[Congressional Record (Bound Edition), Volume 156 (2010), Part 11]
[Senate]
[Pages 15326-15383]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4588. Mrs. FEINSTEIN (for herself and Mr. Bond) proposed an 
amendment to the bill S. 3611, to authorize appropriations for fiscal 
year 2010 for intelligence and intelligence-related activities of the 
United States Government, the Community Management Account, and the 
Central Intelligence Agency Retirement and Disability System, and for 
other purposes; as follows:

       On page 12, strike lines 3 through 9 and insert the 
     following:

     SEC. 106. BUDGETARY PROVISIONS.

       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.
       Beginning on page 88, strike line 20 and all that follows 
     through page 89, lines 16 and insert the following:
       (1) Congressional armed services committees.--To the extent 
     that the report required by subsection (a) addresses an 
     element of the intelligence community within

[[Page 15327]]

     the Department of Defense, the Director of National 
     Intelligence, in consultation with the Secretary of Defense, 
     shall submit that portion of the report, and any associated 
     material that is necessary to make that portion 
     understandable, to the Committee on Armed Services of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives. The Director of National Intelligence may 
     authorize redactions of the report and any associated 
     materials submitted pursuant to this paragraph, if such 
     redactions are consistent with the protection of sensitive 
     intelligence sources and methods.
       (2) Congressional judiciary committees.--To the extent that 
     the report required by subsection (a) addresses an element of 
     the intelligence community within the Department of Justice, 
     the Director of National Intelligence, in consultation with 
     the Attorney General, shall submit that portion of the 
     report, and any associated material that is necessary to make 
     that portion understandable, to the Committee on the 
     Judiciary of the Senate and the Committee on the Judiciary of 
     the House of Representatives. The Director of National 
     Intelligence may authorize redactions of the report and any 
     associated materials submitted pursuant to this paragraph, if 
     such redactions are consistent with the protection of 
     sensitive intelligence sources and methods.
       Beginning on page 89, strike line 17 and all that follows 
     through page 91, line 6.
       Beginning on page 91, strike line 10 and all that follows 
     through page 92, line 15.
       On page 214, line 16, strike ``committees'' and insert 
     ``committees, the Committee on the Judiciary of the Senate, 
     and the Committee on the Judiciary of the House of 
     Representatives''.
                                 ______
                                 
  SA 4589. Mrs. LINCOLN (for herself and Mr. Chambliss) proposed an 
amendment to the bill S. 3307, to reauthorize child nutrition programs, 
and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Healthy, 
     Hunger-Free Kids Act of 2010''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

                TITLE I--A PATH TO END CHILDHOOD HUNGER

               Subtitle A--National School Lunch Program

Sec. 101. Improving direct certification.
Sec. 102. Categorical eligibility of foster children.
Sec. 103. Direct certification for children receiving Medicaid 
              benefits.
Sec. 104. Eliminating individual applications through community 
              eligibility.
Sec. 105. Grants for expansion of school breakfast programs.

                Subtitle B--Summer Food Service Program

Sec. 111. Alignment of eligibility rules for public and private 
              sponsors.
Sec. 112. Outreach to eligible families.
Sec. 113. Summer food service support grants.

             Subtitle C--Child and Adult Care Food Program

Sec. 121. Simplifying area eligibility determinations in the child and 
              adult care food program.
Sec. 122. Expansion of afterschool meals for at-risk children.

Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

Sec. 131. Certification periods.

                       Subtitle E--Miscellaneous

Sec. 141. Childhood hunger research.
Sec. 142. State childhood hunger challenge grants.
Sec. 143. Review of local policies on meal charges and provision of 
              alternate meals.

    TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF 
                                CHILDREN

               Subtitle A--National School Lunch Program

Sec. 201. Performance-based reimbursement rate increases for new meal 
              patterns.
Sec. 202. Nutrition requirements for fluid milk.
Sec. 203. Water.
Sec. 204. Local school wellness policy implementation.
Sec. 205. Equity in school lunch pricing.
Sec. 206. Revenue from nonprogram foods sold in schools.
Sec. 207. Reporting and notification of school performance.
Sec. 208. Nutrition standards for all foods sold in school.
Sec. 209. Information for the public on the school nutrition 
              environment.
Sec. 210. Organic food pilot program.

             Subtitle B--Child and Adult Care Food Program

Sec. 221. Nutrition and wellness goals for meals served through the 
              child and adult care food program.
Sec. 222. Interagency coordination to promote health and wellness in 
              child care licensing.
Sec. 223. Study on nutrition and wellness quality of child care 
              settings.

Subtitle C--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

Sec. 231. Support for breastfeeding in the WIC Program.
Sec. 232. Review of available supplemental foods.

                       Subtitle D--Miscellaneous

Sec. 241. Nutrition education and obesity prevention grant program.
Sec. 242. Procurement and processing of food service products and 
              commodities.
Sec. 243. Access to Local Foods: Farm to School Program.
Sec. 244. Research on strategies to promote the selection and 
              consumption of healthy foods.

 TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION 
                                PROGRAMS

               Subtitle A--National School Lunch Program

Sec. 301. Privacy protection.
Sec. 302. Applicability of food safety program on entire school campus.
Sec. 303. Fines for violating program requirements.
Sec. 304. Independent review of applications.
Sec. 305. Program evaluation.
Sec. 306. Professional standards for school food service.
Sec. 307. Indirect costs.
Sec. 308. Ensuring safety of school meals.

                Subtitle B--Summer Food Service Program

Sec. 321. Summer food service program permanent operating agreements.
Sec. 322. Summer food service program disqualification.

             Subtitle C--Child and Adult Care Food Program

Sec. 331. Renewal of application materials and permanent operating 
              agreements.
Sec. 332. State liability for payments to aggrieved child care 
              institutions.
Sec. 333. Transmission of income information by sponsored family or 
              group day care homes.
Sec. 334. Simplifying and enhancing administrative payments to 
              sponsoring organizations.
Sec. 335. Child and adult care food program audit funding.
Sec. 336. Reducing paperwork and improving program administration.
Sec. 337. Study relating to the child and adult care food program.

Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

Sec. 351. Sharing of materials with other programs.
Sec. 352. WIC program management.

                       Subtitle E--Miscellaneous

Sec. 361. Full use of Federal funds.
Sec. 362. Disqualified schools, institutions, and individuals.

                        TITLE IV--MISCELLANEOUS

           Subtitle A--Reauthorization of Expiring Provisions

          PART I--Richard B. Russell National School Lunch Act

Sec. 401. Commodity support.
Sec. 402. Food safety audits and reports by States.
Sec. 403. Procurement training.
Sec. 404. Authorization of the summer food service program for 
              children.
Sec. 405. Year-round services for eligible entities.
Sec. 406. Training, technical assistance, and food service management 
              institute.
Sec. 407. Federal administrative support.
Sec. 408. Compliance and accountability.
Sec. 409. Information clearinghouse.

                  PART II--Child Nutrition Act of 1966

Sec. 421. Technology infrastructure improvement.
Sec. 422. State administrative expenses.
Sec. 423. Special supplemental nutrition program for women, infants, 
              and children.
Sec. 424. Farmers market nutrition program.

                    Subtitle B--Technical Amendments

Sec. 441. Technical amendments.
Sec. 442. Use of unspent future funds from the American Recovery and 
              Reinvestment Act of 2009.
Sec. 443. Equipment assistance technical correction.
Sec. 444. Budgetary effects.
Sec. 445. Effective date.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Agriculture.

                TITLE I--A PATH TO END CHILDHOOD HUNGER

               Subtitle A--National School Lunch Program

     SEC. 101. IMPROVING DIRECT CERTIFICATION.

