
       ``(i) the aggregate amount attributable to qualified real 
     property placed in service during such taxable year, 
     increased by the portion of any amount carried over to such 
     taxable year from a prior taxable year which is attributable 
     to such property, bears to
       ``(ii) the total amount of section 179 property placed in 
     service during such taxable year, increased by the aggregate 
     amount carried over to such taxable year from any prior 
     taxable year.
     For purposes of the preceding sentence, only section 179 
     property with respect to which an election was made under 
     subsection (c)(1) (determined without regard to subparagraph 
     (B) of this paragraph) shall be taken into account.''.
       (c) Revocability of Election.--Paragraph (2) of section 
     179(c) of the Internal Revenue Code of 1986 is amended by 
     striking ``2011'' and inserting ``2012''.
       (d) Computer Software Treated as 179 Property.--Clause (ii) 
     of section 179(d)(1)(A) is amended by striking ``2011'' and 
     inserting ``2012''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     placed in service after December 31, 2009, in taxable years 
     beginning after such date.
       (2) Extensions.--The amendments made by subsections (c) and 
     (d) shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT 
                   OF THE BASIS OF CERTAIN QUALIFIED PROPERTY.

       (a) In General.--Paragraph (2) of section 168(k) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``January 1, 2011'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2012'', and
       (2) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2010'' and inserting ``January 1, 2011''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) of 
     such Code is amended by striking ``Pre-january 1, 2010'' and 
     inserting ``Pre-january 1, 2011''.

[[Page 13681]]

       (3) Subparagraph (D) of section 168(k)(4) of such Code is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     a comma, and by adding at the end the following new clauses:
       ``(iv) `January 1, 2011' shall be substituted for `January 
     1, 2012' in subparagraph (A)(iv) thereof, and
       ``(v) `January 1, 2010' shall be substituted for `January 
     1, 2011' each place it appears in subparagraph (A) 
     thereof.''.
       (4) Subparagraph (B) of section 168(l)(5) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (5) Subparagraph (C) of section 168(n)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years ending after such date.

     SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING.

       (a) In General.--Section 460(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(6) Special rule for allocation of bonus depreciation 
     with respect to certain property.--
       ``(A) In general.--Solely for purposes of determining the 
     percentage of completion under subsection (b)(1)(A), the cost 
     of qualified property shall be taken into account as a cost 
     allocated to the contract as if subsection (k) of section 168 
     had not been enacted.
       ``(B) Qualified property.--For purposes of this paragraph, 
     the term `qualified property' means property described in 
     section 168(k)(2) which--
       ``(i) has a recovery period of 7 years or less, and
       ``(ii) is placed in service after December 31, 2009, and 
     before January 1, 2011 (January 1, 2012, in the case of 
     property described in section 168(k)(2)(B)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

                  PART III--PROMOTING ENTREPRENEURSHIP

     SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-
                   UP EXPENDITURES IN 2010.

       (a) Start-up Expenditures.--Subsection (b) of section 195 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new paragraph:
       ``(3) Special rule for taxable years beginning in 2010.--In 
     the case of a taxable year beginning in 2010, paragraph 
     (1)(A)(ii) shall be applied--
       ``(A) by substituting `$10,000' for `$5,000', and
       ``(B) by substituting `$60,000' for `$50,000'.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED 
                   STATES TRADE REPRESENTATIVE TO DEVELOP MARKET 
                   ACCESS OPPORTUNITIES FOR UNITED STATES SMALL- 
                   AND MEDIUM-SIZED BUSINESSES AND TO ENFORCE 
                   TRADE AGREEMENTS.

       (a) In General.--There are authorized to be appropriated to 
     the Office of the United States Trade Representative 
     $5,230,000, to remain available until expended, for--
       (1) analyzing and developing opportunities for businesses 
     in the United States to access the markets of foreign 
     countries; and
       (2) enforcing trade agreements to which the United States 
     is a party.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated under subsection (a), the 
     United States Trade Representative shall--
       (1) give preference to those initiatives that the United 
     States Trade Representative determines will create or sustain 
     the greatest number of jobs in the United States or result in 
     the greatest benefit to the economy of the United States; and
       (2) consider the needs of small- and medium-sized 
     businesses in the United States with respect to--
       (A) accessing the markets of foreign countries; and
       (B) the enforcement of trade agreements to which the United 
     States is a party.

               PART IV--PROMOTING SMALL BUSINESS FAIRNESS

     SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
                   REPORTABLE TRANSACTIONS BASED ON RESULTING TAX 
                   BENEFITS.

       (a) In General.--Subsection (b) of section 6707A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the amount of the penalty under subsection (a) 
     with respect to any reportable transaction shall be 75 
     percent of the decrease in tax shown on the return as a 
     result of such transaction (or which would have resulted from 
     such transaction if such transaction were respected for 
     Federal tax purposes).
       ``(2) Maximum penalty.--The amount of the penalty under 
     subsection (a) with respect to any reportable transaction 
     shall not exceed--
       ``(A) in the case of a listed transaction, $200,000 
     ($100,000 in the case of a natural person), or
       ``(B) in the case of any other reportable transaction, 
     $50,000 ($10,000 in the case of a natural person).
       ``(3) Minimum penalty.--The amount of the penalty under 
     subsection (a) with respect to any transaction shall not be 
     less than $10,000 ($5,000 in the case of a natural 
     person).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after December 31, 2006.

     SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING 
                   SELF-EMPLOYMENT TAXES IN 2010.

       (a) In General.--Paragraph (4) of section 162(l) of the 
     Internal Revenue Code of 1986 is amended by inserting ``for 
     taxable years beginning before January 1, 2010, or after 
     December 31, 2010'' before the period.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR 
                   TELECOMMUNICATIONS EQUIPMENT FROM LISTED 
                   PROPERTY.

       (a) In General.--Subparagraph (A) of section 280F(d)(4) of 
     the Internal Revenue Code of 1986 (defining listed property) 
     is amended by adding ```and''' at the end of clause (iv), by 
     striking clause (v), and by redesignating clause (vi) as 
     clause (v).
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                     Subtitle B--Revenue Provisions

                      PART I--REDUCING THE TAX GAP

     SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE 
                   PAYMENTS.

       (a) In General.--Section 6041 of the Internal Revenue Code 
     of 1986, as amended by section 9006 of the Patient Protection 
     and Affordable Care Act, is amended by redesignating 
     subsections (h) and (i) as subsections (i) and (j), 
     respectively, and by inserting after subsection (g) the 
     following new subsection:
       ``(h) Treatment of Rental Property Expense Payments.--
       ``(1) In general.--Solely for purposes of subsection (a) 
     and except as provided in paragraph (2), a person receiving 
     rental income from real estate shall be considered to be 
     engaged in a trade or business of renting property.
       ``(2) Exceptions.--Paragraph (1) shall not apply to--
       ``(A) any individual, including any individual who is an 
     active member of the uniformed services or an employee of the 
     intelligence community (as defined in section 
     121(d)(9)(C)(iv)), if substantially all rental income is 
     derived from renting the principal residence (within the 
     meaning of section 121) of such individual on a temporary 
     basis,
       ``(B) any individual who receives rental income of not more 
     than the minimal amount, as determined under regulations 
     prescribed by the Secretary, and
       ``(C) any other individual for whom the requirements of 
     this section would cause hardship, as determined under 
     regulations prescribed by the Secretary.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to payments made after December 31, 2010.

     SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.

       (a) Failure To File Correct Information Returns.--
       (1) In general.--Subsections (a)(1), (b)(1)(A), and 
     (b)(2)(A) of section 6721 of the Internal Revenue Code of 
     1986 are each amended by striking ``$50'' and inserting 
     ``$100''.
       (2) Aggregate annual limitation.--Subsections (a)(1), 
     (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are 
     each amended by striking ``$250,000'' and inserting 
     ``$1,500,000''.
       (b) Reduction Where Correction Within 30 Days.--
       (1) In general.--Subparagraph (A) of section 6721(b)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$15'' and inserting ``$30''.
       (2) Aggregate annual limitation.--Subsections (b)(1)(B) and 
     (d)(1)(B) of section 6721 of such Code are each amended by 
     striking ``$75,000'' and inserting ``$250,000''.
       (c) Reduction Where Correction on or Before August 1.--
       (1) In general.--Subparagraph (A) of section 6721(b)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$30'' and inserting ``$60''.
       (2) Aggregate annual limitation.--Subsections (b)(2)(B) and 
     (d)(1)(C) of section 6721 of such Code are each amended by 
     striking ``$150,000'' and inserting ``$500,000''.
       (d) Aggregate Annual Limitations for Persons With Gross 
     Receipts of Not More Than $5,000,000.--
       (1) In general.--Paragraph (1) of section 6721(d) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``$100,000'' in subparagraph (A) and 
     inserting ``$500,000'',
       (B) by striking ``$25,000'' in subparagraph (B) and 
     inserting ``$75,000'', and

[[Page 13682]]

       (C) by striking ``$50,000'' in subparagraph (C) and 
     inserting ``$200,000''.
       (2) Technical amendment.--Paragraph (1) of section 6721(d) 
     of such Code is amended by striking ``such taxable year'' and 
     inserting ``such calendar year''.
       (e) Penalty in Case of Intentional Disregard.--Paragraph 
     (2) of section 6721(e) of the Internal Revenue Code of 1986 
     is amended by striking ``$100'' and inserting ``$250''.
       (f) Adjustment for Inflation.--Section 6721 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d) (other than paragraph (2)(A) thereof), and (e) shall 
     be increased by such dollar amount multiplied by the cost-of-
     living adjustment determined under section 1(f)(3) determined 
     by substituting `calendar year 2011' for `calendar year 1992' 
     in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (g) Failure to Furnish Correct Payee Statements.--Section 
     6722 of the Internal Revenue Code of 1986 is amended to read 
     as follows:

     ``SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.

       ``(a) Imposition of Penalty.--
       ``(1) General rule.--In the case of each failure described 
     in paragraph (2) by any person with respect to a payee 
     statement, such person shall pay a penalty of $100 for each 
     statement with respect to which such a failure occurs, but 
     the total amount imposed on such person for all such failures 
     during any calendar year shall not exceed $1,500,000.
       ``(2) Failures subject to penalty.--For purposes of 
     paragraph (1), the failures described in this paragraph are--
       ``(A) any failure to furnish a payee statement on or before 
     the date prescribed therefor to the person to whom such 
     statement is required to be furnished, and
       ``(B) any failure to include all of the information 
     required to be shown on a payee statement or the inclusion of 
     incorrect information.
       ``(b) Reduction Where Correction in Specified Period.--
       ``(1) Correction within 30 days.--If any failure described 
     in subsection (a)(2) is corrected on or before the day 30 
     days after the required filing date--
       ``(A) the penalty imposed by subsection (a) shall be $30 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during any calendar year which are so corrected 
     shall not exceed $250,000.
       ``(2) Failures corrected on or before august 1.--If any 
     failure described in subsection (a)(2) is corrected after the 
     30th day referred to in paragraph (1) but on or before August 
     1 of the calendar year in which the required filing date 
     occurs--
       ``(A) the penalty imposed by subsection (a) shall be $60 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during the calendar year which are so corrected 
     shall not exceed $500,000.
       ``(c) Exception for De Minimis Failures.--
       ``(1) In general.--If--
       ``(A) a payee statement is furnished to the person to whom 
     such statement is required to be furnished,
       ``(B) there is a failure described in subsection (a)(2)(B) 
     (determined after the application of section 6724(a)) with 
     respect to such statement, and
       ``(C) such failure is corrected on or before August 1 of 
     the calendar year in which the required filing date occurs,
     for purposes of this section, such statement shall be treated 
     as having been furnished with all of the correct required 
     information.
       ``(2) Limitation.--The number of payee statements to which 
     paragraph (1) applies for any calendar year shall not exceed 
     the greater of--
       ``(A) 10, or
       ``(B) one-half of 1 percent of the total number of payee 
     statements required to be filed by the person during the 
     calendar year.
       ``(d) Lower Limitations for Persons With Gross Receipts of 
     Not More Than $5,000,000.--
       ``(1) In general.--If any person meets the gross receipts 
     test of paragraph (2) with respect to any calendar year, with 
     respect to failures during such calendar year--
       ``(A) subsection (a)(1) shall be applied by substituting 
     `$500,000' for `$1,500,000',
       ``(B) subsection (b)(1)(B) shall be applied by substituting 
     `$75,000' for `$250,000', and
       ``(C) subsection (b)(2)(B) shall be applied by substituting 
     `$200,000' for `$500,000'.
       ``(2) Gross receipts test.--A person meets the gross 
     receipts test of this paragraph if such person meets the 
     gross receipts test of section 6721(d)(2).
       ``(e) Penalty in Case of Intentional Disregard.--If 1 or 
     more failures to which subsection (a) applies are due to 
     intentional disregard of the requirement to furnish a payee 
     statement (or the correct information reporting requirement), 
     then, with respect to each such failure--
       ``(1) subsections (b), (c), and (d) shall not apply,
       ``(2) the penalty imposed under subsection (a)(1) shall be 
     $250, or, if greater--
       ``(A) in the case of a payee statement other than a 
     statement required under section 6045(b), 6041A(e) (in 
     respect of a return required under section 6041A(b)), 
     6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of the 
     aggregate amount of the items required to be reported 
     correctly, or
       ``(B) in the case of a payee statement required under 
     section 6045(b), 6050K(b), or 6050L(c), 5 percent of the 
     aggregate amount of the items required to be reported 
     correctly, and
       ``(3) in the case of any penalty determined under paragraph 
     (2)--
       ``(A) the $1,500,000 limitation under subsection (a) shall 
     not apply, and
       ``(B) such penalty shall not be taken into account in 
     applying such limitation to penalties not determined under 
     paragraph (2).
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d)(1), and (e) shall be increased by such dollar amount 
     multiplied by the cost-of-living adjustment determined under 
     section 1(f)(3) determined by substituting `calendar year 
     2011' for `calendar year 1992' in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply with respect to information returns required to 
     be filed on or after January 1, 2011.

     SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER 
                   ENFORCEMENT ACTIONS.

       (a) In General.--The Commissioner of Internal Revenue, in 
     consultation with the Secretary of the Treasury, shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate an 
     annual report on the penalties assessed by the Internal 
     Revenue Service during the preceding year under each of the 
     following provisions of the Internal Revenue Code of 1986:
       (1) Section 6662A (relating to accuracy-related penalty on 
     understatements with respect to reportable transactions).
       (2) Section 6700(a) (relating to promoting abusive tax 
     shelters).
       (3) Section 6707 (relating to failure to furnish 
     information regarding reportable transactions).
       (4) Section 6707A (relating to failure to include 
     reportable transaction information with return).
       (5) Section 6708 (relating to failure to maintain lists of 
     advisees with respect to reportable transactions).
       (b) Additional Information.--The report required under 
     subsection (a) shall also include information on the 
     following with respect to each year:
       (1) Any action taken under section 330(b) of title 31, 
     United States Code, with respect to any reportable 
     transaction (as defined in section 6707A(c) of the Internal 
     Revenue Code of 1986).
       (2) Any extension of the time for assessment of tax 
     enforced, or assessment of any amount under such an 
     extension, under paragraph (10) of section 6501(c) of the 
     Internal Revenue Code of 1986.
       (c) Date of Report.--The first report required under 
     subsection (a) shall be submitted not later than December 31, 
     2010.

     SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES 
                   OF CERTAIN FEDERAL CONTRACTORS.

       (a) In General.--Subsection (f) of section 6330 of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of paragraph (2), by inserting ``or'' at the end 
     of paragraph (3), and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) the Secretary has served a Federal contractor 
     levy,''.
       (b) Federal Contractor Levy.--Subsection (h) of section 
     6330 of the Internal Revenue Code of 1986 is amended--
       (1) by striking all that precedes ``any levy in connection 
     with the collection'' and inserting the following:
       ``(h) Definitions Related to Exceptions.--For purposes of 
     subsection (f)--
       ``(1) Disqualified employment tax levy.--A disqualified 
     employment tax levy is''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Federal contractor levy.--A Federal contractor levy 
     is any levy if the person whose property is subject to the 
     levy (or any predecessor thereof) is a Federal contractor.''.
       (c) Conforming Amendment.--The heading of subsection (f) of 
     section 6330 of the Internal Revenue Code of 1986 is amended 
     by striking ``Jeopardy and State Refund Collection'' and 
     inserting ``Exceptions''.