       (a) Performance Awards.--Section 9(b)(4) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) is 
     amended--
       (1) in the paragraph heading, by striking ``food stamp'' 
     and inserting ``supplemental nutrition assistance program''; 
     and
       (2) by adding at the end the following:
       ``(E) Performance awards.--

[[Page 15328]]

       ``(i) In general.--Effective for each of the school years 
     beginning July 1, 2011, July 1, 2012, and July 1, 2013, the 
     Secretary shall offer performance awards to States to 
     encourage the States to ensure that all children eligible for 
     direct certification under this paragraph are certified in 
     accordance with this paragraph.
       ``(ii) Requirements.--For each school year described in 
     clause (i), the Secretary shall--

       ``(I) consider State data from the prior school year, 
     including estimates contained in the report required under 
     section 4301 of the Food, Conservation, and Energy Act of 
     2008 (42 U.S.C. 1758a); and
       ``(II) make performance awards to not more than 15 States 
     that demonstrate, as determined by the Secretary--

       ``(aa) outstanding performance; and
       ``(bb) substantial improvement.
       ``(iii) Use of funds.--A State agency that receives a 
     performance award under clause (i)--

       ``(I) shall treat the funds as program income; and
       ``(II) may transfer the funds to school food authorities 
     for use in carrying out the program.

       ``(iv) Funding.--

       ``(I) In general.--On October 1, 2011, and each subsequent 
     October 1 through October 1, 2013, out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary--

       ``(aa) $2,000,000 to carry out clause (ii)(II)(aa); and
       ``(bb) $2,000,000 to carry out clause (ii)(II)(bb).

       ``(II) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this clause the funds transferred under subclause (I), 
     without further appropriation.

       ``(v) Payments not subject to judicial review.--A 
     determination by the Secretary whether, and in what amount, 
     to make a performance award under this subparagraph shall not 
     be subject to administrative or judicial review.''.
       (b) Continuous Improvement Plans.--Section 9(b)(4) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1758(b)(4)) (as amended by subsection (a)) is amended by 
     adding at the end the following:
       ``(F) Continuous improvement plans.--
       ``(i) Definition of required percentage.--In this 
     subparagraph, the term `required percentage' means--

       ``(I) for the school year beginning July 1, 2011, 80 
     percent;
       ``(II) for the school year beginning July 1, 2012, 90 
     percent; and
       ``(III) for the school year beginning July 1, 2013, and 
     each school year thereafter, 95 percent.

       ``(ii) Requirements.--Each school year, the Secretary 
     shall--

       ``(I) identify, using data from the prior year, including 
     estimates contained in the report required under section 4301 
     of the Food, Conservation, and Energy Act of 2008 (42 U.S.C. 
     1758a), States that directly certify less than the required 
     percentage of the total number of children in the State who 
     are eligible for direct certification under this paragraph;
       ``(II) require the States identified under subclause (I) to 
     implement a continuous improvement plan to fully meet the 
     requirements of this paragraph, which shall include a plan to 
     improve direct certification for the following school year; 
     and
       ``(III) assist the States identified under subclause (I) to 
     develop and implement a continuous improvement plan in 
     accordance with subclause (II).

       ``(iii) Failure to meet performance standard.--

       ``(I) In general.--A State that is required to develop and 
     implement a continuous improvement plan under clause (ii)(II) 
     shall be required to submit the continuous improvement plan 
     to the Secretary, for the approval of the Secretary.
       ``(II) Requirements.--At a minimum, a continuous 
     improvement plan under subclause (I) shall include--

       ``(aa) specific measures that the State will use to 
     identify more children who are eligible for direct 
     certification, including improvements or modifications to 
     technology, information systems, or databases;
       ``(bb) a timeline for the State to implement those 
     measures; and
       ``(cc) goals for the State to improve direct certification 
     results.''.
       (c) Without Further Application.--Section 9(b)(4) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1758(b)(4)) (as amended by subsection (b)) is amended by 
     adding at the end the following:
       ``(G) Without further application.--
       ``(i) In general.--In this paragraph, the term `without 
     further application' means that no action is required by the 
     household of the child.
       ``(ii) Clarification.--A requirement that a household 
     return a letter notifying the household of eligibility for 
     direct certification or eligibility for free school meals 
     does not meet the requirements of clause (i).''.

     SEC. 102. CATEGORICAL ELIGIBILITY OF FOSTER CHILDREN.

       (a) Discretionary Certification.--Section 9(b)(5) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1758(b)(5)) is amended--
       (1) in subparagraph (C), by striking ``or'' at the end;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(E)(i) a foster child whose care and placement is the 
     responsibility of an agency that administers a State plan 
     under part B or E of title IV of the Social Security Act (42 
     U.S.C. 621 et seq.); or
       ``(ii) a foster child who a court has placed with a 
     caretaker household.''.
       (b) Categorical Eligibility.--Section 9(b)(12)(A) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1758(b)(12)(A)) is amended--
       (1) in clause (iv), by adding ``)'' before the semicolon at 
     the end;
       (2) in clause (v), by striking ``or'' at the end;
       (3) in clause (vi), by striking the period at the end and 
     inserting ``; or''; and
       (4) by adding at the end the following:
       ``(vii)(I) a foster child whose care and placement is the 
     responsibility of an agency that administers a State plan 
     under part B or E of title IV of the Social Security Act (42 
     U.S.C. 621 et seq.); or
       ``(II) a foster child who a court has placed with a 
     caretaker household.''.
       (c) Documentation.--Section 9(d)(2) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1758(d)(2)) is 
     amended--
       (1) in subparagraph (D), by striking ``or'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(F)(i) documentation has been provided to the appropriate 
     local educational agency showing the status of the child as a 
     foster child whose care and placement is the responsibility 
     of an agency that administers a State plan under part B or E 
     of title IV of the Social Security Act (42 U.S.C. 621 et 
     seq.); or
       ``(ii) documentation has been provided to the appropriate 
     local educational agency showing the status of the child as a 
     foster child who a court has placed with a caretaker 
     household.''.

     SEC. 103. DIRECT CERTIFICATION FOR CHILDREN RECEIVING 
                   MEDICAID BENEFITS.

       (a) In General.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) is amended by 
     adding at the end the following:
       ``(15) Direct certification for children receiving medicaid 
     benefits.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Eligible child.--The term `eligible child' means a 
     child--

       ``(I)(aa) who is eligible for and receiving medical 
     assistance under the Medicaid program; and
       ``(bb) who is a member of a family with an income as 
     measured by the Medicaid program before the application of 
     any expense, block, or other income disregard, that does not 
     exceed 133 percent of the poverty line (as defined in section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2), including any revision required by such section)) 
     applicable to a family of the size used for purposes of 
     determining eligibility for the Medicaid program; or
       ``(II) who is a member of a household (as that term is 
     defined in section 245.2 of title 7, Code of Federal 
     Regulations (or successor regulations) with a child described 
     in subclause (I).

       ``(ii) Medicaid program.--The term `Medicaid program' means 
     the program of medical assistance established under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.).
       ``(B) Demonstration project.--
       ``(i) In general.--The Secretary, acting through the 
     Administrator of the Food and Nutrition Service and in 
     cooperation with selected State agencies, shall conduct a 
     demonstration project in selected local educational agencies 
     to determine whether direct certification of eligible 
     children is an effective method of certifying children for 
     free lunches and breakfasts under section 9(b)(1)(A) of this 
     Act and section 4(e)(1)(A) of the Child Nutrition Act of 1966 
     (42 U.S.C. 1773(e)(1)(A)).
       ``(ii) Scope of project.--The Secretary shall carry out the 
     demonstration project under this subparagraph--

       ``(I) for the school year beginning July 1, 2012, in 
     selected local educational agencies that collectively serve 
     2.5 percent of students certified for free and reduced price 
     meals nationwide, based on the most recent available data;
       ``(II) for the school year beginning July 1, 2013, in 
     selected local educational agencies that collectively serve 5 
     percent of students certified for free and reduced price 
     meals nationwide, based on the most recent available data; 
     and
       ``(III) for the school year beginning July 1, 2014, and 
     each subsequent school year, in selected local educational 
     agencies that collectively serve 10 percent of students 
     certified for free and reduced price meals nationwide, based 
     on the most recent available data.

       ``(iii) Purposes of the project.--At a minimum, the 
     purposes of the demonstration project shall be--

       ``(I) to determine the potential of direct certification 
     with the Medicaid program to

[[Page 15329]]

     reach children who are eligible for free meals but not 
     certified to receive the meals;
       ``(II) to determine the potential of direct certification 
     with the Medicaid program to directly certify children who 
     are enrolled for free meals based on a household application; 
     and
       ``(III) to provide an estimate of the effect on Federal 
     costs and on participation in the school lunch program under 
     this Act and the school breakfast program established by 
     section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) 
     of direct certification with the Medicaid program.

       ``(iv) Cost estimate.--For each of 2 school years of the 
     demonstration project, the Secretary shall estimate the cost 
     of the direct certification of eligible children for free 
     school meals through data derived from--

       ``(I) the school meal programs authorized under this Act 
     and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
       ``(II) the Medicaid program; and
       ``(III) interviews with a statistically representative 
     sample of households.

       ``(C) Agreement.--
       ``(i) In general.--Not later than July 1 of the first 
     school year during which a State agency will participate in 
     the demonstration project, the State agency shall enter into 
     an agreement with the 1 or more State agencies conducting 
     eligibility determinations for the Medicaid program.
       ``(ii) Without further application.--Subject to paragraph 
     (6), the agreement described in subparagraph (D) shall 
     establish procedures under which an eligible child shall be 
     certified for free lunches under this Act and free breakfasts 
     under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1773), without further application (as defined in paragraph 
     (4)(G)).
       ``(D) Certification.--For the school year beginning on July 
     1, 2012, and each subsequent school year, subject to 
     paragraph (6), the local educational agencies participating 
     in the demonstration project shall certify an eligible child 
     as eligible for free lunches under this Act and free 
     breakfasts under the Child Nutrition Act of 1966 (42 U.S.C. 
     1771 et seq.), without further application (as defined in 
     paragraph (4)(G)).
       ``(E) Site selection.--
       ``(i) In general.--To be eligible to participate in the 
     demonstration project under this subsection, a State agency 
     shall submit to the Secretary an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       ``(ii) Considerations.--In selecting States and local 
     educational agencies for participation in the demonstration 
     project, the Secretary may take into consideration such 
     factors as the Secretary considers to be appropriate, which 
     may include--

       ``(I) the rate of direct certification;
       ``(II) the share of individuals who are eligible for 
     benefits under the supplemental nutrition assistance program 
     established under the Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.) who participate in the program, as 
     determined by the Secretary;
       ``(III) the income eligibility limit for the Medicaid 
     program;
       ``(IV) the feasibility of matching data between local 
     educational agencies and the Medicaid program;
       ``(V) the socioeconomic profile of the State or local 
     educational agencies; and
       ``(VI) the willingness of the State and local educational 
     agencies to comply with the requirements of the demonstration 
     project.

       ``(F) Access to data.--For purposes of conducting the 
     demonstration project under this paragraph, the Secretary 
     shall have access to--
       ``(i) educational and other records of State and local 
     educational and other agencies and institutions receiving 
     funding or providing benefits for 1 or more programs 
     authorized under this Act or the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.); and
       ``(ii) income and program participation information from 
     public agencies administering the Medicaid program.
       ``(G) Report to congress.--
       ``(i) In general.--Not later than October 1, 2014, the 
     Secretary shall submit to the Committee on Education and 
     Labor of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, an 
     interim report that describes the results of the 
     demonstration project required under this paragraph.
       ``(ii) Final report.--Not later than October 1, 2015, the 
     Secretary shall submit a final report to the committees 
     described in clause (i).
       ``(H) Funding.--
       ``(i) In general.--On October 1, 2010, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out 
     subparagraph (G) $5,000,000, to remain available until 
     expended.
       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     subparagraph (G) the funds transferred under clause (i), 
     without further appropriation.''.
       (b) Documentation.--Section 9(d)(2) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1758(d)(2)) (as 
     amended by section 102(c)) is amended--
       (1) in subparagraph (E), by striking ``or'' at the end;
       (2) in subparagraph (F)(ii), by striking the period at the 
     end and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(G) documentation has been provided to the appropriate 
     local educational agency showing the status of the child as 
     an eligible child (as defined in subsection (b)(15)(A)).''.
       (c) Agreement for Direct Certification and Cooperation by 
     State Medicaid Agencies.--
       (1) In general.--Section 1902(a)(7) of the Social Security 
     Act (42 U.S.C. 1396a(a)(7)) is amended to read as follows:
       ``(7) provide--
       ``(A) safeguards which restrict the use or disclosure of 
     information concerning applicants and recipients to purposes 
     directly connected with--
       ``(i) the administration of the plan; and
       ``(ii) the exchange of information necessary to certify or 
     verify the certification of eligibility of children for free 
     or reduced price breakfasts under the Child Nutrition Act of 
     1966 and free or reduced price lunches under the Richard B. 
     Russell National School Lunch Act, in accordance with section 
     9(b) of that Act, using data standards and formats 
     established by the State agency; and
       ``(B) that, notwithstanding the Express Lane option under 
     subsection (e)(13), the State may enter into an agreement 
     with the State agency administering the school lunch program 
     established under the Richard B. Russell National School 
     Lunch Act under which the State shall establish procedures to 
     ensure that--
       ``(i) a child receiving medical assistance under the State 
     plan under this title whose family income does not exceed 133 
     percent of the poverty line (as defined in section 673(2) of 
     the Community Services Block Grant Act, including any 
     revision required by such section), as determined without 
     regard to any expense, block, or other income disregard, 
     applicable to a family of the size involved, may be certified 
     as eligible for free lunches under the Richard B. Russell 
     National School Lunch Act and free breakfasts under the Child 
     Nutrition Act of 1966 without further application; and
       ``(ii) the State agencies responsible for administering the 
     State plan under this title, and for carrying out the school 
     lunch program established under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.) or the 
     school breakfast program established by section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773), cooperate in 
     carrying out paragraphs (3)(F) and (15) of section 9(b) of 
     that Act;''.
       (2) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall take effect on 
     the date of enactment of this Act.
       (B) Extension of effective date for state law amendment.--
     In the case of a State plan under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) which the Secretary of 
     Health and Human Services determines requires State 
     legislation in order for the plan to meet the additional 
     requirements imposed by the amendments made by this section, 
     the State plan shall not be regarded as failing to comply 
     with the requirements of the amendments made by this section 
     solely on the basis of its failure to meet such additional 
     requirements before the first day of the first calendar 
     quarter beginning after the close of the first regular 
     session of the State legislature that begins after the date 
     of the enactment of this Act. For purposes of the previous 
     sentence, in the case of a State that has a 2-year 
     legislative session, each year of the session is considered 
     to be a separate regular session of the State legislature.
       (d) Conforming Amendments.--Section 444(b)(1) of the 
     General Education Provisions Act (20 U.S.C. 1232g(b)(1)) is 
     amended--
       (1) in subparagraph (I), by striking ``and'' at the end;
       (2) in subparagraph (J)(ii), by striking the period at the 
     end and inserting ``; and'';
       (3) by adding at the end the following:
       ``(K) the Secretary of Agriculture, or authorized 
     representative from the Food and Nutrition Service or 
     contractors acting on behalf of the Food and Nutrition 
     Service, for the purposes of conducting program monitoring, 
     evaluations, and performance measurements of State and local 
     educational and other agencies and institutions receiving 
     funding or providing benefits of 1 or more programs 
     authorized under the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1751 et seq.) or the Child Nutrition Act of 
     1966 (42 U.S.C. 1771 et seq.) for which the results will be 
     reported in an aggregate form that does not identify any 
     individual, on the conditions that--
       ``(i) any data collected under this subparagraph shall be 
     protected in a manner that will not permit the personal 
     identification of students and their parents by other than 
     the authorized representatives of the Secretary; and
       ``(ii) any personally identifiable data shall be destroyed 
     when the data are no longer needed for program monitoring, 
     evaluations, and performance measurements.''.