[[Page 13683]]

       (d) Effective Date.--The amendments made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

               PART II--PROMOTING RETIREMENT PREPARATION

     SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
                   ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
                   CONTRIBUTIONS.

       (a) In General.--Section 402A(e)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following:
       ``(C) an eligible deferred compensation plan (as defined in 
     section 457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (b) Elective Deferrals.--Section 402A(e)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(2) Elective deferral.--The term `elective deferral' 
     means--
       ``(A) any elective deferral described in subparagraph (A) 
     or (C) of section 402(g)(3), and
       ``(B) any elective deferral of compensation by an 
     individual under an eligible deferred compensation plan (as 
     defined in section 457(b)) of an eligible employer described 
     in section 457(e)(1)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO 
                   DESIGNATED ROTH ACCOUNTS.

       (a) In General.--Section 402A(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Taxable rollovers to designated roth accounts.--
       ``(A) In general.--Notwithstanding sections 402(c), 
     403(b)(8), and 457(e)(16), in the case of any distribution to 
     which this paragraph applies--
       ``(i) there shall be included in gross income any amount 
     which would be includible were it not part of a qualified 
     rollover contribution,
       ``(ii) section 72(t) shall not apply, and
       ``(iii) unless the taxpayer elects not to have this clause 
     apply, any amount required to be included in gross income for 
     any taxable year beginning in 2010 by reason of this 
     paragraph shall be so included ratably over the 2-taxable-
     year period beginning with the first taxable year beginning 
     in 2011.

     Any election under clause (iii) for any distributions during 
     a taxable year may not be changed after the due date for such 
     taxable year.
       ``(B) Distributions to which paragraph applies.--In the 
     case of an applicable retirement plan which includes a 
     qualified Roth contribution program, this paragraph shall 
     apply to a distribution from such plan other than from a 
     designated Roth account which is contributed in a qualified 
     rollover contribution (within the meaning of section 408A(e)) 
     to the designated Roth account maintained under such plan for 
     the benefit of the individual to whom the distribution is 
     made.
       ``(C) Coordination with limit.--Any distribution to which 
     this paragraph applies shall not be taken into account for 
     purposes of paragraph (1).
       ``(D) Other rules.--The rules of subparagraphs (D), (E), 
     and (F) of section 408A(d)(3) (as in effect for taxable years 
     beginning after 2009) shall apply for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after the date of the enactment 
     of this Act.

     SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED FROM ONLY A 
                   PORTION OF A CONTRACT.

       (a) In General.--Subsection (a) of section 72 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(a) General Rules for Annuities.--
       ``(1) Income inclusion.--Except as otherwise provided in 
     this chapter, gross income includes any amount received as an 
     annuity (whether for a period certain or during one or more 
     lives) under an annuity, endowment, or life insurance 
     contract.
       ``(2) Partial annuitization.--If any amount is received as 
     an annuity for a period of 10 years or more or during one or 
     more lives under any portion of an annuity, endowment, or 
     life insurance contract--
       ``(A) such portion shall be treated as a separate contract 
     for purposes of this section,
       ``(B) for purposes of applying subsections (b), (c), and 
     (e), the investment in the contract shall be allocated pro 
     rata between each portion of the contract from which amounts 
     are received as an annuity and the portion of the contract 
     from which amounts are not received as an annuity, and
       ``(C) a separate annuity starting date under subsection 
     (c)(4) shall be determined with respect to each portion of 
     the contract from which amounts are received as an 
     annuity.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts received in taxable years beginning 
     after December 31, 2010.

                 PART III--CLOSING UNINTENDED LOOPHOLES

     SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL 
                   PRODUCER CREDIT.

       (a) In General.--Clause (iii) of section 40(b)(6)(E) of the 
     Internal Revenue Code of 1986, as added by the Health Care 
     and Education Reconciliation Act of 2010, is amended--
       (1) by striking ``or'' at the end of subclause (I),
       (2) by striking the period at the end of subclause (II) and 
     inserting ``, or'',
       (3) by adding at the end the following new subclause:

       ``(III) such fuel has an acid number greater than 25.'', 
     and

       (4) by striking ``unprocessed'' in the heading and 
     inserting ``certain''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuels sold or used on or after January 1, 
     2010.

     SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES.

       (a) Amounts Sourced Within the United States.--Subsection 
     (a) of section 861 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(9) Guarantees.--Amounts received, directly or 
     indirectly, from--
       ``(A) a noncorporate resident or domestic corporation for 
     the provision of a guarantee of any indebtedness of such 
     resident or corporation, or
       ``(B) any foreign person for the provision of a guarantee 
     of any indebtedness of such person, if such amount is 
     connected with income which is effectively connected (or 
     treated as effectively connected) with the conduct of a trade 
     or business in the United States.''.
       (b) Amounts Sourced Without the United States.--Subsection 
     (a) of section 862 of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the end of paragraph (7), by 
     striking the period at the end of paragraph (8) and inserting 
     ``; and'', and by adding at the end the following new 
     paragraph:
       ``(9) amounts received, directly or indirectly, from a 
     foreign person for the provision of a guarantee of 
     indebtedness of such person other than amounts which are 
     derived from sources within the United States as provided in 
     section 861(a)(9).''.
       (c) Conforming Amendment.--Clause (ii) of section 
     864(c)(4)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``dividends or interest'' and inserting 
     ``dividends, interest, or amounts received for the provision 
     of guarantees of indebtedness''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to guarantees issued after the date of the 
     enactment of this Act.

         PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

     SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under paragraph (2) of section 561 of the 
     Hiring Incentives to Restore Employment Act in effect on the 
     date of the enactment of this Act is increased by 36 
     percentage points.

           TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE

     SEC. 3001. SHORT TITLE.

       This title may be cited as the ``State Small Business 
     Credit Initiative Act of 2010''.

     SEC. 3002. DEFINITIONS.

       In this title, the following definitions shall apply:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency''--
       (A) has the same meaning as in section 3(q) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(q)); and
       (B) includes the National Credit Union Administration Board 
     in the case of any credit union the deposits of which are 
     insured in accordance with the Federal Credit Union Act.
       (3) Enrolled loan.--The term ``enrolled loan'' means a loan 
     made by a financial institution lender that is enrolled by a 
     participating State in an approved State capital access 
     program in accordance with this title.
       (4) Federal contribution.--The term ``Federal 
     contribution'' means the portion of the contribution made by 
     a participating State to, or for the account of, an approved 
     State program that is made with Federal funds allocated to 
     the State by the Secretary under section 3003.
       (5) Financial institution.--The term ``financial 
     institution'' means any insured depository institution, 
     insured credit union, or

[[Page 13684]]

     community development financial institution, as those terms 
     are each defined in section 103 of the Riegle Community 
     Development and Regulatory Improvement Act of 1994 (12 U.S.C. 
     4702)
       (6) Participating state.--The term ``participating State'' 
     means any State that has been approved for participation in 
     the Program under section 3004.
       (7) Program.--The term ``Program'' means the State Small 
     Business Credit Initiative established under this title.
       (8) Qualifying loan or swap funding facility.--The term 
     ``qualifying loan or swap funding facility'' means a 
     contractual arrangement between a participating State and a 
     private financial entity under which--
       (A) the participating State delivers funds to the entity as 
     collateral;
       (B) the entity provides funding from the arrangement back 
     to the participating State; and
       (C) the full amount of resulting funding from the 
     arrangement, less any fees and other costs of the 
     arrangement, is contributed to, or for the account of, an 
     approved State program.
       (9) Reserve fund.--The term ``reserve fund'' means a fund, 
     established by a participating State, dedicated to a 
     particular financial institution lender, for the purposes 
     of--
       (A) depositing all required premium charges paid by the 
     financial institution lender and by each borrower receiving a 
     loan under an approved State program from that financial 
     institution lender;
       (B) depositing contributions made by the participating 
     State, including State contributions made with Federal 
     contributions; and
       (C) covering losses on enrolled loans by disbursing 
     accumulated funds.
       (10) State.--The term ``State'' means--
       (A) a State of the United States;
       (B) the District of Columbia, the Commonwealth of Puerto 
     Rico, the Commonwealth of Northern Mariana Islands, Guam, 
     American Samoa, and the United States Virgin Islands;
       (C) when designated by a State of the United States, a 
     political subdivision of that State that the Secretary 
     determines has the capacity to participate in the Program; 
     and
       (D) under the circumstances described in section 3004(d), a 
     municipality of a State of the United States to which the 
     Secretary has given a special permission under section 
     3004(d).
       (11) State capital access program.--The term ``State 
     capital access program'' means a program of a State that--
       (A) uses public resources to promote private access to 
     credit; and
       (B) meets the eligibility criteria in section 3005(c).
       (12) State other credit support program.--The term ``State 
     other credit support program''--
       (A) means a program of a State that--
       (i) uses public resources to promote private access to 
     credit;
       (ii) is not a State capital access program; and
       (iii) meets the eligibility criteria in section 3006(c); 
     and
       (B) includes, collateral support programs, loan 
     participation programs, State-run venture capital fund 
     programs, and credit guarantee programs.
       (13) State program.--The term ``State program'' means a 
     State capital access program or a State other credit support 
     program.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.

     SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES.

       (a) Program Established; Purpose.--There is established the 
     State Small Business Credit Initiative, to be administered by 
     the Secretary. Under the Program, the Secretary shall 
     allocate Federal funds to participating States and make the 
     allocated funds available to the participating States as 
     provided in this section for the uses described in this 
     section.
       (b) Allocation Formula.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall allocate Federal 
     funds to participating States so that each State is eligible 
     to receive an amount equal to the average of the respective 
     amounts that the State--
       (A) would receive under the 2009 allocation, as determined 
     under paragraph (2); and
       (B) would receive under the 2010 allocation, as determined 
     under paragraph (3).
       (2) 2009 allocation formula.--
       (A) In general.--The Secretary shall determine the 2009 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2008 State employment 
     decline bears to the aggregate of the 2008 State employment 
     declines for all States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2008 state employment decline defined.--In this 
     paragraph and with respect to a State, the term ``2008 State 
     employment decline'' means the excess (if any) of--
       (i) the number of individuals employed in such State 
     determined for December 2007; over
       (ii) the number of individuals employed in such State 
     determined for December 2008.
       (3) 2010 allocation formula.--
       (A) In general.--The Secretary shall determine the 2010 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2009 unemployment 
     number bears to the aggregate of the 2009 unemployment 
     numbers for all of the States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2009 unemployment number defined.--In this paragraph 
     and with respect to a State, the term ``2009 unemployment 
     number'' means the number of individuals within such State 
     who were determined to be unemployed by the Bureau of Labor 
     Statistics for December 2009.
       (c) Availability of Allocated Amount.--The amount allocated 
     by the Secretary to each participating State under subsection 
     (b) shall be made available to the State as follows:
       (1) Allocated amount generally to be available to state in 
     one-thirds.--
       (A) In general.--The Secretary shall--
       (i) apportion the participating State's allocated amount 
     into thirds;
       (ii) transfer to the participating State the first \1/3\ 
     when the Secretary approves the State for participation under 
     section 3004; and
       (iii) transfer to the participating State each successive 
     \1/3\ when the State has certified to the Secretary that it 
     has expended, transferred, or obligated 80 percent of the 
     last transferred \1/3\ for Federal contributions to, or for 
     the account of, State programs.
       (B) Authority to withhold pending audit.--The Secretary may 
     withhold the transfer of any successive \1/3\ pending results 
     of a financial audit.
       (C) Inspector general audits.--
       (i) In general.--The Inspector General of the Department of 
     the Treasury shall carry out an audit of the participating 
     State's use of allocated Federal funds transferred to the 
     State.
       (ii) Recoupment of misused transferred funds required.--The 
     allocation agreement between the Secretary and the 
     participating State shall provide that the Secretary shall 
     recoup any allocated Federal funds transferred to the 
     participating State if the results of the an audit include a 
     finding that there was an intentional or reckless misuse of 
     transferred funds by the State.
       (iii) Penalty for misstatement.--Any participating State 
     that is found to have intentionally misstated any report 
     issued to the Secretary under the Program shall be ineligible 
     to receive any additional funds under the Program. Funds that 
     had been allocated or that would otherwise have been 
     allocated to such participating State shall be paid into the 
     general fund of the Treasury for reduction of the public 
     debt.
       (iv) Municipalities.--In this subparagraph, the term 
     ``participating State'' shall include a municipality given 
     special permission to participate in the Program, under 
     section 3004(d).
       (D) Exception.--The Secretary may, in the Secretary's 
     discretion, transfer the full amount of the participating 
     State's allocated amount to the State in a single transfer if 
     the participating State applies to the Secretary for approval 
     to use the full amount of the allocation as collateral for a 
     qualifying loan or swap funding facility.
       (2) Transferred amounts.--Each amount transferred to a 
     participating State under this section shall remain available 
     to the State until used by the State as permitted under 
     paragraph (3).
       (3) Use of transferred funds.--Each participating State may 
     use funds transferred to it under this section only--
       (A) for making Federal contributions to, or for the account 
     of, an approved State program;
       (B) as collateral for a qualifying loan or swap funding 
     facility;
       (C) in the case of the first \1/3\ transferred, for paying 
     administrative costs incurred by the State in implementing an 
     approved State program in an amount not to exceed 5 percent 
     of that first \1/3\; or
       (D) in the case of each successive \1/3\ transferred, for 
     paying administrative costs incurred by the State in 
     implementing an approved State program in an amount not to 
     exceed 3 percent of that successive \1/3\.
       (4) Termination of availability of amounts not transferred 
     within 2 years of participation.--Any portion of a 
     participating State's allocated amount that has not been 
     transferred to the State under this section by the end of the 
     2-year period beginning on the date that the Secretary 
     approves the State for participation may be deemed by the 
     Secretary to be no longer allocated to the State and no 
     longer available to the State and shall be returned to the 
     General Fund of the Treasury.
       (5) Transferred amounts not assistance.--The amounts 
     transferred to a participating State under this section shall 
     not be considered assistance for purposes of subtitle V of 
     title 31, United States Code.
       (6) Definitions.--In this section--
       (A) the term ``allocated amount'' means the total amount of 
     Federal funds allocated

[[Page 13685]]

     by the Secretary under subsection (b) to the participating 
     State; and
       (B) the term ``\1/3\'' means--
       (i) in the case of the first \1/3\ and second \1/3\, an 
     amount equal to 33 percent of a participating State's 
     allocated amount; and
       (ii) in the case of the last \1/3\, an amount equal to 34 
     percent of a participating State's allocated amount.

     SEC. 3004. APPROVING STATES FOR PARTICIPATION.

       (a) Application.--Any State may apply to the Secretary for 
     approval to be a participating State under the Program and to 
     be eligible for an allocation of Federal funds under the 
     Program.
       (b) General Approval Criteria.--The Secretary shall approve 
     a State to be a participating State, if--
       (1) a specific department, agency, or political subdivision 
     of the State has been designated to implement a State program 
     and participate in the Program;
       (2) all legal actions necessary to enable such designated 
     department, agency, or political subdivision to implement a 
     State program and participate in the Program have been 
     accomplished;
       (3) the State has filed an application with the Secretary 
     for approval of a State capital access program under section 
     3005 or approval as a State other credit support program 
     under section 3006, in each case within the time period 
     provided in the respective section; and
       (4) the State and the Secretary have executed an allocation 
     agreement that--
       (A) conforms to the requirements of this title;
       (B) ensures that the State program complies with such 
     national standards as are established by the Secretary under 
     section 3009(a)(2);
       (C) sets forth internal control, compliance, and reporting 
     requirements as established by the Secretary, and such other 
     terms and conditions necessary to carry out the purposes of 
     this title, including an agreement by the State to allow the 
     Secretary to audit State programs;
       (D) requires that the State program be fully positioned, 
     within 90 days of the State's execution of the allocation 
     agreement with the Secretary, to act on providing the kind of 
     credit support that the State program was established to 
     provide; and
       (E) includes an agreement by the State to deliver to the 
     Secretary, and update annually, a schedule describing how the 
     State intends to apportion among its State programs the 
     Federal funds allocated to the State.
       (c) Contractual Arrangements for Implementation of State 
     Programs.--A State may be approved to be a participating 
     State, and be eligible for an allocation of Federal funds 
     under the Program, if the State has contractual arrangements 
     for the implementation and administration of its State 
     program with--
       (1) an existing, approved State program administered by 
     another State; or
       (2) an authorized agent of, or entity supervised by, the 
     State, including for-profit and not-for-profit entities.
       (d) Special Permission.--
       (1) Circumstances when a municipality may apply directly.--
     If a State does not, within 60 days after the date of 
     enactment of this Act, file with the Secretary a notice of 
     its intent to apply for approval by the Secretary of a State 
     program or within 9 months after the date of enactment of 
     this Act, file with the Secretary a complete application for 
     approval of a State program, the Secretary may grant to 
     municipalities of that State a special permission that will 
     allow them to apply directly to the Secretary without the 
     State for approval to be participating municipalities.
       (2) Timing requirements applicable to municipalities 
     applying directly.--To qualify for the special permission, a 
     municipality of a State shall be required, within 12 months 
     after the date of enactment of this Act, to file with the 
     Secretary a complete application for approval by the 
     Secretary of a State program.
       (3) Notices of intent and applications from more than 1 
     municipality.--A municipality of a State may combine with 1 
     or more other municipalities of that State to file a joint 
     notice of intent to file and a joint application.
       (4) Approval criteria.--The general approval criteria in 
     paragraphs (2) and (4) shall apply.
       (5) Allocation to municipalities.--
       (A) If more than 3.--If more than 3 municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to the 3 
     municipalities with the largest populations.
       (B) If 3 or fewer.--If 3 or fewer municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to each applicant 
     municipality or combination of municipalities.
       (6) Apportionment of allocated amount among participating 
     municipalities.--If the Secretary approves municipalities to 
     be participating municipalities under this subsection, the 
     Secretary shall apportion the full amount of the Federal 
     funds that are allocated to that State to municipalities that 
     are approved under this subsection in amounts proportionate 
     to the population of those municipalities, based on the most 
     recent available decennial census.
       (7) Approving state programs for municipalities.--If the 
     Secretary approves municipalities to be participating 
     municipalities under this subsection, the Secretary shall 
     take into account the additional considerations in section 
     3006(d) in making the determination under section 3005 or 
     3006 that the State program or programs to be implemented by 
     the participating municipalities, including a State capital 
     access program, is eligible for Federal contributions to, or 
     for the account of, the State program.

     SEC. 3005. APPROVING STATE CAPITAL ACCESS PROGRAMS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, State capital access program that 
     meets the eligibility criteria in subsection (c) may apply to 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions to the reserve fund.
       (b) Approval.--The Secretary shall approve such State 
     capital access program as eligible for Federal contributions 
     to the reserve fund if--
       (1) within 60 days after the date of enactment of this Act, 
     the State has filed with the Secretary a notice of intent to 
     apply for approval by the Secretary of a State capital access 
     program;
       (2) within 9 months after the date of enactment of this 
     Act, the State has filed with the Secretary a complete 
     application for approval by the Secretary of a capital access 
     program;
       (3) the State satisfies the requirements of subsections (a) 
     and (b) of section 3004; and
       (4) the State capital access program meets the eligibility 
     criteria in subsection (c).
       (c) Eligibility Criteria for State Capital Access 
     Programs.--For a State capital access program to be approved 
     under this section, that program shall be required to be a 
     program of the State that--
       (1) provides portfolio insurance for business loans based 
     on a separate loan-loss reserve fund for each financial 
     institution;
       (2) requires insurance premiums to be paid by the financial 
     institution lenders and by the business borrowers to the 
     reserve fund to have their loans enrolled in the reserve 
     fund;
       (3) provides for contributions to be made by the State to 
     the reserve fund in amounts at least equal to the sum of the 
     amount of the insurance premium charges paid by the borrower 
     and the financial institution to the reserve fund for any 
     newly enrolled loan; and
       (4) provides its portfolio insurance solely for loans that 
     meet both the following requirements:
       (A) The borrower has 500 employees or less at the time that 
     the loan is enrolled in the Program.
       (B) The loan amount does not exceed $5,000,000.
       (d) Federal Contributions to Approved State Capital Access 
     Programs.--A State capital access program approved under this 
     section will be eligible for receiving Federal contributions 
     to the reserve fund in an amount equal to the sum of the 
     amount of the insurance premium charges paid by the borrowers 
     and by the financial institution to the reserve fund for 
     loans that meet the requirements in subsection (c)(4). A 
     participating State may use the Federal contribution to make 
     its contribution to the reserve fund of an approved State 
     capital access program.
       (e) Minimum Program Requirements for State Capital Access 
     Programs.--The Secretary shall, by regulation or other 
     guidance, prescribe Program requirements that meet the 
     following minimum requirements:
       (1) Experience and capacity.--The participating State shall 
     determine for each financial institution that participates in 
     the State capital access program, after consultation with the 
     appropriate Federal banking agency or, in the case of a 
     financial institution that is a nondepository community 
     development financial institution, the Community Development 
     Financial Institution Fund, that the financial institution 
     has sufficient commercial lending experience and financial 
     and managerial capacity to participate in the approved State 
     capital access program. The determination by the State shall 
     not be reviewable by the Secretary.
       (2) Investment authority.--Subject to applicable State law, 
     the participating State may invest, or cause to be invested, 
     funds held in a reserve fund by establishing a deposit 
     account at the financial institution lender in the name of 
     the participating State. In the event that funds in the 
     reserve fund are not deposited in such an account, such funds 
     shall be invested in a form that the participating State 
     determines is safe and liquid.
       (3) Loan terms and conditions to be determined by 
     agreement.--A loan to be filed for enrollment in an approved 
     State capital access program may be made with such interest 
     rate, fees, and other terms and conditions, and the loan may 
     be enrolled in the

[[Page 13686]]

     approved State capital access program and claims may be filed 
     and paid, as agreed upon by the financial institution lender 
     and the borrower, consistent with applicable law.
       (4) Lender capital at-risk.--A loan to be filed for 
     enrollment in the State capital access program shall require 
     the financial institution lender to have a meaningful amount 
     of its own capital resources at risk in the loan.
       (5) Premium charges minimum and maximum amounts.--The 
     insurance premium charges payable to the reserve fund by the 
     borrower and the financial institution lender shall be 
     prescribed by the financial institution lender, within 
     minimum and maximum limits that require that the sum of the 
     insurance premium charges paid in connection with a loan by 
     the borrower and the financial institution lender may not be 
     less than 2 percent nor more than 7 percent of the amount of 
     the loan enrolled in the approved State capital access 
     program.
       (6) State contributions.--In enrolling a loan in an 
     approved State capital access program, the participating 
     State may make a contribution to the reserve fund to 
     supplement Federal contributions made under this Program.
       (7) Loan purpose.--
       (A) Particular loan purpose requirements and 
     prohibitions.--In connection with the filing of a loan for 
     enrollment in an approved State capital access program, the 
     financial institution lender--
       (i) shall obtain an assurance from each borrower that--

       (I) the proceeds of the loan will be used for a business 
     purpose;
       (II) the loan will not be used to finance such business 
     activities as the Secretary, by regulation, may proscribe as 
     prohibited loan purposes for enrollment in an approved State 
     capital access program; and
       (III) the borrower is not--

       (aa) an executive officer, director, or principal 
     shareholder of the financial institution lender;
       (bb) a member of the immediate family of an executive 
     officer, director, or principal shareholder of the financial 
     institution lender; or
       (cc) a related interest of any such executive officer, 
     director, principal shareholder, or member of the immediate 
     family;
       (ii) shall provide assurances to the participating State 
     that the loan has not been made in order to place under the 
     protection of the approved State capital access program prior 
     debt that is not covered under the approved State capital 
     access program and that is or was owed by the borrower to the 
     financial institution lender or to an affiliate of the 
     financial institution lender;
       (iii) shall not allow the enrollment of a loan to a 
     borrower that is a refinancing of a loan previously made to 
     that borrower by the financial institution lender or an 
     affiliate of the financial institution lender; and
       (iv) may include additional restrictions on the eligibility 
     of loans or borrowers that are not inconsistent with the 
     provisions and purposes of this title, including compliance 
     with all applicable Federal and State laws, regulations, 
     ordinances, and Executive orders.
       (B) Definitions.--In this paragraph, the terms ``executive 
     officer'', ``director'', ``principal shareholder'', 
     ``immediate family'', and ``related interest'' refer to the 
     same relationship to a financial institution lender as the 
     relationship described in part 215 of title 12 of the Code of 
     Federal Regulations, or any successor to such part.
       (8) Capital access for small businesses in underserved 
     communities.--At the time that a State applies to the 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions, the State shall 
     deliver to the Secretary a report stating how the State plans 
     to use the Federal contributions to the reserve fund to 
     provide access to capital for small businesses in low- and 
     moderate-income, minority, and other underserved communities, 
     including women- and minority-owned small businesses.

     SEC. 3006. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE 
                   CREDIT ACCESS AND GUARANTEE INITIATIVES FOR 
                   SMALL BUSINESSES AND MANUFACTURERS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, credit support program that meets 
     the eligibility criteria in subsection (c) may apply to the 
     Secretary to have the State other credit support program 
     approved as eligible for Federal contributions to, or for the 
     account of, the State program.
       (b) Approval.--The Secretary shall approve such State other 
     credit support program as eligible for Federal contributions 
     to, or for the account of, the program if--
       (1) the Secretary determines that the State satisfies the 
     requirements of paragraphs (1) through (3) of section 
     3005(b);
       (2) the Secretary determines that the State other credit 
     support program meets the eligibility criteria in subsection 
     (c);
       (3) the Secretary determines the State other credit support 
     program to be eligible based on the additional considerations 
     in subsection (d); and
       (4) within 9 months after the date of enactment of this 
     Act, the State has filed with Treasury a complete application 
     for Treasury approval.
       (c) Eligibility Criteria for State Other Credit Support 
     Programs.--For a State other credit support program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) can demonstrate that, at a minimum, $1 of public 
     investment by the State program will cause and result in $1 
     of new private credit;
       (2) can demonstrate a reasonable expectation that, when 
     considered with all other State programs of the State, such 
     State programs together have the ability to use amounts of 
     new Federal contributions to, or for the account of, all such 
     programs in the State to cause and result in amounts of new 
     small business lending at least 10 times the new Federal 
     contribution amount;
       (3) for those State other credit support programs that 
     provide their credit support through 1 or more financial 
     institution lenders, requires the financial institution 
     lenders to have a meaningful amount of their own capital 
     resources at risk in their small business lending; and
       (4) uses Federal funds allocated under this title to extend 
     credit support that--
       (A) targets an average borrower size of 500 employees or 
     less;
       (B) does not extend credit support to borrowers that have 
     more than 750 employees;
       (C) targets support towards loans with an average principal 
     amount of $5,000,000 or less; and
       (D) does not extend credit support to loans that exceed a 
     principal amount of $20,000,000.
       (d) Additional Considerations.--In making a determination 
     that a State other credit support program is eligible for 
     Federal contributions to, or for the account of, the State 
     program, the Secretary shall take into account the following 
     additional considerations:
       (1) The anticipated benefits to the State, its businesses, 
     and its residents to be derived from the Federal 
     contributions to, or for the account of, the approved State 
     other credit support program, including the extent to which 
     resulting small business lending will expand economic 
     opportunities.
       (2) The operational capacity, skills, and experience of the 
     management team of the State other credit support program.
       (3) The capacity of the State other credit support program 
     to manage increases in the volume of its small business 
     lending.
       (4) The internal accounting and administrative controls 
     systems of the State other credit support program, and the 
     extent to which they can provide reasonable assurance that 
     funds of the State program are safeguarded against waste, 
     loss, unauthorized use, or misappropriation.
       (5) The soundness of the program design and implementation 
     plan of the State other credit support program.
       (e) Federal Contributions to Approved State Other Credit 
     Support Programs.--A State other credit support program 
     approved under this section will be eligible for receiving 
     Federal contributions to, or for the account of, the State 
     program in an amount consistent with the schedule describing 
     the apportionment of allocated Federal funds among State 
     programs delivered by the State to the Secretary under the 
     allocation agreement.
       (f) Minimum Program Requirements for State Other Credit 
     Support Programs.--
       (1) Fund to prescribe.--The Secretary shall, by regulation 
     or other guidance, prescribe Program requirements for 
     approved State other credit support programs.
       (2) Considerations for fund.--In prescribing minimum 
     Program requirements for approved State other credit support 
     programs, the Secretary shall take into consideration, to the 
     extent the Secretary determines applicable and appropriate, 
     the minimum Program requirements for approved State capital 
     access programs in section 3005(e).

     SEC. 3007. REPORTS.

       (a) Quarterly Use-of-funds Report.--
       (1) In general.--Not later than 30 days after the beginning 
     of each calendar quarter, beginning after the first full 
     calendar quarter to occur after the date the Secretary 
     approves a State for participation, the participating State 
     shall submit to the Secretary a report on the use of Federal 
     funding by the participating State during the previous 
     calendar quarter.
       (2) Report contents.--Each report under this subsection 
     shall--
       (A) indicate the total amount of Federal funding used by 
     the participating State; and
       (B) include a certification by the participating State 
     that--
       (i) the information provided in accordance with 
     subparagraph (A) is accurate;
       (ii) funds continue to be available and legally committed 
     to contributions by the State to, or for the account of, 
     approved State programs, less any amount that has been 
     contributed by the State to, or for the account of, approved 
     State programs subsequent to the State being approved for 
     participation in the Program; and
       (iii) the participating State is implementing its approved 
     State program or programs in accordance with this title and 
     regulations issued under section 3010.
       (b) Annual Report.--Not later than March 31 of each year, 
     beginning March 31, 2011, each participating State shall 
     submit to the Secretary an annual report that shall include 
     the following information:
       (1) The number of borrowers that received new loans 
     originated under the approved

[[Page 13687]]

     State program or programs after the State program was 
     approved as eligible for Federal contributions.
       (2) The total amount of such new loans.
       (3) Breakdowns by industry type, loan size, annual sales, 
     and number of employees of the borrowers that received such 
     new loans.
       (4) The zip code of each borrower that received such a new 
     loan.
       (5) Such other data as the Secretary, in the Secretary's 
     sole discretion, may require to carry out the purposes of the 
     Program.
       (c) Form.--The reports and data filed under subsections (a) 
     and (b) shall be in such form as the Secretary, in the 
     Secretary's sole discretion, may require.
       (d) Termination of Reporting Requirements.--The requirement 
     to submit reports under subsections (a) and (b) shall 
     terminate for a participating State with the submission of 
     the completed reports due on the first March 31 to occur 
     after 5 complete 12-month periods after the State is approved 
     by the Secretary to be a participating State.

     SEC. 3008. REMEDIES FOR STATE PROGRAM TERMINATION OR 
                   FAILURES.