     SEC. 104. ELIMINATING INDIVIDUAL APPLICATIONS THROUGH 
                   COMMUNITY ELIGIBILITY.

       (a) Universal Meal Service in High Poverty Areas.--

[[Page 15330]]

       (1) Eligibility.--Section 11(a)(1) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)) is 
     amended by adding at the end the following:
       ``(F) Universal meal service in high poverty areas.--
       ``(i) Definition of identified students.--The term 
     `identified students' means students certified based on 
     documentation of benefit receipt or categorical eligibility 
     as described in section 245.6a(c)(2) of title 7, Code of 
     Federal Regulations (or successor regulations).
       ``(ii) Election of special assistance payments.--

       ``(I) In general.--A local educational agency may, for all 
     schools in the district or on behalf of certain schools in 
     the district, elect to receive special assistance payments 
     under this subparagraph in lieu of special assistance 
     payments otherwise made available under this paragraph based 
     on applications for free and reduced price lunches if--

       ``(aa) during a period of 4 successive school years, the 
     local educational agency elects to serve all children in the 
     applicable schools free lunches and breakfasts under the 
     school lunch program under this Act and the school breakfast 
     program established under section 4 of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1773);
       ``(bb) the local educational agency pays, from sources 
     other than Federal funds, the costs of serving the lunches or 
     breakfasts that are in excess of the value of assistance 
     received under this Act and the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.);
       ``(cc) the local educational agency is not a residential 
     child care institution (as that term is used in section 210.2 
     of title 7, Code of Federal Regulations (or successor 
     regulations)); and
       ``(dd) during the school year prior to the first year of 
     the period for which the local educational agency elects to 
     receive special assistance payments under this subparagraph, 
     the local educational agency or school had a percentage of 
     enrolled students who were identified students that meets or 
     exceeds the threshold described in clause (viii).

       ``(II) Election to stop receiving payments.--A local 
     educational agency may, for all schools in the district or on 
     behalf of certain schools in the district, elect to stop 
     receiving special assistance payments under this subparagraph 
     for the following school year by notifying the State agency 
     not later than June 30 of the current school year of the 
     intention to stop receiving special assistance payments under 
     this subparagraph.

       ``(iii) First year of option.--

       ``(I) Special assistance payment.--For each month of the 
     first school year of the 4-year period during which a school 
     or local educational agency elects to receive payments under 
     this subparagraph, special assistance payments at the rate 
     for free meals shall be made under this subparagraph for a 
     percentage of all reimbursable meals served in an amount 
     equal to the product obtained by multiplying--

       ``(aa) the multiplier described in clause (vii); by
       ``(bb) the percentage of identified students at the school 
     or local educational agency as of April 1 of the prior school 
     year, up to a maximum of 100 percent.

       ``(II) Payment for other meals.--The percentage of meals 
     served that is not described in subclause (I) shall be 
     reimbursed at the rate provided under section 4.

       ``(iv) Second, third, or fourth year of option.--

       ``(I) Special assistance payment.--For each month of the 
     second, third, or fourth school year of the 4-year period 
     during which a school or local educational agency elects to 
     receive payments under this subparagraph, special assistance 
     payments at the rate for free meals shall be made under this 
     subparagraph for a percentage of all reimbursable meals 
     served in an amount equal to the product obtained by 
     multiplying--

       ``(aa) the multiplier described in clause (vii); by
       ``(bb) the higher of the percentage of identified students 
     at the school or local educational agency as of April 1 of 
     the prior school year or the percentage of identified 
     students at the school or local educational agency as of 
     April 1 of the school year prior to the first year that the 
     school or local educational agency elected to receive special 
     assistance payments under this subparagraph, up to a maximum 
     of 100 percent.

       ``(II) Payment for other meals.--The percentage of meals 
     served that is not described in subclause (I) shall be 
     reimbursed at the rate provided under section 4.

       ``(v) Grace year.--

       ``(I) In general.--If, not later than April 1 of the fourth 
     year of a 4-year period described in clause (ii)(I), a school 
     or local educational agency has a percentage of enrolled 
     students who are identified students that meets or exceeds a 
     percentage that is 10 percentage points lower than the 
     threshold described in clause (viii), the school or local 
     educational agency may elect to receive special assistance 
     payments under subclause (II) for an additional grace year.
       ``(II) Special assistance payment.--For each month of a 
     grace year, special assistance payments at the rate for free 
     meals shall be made under this subparagraph for a percentage 
     of all reimbursable meals served in an amount equal to the 
     product obtained by multiplying--

       ``(aa) the multiplier described in clause (vii); by
       ``(bb) the percentage of identified students at the school 
     or local educational agency as of April 1 of the prior school 
     year, up to a maximum of 100 percent.

       ``(III) Payment for other meals.--The percentage of meals 
     served that is not described in subclause (II) shall be 
     reimbursed at the rate provided under section 4.

       ``(vi) Applications.--A school or local educational agency 
     that receives special assistance payments under this 
     subparagraph may not be required to collect applications for 
     free and reduced price lunches.
       ``(vii) Multiplier.--

       ``(I) Phase-in.--For each school year beginning on or 
     before July 1, 2013, the multiplier shall be 1.6.
       ``(II) Full implementation.--For each school year beginning 
     on or after July 1, 2014, the Secretary may use, as 
     determined by the Secretary--

       ``(aa) a multiplier between 1.3 and 1.6; and
       ``(bb) subject to item (aa), a different multiplier for 
     different schools or local educational agencies.
       ``(viii) Threshold.--

       ``(I) Phase-in.--For each school year beginning on or 
     before July 1, 2013, the threshold shall be 40 percent.
       ``(II) Full implementation.--For each school year beginning 
     on or after July 1, 2014, the Secretary may use a threshold 
     that is less than 40 percent.