       (a) Remedies.--
       (1) In general.--If any of the events listed in paragraph 
     (2) occur, the Secretary, in the Secretary's discretion, 
     may--
       (A) reduce the amount of Federal funds allocated to the 
     State under the Program; or
       (B) terminate any further transfers of allocated amounts 
     that have not yet been transferred to the State.
       (2) Causal events.--The events referred to in paragraph (1) 
     are--
       (A) termination by a participating State of its 
     participation in the Program;
       (B) failure on the part of a participating State to submit 
     complete reports under section 3007 on a timely basis; or
       (C) noncompliance by the State with the terms of the 
     allocation agreement between the Secretary and the State.
       (b) Deallocated Amounts To Be Reallocated.--If, after 13 
     months, any portion of the amount of Federal funds allocated 
     to a participating State is deemed by the Secretary to be no 
     longer allocated to the State after actions taken by the 
     Secretary under subsection (a)(1), the Secretary shall 
     reallocate that portion among the participating States, 
     excluding the State whose allocated funds were deemed to be 
     no longer allocated, as provided in section 3003(b).

     SEC. 3009. IMPLEMENTATION AND ADMINISTRATION.

       (a) General Authorities and Duties.--The Secretary shall--
       (1) consult with the Administrator of the Small Business 
     Administration and the appropriate Federal banking agencies 
     on the administration of the Program;
       (2) establish minimum national standards for approved State 
     programs;
       (3) provide technical assistance to States for starting 
     State programs and generally disseminate best practices;
       (4) manage, administer, and perform necessary program 
     integrity functions for the Program; and
       (5) ensure adequate oversight of the approved State 
     programs, including oversight of the cash flows, performance, 
     and compliance of each approved State program.
       (b) Appropriations.--There is hereby appropriated to the 
     Secretary, out of funds in the Treasury not otherwise 
     appropriated, $1,500,000,000 to carry out the Program, 
     including to pay reasonable costs of administering the 
     Program.
       (c) Termination of Secretary's Program Administration 
     Functions.--The authorities and duties of the Secretary to 
     implement and administer the Program shall terminate at the 
     end of the 7-year period beginning on the date of enactment 
     of this Act.
       (d) Expedited Contracting.--During the 1-year period 
     beginning on the date of enactment of this Act, the Secretary 
     may enter into contracts without regard to any other 
     provision of law regarding public contracts, for purposes of 
     carrying out this title.

     SEC. 3010. REGULATIONS.

       The Secretary, in consultation with the Administrator of 
     the Small Business Administration, shall issue such 
     regulations and other guidance as the Secretary determines 
     necessary or appropriate to implement this title including to 
     define terms, to establish compliance and reporting 
     requirements, and such other terms and conditions necessary 
     to carry out the purposes of this title.

     SEC. 3011. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the use of funds made 
     available under the Program.
       (b) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (c) Required Certification.--
       (1) Financial institutions certification.--With respect to 
     funds received by a participating State under the Program, 
     any financial institution that receives a loan, a loan 
     guarantee, or other financial assistance using such funds 
     after the date of the enactment of this Act shall certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in section 5312 (a)(2) 
     and (c)(1)(A) of title 31, United States Code, to implement 
     reasonable procedures to verify the identity of any person 
     seeking to open an account, to the extent reasonable and 
     practicable, maintain records of the information used to 
     verify the person's identity, and determine whether the 
     person appears on any lists of known or suspected terrorists 
     or terrorist organizations provided to the financial 
     institution by any government agency.
       (2) Sex offense certification.--With respect to funds 
     received by a participating State under the Program, any 
     private entity that receives a loan, a loan guarantee, or 
     other financial assistance using such funds after the date of 
     the enactment of this Act shall certify to the participating 
     State that the principals of such entity have not been 
     convicted of a sex offense against a minor (as such terms are 
     defined in section 111 of the Sex Offender Registration and 
     Notification Act (42 U.S.C. 16911)).
       (d) Prohibition on Pornography.--None of the funds made 
     available under this title may be used to pay the salary of 
     any individual engaged in activities related to the Program 
     who has been officially disciplined for violations of subpart 
     G of the Standards of Ethical Conduct for Employees of the 
     Executive Branch for viewing, downloading, or exchanging 
     pornography, including child pornography, on a Federal 
     Government computer or while performing official Federal 
     Government duties.

                     TITLE IV--BUDGETARY PROVISIONS

     SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 4500. Mr. REID (for Mr. LeMieux (for himself, Ms. Landrieu, Mr. 
Merkley, Mrs. Boxer, Ms. Cantwell, Ms. Klobuchar, and Mrs. Murray)) 
proposed an amendment to amendment SA 4499 proposed by Mr. Reid (for 
Mr. Baucus) to the bill H.R. 5297, to create the Small Business Lending 
Fund Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; as follows:

       At the end, add the following:

             TITLE V--ADDITIONAL SMALL BUSINESS PROVISIONS

                Subtitle A--Small Business Lending Fund

     SEC. 5101. PURPOSE.

       The purpose of this subtitle is to address the ongoing 
     effects of the financial crisis on small businesses by 
     providing temporary authority to the Secretary of the 
     Treasury to make capital investments in eligible institutions 
     in order to increase the availability of credit for small 
     businesses.

     SEC. 5102. DEFINITIONS.

       For purposes of this subtitle:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the meaning given 
     such term under section 3(q) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(q)).
       (3) Bank holding company.--The term ``bank holding 
     company'' has the meaning given such term under section 
     2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(2)(a)(1)).
       (4) Call report.--The term ``call report'' means--
       (A) reports of Condition and Income submitted to the Office 
     of the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, and the Federal Deposit Insurance 
     Corporation;
       (B) the Office of Thrift Supervision Thrift Financial 
     Report;
       (C) any report that is designated by the Office of the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the Office of Thrift Supervision, as 
     applicable, as a successor to any report referred to in 
     subparagraph (A) or (B);

[[Page 13688]]

       (D) reports of Condition and Income as designated through 
     guidance developed by the Secretary, in consultation with the 
     Director of the Community Development Financial Institutions 
     Fund; and
       (E) with respect to an eligible institution for which no 
     report exists that is described under subparagraph (A), (B), 
     (C), or (D), such other report or set of information as the 
     Secretary, in consultation with the Administrator of the 
     Small Business Administration, may prescribe.
       (5) CDCI.--The term ``CDCI'' means the Community 
     Development Capital Initiative created by the Secretary under 
     the Troubled Asset Relief Program established by the 
     Emergency Economic Stabilization Act of 2008.
       (6) CDCI investment.--The term ``CDCI investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CDCI that has not been repaid.
       (7) CDFI; community development financial institution.--The 
     terms ``CDFI'' and ``community development financial 
     institution'' have the meaning given the term ``community 
     development financial institution'' under the Riegle 
     Community Development and Regulatory Improvement Act of 1994.
       (8) CDLF; community development loan fund.--The terms 
     ``CDLF'' and ``community development loan fund'' mean any 
     entity that--
       (A) is certified by the Department of the Treasury as a 
     community development financial institution loan fund;
       (B) is exempt from taxation under the Internal Revenue Code 
     of 1986; and
       (C) had assets less than or equal to $10,000,000,000 as of 
     the end of the fourth quarter of calendar year 2009.
       (9) CPP.--The term ``CPP'' means the Capital Purchase 
     Program created by the Secretary under the Troubled Asset 
     Relief Program established by the Emergency Economic 
     Stabilization Act of 2008.
       (10) CPP investment.--The term ``CPP investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CPP that has not been repaid.
       (11) Eligible institution.--The term ``eligible 
     institution'' means--
       (A) any insured depository institution, which--
       (i) is not controlled by a bank holding company or savings 
     and loan holding company that is also an eligible 
     institution;
       (ii) has total assets of equal to or less than 
     $10,000,000,000, as reported in the call report of the 
     insured depository institution as of the end of the fourth 
     quarter of calendar year 2009; and
       (iii) is not directly or indirectly controlled by any 
     company or other entity that has total consolidated assets of 
     more than $10,000,000,000, as so reported;
       (B) any bank holding company which has total consolidated 
     assets of equal to or less than $10,000,000,000, as reported 
     in the call report of the bank holding company as of the end 
     of the fourth quarter of calendar year 2009;
       (C) any savings and loan holding company which has total 
     consolidated assets of equal to or less than $10,000,000,000, 
     as reported in the call report of the savings and loan 
     holding company as of the end of the fourth quarter of 
     calendar year 2009; and
       (D) any community development financial institution loan 
     fund which has total assets of equal to or less than 
     $10,000,000,000, as reported in audited financial statements 
     for the fiscal year of the community development financial 
     institution loan fund that ends in calendar year 2009.
       (12) Fund.--The term ``Fund'' means the Small Business 
     Lending Fund established under section 5103(a)(1).
       (13) Insured depository institution.--The term ``insured 
     depository institution'' has the meaning given such term 
     under section 3(c)(2) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1813(c)(2)).
       (14) Minority-owned and women-owned business.--The terms 
     ``minority-owned business'' and ``women-owned business'' 
     shall have the meaning given the terms ``minority-owned 
     business'' and ``women's business'', respectively, under 
     section 21A(r)(4) of the Federal Home Loan Bank Act (12 
     U.S.C. 1441A(r)(4)).
       (15) Program.--The term ``Program'' means the Small 
     Business Lending Fund Program authorized under section 
     5103(a)(2).
       (16) Savings and loan holding company.--The term ``savings 
     and loan holding company'' has the meaning given such term 
     under section 10(a)(1)(D) of the Home Owners' Loan Act (12 
     U.S.C. 1467a(a)(1)(D)).
       (17) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (18) Small business lending.--
       (A) In general.--The term ``small business lending'' means 
     lending, as defined by and reported in an eligible 
     institutions' quarterly call report, where each loan 
     comprising such lending is one of the following types:
       (i) Commercial and industrial loans.
       (ii) Owner-occupied nonfarm, nonresidential real estate 
     loans.
       (iii) Loans to finance agricultural production and other 
     loans to farmers.
       (iv) Loans secured by farmland.
       (B) Exclusion.--No loan that has an original amount greater 
     than $10,000,000 or that goes to a business with more than 
     $50,000,000 in revenues shall be included in the measure.
       (C) Treatment of holding companies.--In the case of 
     eligible institutions that are bank holding companies or 
     savings and loan holding companies having one or more insured 
     depository institution subsidiaries, small business lending 
     shall be measured based on the combined small business 
     lending reported in the call report of the insured depository 
     institution subsidiaries.
       (19) Veteran-owned business.--
       (A) The term ``veteran-owned business'' means a business--
       (i) more than 50 percent of the ownership or control of 
     which is held by 1 or more veterans;
       (ii) more than 50 percent of the net profit or loss of 
     which accrues to 1 or more veterans; and
       (iii) a significant percentage of senior management 
     positions of which are held by veterans.
       (B) For purposes of this paragraph, the term ``veteran'' 
     has the meaning given such term in section 101(2) of title 
     38, United States Code.

     SEC. 5103. SMALL BUSINESS LENDING FUND.

       (a) Fund and Program.--
       (1) Fund established.--There is established in the Treasury 
     of the United States a fund to be known as the ``Small 
     Business Lending Fund'', which shall be administered by the 
     Secretary.
       (2) Programs authorized.--The Secretary is authorized to 
     establish the Small Business Lending Fund Program for using 
     the Fund consistent with this subtitle.
       (b) Use of Fund.--
       (1) In general.--Subject to paragraph (2), the Fund shall 
     be available to the Secretary, without further appropriation 
     or fiscal year limitation, for the costs of purchases 
     (including commitments to purchase), and modifications of 
     such purchases, of preferred stock and other financial 
     instruments from eligible institutions on such terms and 
     conditions as are determined by the Secretary in accordance 
     with this subtitle. For purposes of this paragraph and with 
     respect to an eligible institution, the term ``other 
     financial instruments'' shall include only debt instruments 
     for which such eligible institution is fully liable or equity 
     equivalent capital of the eligible institution. Such debt 
     instruments may be subordinated to the claims of other 
     creditors of the eligible institution.
       (2) Maximum purchase limit.--The aggregate amount of 
     purchases (and commitments to purchase) made pursuant to 
     paragraph (1) may not exceed $30,000,000,000.
       (3) Proceeds used to pay down public debt.--All funds 
     received by the Secretary in connection with purchases made 
     pursuant to paragraph (1), including interest payments, 
     dividend payments, and proceeds from the sale of any 
     financial instrument, shall be paid into the general fund of 
     the Treasury for reduction of the public debt.
       (4) Limitation on purchases from cdlfs.--
       (A) In general.--Not more than 1 percent of the maximum 
     purchase limit of the Program, pursuant to paragraph (2), may 
     be used to make purchases from community development loan 
     funds.
       (B) Eligibility standards.--The Secretary, in consultation 
     with the Community Development Financial Institutions Fund, 
     shall develop eligibility criteria to determine the financial 
     ability of a CDLF to participate in the Program and repay the 
     investment. Such criteria shall include the following:
       (i) Ratio of net assets to total assets is at least 20 
     percent.
       (ii) Ratio of loan loss reserves to loans and leases 90 
     days or more delinquent (including loans sold with full 
     recourse) is at least 30 percent.
       (iii) Positive net income measured on a 3-year rolling 
     average.
       (iv) Operating liquidity ratio of at least 1.0 for the 4 
     most recent quarters and for one or both of the two preceding 
     years.
       (v) Ratio of loans and leases 90 days or more delinquent 
     (including loans sold with full recourse) to total equity 
     plus loan loss reserves is less than 40 percent.
       (C) Requirement to submit audited financial statements.--
     CDLFs participating in the Program shall submit audited 
     financial statements to the Secretary, have a clean audit 
     opinion, and have at least 3 years of operating experience.
       (c) Credits to the Fund.--There shall be credited to the 
     Fund amounts made available pursuant to section 5108, to the 
     extent provided by appropriations Acts.
       (d) Terms.--
       (1) Application.--
       (A) Institutions with assets of $1,000,000,000 or less.--
     Eligible institutions having total assets equal to or less 
     than $1,000,000,000, as reported in a call report as of the 
     end of the fourth quarter of calendar year 2009, may apply to 
     receive a capital investment from the Fund in an amount not 
     exceeding 5 percent of risk-weighted assets, as reported in 
     the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (B) Institutions with assets of more than $1,000,000,000 
     and less than or equal to

[[Page 13689]]

     $10,000,000,000.--Eligible institutions having total assets 
     of more than $1,000,000,000 but less than $10,000,000,000, as 
     of the end of the fourth quarter of calendar year 2009, may 
     apply to receive a capital investment from the Fund in an 
     amount not exceeding 3 percent of risk-weighted assets, as 
     reported in the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (C) Treatment of holding companies.--In the case of an 
     eligible institution that is a bank holding company or a 
     savings and loan holding company having one or more insured 
     depository institution subsidiaries, total assets shall be 
     measured based on the combined total assets reported in the 
     call report of the insured depository institution 
     subsidiaries as of the end of the fourth quarter of calendar 
     year 2009 and risk-weighted assets shall be measured based on 
     the combined risk-weighted assets of the insured depository 
     institution subsidiaries as reported in the call report 
     immediately preceding the date of application.
       (D) Treatment of applicants that are institutions 
     controlled by holding companies.--If an eligible institution 
     that applies to receive a capital investment under the 
     Program is under the control of a bank holding company or a 
     savings and loan holding company, then the Secretary may use 
     the Fund to purchase preferred stock or other financial 
     instruments from the top-tier bank holding company or savings 
     and loan holding company of such eligible institution, as 
     applicable. For purposes of this subparagraph, the term 
     ``control'' with respect to a bank holding company shall have 
     the same meaning as in section 2(a)(2) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes 
     of this subparagraph, the term ``control'' with respect to a 
     savings and loan holding company shall have the same meaning 
     as in 10(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(2)).
       (E) Requirement to provide a small business lending plan.--
     At the time that an applicant submits an application to the 
     Secretary for a capital investment under the Program, the 
     applicant shall deliver to the appropriate Federal banking 
     agency, and, for applicants that are State-chartered banks, 
     to the appropriate State banking regulator, a small business 
     lending plan describing how the applicant's business strategy 
     and operating goals will allow it to address the needs of 
     small businesses in the areas it serves, as well as a plan to 
     provide linguistically and culturally appropriate outreach, 
     where appropriate. In the case of eligible institutions that 
     are community development loan funds, this plan shall be 
     submitted to the Secretary. This plan shall be confidential 
     supervisory information.
       (F) Treatment of applicants that are community development 
     loan funds.--Eligible institutions that are community 
     development loan funds may apply to receive a capital 
     investment from the Fund in an amount not exceeding 5 percent 
     of total assets, as reported in the audited financial 
     statements for the fiscal year of the eligible institution 
     that ends in calendar year 2009.
       (2) Consultation with regulators.--For each eligible 
     institution that applies to receive a capital investment 
     under the Program, the Secretary shall--
       (A) consult with the appropriate Federal banking agency or, 
     in the case of an eligible institution that is a 
     nondepository community development financial institution, 
     the Community Development Financial Institution Fund, for the 
     eligible institution, to determine whether the eligible 
     institution may receive such capital investment;
       (B) in the case of an eligible institution that is a State-
     chartered bank, consider any views received from the State 
     banking regulator of the State of the eligible institution 
     regarding the financial condition of the eligible 
     institution; and
       (C) in the case of a community development financial 
     institution loan fund, consult with the Community Development 
     Financial Institution Fund.
       (3) Consideration of matched private investments.--
       (A) In general.--For an eligible institution that applies 
     to receive a capital investment under the Program, if the 
     entity to be consulted under paragraph (2) would not 
     otherwise recommend the eligible institution to receive the 
     capital investment, the Secretary, in consultation with the 
     entity to be so consulted, may consider whether the entity to 
     be consulted would recommend the eligible institution to 
     receive a capital investment based on the financial condition 
     of the institution if the conditions in subparagraph (B) are 
     satisfied.
       (B) Conditions.--The conditions referred to in subparagraph 
     (A) are as follows:
       (i) Capital sources.--The eligible institution shall 
     receive capital both under the Program and from private, 
     nongovernment investors.
       (ii) Amount of capital.--The amount of capital to be 
     received under the Program shall not exceed 3 percent of 
     risk-weighted assets, as reported in the call report 
     immediately preceding the date of application, less the 
     amount of any CDCI investment and any CPP investment.
       (iii) Terms.--The amount of capital to be received from 
     private, nongovernment investors shall be--

       (I) equal to or greater than 100 percent of the capital to 
     be received under the Program; and
       (II) subordinate to the capital investment made by the 
     Secretary under the Program.