       ``(ix) Phase-in.--

       ``(I) In general.--In selecting States for participation 
     during the phase-in period, the Secretary shall select States 
     with an adequate number and variety of schools and local 
     educational agencies that could benefit from the option under 
     this subparagraph, as determined by the Secretary.
       ``(II) Limitation.--The Secretary may not approve 
     additional schools and local educational agencies to receive 
     special assistance payments under this subparagraph after the 
     Secretary has approved schools and local educational agencies 
     in--

       ``(aa) for the school year beginning on July 1, 2011, 3 
     States; and
       ``(bb) for each of the school years beginning July 1, 2012 
     and July 1, 2013, an additional 4 States per school year.
       ``(x) Election of option.--

       ``(I) In general.--For each school year beginning on or 
     after July 1, 2014, any local educational agency eligible to 
     make the election described in clause (ii) for all schools in 
     the district or on behalf of certain schools in the district 
     may elect to receive special assistance payments under clause 
     (iii) for the next school year if, not later than June 30 of 
     the current school year, the local educational agency submits 
     to the State agency the percentage of identified students at 
     the school or local educational agency.
       ``(II) State agency notification.--Not later than May 1 of 
     each school year beginning on or after July 1, 2011, each 
     State agency with schools or local educational agencies that 
     may be eligible to elect to receive special assistance 
     payments under this subparagraph shall notify--

       ``(aa) each local educational agency that meets or exceeds 
     the threshold described in clause (viii) that the local 
     educational agency is eligible to elect to receive special 
     assistance payments under clause (iii) for the next 4 school 
     years, of the blended reimbursement rate the local 
     educational agency would receive under clause (iii), and of 
     the procedures for the local educational agency to make the 
     election;
       ``(bb) each local educational agency that receives special 
     assistance payments under clause (iii) of the blended 
     reimbursement rate the local educational agency would receive 
     under clause (iv);
       ``(cc) each local educational agency in the fourth year of 
     electing to receive special assistance payments under this 
     subparagraph that meets or exceeds a percentage that is 10 
     percentage points lower than the threshold described in 
     clause (viii) and that receives special assistance payments 
     under clause (iv), that the local educational agency may 
     continue to receive such payments for the next school year, 
     of the blended reimbursement rate the local educational 
     agency would receive under clause (v), and of the procedures 
     for the local educational agency to make the election; and
       ``(dd) each local educational agency that meets or exceeds 
     a percentage that is 10 percentage points lower than the 
     threshold described in clause (viii) that the local 
     educational agency may be eligible to elect to receive 
     special assistance payments under clause (iii) if the 
     threshold described in clause (viii) is met by April 1 of the 
     school year or if the threshold is met for a subsequent 
     school year.

       ``(III) Public notification of local educational 
     agencies.--Not later than May 1 of each school year beginning 
     on or after July 1, 2011, each State agency with 1 or more 
     schools or local educational agencies eligible to elect to 
     receive special assistance payments under clause (iii) shall 
     submit to the Secretary, and the Secretary shall publish, 
     lists of the local educational agencies receiving notices 
     under subclause (II).

[[Page 15331]]

       ``(IV) Public notification of schools.--Not later than May 
     1 of each school year beginning on or after July 1, 2011, 
     each local educational agency in a State with 1 or more 
     schools eligible to elect to receive special assistance 
     payments under clause (iii) shall submit to the State agency, 
     and the State agency shall publish--

       ``(aa) a list of the schools that meet or exceed the 
     threshold described in clause (viii);
       ``(bb) a list of the schools that meet or exceed a 
     percentage that is 10 percentage points lower than the 
     threshold described in clause (viii) and that are in the 
     fourth year of receiving special assistance payments under 
     clause (iv); and
       ``(cc) a list of the schools that meet or exceed a 
     percentage that is 10 percentage points lower than the 
     threshold described in clause (viii).
       ``(xi) Implementation.--

       ``(I) Guidance.--Not later than 90 days after the date of 
     enactment of this subparagraph, the Secretary shall issue 
     guidance to implement this subparagraph.
       ``(II) Regulations.--Not later than December 31, 2013, the 
     Secretary shall promulgate regulations that establish 
     procedures for State agencies, local educational agencies, 
     and schools to meet the requirements of this subparagraph, 
     including exercising the option described in this 
     subparagraph.
       ``(III) Publication.--If the Secretary uses the authority 
     provided in clause (vii)(II)(bb) to use a different 
     multiplier for different schools or local educational 
     agencies, for each school year beginning on or after July 1, 
     2014, not later than April 1, 2014, the Secretary shall 
     publish on the website of the Secretary a table that 
     indicates--

       ``(aa) each local educational agency that may elect to 
     receive special assistance payments under clause (ii);
       ``(bb) the blended reimbursement rate that each local 
     educational agency would receive; and
       ``(cc) an explanation of the methodology used to calculate 
     the multiplier or threshold for each school or local 
     educational agency.
       ``(xii) Report.--Not later than December 31, 2013, the 
     Secretary shall publish a report that describes--

       ``(I) an estimate of the number of schools and local 
     educational agencies eligible to elect to receive special 
     assistance payments under this subparagraph that do not elect 
     to receive the payments;
       ``(II) for schools and local educational agencies described 
     in subclause (I)--

       ``(aa) barriers to participation in the special assistance 
     option under this subparagraph, as described by the 
     nonparticipating schools and local educational agencies; and
       ``(bb) changes to the special assistance option under this 
     subparagraph that would make eligible schools and local 
     educational agencies more likely to elect to receive special 
     assistance payments;

       ``(III) for schools and local educational agencies that 
     elect to receive special assistance payments under this 
     subparagraph--

       ``(aa) the number of schools and local educational 
     agencies;
       ``(bb) an estimate of the percentage of identified students 
     and the percentage of enrolled students who were certified to 
     receive free or reduced price meals in the school year prior 
     to the election to receive special assistance payments under 
     this subparagraph, and a description of how the ratio between 
     those percentages compares to 1.6;
       ``(cc) an estimate of the number and share of schools and 
     local educational agencies in which more than 80 percent of 
     students are certified for free or reduced price meals that 
     elect to receive special assistance payments under that 
     clause; and
       ``(dd) whether any of the schools or local educational 
     agencies stopped electing to receive special assistance 
     payments under this subparagraph;

       ``(IV) the impact of electing to receive special assistance 
     payments under this subparagraph on--

       ``(aa) program integrity;
       ``(bb) whether a breakfast program is offered;
       ``(cc) the type of breakfast program offered;
       ``(dd) the nutritional quality of school meals; and
       ``(ee) program participation; and

       ``(V) the multiplier and threshold, as described in clauses 
     (vii) and (viii) respectively, that the Secretary will use 
     for each school year beginning on or after July 1, 2014 and 
     the rationale for any change in the multiplier or threshold.

       ``(xiii) Funding.--

       ``(I) In general.--On October 1, 2010, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out clause 
     (xii) $5,000,000, to remain available until September 30, 
     2014.
       ``(II) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     clause (xii) the funds transferred under subclause (I), 
     without further appropriation.''.

       (2) Conforming amendments.--Section 11(a)(1)(B) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1759a(a)(1)(B)) is amended by striking ``or (E)'' and 
     inserting ``(E), or (F)''.
       (b) Universal Meal Service Through Census Data.--Section 11 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1759a) is amended by adding at the end the following:
       ``(g) Universal Meal Service Through Census Data.--
       ``(1) In general.--To the maximum extent practicable, the 
     Secretary shall identify alternatives to--
       ``(A) the daily counting by category of meals provided by 
     school lunch programs under this Act and the school breakfast 
     program established by section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773); and
       ``(B) the use of annual applications as the basis for 
     eligibility to receive free meals or reduced price meals 
     under this Act.
       ``(2) Recommendations.--
       ``(A) Considerations.--
       ``(i) In general.--In identifying alternatives under 
     paragraph (1), the Secretary shall consider the 
     recommendations of the Committee on National Statistics of 
     the National Academy of Sciences relating to use of the 
     American Community Survey of the Bureau of the Census and 
     other data sources.
       ``(ii) Socioeconomic survey.--The Secretary shall consider 
     use of a periodic socioeconomic survey of households of 
     children attending school in the school food authority in not 
     more than 3 school food authorities participating in the 
     school lunch program under this Act.
       ``(iii) Survey parameters.--The Secretary shall establish 
     requirements for the use of a socioeconomic survey under 
     clause (ii), which shall--

       ``(I) include criteria for survey design, sample frame 
     validity, minimum level of statistical precision, minimum 
     survey response rates, frequency of data collection, and 
     other criteria as determined by the Secretary;
       ``(II) be consistent with the Standards and Guidelines for 
     Statistical Surveys, as published by the Office of Management 
     and Budget;
       ``(III) be consistent with standards and requirements that 
     ensure proper use of Federal funds; and
       ``(IV) specify that the socioeconomic survey be conducted 
     at least once every 4 years.