       (4) Ineligibility of institutions on fdic problem bank 
     list.--
       (A) In general.--An eligible institution may not receive 
     any capital investment under the Program, if--
       (i) such institution is on the FDIC problem bank list; or
       (ii) such institution has been removed from the FDIC 
     problem bank list for less than 90 days.
       (B) Construction.--Nothing in subparagraph (A) shall be 
     construed as limiting the discretion of the Secretary to deny 
     the application of an eligible institution that is not on the 
     FDIC problem bank list.
       (C) FDIC problem bank list defined.--For purposes of this 
     paragraph, the term ``FDIC problem bank list'' means the list 
     of depository institutions having a current rating of 4 or 5 
     under the Uniform Financial Institutions Rating System, or 
     such other list designated by the Federal Deposit Insurance 
     Corporation.
       (5) Incentives to lend.--
       (A) Requirements on preferred stock and other financial 
     instruments.--Any preferred stock or other financial 
     instrument issued to Treasury by an eligible institution 
     receiving a capital investment under the Program shall 
     provide that--
       (i) the rate at which dividends or interest are payable 
     shall be 5 percent per annum initially;
       (ii) within the first 2 years after the date of the capital 
     investment under the Program, the rate may be adjusted based 
     on the amount of an eligible institution's small business 
     lending. Changes in the amount of small business lending 
     shall be measured against the average amount of small 
     business lending reported by the eligible institution in its 
     call reports for the 4 full quarters immediately preceding 
     the date of enactment of this Act, minus adjustments from 
     each quarterly balance in respect of--

       (I) net loan charge offs with respect to small business 
     lending; and
       (II) gains realized by the eligible institution resulting 
     from mergers, acquisitions or purchases of loans after 
     origination and syndication; which adjustments shall be 
     determined in accordance with guidance promulgated by the 
     Secretary; and

       (iii) during any calendar quarter during the initial 2-year 
     period referred to in clause (ii), an institution's rate 
     shall be adjusted to reflect the following schedule, based on 
     that institution's change in the amount of small business 
     lending relative to the baseline--

       (I) if the amount of small business lending has increased 
     by less than 2.5 percent, the dividend or interest rate shall 
     be 5 percent;
       (II) if the amount of small business lending has increased 
     by 2.5 percent or greater, but by less than 5.0 percent, the 
     dividend or interest rate shall be 4 percent;
       (III) if the amount of small business lending has increased 
     by 5.0 percent or greater, but by less than 7.5 percent, the 
     dividend or interest rate shall be 3 percent;
       (IV) if the amount of small business lending has increased 
     by 7.5 percent or greater, and but by less than 10.0 percent, 
     the dividend or interest rate shall be 2 percent; or
       (V) if the amount of small business lending has increased 
     by 10 percent or greater, the dividend or interest rate shall 
     be 1 percent.

       (B) Basis of initial rate.--The initial dividend or 
     interest rate shall be based on call report data published in 
     the quarter immediately preceding the date of the capital 
     investment under the Program.
       (C) Timing of rate adjustments.--Any rate adjustment shall 
     occur in the calendar quarter following the publication of 
     call report data, such that the rate based on call report 
     data from any one calendar quarter, which is published in the 
     first following calendar quarter, shall be adjusted in that 
     first following calendar quarter and payable in the second 
     following quarter.
       (D) Rate following initial 2-year period.--Generally, the 
     rate based on call report data from the eighth calendar 
     quarter after the date of the capital investment under the 
     Program shall be payable until the expiration of the 4\1/2\-
     year period that begins on the date of the investment. In the 
     case where the amount of small business lending has remained 
     the same or decreased relative to the institution's baseline 
     in the eighth quarter after the date of the capital 
     investment under the Program, the rate shall be 7 percent 
     until the expiration of the 4\1/2\-year period that begins on 
     the date of the investment.
       (E) Rate following initial 4\1/2\ -year period.--The 
     dividend or interest rate paid on any preferred stock or 
     other financial instrument issued by an eligible institution 
     that receives a capital investment under the Program shall 
     increase to 9 percent at the end of the 4\1/2\-year period 
     that begins on the date of the capital investment under the 
     Program.
       (F) Limitation on rate reductions with respect to certain 
     amount.--The reduction in the dividend or interest rate 
     payable to Treasury by any eligible institution shall be 
     limited such that the rate reduction shall not apply to a 
     dollar amount of the investment made by Treasury that is 
     greater than

[[Page 13690]]

     the dollar amount increase in the amount of small business 
     lending realized under this program. The Secretary may issue 
     guidelines that will apply to new capital investments 
     limiting the amount of capital available to eligible 
     institutions consistent with this limitation.
       (G) Rate adjustments for s corporation.--Before making a 
     capital investment in an eligible institution that is an S 
     corporation or a corporation organized on a mutual basis, the 
     Secretary may adjust the dividend or interest rate on the 
     financial instrument to be issued to the Secretary, from the 
     dividend or interest rate that would apply under 
     subparagraphs (A) through (F), to take into account any 
     differential tax treatment of securities issued by such 
     eligible institution. For purpose of this subparagraph, the 
     term ``S corporation'' has the same meaning as in section 
     1361(a) of the Internal Revenue Code of 1986.
       (H) Repayment deadline.--The capital investment received by 
     an eligible institution under the Program shall be evidenced 
     by preferred stock or other financial instrument that--
       (i) includes, as a term and condition, that the capital 
     investment will--

       (I) be repaid not later than the end of the 10-year period 
     beginning on the date of the capital investment under the 
     Program; or
       (II) at the end of such 10-year period, be subject to such 
     additional terms as the Secretary shall prescribe, which 
     shall include a requirement that the stock or instrument 
     shall carry the highest dividend or interest rate payable; 
     and

       (ii) provides that the term and condition described under 
     clause (i) shall not apply if the application of that term 
     and condition would adversely affect the capital treatment of 
     the stock or financial instrument under current or successor 
     applicable capital provisions compared to a capital 
     instrument with identical terms other than the term and 
     condition described under clause (i).
       (I) Requirements on financial instruments issued by a 
     community development financial institution loan fund.--Any 
     equity equivalent capital issued to the Treasury by a 
     community development loan fund receiving a capital 
     investment under the Program shall provide that the rate at 
     which interest is payable shall be 2 percent per annum for 8 
     years. After 8 years, the rate at which interest is payable 
     shall be 9 percent.
       (6) Additional incentives to repay.--The Secretary may, by 
     regulation or guidance issued under section 5104(9), 
     establish repayment incentives in addition to the incentive 
     in paragraph (5)(E) that will apply to new capital 
     investments in a manner that the Secretary determines to be 
     consistent with the purposes of this subtitle.
       (7) Capital purchase program refinance.--
       (A) In general.--The Secretary shall, in a manner that the 
     Secretary determines to be consistent with the purposes of 
     this subtitle, issue regulations and other guidance to permit 
     eligible institutions to refinance securities issued to 
     Treasury under the CDCI and the CPP for securities to be 
     issued under the Program.
       (B) Prohibition on participation by non-paying cpp 
     participants.--Subparagraph (A) shall not apply to any 
     eligible institution that has missed more than one dividend 
     payment due under the CPP. For purposes of this subparagraph, 
     a CPP dividend payment that is submitted within 60 days of 
     the due date of such payment shall not be considered a missed 
     dividend payment.
       (8) Outreach to minorities, women, and veterans.--The 
     Secretary shall require eligible institutions receiving 
     capital investments under the Program to provide 
     linguistically and culturally appropriate outreach and 
     advertising in the applicant pool describing the availability 
     and application process of receiving loans from the eligible 
     institution that are made possible by the Program through the 
     use of print, radio, television or electronic media outlets 
     which target organizations, trade associations, and 
     individuals that--
       (A) represent or work within or are members of minority 
     communities;
       (B) represent or work with or are women; and
       (C) represent or work with or are veterans.
       (9) Additional terms.--The Secretary may, by regulation or 
     guidance issued under section 5104(9), make modifications 
     that will apply to new capital investments in order to manage 
     risks associated with the administration of the Fund in a 
     manner consistent with the purposes of this subtitle.
       (10) Minimum underwriting standards.--The appropriate 
     Federal banking agency for an eligible institution that 
     receives funds under the Program shall within 60 days issue 
     guidance regarding prudent underwriting standards that must 
     be used for loans made by the eligible institution using such 
     funds.

     SEC. 5104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

       The Secretary may take such actions as the Secretary deems 
     necessary to carry out the authorities in this subtitle, 
     including, without limitation, the following:
       (1) The Secretary may use the services of any agency or 
     instrumentality of the United States or component thereof on 
     a reimbursable basis, and any such agency or instrumentality 
     or component thereof is authorized to provide services as 
     requested by the Secretary using all authorities vested in or 
     delegated to that agency, instrumentality, or component.
       (2) The Secretary may enter into contracts, including 
     contracts for services authorized by section 3109 of title 5, 
     United States Code.
       (3) The Secretary may designate any bank, savings 
     association, trust company, security broker or dealer, asset 
     manager, or investment adviser as a financial agent of the 
     Federal Government and such institution shall perform all 
     such reasonable duties related to this subtitle as financial 
     agent of the Federal Government as may be required. The 
     Secretary shall have authority to amend existing agreements 
     with financial agents, entered into during the 2-year period 
     before the date of enactment of this Act, to perform 
     reasonable duties related to this subtitle.
       (4) The Secretary may exercise any rights received in 
     connection with any preferred stock or other financial 
     instruments or assets purchased or acquired pursuant to the 
     authorities granted under this subtitle.
       (5) Subject to section 5103(b)(3), the Secretary may manage 
     any assets purchased under this subtitle, including revenues 
     and portfolio risks therefrom.
       (6) The Secretary may sell, dispose of, transfer, exchange 
     or enter into securities loans, repurchase transactions, or 
     other financial transactions in regard to, any preferred 
     stock or other financial instrument or asset purchased or 
     acquired under this subtitle, upon terms and conditions and 
     at a price determined by the Secretary.
       (7) The Secretary may manage or prohibit conflicts of 
     interest that may arise in connection with the administration 
     and execution of the authorities provided under this 
     subtitle.
       (8) The Secretary may establish and use vehicles, subject 
     to supervision by the Secretary, to purchase, hold, and sell 
     preferred stock or other financial instruments and issue 
     obligations.
       (9) The Secretary may, in consultation with the 
     Administrator of the Small Business Administration, issue 
     such regulations and other guidance as may be necessary or 
     appropriate to define terms or carry out the authorities or 
     purposes of this subtitle.

     SEC. 5105. CONSIDERATIONS.

       In exercising the authorities granted in this subtitle, the 
     Secretary shall take into consideration--
       (1) increasing the availability of credit for small 
     businesses;
       (2) providing funding to minority-owned eligible 
     institutions and other eligible institutions that serve small 
     businesses that are minority-, veteran-, and women-owned and 
     that also serve low- and moderate-income, minority, and other 
     underserved or rural communities;
       (3) protecting and increasing American jobs;
       (4) increasing the opportunity for small business 
     development in areas with high unemployment rates that exceed 
     the national average;
       (5) ensuring that all eligible institutions may apply to 
     participate in the program established under this subtitle, 
     without discrimination based on geography;
       (6) providing transparency with respect to use of funds 
     provided under this subtitle;
       (7) minimizing the cost to taxpayers of exercising the 
     authorities;
       (8) promoting and engaging in financial education to would-
     be borrowers; and
       (9) providing funding to eligible institutions that serve 
     small businesses directly affected by the discharge of oil 
     arising from the explosion on and sinking of the mobile 
     offshore drilling unit Deepwater Horizon and small businesses 
     in communities that have suffered negative economic effects 
     as a result of that discharge with particular consideration 
     to States along the coast of the Gulf of Mexico.

     SEC. 5106. REPORTS.

       The Secretary shall provide to the appropriate committees 
     of Congress--
       (1) within 7 days of the end of each month commencing with 
     the first month in which transactions are made under the 
     Program, a written report describing all of the transactions 
     made during the reporting period pursuant to the authorities 
     granted under this subtitle;
       (2) after the end of March and the end of September, 
     commencing September 30, 2010, a written report on all 
     projected costs and liabilities, all operating expenses, 
     including compensation for financial agents, and all 
     transactions made by the Fund, which shall include 
     participating institutions and amounts each institution has 
     received under the Program; and
       (3) within 7 days of the end of each calendar quarter 
     commencing with the first calendar quarter in which 
     transactions are made under the Program, a written report 
     detailing how eligible institutions participating in the 
     Program have used the funds such institutions received under 
     the Program.