       ``(B) Use of alternatives.--Alternatives described in 
     subparagraph (A) that provide accurate and effective means of 
     providing meal reimbursement consistent with the eligibility 
     status of students may be--
       ``(i) implemented for use in schools or by school food 
     authorities that agree--

       ``(I) to serve all breakfasts and lunches to students at no 
     cost in accordance with regulations issued by the Secretary; 
     and
       ``(II) to pay, from sources other than Federal funds, the 
     costs of serving any lunches and breakfasts that are in 
     excess of the value of assistance received under this Act or 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) with 
     respect to the number of lunches and breakfasts served during 
     the applicable period; or

       ``(ii) further tested through demonstration projects 
     carried out by the Secretary in accordance with subparagraph 
     (C).
       ``(C) Demonstration projects.--
       ``(i) In general.--For the purpose of carrying out 
     demonstration projects described in subparagraph (B), the 
     Secretary may waive any requirement of this Act relating to--

       ``(I) counting of meals provided by school lunch or 
     breakfast programs;
       ``(II) applications for eligibility for free or reduced 
     priced meals; or
       ``(III) required direct certification under section 
     9(b)(4).

       ``(ii) Number of projects.--The Secretary shall carry out 
     demonstration projects under this paragraph in not more than 
     5 local educational agencies for each alternative model that 
     is being tested.
       ``(iii) Limitation.--A demonstration project carried out 
     under this paragraph shall have a duration of not more than 3 
     years.
       ``(iv) Evaluation.--The Secretary shall evaluate each 
     demonstration project carried out under this paragraph in 
     accordance with procedures established by the Secretary.
       ``(v) Requirement.--In carrying out evaluations under 
     clause (iv), the Secretary shall evaluate, using comparisons 
     with local educational agencies with similar demographic 
     characteristics--

       ``(I) the accuracy of the 1 or more methodologies adopted 
     as compared to the daily counting by category of meals 
     provided by school meal programs under this Act or the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) and the use of 
     annual applications as the basis for eligibility to receive 
     free or reduced price meals under those Acts;
       ``(II) the effect of the 1 or more methodologies adopted on 
     participation in programs under those Acts;
       ``(III) the effect of the 1 or more methodologies adopted 
     on administration of programs under those Acts; and
       ``(IV) such other matters as the Secretary determines to be 
     appropriate.''.

     SEC. 105. GRANTS FOR EXPANSION OF SCHOOL BREAKFAST PROGRAMS.

       The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 23. GRANTS FOR EXPANSION OF SCHOOL BREAKFAST PROGRAMS.

       ``(a) Definition of Qualifying School.--In this section, 
     the term `qualifying school'

[[Page 15332]]

     means a school in severe need, as described in section 
     4(d)(1).
       ``(b) Establishment.--Subject to the availability of 
     appropriations provided in advance in an appropriations Act 
     specifically for the purpose of carrying out this section, 
     the Secretary shall establish a program under which the 
     Secretary shall provide grants, on a competitive basis, to 
     State educational agencies for the purpose of providing 
     subgrants to local educational agencies for qualifying 
     schools to establish, maintain, or expand the school 
     breakfast program in accordance with this section.
       ``(c) Grants to State Educational Agencies.--
       ``(1) Application.--To be eligible to receive a grant under 
     this section, a State educational agency shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       ``(2) Administration.--In carrying out this section, the 
     Secretary shall--
       ``(A) develop an appropriate competitive application 
     process; and
       ``(B) make information available to State educational 
     agencies concerning the availability of funds under this 
     section.
       ``(3) Allocation.--The amount of grants provided by the 
     Secretary to State educational agencies for a fiscal year 
     under this section shall not exceed the lesser of--
       ``(A) the product obtained by multiplying--
       ``(i) the number of qualifying schools receiving subgrants 
     or other benefits under subsection (d) for the fiscal year; 
     and
       ``(ii) the maximum amount of a subgrant provided to a 
     qualifying school under subsection (d)(4)(B); or
       ``(B) $2,000,000.
       ``(d) Subgrants to Qualifying Schools.--
       ``(1) In general.--A State educational agency receiving a 
     grant under this section shall use funds made available under 
     the grant to award subgrants to local educational agencies 
     for a qualifying school or groups of qualifying schools to 
     carry out activities in accordance with this section.
       ``(2) Priority.--In awarding subgrants under this 
     subsection, a State educational agency shall give priority to 
     local educational agencies with qualifying schools in which 
     at least 75 percent of the students are eligible for free or 
     reduced price school lunches under the school lunch program 
     established under the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1751 et seq.).
       ``(3) State and district training and technical support.--A 
     local educational agency or State educational agency may 
     allocate a portion of each subgrant to provide training and 
     technical assistance to the staff of qualifying schools to 
     carry out the purposes of this section.
       ``(4) Amount; term.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, a subgrant provided by a State educational agency 
     to a local educational agency or qualifying school under this 
     section shall be in such amount, and shall be provided for 
     such term, as the State educational agency determines 
     appropriate.
       ``(B) Maximum amount.--The amount of a subgrant provided by 
     a State educational agency to a local educational agency for 
     a qualifying school or a group of qualifying schools under 
     this subsection shall not exceed $10,000 for each school 
     year.
       ``(C) Maximum grant term.--A local educational agency or 
     State educational agency shall not provide subgrants to a 
     qualifying school under this subsection for more than 2 
     fiscal years.
       ``(e) Best Practices.--
       ``(1) In general.--Prior to awarding grants under this 
     section, the Secretary shall make available to State 
     educational agencies information regarding the most effective 
     mechanisms by which to increase school breakfast 
     participation among eligible children at qualifying schools.
       ``(2) Preference.--In awarding subgrants under this 
     section, a State educational agency shall give preference to 
     local educational agencies for qualifying schools or groups 
     of qualifying schools that have adopted, or provide 
     assurances that the subgrant funds will be used to adopt, the 
     most effective mechanisms identified by the Secretary under 
     paragraph (1).
       ``(f) Use of Funds.--
       ``(1) In general.--A qualifying school may use a grant 
     provided under this section--
       ``(A) to establish, promote, or expand a school breakfast 
     program of the qualifying school under this section, which 
     shall include a nutritional education component;
       ``(B) to extend the period during which school breakfast is 
     available at the qualifying school;
       ``(C) to provide school breakfast to students of the 
     qualifying school during the school day; or
       ``(D) for other appropriate purposes, as determined by the 
     Secretary.
       ``(2) Requirement.--Each activity of a qualifying school 
     under this subsection shall be carried out in accordance with 
     applicable nutritional guidelines and regulations issued by 
     the Secretary.
       ``(g) Maintenance of Effort.--Grants made available under 
     this section shall not diminish or otherwise affect the 
     expenditure of funds from State and local sources for the 
     maintenance of the school breakfast program.
       ``(h) Reports.--Not later than 18 months following the end 
     of a school year during which subgrants are awarded under 
     this section, the Secretary shall submit to Congress a report 
     describing the activities of the qualifying schools awarded 
     subgrants.
       ``(i) Evaluation.--Not later than 180 days before the end 
     of a grant term under this section, a local educational 
     agency that receives a subgrant under this section shall--
       ``(1) evaluate whether electing to provide universal free 
     breakfasts under the school breakfast program in accordance 
     with Provision 2 as established under subsections (b) through 
     (k) of section 245.9 of title 7, Code of Federal Regulations 
     (or successor regulations), would be cost-effective for the 
     qualified schools based on estimated administrative savings 
     and economies of scale; and
       ``(2) submit the results of the evaluation to the State 
     educational agency.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2010 through 
     2015.''.