     SEC. 5107. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the

[[Page 13691]]

     Program through the Office of Small Business Lending Fund 
     Program Oversight established under subsection (b).
       (b) Office of Small Business Lending Fund Program 
     Oversight.--
       (1) Establishment.--There is hereby established within the 
     Office of the Inspector General of the Department of the 
     Treasury a new office to be named the ``Office of Small 
     Business Lending Fund Program Oversight'' to provide 
     oversight of the Program.
       (2) Leadership.--The Inspector General shall appoint a 
     Special Deputy Inspector General for SBLF Program Oversight 
     to lead the Office, with commensurate staff, who shall report 
     directly to the Inspector General and who shall be 
     responsible for the performance of all auditing and 
     investigative activities relating to the Program.
       (3) Reporting.--
       (A) In general.--The Inspector General shall issue a report 
     no less than two times a year to the Congress and the 
     Secretary devoted to the oversight provided by the Office, 
     including any recommendations for improvements to the 
     Program.
       (B) Recommendations.--With respect to any deficiencies 
     identified in a report under subparagraph (A), the Secretary 
     shall either--
       (i) take actions to address such deficiencies; or
       (ii) certify to the appropriate committees of Congress that 
     no action is necessary or appropriate.
       (4) Coordination.--The Inspector General, in maximizing the 
     effectiveness of the Office, shall work with other Offices of 
     Inspector General, as appropriate, to minimize duplication of 
     effort and ensure comprehensive oversight of the Program.
       (5) Termination.--The Office shall terminate at the end of 
     the 6-month period beginning on the date on which all capital 
     investments are repaid under the Program or the date on which 
     the Secretary determines that any remaining capital 
     investments will not be repaid.
       (6) Definitions.--For purposes of this subsection:
       (A) Office.--The term ``Office'' means the Office of Small 
     Business Lending Fund Program Oversight established under 
     paragraph (1).
       (B) Inspector general.--The term ``Inspector General'' 
     means the Inspector General of the Department of the 
     Treasury.
       (c) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (d) Required Certifications.--
       (1) Eligible institution certification.--Each eligible 
     institution that participates in the Program must certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in 31 U.S.C. 5312(a)(2) 
     and (c)(1)(A), to implement reasonable procedures to verify 
     the identity of any person seeking to open an account, to the 
     extent reasonable and practicable, maintain records of the 
     information used to verify the person's identity, and 
     determine whether the person appears on any lists of known or 
     suspected terrorists or terrorist organizations provided to 
     the financial institution by any government agency.
       (2) Loan recipients.--With respect to funds received by an 
     eligible institution under the Program, any business 
     receiving a loan from the eligible institution using such 
     funds after the date of the enactment of this Act shall 
     certify to such eligible institution that the principals of 
     such business have not been convicted of a sex offense 
     against a minor (as such terms are defined in section 111 of 
     the Sex Offender Registration and Notification Act (42 U.S.C. 
     16911)).
       (e) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

     SEC. 5108. CREDIT REFORM; FUNDING.

       (a) Credit Reform.--The cost of purchases of preferred 
     stock and other financial instruments made as capital 
     investments under this subtitle shall be determined as 
     provided under the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661 et seq.).
       (b) Funds Made Available.--There are hereby appropriated, 
     out of funds in the Treasury not otherwise appropriated, such 
     sums as may be necessary to pay the costs of $30,000,000,000 
     of capital investments in eligible institutions, including 
     the costs of modifying such investments, and reasonable costs 
     of administering the program of making, holding, managing, 
     and selling the capital investments.

     SEC. 5109. TERMINATION AND CONTINUATION OF AUTHORITIES.

       (a) Termination of Investment Authority.--The authority to 
     make capital investments in eligible institutions, including 
     commitments to purchase preferred stock or other instruments, 
     provided under this subtitle shall terminate 1 year after the 
     date of enactment of this Act.
       (b) Continuation of Other Authorities.--The authorities of 
     the Secretary under section 5104 shall not be limited by the 
     termination date in subsection (a).

     SEC. 5110. PRESERVATION OF AUTHORITY.

       Nothing in this subtitle may be construed to limit the 
     authority of the Secretary under any other provision of law.

     SEC. 5111. ASSURANCES.

       (a) Small Business Lending Fund Separate From TARP.--The 
     Small Business Lending Fund Program is established as 
     separate and distinct from the Troubled Asset Relief Program 
     established by the Emergency Economic Stabilization Act of 
     2008. An institution shall not, by virtue of a capital 
     investment under the Small Business Lending Fund Program, be 
     considered a recipient of the Troubled Asset Relief Program.
       (b) Change in Law.--If, after a capital investment has been 
     made in an eligible institution under the Program, there is a 
     change in law that modifies the terms of the investment or 
     program in a materially adverse respect for the eligible 
     institution, the eligible institution may, after consultation 
     with the appropriate Federal banking agency for the eligible 
     institution, repay the investment without impediment.

     SEC. 5112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, 
                   VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES.

       (a) Study.--The Secretary shall conduct a study of the 
     impact of the Program on women-owned businesses, veteran-
     owned businesses, and minority-owned businesses.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study conducted pursuant to 
     subsection (a). To the extent possible, the Secretary shall 
     disaggregate the results of such study by ethnic group and 
     gender.
       (c) Information Provided to the Secretary.--Eligible 
     institutions that participate in the Program shall provide 
     the Secretary with such information as the Secretary may 
     require to carry out the study required by this section.

     SEC. 5113. SENSE OF CONGRESS.

       It is the sense of Congress that the Federal Deposit 
     Insurance Corporation and other bank regulators are sending 
     mixed messages to banks regarding regulatory capital 
     requirements and lending standards, which is a contributing 
     cause of decreased small business lending and increased 
     regulatory uncertainty at community banks.

                      Subtitle B--Other Provisions

          PART I--SMALL BUSINESS EXPORT PROMOTION INITIATIVES

     SEC. 5221. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION 
                   ACTIVITIES OF THE DEPARTMENT OF COMMERCE.

       (a) Increase in Employees With Responsibility for Global 
     Business Development and Promotion Activities.--
       (1) In general.--During the 24-month period beginning on 
     the date of the enactment of this Act, the Secretary of 
     Commerce shall increase the number of full-time departmental 
     employees whose primary responsibilities involve promoting or 
     facilitating participation by United States businesses in the 
     global marketplace and facilitating the entry into, or 
     expansion of, such participation by United States businesses. 
     In carrying out this subsection, the Secretary shall ensure 
     that--
       (A) the cohort of such employees is increased by not less 
     than 80 persons; and
       (B) a substantial portion of the increased cohort is 
     stationed outside the United States.
       (2) Enhanced focus on united states small- and medium-sized 
     businesses.--In carrying out this subsection, the Secretary 
     shall take such action as may be necessary to ensure that the 
     activities of the Department of Commerce relating to 
     promoting and facilitating participation by United States 
     businesses in the global marketplace include promoting and 
     facilitating such participation by small and medium-sized 
     businesses in the United States.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary for each of the fiscal 
     years 2011 and 2012 such sums as may be necessary to carry 
     out this section.
       (b) Additional Funding for Global Business Development and 
     Promotion Activities of the Department of Commerce.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Commerce for the period beginning on the 
     date of the enactment of this Act and ending 18 months 
     thereafter, $30,000,000 to promote or facilitate 
     participation by United States businesses in the global 
     marketplace and facilitating the entry into, or expansion of, 
     such participation by United States businesses.
       (2) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by paragraph (1), the Secretary 
     of Commerce shall give preference to activities that--
       (A) assist small- and medium-sized businesses in the United 
     States; and
       (B) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

[[Page 13692]]



     SEC. 5222. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL 
                   MARKETS FOR RURAL BUSINESSES.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Commerce $5,000,000 for each of the fiscal 
     years 2011 and 2012 for improving access to the global 
     marketplace for goods and services provided by rural 
     businesses in the United States.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by subsection (a), the 
     Secretary of Commerce shall give preference to activities 
     that--
       (1) assist small- and medium-sized businesses in the United 
     States; and
       (2) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 5223. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Commerce $11,000,000 for the period 
     beginning on the date of the enactment of this Act and ending 
     18 months thereafter, to expand ExporTech, a joint program of 
     the Hollings Manufacturing Partnership Program and the Export 
     Assistance Centers of the Department of Commerce.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by subsection (a), the 
     Secretary of Commerce shall give preference to activities 
     that--
       (1) assist small- and medium-sized businesses in the United 
     States; and
       (2) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 5224. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT 
                   COOPERATOR PROGRAM OF THE DEPARTMENT OF 
                   COMMERCE.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Commerce for the period beginning on the 
     date of the enactment of this Act and ending 18 months 
     thereafter, $15,000,000 for the Manufacturing and Services 
     unit of the International Trade Administration--
       (1) to establish public-private partnerships under the 
     Market Development Cooperator Program of the International 
     Trade Administration; and
       (2) to underwrite a portion of the start-up costs for new 
     projects carried out under that Program to strengthen the 
     competitiveness and market share of United States industry, 
     not to exceed, for each such project, the lesser of--
       (A) \1/3\ of the total start-up costs for the project; or
       (B) $500,000.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by subsection (a), the 
     Secretary of Commerce shall give preference to activities 
     that--
       (1) assist small- and medium-sized businesses in the United 
     States; and
       (2) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 5225. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM; 
                   TECHNOLOGY INNOVATION PROGRAM.

       (a) Hollings Manufacturing Partnership Program.--Section 
     25(f) of the National Institute of Standards and Technology 
     Act (15 U.S.C. 278k(f)) is amended by adding at the end the 
     following:
       ``(7) Global marketplace projects.--In making awards under 
     this subsection, the Director, in consultation with the 
     Manufacturing Extension Partnership Advisory Board and the 
     Secretary of Commerce, may--
       ``(A) take into consideration whether an application has 
     significant potential for enhancing the competitiveness of 
     small and medium-sized United States manufacturers in the 
     global marketplace; and
       ``(B) give a preference to applications for such projects 
     to the extent the Director deems appropriate, taking into 
     account the broader purposes of this subsection.''.
       (b) Technology Innovation Program.--In awarding grants, 
     cooperative agreements, or contracts under section 28 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278n), in addition to the award criteria set forth in 
     subsection (c) of that section, the Director of the National 
     Institute of Standards and Technology may take into 
     consideration whether an application has significant 
     potential for enhancing the competitiveness of small- and 
     medium-sized businesses in the United States in the global 
     marketplace. The Director shall consult with the Technology 
     Innovation Program Advisory Board and the Secretary of 
     Commerce in implementing this subsection.

     SEC. 5226. SENSE OF THE SENATE CONCERNING FEDERAL 
                   COLLABORATION WITH STATES ON EXPORT PROMOTION 
                   ISSUES.

       It is the sense of the Senate that the Secretary of 
     Commerce should enhance Federal collaboration with the States 
     on export promotion issues by--
       (1) providing the necessary training to the staff at State 
     international trade agencies to enable them to assist the 
     United States and Foreign Commercial Service (established by 
     section 2301 of the Export Enhancement Act of 1988 (15 U.S.C. 
     4721)) in providing counseling and other export services to 
     businesses in their communities; and
       (2) entering into agreements with State international trade 
     agencies for those agencies to deliver export promotion 
     services in their local communities in order to extend the 
     outreach of United States and Foreign Commercial Service 
     programs.

     SEC. 5227. REPORT ON TARIFF AND NONTARIFF BARRIERS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Commerce, in consultation with the 
     United States Trade Representative and other appropriate 
     entities, shall report to Congress on the tariff and 
     nontariff barriers imposed by Colombia, the Republic of 
     Korea, and Panama with respect to exports of articles from 
     the United States, including articles exported or produced by 
     small- and medium-sized businesses in the United States.

                        PART II--MEDICARE FRAUD

     SEC. 5241. USE OF PREDICTIVE MODELING AND OTHER ANALYTICS 
                   TECHNOLOGIES TO IDENTIFY AND PREVENT WASTE, 
                   FRAUD, AND ABUSE IN THE MEDICARE FEE-FOR-
                   SERVICE PROGRAM.

       (a) Use in the Medicare Fee-for-service Program.--The 
     Secretary shall use predictive modeling and other analytics 
     technologies (in this section referred to as ``predictive 
     analytics technologies'') to identify improper claims for 
     reimbursement and to prevent the payment of such claims under 
     the Medicare fee-for-service program.
       (b) Predictive Analytics Technologies Requirements.--The 
     predictive analytics technologies used by the Secretary 
     shall--
       (1) capture Medicare provider and Medicare beneficiary 
     activities across the Medicare fee-for-service program to 
     provide a comprehensive view across all providers, 
     beneficiaries, and geographies within such program in order 
     to--
       (A) identify and analyze Medicare provider networks, 
     provider billing patterns, and beneficiary utilization 
     patterns; and
       (B) identify and detect any such patterns and networks that 
     represent a high risk of fraudulent activity;
       (2) be integrated into the existing Medicare fee-for-
     service program claims flow with minimal effort and maximum 
     efficiency;
       (3) be able to--
       (A) analyze large data sets for unusual or suspicious 
     patterns or anomalies or contain other factors that are 
     linked to the occurrence of waste, fraud, or abuse;
       (B) undertake such analysis before payment is made; and
       (C) prioritize such identified transactions for additional 
     review before payment is made in terms of the likelihood of 
     potential waste, fraud, and abuse to more efficiently utilize 
     investigative resources;
       (4) capture outcome information on adjudicated claims for 
     reimbursement to allow for refinement and enhancement of the 
     predictive analytics technologies on the basis of such 
     outcome information, including post-payment information about 
     the eventual status of a claim; and
       (5) prevent the payment of claims for reimbursement that 
     have been identified as potentially wasteful, fraudulent, or 
     abusive until such time as the claims have been verified as 
     valid.
       (c) Implementation Requirements.--
       (1) Request for proposals.--Not later than January 1, 2011, 
     the Secretary shall issue a request for proposals to carry 
     out this section during the first year of implementation. To 
     the extent the Secretary determines appropriate--
       (A) the initial request for proposals may include 
     subsequent implementation years; and
       (B) the Secretary may issue additional requests for 
     proposals with respect to subsequent implementation years.
       (2) First implementation year.--The initial request for 
     proposals issued under paragraph (1) shall require the 
     contractors selected to commence using predictive analytics 
     technologies on July 1, 2011, in the 10 States identified by 
     the Secretary as having the highest risk of waste, fraud, or 
     abuse in the Medicare fee-for-service program.
       (3) Second implementation year.--Based on the results of 
     the report and recommendation required under subsection 
     (e)(1)(B), the Secretary shall expand the use of predictive 
     analytics technologies on October 1, 2012, to apply to an 
     additional 10 States identified by the Secretary as having 
     the highest risk of waste, fraud, or abuse in the Medicare 
     fee-for-service program, after the States identified under 
     paragraph (2).
       (4) Third implementation year.--Based on the results of the 
     report and recommendation required under subsection (e)(2), 
     the Secretary shall expand the use of predictive analytics 
     technologies on January 1, 2014, to apply to the Medicare 
     fee-for-service program in any State not identified under 
     paragraph (2) or (3) and the commonwealths and territories.
       (5) Fourth implementation year.--Based on the results of 
     the report and recommendation required under subsection 
     (e)(3), the Secretary shall expand the use of predictive 
     analytics technologies, beginning April 1, 2015, to apply to 
     Medicaid and CHIP. To the

[[Page 13693]]

     extent the Secretary determines appropriate, such expansion 
     may be made on a phased-in basis.
       (6) Option for refinement and evaluation.--If, with respect 
     to the first, second, or third implementation year, the 
     Inspector General of the Department of Health and Human 
     Services certifies as part of the report required under 
     subsection (e) for that year no or only nominal actual 
     savings to the Medicare fee-for-service program, the 
     Secretary may impose a moratorium, not to exceed 12 months, 
     on the expansion of the use of predictive analytics 
     technologies under this section for the succeeding year in 
     order to refine the use of predictive analytics technologies 
     to achieve more than nominal savings before further 
     expansion. If a moratorium is imposed in accordance with this 
     paragraph, the implementation dates applicable for the 
     succeeding year or years shall be adjusted to reflect the 
     length of the moratorium period.
       (d) Contractor Selection, Qualifications, and Data Access 
     Requirements.--
       (1) Selection.--
       (A) In general.--The Secretary shall select contractors to 
     carry out this section using competitive procedures as 
     provided for in the Federal Acquisition Regulation.
       (B) Number of contractors.--The Secretary shall select at 
     least 2 contractors to carry out this section with respect to 
     any year.
       (2) Qualifications.--
       (A) In general.--The Secretary shall enter into a contract 
     under this section with an entity only if the entity--
       (i) has leadership and staff who--

       (I) have the appropriate clinical knowledge of, and 
     experience with, the payment rules and regulations under the 
     Medicare fee-for-service program; and
       (II) have direct management experience and proficiency 
     utilizing predictive analytics technologies necessary to 
     carry out the requirements under subsection (b); or

       (ii) has a contract, or will enter into a contract, with 
     another entity that has leadership and staff meeting the 
     criteria described in clause (i).
       (B) Conflict of interest.--The Secretary may only enter 
     into a contract under this section with an entity to the 
     extent that the entity complies with such conflict of 
     interest standards as are generally applicable to Federal 
     acquisition and procurement.
       (3) Data access.--The Secretary shall provide entities with 
     a contract under this section with appropriate access to data 
     necessary for the entity to use predictive analytics 
     technologies in accordance with the contract.
       (e) Reporting Requirements.--
       (1) First implementation year report.--Not later than 3 
     months after the completion of the first implementation year 
     under this section, the Secretary shall submit to the 
     appropriate committees of Congress and make available to the 
     public a report that includes the following:
       (A) A description of the implementation of the use of 
     predictive analytics technologies during the year.
       (B) A certification of the Inspector General of the 
     Department of Health and Human Services that--
       (i) specifies the actual and projected savings to the 
     Medicare fee-for-service program as a result of the use of 
     predictive analytics technologies, including estimates of the 
     amounts of such savings with respect to both improper 
     payments recovered and improper payments avoided;
       (ii) the actual and projected savings to the Medicare fee-
     for-service program as a result of such use of predictive 
     analytics technologies relative to the return on investment 
     for the use of such technologies and in comparison to other 
     strategies or technologies used to prevent and detect fraud, 
     waste, and abuse in the Medicare fee-for-service program; and
       (iii) includes recommendations regarding--

       (I) whether the Secretary should continue to use predictive 
     analytics technologies;
       (II) whether the use of such technologies should be 
     expanded in accordance with the requirements of subsection 
     (c); and
       (III) any modifications or refinements that should be made 
     to increase the amount of actual or projected savings or 
     mitigate any adverse impact on Medicare beneficiaries or 
     providers.