                Subtitle B--Summer Food Service Program

     SEC. 111. ALIGNMENT OF ELIGIBILITY RULES FOR PUBLIC AND 
                   PRIVATE SPONSORS.

       Section 13(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1761(a)) is amended by striking 
     paragraph (7) and inserting the following:
       ``(7) Private nonprofit organizations.--
       ``(A) Definition of private nonprofit organization.--In 
     this paragraph, the term `private nonprofit organization' 
     means an organization that--
       ``(i) exercises full control and authority over the 
     operation of the program at all sites under the sponsorship 
     of the organization;
       ``(ii) provides ongoing year-round activities for children 
     or families;
       ``(iii) demonstrates that the organization has adequate 
     management and the fiscal capacity to operate a program under 
     this section;
       ``(iv) is an organization described in section 501(c) of 
     the Internal Revenue Code of 1986 and exempt from taxation 
     under 501(a) of that Code; and
       ``(v) meets applicable State and local health, safety, and 
     sanitation standards.
       ``(B) Eligibility.--Private nonprofit organizations (other 
     than organizations eligible under paragraph (1)) shall be 
     eligible for the program under the same terms and conditions 
     as other service institutions.''.

     SEC. 112. OUTREACH TO ELIGIBLE FAMILIES.

       Section 13(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1761(a)) is amended by adding at the end 
     the following:
       ``(11) Outreach to eligible families.--
       ``(A) In general.--The Secretary shall require each State 
     agency that administers the national school lunch program 
     under this Act to ensure that, to the maximum extent 
     practicable, school food authorities participating in the 
     school lunch program under this Act cooperate with 
     participating service institutions to distribute materials to 
     inform families of--
       ``(i) the availability and location of summer food service 
     program meals; and
       ``(ii) the availability of reimbursable breakfasts served 
     under the school breakfast program established by section 4 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
       ``(B) Inclusions.--Informational activities carried out 
     under subparagraph (A) may include--
       ``(i) the development or dissemination of printed 
     materials, to be distributed to all school children or the 
     families of school children prior to the end of the school 
     year, that inform families of the availability and location 
     of summer food service program meals;
       ``(ii) the development or dissemination of materials, to be 
     distributed using electronic means to all school children or 
     the families of school children prior to the end of the 
     school year, that inform families of the availability and 
     location of summer food service program meals; and
       ``(iii) such other activities as are approved by the 
     applicable State agency to promote the availability and 
     location of summer food service program meals to school 
     children and the families of school children.
       ``(C) Multiple state agencies.--If the State agency 
     administering the program under this section is not the same 
     State agency that administers the school lunch program under 
     this Act, the 2 State agencies shall work cooperatively to 
     implement this paragraph.''.

     SEC. 113. SUMMER FOOD SERVICE SUPPORT GRANTS.

       Section 13(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1761(a)) (as amended by section 112) is 
     amended by adding at the end the following:
       ``(12) Summer food service support grants.--
       ``(A) In general.--The Secretary shall use funds made 
     available to carry out this paragraph to award grants on a 
     competitive basis to State agencies to provide to eligible 
     service institutions--
       ``(i) technical assistance;
       ``(ii) assistance with site improvement costs; or
       ``(iii) other innovative activities that improve and 
     encourage sponsor retention.
       ``(B) Eligibility.--To be eligible to receive a grant under 
     this paragraph, a State agency

[[Page 15333]]

     shall submit an application to the Secretary in such manner, 
     at such time, and containing such information as the 
     Secretary may require.
       ``(C) Priority.--In making grants under this paragraph, the 
     Secretary shall give priority to--
       ``(i) applications from States with significant low-income 
     child populations; and
       ``(ii) State plans that demonstrate innovative approaches 
     to retain and support summer food service programs after the 
     expiration of the start-up funding grants.
       ``(D) Use of funds.--A State and eligible service 
     institution may use funds made available under this paragraph 
     to pay for such costs as the Secretary determines are 
     necessary to establish and maintain summer food service 
     programs.
       ``(E) Reallocation.--The Secretary may reallocate any 
     amounts made available to carry out this paragraph that are 
     not obligated or expended, as determined by the Secretary.
       ``(F) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $20,000,000 
     for fiscal years 2011 through 2015.''.

             Subtitle C--Child and Adult Care Food Program

     SEC. 121. SIMPLIFYING AREA ELIGIBILITY DETERMINATIONS IN THE 
                   CHILD AND ADULT CARE FOOD PROGRAM.

       Section 17(f)(3)(A)(ii)(I)(bb) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 
     1766(f)(3)(A)(ii)(I)(bb)) is amended by striking 
     ``elementary''.

     SEC. 122. EXPANSION OF AFTERSCHOOL MEALS FOR AT-RISK 
                   CHILDREN.

       Section 17(r) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766(r)) is amended by striking 
     paragraph (5) and inserting the following:
       ``(5) Limitation.--An institution participating in the 
     program under this subsection may not claim reimbursement for 
     meals and snacks that are served under section 18(h) on the 
     same day.
       ``(6) Handbook.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of the Healthy, Hunger-Free Kids Act of 2010, 
     the Secretary shall--
       ``(i) issue guidelines for afterschool meals for at-risk 
     school children; and
       ``(ii) publish a handbook reflecting those guidelines.
       ``(B) Review.--Each year after the issuance of guidelines 
     under subparagraph (A), the Secretary shall--
       ``(i) review the guidelines; and
       ``(ii) issue a revised handbook reflecting changes made to 
     the guidelines.''.

Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

     SEC. 131. CERTIFICATION PERIODS.

       Section 17(d)(3)(A) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(d)(3)(A)) is amended by adding at the end the 
     following:
       ``(iii) Children.--A State may elect to certify participant 
     children for a period of up to 1 year, if the State electing 
     the option provided under this clause ensures that 
     participant children receive required health and nutrition 
     assessments.''.

                       Subtitle E--Miscellaneous

     SEC. 141. CHILDHOOD HUNGER RESEARCH.

       The Richard B. Russell National School Lunch Act is amended 
     by inserting after section 22 (42 U.S.C. 1769c) the 
     following:

     ``SEC. 23. CHILDHOOD HUNGER RESEARCH.

       ``(a) Research on Causes and Consequences of Childhood 
     Hunger.--
       ``(1) In general.--The Secretary shall conduct research 
     on--
       ``(A) the causes of childhood hunger and food insecurity;
       ``(B) the characteristics of households with childhood 
     hunger and food insecurity; and
       ``(C) the consequences of childhood hunger and food 
     insecurity.
       ``(2) Authority.--In carrying out research under paragraph 
     (1), the Secretary may--
       ``(A) enter into competitively awarded contracts or 
     cooperative agreements; or
       ``(B) provide grants to States or public or private 
     agencies or organizations, as determined by the Secretary.
       ``(3) Application.--To be eligible to enter into a contract 
     or cooperative agreement or receive a grant under this 
     subsection, a State or public or private agency or 
     organization shall submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary shall require.
       ``(4) Areas of inquiry.--The Secretary shall design the 
     research program to advance knowledge and understanding of 
     information on the issues described in paragraph (1), such 
     as--
       ``(A) economic, health, social, cultural, demographic, and 
     other factors that contribute to childhood hunger or food 
     insecurity;
       ``(B) the geographic distribution of childhood hunger and 
     food insecurity;
       ``(C) the extent to which--
       ``(i) existing Federal assistance programs, including the 
     Internal Revenue Code of 1986, reduce childhood hunger and 
     food insecurity; and
       ``(ii) childhood hunger and food insecurity persist due 
     to--