       (C) An analysis of the extent to which the use of 
     predictive analytics technologies successfully prevented and 
     detected waste, fraud, or abuse in the Medicare fee-for-
     service program.
       (D) A review of whether the predictive analytics 
     technologies affected access to, or the quality of, items and 
     services furnished to Medicare beneficiaries.
       (E) A review of what effect, if any, the use of predictive 
     analytics technologies had on Medicare providers.
       (F) Any other items determined appropriate by the 
     Secretary.
       (2) Second year implementation report.--Not later than 3 
     months after the completion of the second implementation year 
     under this section, the Secretary shall submit to the 
     appropriate committees of Congress and make available to the 
     public a report that includes, with respect to such year, the 
     items required under paragraph (1) as well as any other 
     additional items determined appropriate by the Secretary with 
     respect to the report for such year.
       (3) Third year implementation report.--Not later than 3 
     months after the completion of the third implementation year 
     under this section, the Secretary shall submit to the 
     appropriate committees of Congress, and make available to the 
     public, a report that includes with respect to such year, the 
     items required under paragraph (1), as well as any other 
     additional items determined appropriate by the Secretary with 
     respect to the report for such year, and the following:
       (A) An analysis of the cost-effectiveness and feasibility 
     of expanding the use of predictive analytics technologies to 
     Medicaid and CHIP.
       (B) An analysis of the effect, if any, the application of 
     predictive analytics technologies to claims under Medicaid 
     and CHIP would have on States and the commonwealths and 
     territories.
       (C) Recommendations regarding the extent to which technical 
     assistance may be necessary to expand the application of 
     predictive analytics technologies to claims under Medicaid 
     and CHIP, and the type of any such assistance.
       (f) Independent Evaluation and Report.--
       (1) Evaluation.--Upon completion of the first year in which 
     predictive analytics technologies are used with respect to 
     claims under Medicaid and CHIP, the Secretary shall, by 
     grant, contract, or interagency agreement, conduct an 
     independent evaluation of the use of predictive analytics 
     technologies under the Medicare fee-for-service program and 
     Medicaid and CHIP. The evaluation shall include an analysis 
     with respect to each such program of the items required for 
     the third year implementation report under subsection (e)(3).
       (2) Report.--Not later than 18 months after the evaluation 
     required under paragraph (1) is initiated, the Secretary 
     shall submit a report to Congress on the evaluation that 
     shall include the results of the evaluation, the Secretary's 
     response to such results and, to the extent the Secretary 
     determines appropriate, recommendations for legislation or 
     administrative actions.
       (g) Waiver Authority.--The Secretary may waive such 
     provisions of titles XI, XVIII, XIX, and XXI of the Social 
     Security Act, including applicable prompt payment 
     requirements under titles XVIII and XIX of such Act, as the 
     Secretary determines to be appropriate to carry out this 
     section.
       (h) Funding.--
       (1) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to the 
     Secretary to carry out this section, $100,000,000 for the 
     period beginning January 1, 2011, to remain available until 
     expended.
       (2) Reservations.--
       (A) Independent evaluation.--The Secretary shall reserve 
     not more than 5 percent of the funds appropriated under 
     paragraph (1) for purposes of conducting the independent 
     evaluation required under subsection (f).
       (B) Application to medicaid and chip.--The Secretary shall 
     reserve such portion of the funds appropriated under 
     paragraph (1) as the Secretary determines appropriate for 
     purposes of providing assistance to States for administrative 
     expenses in the event of the expansion of predictive 
     analytics technologies to claims under Medicaid and CHIP.
       (i) Definitions.--In this section:
       (1) Commonwealths and territories.--The term ``commonwealth 
     and territories'' includes the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, American Samoa, the Commonwealth of 
     the Northern Mariana Islands, and any other territory or 
     possession of the United States in which the Medicare fee-
     for-service program, Medicaid, or CHIP operates.
       (2) CHIP.--The term ``CHIP'' means the Children's Health 
     Insurance Program established under title XXI of the Social 
     Security Act (42 U.S.C. 1397aa et seq.).
       (3) Medicaid.--The term ``Medicaid'' means the program to 
     provide grants to States for medical assistance programs 
     established under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (4) Medicare beneficiary.--The term ``Medicare 
     beneficiary'' means an individual enrolled in the Medicare 
     fee-for-service program.
       (5) Medicare fee-for-service program.--The term ``Medicare 
     fee-for-service program'' means the original medicare fee-
     for-service program under parts A and B of title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.).
       (6) Medicare provider.--The term ``Medicare provider'' 
     means a provider of services (as defined in subsection (u) of 
     section 1861 of the Social Security Act (42 U.S.C. 1395x)) 
     and a supplier (as defined in subsection (d) of such 
     section).
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services, acting through the 
     Administrator of the Centers for Medicare & Medicaid 
     Services.
       (8) State.--The term ``State'' means each of the 50 States 
     and the District of Columbia.

[[Page 13694]]



                    PART III--ADVANCE REFUNDABILITY

     SEC. 5261. ELIMINATION OF ADVANCE REFUNDABILITY OF EARNED 
                   INCOME CREDIT.

       (a) In General.--Notwithstanding any other provision of 
     this Act, section 2122 and the amendments made by section 
     2122 shall have no force or effect.
       (b) Elimination.--
       (1) In general.--The following provisions of the Internal 
     Revenue Code of 1986 are repealed:
       (A) Section 3507.
       (B) Subsection (g) of section 32.
       (C) Paragraph (7) of section 6051(a).
       (2) Conforming amendments.--
       (A) Section 6012(a) of the Internal Revenue Code of 1986 is 
     amended by striking paragraph (8) and by redesignating 
     paragraph (9) as paragraph (8).
       (B) Section 6302 of such Code is amended by striking 
     subsection (i).
       (C) The table of sections for chapter 25 of such Code is 
     amended by striking the item relating to section 3507.
       (3) Effective date.--The repeals and amendments made by 
     this subsection shall apply to taxable years beginning after 
     December 31, 2010.
                                 ______
                                 
  SA 4501. Mr. REID proposed an amendment to amendment SA 4500 proposed 
by Mr. Reid (for Mr. LeMieux (for himself, Ms. Landrieu, Mr. Merkley, 
Mrs. Boxer, Ms. Cantwell, Ms. Klobuchar, and Mrs. Murray)) to the 
amendment SA 4499 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; as 
follows:

       At the end of the amendment, insert the following:
       The provisions of this Act shall become effective 10 days 
     after enactment.
                                 ______
                                 
  SA 4502. Mr. REID proposed an amendment to the bill H.R. 5297, to 
create the Small Business Lending Fund Program to direct the Secretary 
of the Treasury to make capital investments in eligible institutions in 
order to increase the availability of credit for small businesses, to 
amend the Internal Revenue Code of 1986 to provide tax incentives for 
small business job creation, and for other purposes; as follows:

       At the end of the language proposed to be stricken, insert 
     the following:
       This section shall become effective 5 days after enactment.
                                 ______
                                 
  SA 4503. Mr. REID proposed an amendment to amendment SA 4502 proposed 
by Mr. Reid to the bill H.R. 5297, to create the Small Business Lending 
Fund Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; as follows:

       In amendment, strike ``5'' and insert ``4''.
                                 ______
                                 
  SA 4504. Mr. REID proposed an amendment to the bill H.R. 5297, to 
create the Small Business Lending Fund Program to direct the Secretary 
of the Treasury to make capital investments in eligible institutions in 
order to increase the availability of credit for small businesses, to 
amend the Internal Revenue Code of 1986 to provide tax incentives for 
small business job creation, and for other purposes; as follows:

       At the end, insert the following:
       The Finance Committee is requested to study the impact of 
     changes to the system whereby small business entities are 
     provided with opportunities for access to capital.
                                 ______
                                 
  SA 4505. Mr. REID proposed an amendment to amendment SA 4504 proposed 
by Mr. Reid to the bill H.R. 5297, to create the Small Business Lending 
Fund Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; as follows:

       At the end, insert the following:
     and the economic impact on local communities served by small 
     businesses,
                                 ______
                                 
  SA 4506. Mr. REID proposed an amendment to amendment SA 4505 proposed 
by Mr. Reid to the amendment SA 4504 proposed by Mr. Reid to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; as 
follows:

       At the end, insert the following:
     and its impact on state and local governments.
                                 ______
                                 
  SA 4507. Mr. DORGAN (for himself, Mr. Crapo, Mr. Tester, and Mr. 
Begich) submitted an amendment intended to be proposed by him to the 
bill H.R. 5297, to create the Small Business Lending Fund Program to 
direct the Secretary of the Treasury to make capital investments in 
eligible institutions in order to increase the availability of credit 
for small businesses, to amend the Internal Revenue Code of 1986 to 
provide tax incentives for small business job creation, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

           TITLE ___--NATIVE AMERICAN INVESTMENT INITIATIVES

     SEC. _01. IMPROVING ACCESS TO CAPITAL FOR INDIAN TRIBES.

       Section 201 of the Indian Financing Act of 1974 (25 U.S.C. 
     1481) is amended by adding at the end the following:
       ``(c) Improving Access to Capital for Indian Tribes.--The 
     Secretary shall consider more favorable equity terms or allow 
     an increase in loan guarantees from 90 percent up to 95 
     percent of the unpaid principal and interest due on any loan 
     made under this section for energy development or 
     manufacturing carried out on Indian land or within a tribal 
     service area recognized by the Bureau of Indian Affairs.''.

     SEC. _02. SURETY BOND GUARANTEES.

       Section 218 of the Indian Financing Act of 1974 (25 U.S.C. 
     1497a) is amended to read as follows:

     ``SEC. 218. SURETY BOND GUARANTEES.

       ``(a) Amount; Eligibility.--The Secretary may issue a 
     guarantee up to 100 percent of amounts covered by a surety 
     bond issued for eligible construction, renovation, or 
     demolition work performed or to be performed by an Indian 
     individual or Indian economic enterprise.
       ``(b) Conditions.--
       ``(1) In general.--The Secretary may provide a surety bond 
     guarantee under this section only if the Secretary determines 
     that--
       ``(A) the guarantee is necessary for the Indian individual 
     or Indian economic enterprise to secure a surety bond on 
     commercially reasonable terms;
       ``(B) not more than 25 percent of the business of the 
     surety is comprised of bonds guaranteed pursuant to this 
     section; and
       ``(C) the surety meets eligibility standards established by 
     the Secretary in rules and regulations.
       ``(2) Prevention and mitigation of loss.--The Secretary 
     shall condition each surety bond guarantee to an Indian 
     business on the existence of--
       ``(A) appropriate technical assistance and advice; and
       ``(B) adequate monitoring of the performance of the 
     project.
       ``(c) Fees and Charges.--
       ``(1) In general.--The rules and regulations promulgated by 
     the Secretary to carry out this section shall include the 
     setting of--
       ``(A) reasonable fees to be paid by the Indian individual 
     or economic enterprise; and
       ``(B) reasonable premium charges to be paid by sureties.
       ``(2) Receipts.--The receipts from fees and charges shall 
     be made available to the Secretary for administration and 
     management of this section.''.

     SEC. _03. INDIAN EMPLOYMENT, TRAINING, AND RELATED SERVICES.

       The Indian Employment, Training, and Related Services 
     Demonstration Act of 1992 (25 U.S.C. 3401 et seq.) is 
     amended--
       (1) in section 2 (25 U.S.C. 3401), by striking ``The 
     purposes of this chapter are to demonstrate how Indian tribal 
     governments can integrate the employment, training, and 
     related services they provide in order'' and inserting ``The 
     purposes of this chapter are to promote tribal government 
     integration of employment, training, and related services'';
       (2) in section 3 (25 U.S.C. 3402), by adding at the end the 
     following:
       ``(5) Tribal organization.--The term `tribal organization' 
     has meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b).'';
       (3) in section 4 (25 U.S.C. 3403)--

[[Page 13695]]

       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(a) In General.--The Secretary''; and
       (B) by adding at the end the following:
       ``(b) Single Integrated Plan.--On approval by the Secretary 
     of a plan submitted by an Indian tribe or tribal organization 
     under subsection (a), the covered programs shall be fully 
     integrated into a single, coordinated, comprehensive program 
     that shall not require the Indian tribe or tribal 
     organization to submit to any additional budgets, reports, 
     audits, supplemental audits, or other documentation 
     requirements.
       ``(c) Transfer of Funds.--Notwithstanding any other 
     provision of law, all funds for programs and services covered 
     by an approved plan under this section shall, at the request 
     of the Indian tribe or tribal organization, be transferred to 
     the Indian tribe or tribal organization pursuant to an 
     existing contract, compact, or funding agreement, including 
     those awarded under title I or IV of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.).'';
       (4) in section 5 (25 U.S.C. 3404), by striking ``in a 
     demonstration project under any such'' and inserting ``under 
     any'';
       (5) in section 6 (25 U.S.C. 3405), by striking paragraph 
     (3) and inserting the following:
       ``(3) identify--
       ``(A) the full range of potential employment opportunities 
     on and near the service area of the Indian tribe or tribal 
     organization; and
       ``(B) the education, training, and related services to be 
     provided to assist individual Indians to access those 
     employment opportunities;'';
       (6) by striking sections 7 and 8 (25 U.S.C. 3406, 3407) and 
     inserting the following:

     ``SEC. 7. PLAN REVIEW AND APPROVAL.

       ``(a) In General.--Not later than 90 days after the date of 
     receipt of a plan under section 4, the Secretary shall 
     approve the plan, including any request for a waiver that is 
     made as part of the plan, and authorize the transfer of funds 
     pursuant to that plan, unless the Secretary provides written 
     notification of disapproval of the plan that contains a 
     specific finding that clearly demonstrates that, or that is 
     supported by a controlling legal authority that, the plan 
     does not meet the requirements of section 6.
       ``(b) Failure To Act.--Any plan that the Secretary fails to 
     act on by the date that is 90 days after the date of receipt 
     (or such extended time as may be provided under subsection 
     (c)) shall be considered to be approved.
       ``(c) Extension of Time.--Notwithstanding any other 
     provision of law, the Secretary may extend or otherwise 
     modify the 90-day period specified in subsection (a), if 
     before the expiration of that period, the Secretary obtains 
     the express written consent of the Indian tribe or tribal 
     organization to extend or alter the period for up to 90 
     additional days.
       ``(d) Review of Decision; Applicable Provisions.--On a 
     decision to disapprove a plan, the following provisions of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.) shall apply to the review of the 
     decision:
       ``(1) Section 102(b) (25 U.S.C. 450f(b)) (relating to the 
     declination process).
       ``(2) Section 102(e) (25 U.S.C. 450f(e)) (relating to 
     burden of proof and finality).
       ``(3) Subsections (a) and (c) of section 110 (25 U.S.C. 
     450m-1) (relating to appeals).'';
       (7) in section 11 (25 U.S.C. 3410)--
       (A) in subsection (a), by striking paragraphs (1) through 
     (4) and inserting the following:
       ``(1) the development and use of a model single report for 
     each approved plan submitted by an Indian tribe or tribal 
     organization to report on the consolidated activities 
     undertaken and joint expenditures made under the plan;
       ``(2) the provision, either directly or through contract, 
     of appropriate technical assistance to an Indian tribe or 
     tribal organization with an approved plan, on the condition 
     that the Indian tribe or tribal organization retains the 
     authority to accept the plan for providing such technical 
     assistance and the technical assistance provider;
       ``(3) the development and use of a single monitoring and 
     oversight system for the plan;
       ``(4)(A) the receipt of all funds covered by a plan 
     submitted by an Indian tribe or tribal organization and 
     approved by the Secretary; and
       ``(B) the distribution of all such funds to the respective 
     Indian tribe or tribal organization; and
       ``(5) the performance of activities described in section 7 
     relating to agency waivers and the establishment of an inter-
     agency dispute resolution process.'';
       (B) by redesignating subsection (b) as subsection (c); and
       (C) by inserting after subsection (a) the following:
       ``(b) Interdepartmental Memorandum.--
       ``(1) In general.--The interdepartmental memorandum 
     described in subsection (a) shall include, at a minimum, 
     requirements for--
       ``(A) an annual meeting of participating Indian tribes, 
     tribal organizations, and Federal agencies, with the meeting 
     co-chaired by a representative of the President and a 
     representative of the participating Indian tribes;
       ``(B) an annual review of the achievements under the Act as 
     well as statutory, regulatory, administrative, and policy 
     obstacles that prevent participating Indian tribes from fully 
     carrying out the purposes of the Act; and
       ``(C) in accordance with paragraph (2), the establishment 
     of an advisory committee to identify and resolve inter-agency 
     or Federal-tribal conflicts in the administration of the Act.
       ``(2) Advisory committee.--The Advisory Committee described 
     in paragraph (1)(C) shall--
       ``(A) be comprised of representatives appointed by the 
     Secretary of the Interior, the Secretary of Labor, the 
     Secretary of Health and Human Services, the Secretary of 
     Education, the Secretary of Commerce, the Secretary of 
     Transportation, and the Secretary of Agriculture;
       ``(B) have 2 representatives appointed by the Secretary of 
     the Interior from nominations submitted by Indian tribes or 
     tribal organizations;
       ``(C) meet at least twice per year; and
       ``(D) be exempt from the requirements of Federal Advisory 
     Committee Act (5 U.S.C. App.).'';
       (8) in section 12 (25 U.S.C. 3411), by striking ``tribal 
     government involved in any demonstration project be reduced 
     as a result of'' and inserting ``participating Indian tribe 
     or tribal organization be reduced as a result of the approval 
     or implementation of a plan under this Act or'';
       (9) in section 13 (25 U.S.C. 3412), by striking ``a tribal 
     government in order to further the purposes of this Act'' and 
     inserting ``an Indian tribe or tribal organization in order 
     to further the purposes of this Act (including any amendments 
     made to this Act)'';
       (10) in section 14 (25 U.S.C. 3413)--
       (A) in subsection (a), by striking paragraph (2) and 
     inserting the following:
       ``(2) Separate records and audits not required.--
     Notwithstanding any other provision of law, including any 
     regulation or circular of any agency (including Circular A-
     133 of the Office of Management and Budget), a participating 
     Indian tribe or tribal organization shall not be required--
       ``(A) to maintain separate records tracing any services or 
     activities conducted under the approved plan of the Indian 
     tribe or tribal organization to the individual programs under 
     which funds were authorized or transferred;
       ``(B) to allocate expenditures among the individual 
     programs; or
       ``(C) to audit expenditures by original program source.''; 
     and
       (B) by striking subsection (b) and inserting the following:
       ``(b) Overage; Carryover; Indirect Costs.--
       ``(1) Overage.--
       ``(A) In general.--All administrative costs may be 
     commingled and participating Indian tribes shall be entitled 
     to the full amount of the costs, subject to the regulations 
     of each program or department.
       ``(B) Audit purposes.--The difference between the amount of 
     the commingled funds and the actual administrative cost of 
     the programs, or the overage, shall be considered to be 
     properly spent for Federal audit purposes, if the overage is 
     used to carry out this Act.
       ``(C) Requirements.--Amounts described in subparagraphs (A) 
     and (B) shall be required to be obligated or expended 
     consistent with the plan of the Indian tribe or tribal 
     organization, but no additional justification or 
     documentation of the purposes shall be required to be 
     provided by the Indian tribe or tribal organization as a 
     condition of receiving or expending the funds.
       ``(2) Carryover.--
       ``(A) In general.--For each fiscal year, any amounts 
     transferred to an Indian tribe or tribal organization 
     pursuant to this Act that remain unobligated or unexpended 
     shall remain available for obligation or expenditure without 
     fiscal year limitation.
       ``(B) Requirements.--Amounts described in subparagraph (A) 
     shall be required to be obligated or expended consistent with 
     the plan of the Indian tribe or tribal organization, but no 
     additional justification or documentation shall be required 
     of the Indian tribe or tribal organization as a condition of 
     receiving or expending the amounts.
       ``(3) Indirect costs.--Notwithstanding any other provision 
     of law, an Indian tribe or tribal organization shall be 
     entitled to recover the full indirect costs associated with 
     any amounts transferred to the Indian tribe or tribal 
     organization pursuant to this Act, at the applicable indirect 
     cost rate of the Indian tribe or tribal organization, as 
     approved by the relevant Federal agency.''; and
       (11) by amending section 16 (25 U.S.C. 3415) to read as 
     follows:

     ``SEC. 16. REPORT ON STATUTORY OBSTACLES TO PROGRAM 
                   INTEGRATION.

       ``(a) In General.--Not later than 3 years after the date of 
     enactment of the Small Business Jobs and Credit Act of 2010, 
     the advisory committee established pursuant to section 
     11(b)(2) shall submit to the Committee on Indian Affairs and 
     the Committee on Finance of the Senate and the Committee on 
     Natural Resources and the Committee on Education and Labor of 
     the House of Representatives a report on the implementation

[[Page 13696]]

     and administration of this Act and any inter-agency or 
     Federal-tribal conflicts in the administration of this Act.
       ``(b) Requirements.--The report shall identify any barriers 
     to the ability of tribal governments to integrate more 
     effectively the employment, training, and related services of 
     the tribal governments in a manner consistent with the 
     purposes of this Act.
       ``(c) Feasibility Study.--Not later than 18 months after 
     the date of enactment of the Small Business Jobs and Credit 
     Act of 2010, the Comptroller General of the United States 
     shall publish a study on the feasibility of expanding the 
     integration program established under this Act to other 
     Federal agencies that provide funding for employment, 
     training, and related services to Indian tribes and tribal 
     organizations.''.

                           TITLE ___--HEARTH

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Helping Expedite and 
     Advance Responsible Tribal Homeownership Act of 2010'' or the 
     ``HEARTH Act of 2010''.

     SEC. _02. APPROVAL OF, AND REGULATIONS RELATED TO, TRIBAL 
                   LEASES.

       The first section of the Act titled ``An Act to authorize 
     the leasing of restricted Indian lands for public, religious, 
     educational, recreational, residential, business, and other 
     purposes requiring the grant of long-term leases'', approved 
     August 9, 1955 (25 U.S.C. 415) is amended as follows:
       (1) In subsection (d)--
       (A) in paragraph (4), by striking ``the Navajo Nation'' and 
     inserting ``an applicable Indian tribe'';
       (B) in paragraph (6), by striking ``the Navajo Nation'' and 
     inserting ``an Indian tribe'';
       (C) in paragraph (7), by striking ``and'' after the 
     semicolon at the end;
       (D) in paragraph (8)--
       (i) by striking ``the Navajo Nation'';
       (ii) by striking ``with Navajo Nation law'' and inserting 
     ``with applicable tribal law''; and
       (iii) by striking the period at the end and inserting a 
     semicolon; and
       (E) by adding at the end the following:
       ``(9) the term `Indian tribe' has the meaning given such 
     term in section 102 of the Federally Recognized Indian Tribe 
     List Act of 1994 (25 U.S.C. 479a); and
       ``(10) the term `individually owned allotted land' means a 
     parcel of land that--
       ``(A)(i) is located within the jurisdiction of an Indian 
     tribe; or
       ``(ii) is held in trust or restricted status by the United 
     States for the benefit of an Indian tribe or a member of an 
     Indian tribe; and
       ``(B) is allotted to a member of an Indian tribe.''.
       (2) By adding at the end the following:
       ``(h) Tribal Approval of Leases.--
       ``(1) In general.--At the discretion of any Indian tribe, 
     any lease by the Indian tribe for the purposes authorized 
     under subsection (a) (including any amendments to subsection 
     (a)), except a lease for the exploration, development, or 
     extraction of any mineral resources, shall not require the 
     approval of the Secretary, if the lease is executed under the 
     tribal regulations approved by the Secretary under this 
     subsection and the term of the lease does not exceed--
       ``(A) in the case of a business or agricultural lease, 25 
     years, except that any such lease may include an option to 
     renew for up to 2 additional terms, each of which may not 
     exceed 25 years; and
       ``(B) in the case of a lease for public, religious, 
     educational, recreational, or residential purposes, 75 years, 
     if such a term is provided for by the regulations issued by 
     the Indian tribe.
       ``(2) Allotted land.--Paragraph (1) shall not apply to any 
     lease of individually owned Indian allotted land.
       ``(3) Authority of secretary over tribal regulations.--
       ``(A) In general.--The Secretary shall have the authority 
     to approve or disapprove any tribal regulations issued in 
     accordance with paragraph (1).
       ``(B) Considerations for approval.--The Secretary shall 
     approve any tribal regulation issued in accordance with 
     paragraph (1), if the tribal regulations--
       ``(i) are consistent with any regulations issued by the 
     Secretary under subsection (a) (including any amendments to 
     the subsection or regulations); and
       ``(ii) provide for an environmental review process that 
     includes--

       ``(I) the identification and evaluation of any significant 
     effects of the proposed action on the environment; and
       ``(II) a process for ensuring that--

       ``(aa) the public is informed of, and has a reasonable 
     opportunity to comment on, any significant environmental 
     impacts of the proposed action identified by the Indian 
     tribe; and
       ``(bb) the Indian tribe provides responses to relevant and 
     substantive public comments on any such impacts before the 
     Indian tribe approves the lease.
       ``(4) Review process.--
       ``(A) In general.--Not later than 120 days after the date 
     on which the tribal regulations described in paragraph (1) 
     are submitted to the Secretary, the Secretary shall review 
     and approve or disapprove the regulations.
       ``(B) Written documentation.--If the Secretary disapproves 
     the tribal regulations described in paragraph (1), the 
     Secretary shall include written documentation with the 
     disapproval notification that describes the basis for the 
     disapproval.
       ``(C) Extension.--The deadline described in subparagraph 
     (A) may be extended by the Secretary, after consultation with 
     the Indian tribe.
       ``(5) Federal environmental review.--Notwithstanding 
     paragraphs (3) and (4), if an Indian tribe carries out a 
     project or activity funded by a Federal agency, the Indian 
     tribe shall have the authority to rely on the environmental 
     review process of the applicable Federal agency rather than 
     any tribal environmental review process under this 
     subsection.
       ``(6) Documentation.--If an Indian tribe executes a lease 
     pursuant to tribal regulations under paragraph (1), the 
     Indian tribe shall provide the Secretary with--
       ``(A) a copy of the lease, including any amendments or 
     renewals to the lease; and
       ``(B) in the case of tribal regulations or a lease that 
     allows for lease payments to be made directly to the Indian 
     tribe, documentation of the lease payments that are 
     sufficient to enable the Secretary to discharge the trust 
     responsibility of the United States under paragraph (7).
       ``(7) Trust responsibility.--
       ``(A) In general.--The United States shall not be liable 
     for losses sustained by any party to a lease executed 
     pursuant to tribal regulations under paragraph (1).
       ``(B) Authority of secretary.--Pursuant to the authority of 
     the Secretary to fulfill the trust obligation of the United 
     States to the applicable Indian tribe under Federal law 
     (including regulations), the Secretary may, upon reasonable 
     notice from the applicable Indian tribe and at the discretion 
     of the Secretary, enforce the provisions of, or cancel, any 
     lease executed by the Indian tribe under paragraph (1).
       ``(8) Compliance.--
       ``(A) In general.--An interested party, after exhausting of 
     any applicable tribal remedies, may submit a petition to the 
     Secretary, at such time and in such form as the Secretary 
     determines to be appropriate, to review the compliance of the 
     applicable Indian tribe with any tribal regulations approved 
     by the Secretary under this subsection.
       ``(B) Violations.--If, after carrying out a review under 
     subparagraph (A), the Secretary determines that the tribal 
     regulations were violated, the Secretary may take any action 
     the Secretary determines to be necessary to remedy the 
     violation, including rescinding the approval of the tribal 
     regulations and reassuming responsibility for the approval of 
     leases of tribal trust lands.
       ``(C) Documentation.--If the Secretary determines that a 
     violation of the tribal regulations has occurred and a remedy 
     is necessary, the Secretary shall--
       ``(i) make a written determination with respect to the 
     regulations that have been violated;
       ``(ii) provide the applicable Indian tribe with a written 
     notice of the alleged violation together with such written 
     determination; and
       ``(iii) prior to the exercise of any remedy, the rescission 
     of the approval of the regulation involved, or the 
     reassumption of lease approval responsibilities, provide the 
     applicable Indian tribe with--

       ``(I) a hearing that is on the record; and
       ``(II) a reasonable opportunity to cure the alleged 
     violation.

       ``(9) Savings clause.--Nothing in this subsection shall 
     affect subsection (e) or any tribal regulations issued under 
     that subsection.''.

     SEC. _03. LAND TITLE REPORTS--REVIEW AND REPORT TO CONGRESS.

       Not later than 180 days after funds are made available for 
     this section, the Bureau of Indian Affairs shall prepare and 
     submit to the Committees on Financial Services and Natural 
     Resources in the House of Representatives and the Committees 
     on Banking, Housing, and Urban Affairs and Indian Affairs in 
     the Senate a report regarding the history and experience of 
     Indian tribes that have chosen to assume responsibility for 
     operating the Indian Land Title and Records Office (hereafter 
     referred to as the ``LTRO'') functions from the Bureau of 
     Indian Affairs. In conducting the review, the Bureau of 
     Indian Affairs shall consult with the Department of Housing 
     and Urban Development Office of Native American Programs and 
     those Indian tribes that are managing LTRO functions 
     (hereafter referred to as the ``managing Indian tribes''). 
     The review shall include an analysis of the following 
     factors:
       (1) Whether and how tribal management of the LTRO functions 
     has expedited the processing and issuance of Indian land 
     title certifications as compared to when the Bureau of Indian 
     Affairs managed these programs.
       (2) Whether and how tribal management of the LTRO functions 
     has increased home ownership among the managing Indian 
     tribe's population.
       (3) What internal preparations and processes were required 
     of the managing Indian tribes prior to assuming management of 
     the LTRO functions.
       (4) Whether tribal management of the LTRO functions 
     resulting in a transfer of financial resources and manpower 
     from the

[[Page 13697]]

     Bureau of Indian Affairs to the managing Indian tribes and, 
     if so, what transfers were undertaken.
       (5) Whether, in appropriate circumstances and with the 
     approval of geographically proximate Indian tribes, the LTRO 
     functions may be performed by a single Indian tribe or a 
     tribal consortium in a cost effective manner.

                          ____________________