       ``(I) gaps in program coverage;
       ``(II) the inability of potential participants to access 
     programs; or
       ``(III) the insufficiency of program benefits or services;

       ``(D) the public health and medical costs of childhood 
     hunger and food insecurity;
       ``(E) an estimate of the degree to which the Census Bureau 
     measure of food insecurity underestimates childhood hunger 
     and food insecurity because the Census Bureau excludes 
     certain households, such as homeless, or other factors;
       ``(F) the effects of childhood hunger on child development, 
     well-being, and educational attainment; and
       ``(G) such other critical outcomes as are determined by the 
     Secretary.
       ``(5) Funding.--
       ``(A) In general.--On October 1, 2012, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     subsection $10,000,000, to remain available until expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(b) Demonstration Projects to End Childhood Hunger.--
       ``(1) Definitions.--In this subsection:
       ``(A) Child.--The term `child' means a person under the age 
     of 18.
       ``(B) Supplemental nutrition assistance program.--The term 
     `supplemental nutrition assistance program' means the 
     supplemental nutrition assistance program established under 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
       ``(2) Purpose.--Under such terms and conditions as are 
     established by the Secretary, the Secretary shall carry out 
     demonstration projects that test innovative strategies to end 
     childhood hunger, including alternative models for service 
     delivery and benefit levels that promote the reduction or 
     elimination of childhood hunger and food insecurity.
       ``(3) Projects.--Demonstration projects carried out under 
     this subsection may include projects that--
       ``(A) enhance benefits provided under the supplemental 
     nutrition assistance program for eligible households with 
     children;
       ``(B) enhance benefits or provide for innovative program 
     delivery models in the school meals, afterschool snack, and 
     child and adult care food programs under this Act and the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
       ``(C) target Federal, State, or local assistance, including 
     emergency housing or family preservation services, at 
     households with children who are experiencing hunger or food 
     insecurity, to the extent permitted by the legal authority 
     establishing those assistance programs and services.
       ``(4) Grants.--
       ``(A) Demonstration projects.--
       ``(i) In general.--In carrying out this subsection, the 
     Secretary may enter into competitively awarded contracts or 
     cooperative agreements with, or provide grants to, public or 
     private organizations or agencies (as determined by the 
     Secretary), for use in accordance with demonstration projects 
     that meet the purposes of this subsection.
       ``(ii) Requirement.--At least 1 demonstration project 
     funded under this subsection shall be carried out on an 
     Indian reservation in a rural area with a service population 
     with a prevalence of diabetes that exceeds 15 percent, as 
     determined by the Director of the Indian Health Service.
       ``(B) Application.--To be eligible to receive a contract, 
     cooperative agreement, or grant under this subsection, an 
     organization or agency shall submit to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(C) Selection criteria.--Demonstration projects shall be 
     selected based on publicly disseminated criteria that may 
     include--
       ``(i) an identification of a low-income target group that 
     reflects individuals experiencing hunger or food insecurity;
       ``(ii) a commitment to a demonstration project that allows 
     for a rigorous outcome evaluation as described in paragraph 
     (6);
       ``(iii) a focus on innovative strategies to reduce the risk 
     of childhood hunger or provide a significant improvement to 
     the food security status of households with children; and
       ``(iv) such other criteria as are determined by the 
     Secretary.
       ``(5) Consultation.--In determining the range of projects 
     and defining selection criteria under this subsection, the 
     Secretary shall consult with--
       ``(A) the Secretary of Health and Human Services;
       ``(B) the Secretary of Labor; and
       ``(C) the Secretary of Housing and Urban Development.
       ``(6) Evaluation and reporting.--
       ``(A) Independent evaluation.--The Secretary shall provide 
     for an independent evaluation of each demonstration project 
     carried out under this subsection that--
       ``(i) measures the impact of each demonstration project on 
     appropriate participation, food security, nutrition, and 
     associated behavioral outcomes among participating 
     households; and

[[Page 15334]]

       ``(ii) uses rigorous experimental designs and 
     methodologies, particularly random assignment or other 
     methods that are capable of producing scientifically valid 
     information regarding which activities are effective in 
     reducing the prevalence or preventing the incidence of food 
     insecurity and hunger in the community, especially among 
     children.
       ``(B) Reporting.--Not later than December 31, 2013 and each 
     December 31 thereafter until the date on which the last 
     evaluation under subparagraph (A) is completed, the Secretary 
     shall--
       ``(i) submit to the Committee on Agriculture and the 
     Committee on Education and Labor of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that includes a 
     description of--

       ``(I) the status of each demonstration project; and
       ``(II) the results of any evaluations of the demonstration 
     projects completed during the previous fiscal year; and

       ``(ii) ensure that the evaluation results are shared 
     broadly to inform policy makers, service providers, other 
     partners, and the public in order to promote the wide use of 
     successful strategies.
       ``(7) Funding.--
       ``(A) In general.--On October 1, 2012, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     subsection $40,000,000, to remain available until September 
     30, 2017.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(C) Use of funds.--
       ``(i) In general.--Funds made available under subparagraph 
     (A) may be used to carry out this subsection, including to 
     pay Federal costs associated with developing, soliciting, 
     awarding, monitoring, evaluating, and disseminating the 
     results of each demonstration project under this subsection.
       ``(ii) Indian reservations.--Of amounts made available 
     under subparagraph (A), the Secretary shall use a portion of 
     the amounts to carry out research relating to hunger, obesity 
     and type 2 diabetes on Indian reservations, including 
     research to determine the manner in which Federal nutrition 
     programs can help to overcome those problems.
       ``(iii) Report.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that--

       ``(I) describes the manner in which Federal nutrition 
     programs can help to overcome child hunger nutrition problems 
     on Indian reservations; and
       ``(II) contains proposed administrative and legislative 
     recommendations to strengthen and streamline all relevant 
     Department of Agriculture nutrition programs to reduce 
     childhood hunger, obesity, and type 2 diabetes on Indian 
     reservations.

       ``(D) Limitations.--
       ``(i) Duration.--No project may be funded under this 
     subsection for more than 5 years.
       ``(ii) Project requirements.--No project that makes use of, 
     alters, or coordinates with the supplemental nutrition 
     assistance program may be funded under this subsection unless 
     the project is fully consistent with the project requirements 
     described in section 17(b)(1)(B) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2026(b)(1)(B)).
       ``(iii) Hunger-free communities.--No project may be funded 
     under this subsection that receives funding under section 
     4405 of the Food, Conservation, and Energy Act of 2008 (7 
     U.S.C. 7517).
       ``(iv) Other benefits.--Funds made available under this 
     subsection may not be used for any project in a manner that 
     is inconsistent with--

       ``(I) this Act;
       ``(II) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.);
       ``(III) the Food and Nutrition Act of 2008 (7 U.S.C. 2011 
     et seq.); or
       ``(IV) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.).''.

     SEC. 142. STATE CHILDHOOD HUNGER CHALLENGE GRANTS.

       The Richard B. Russell National School Lunch Act (42 U.S.C. 
     1751 et seq.) is amended by inserting after section 23 (as 
     added by section 141) the following:

     ``SEC. 24. STATE CHILDHOOD HUNGER CHALLENGE GRANTS.

       ``(a) Definitions.--In this section:
       ``(1) Child.--The term `child' means a person under the age 
     of 18.
       ``(2) Supplemental nutrition assistance program.--The term 
     `supplemental nutrition assistance program' means the 
     supplemental nutrition assistance program established under 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
       ``(b) Purpose.--Under such terms and conditions as are 
     established by the Secretary, funds made available under this 
     section may be used to competitively award grants to or enter 
     into cooperative agreements with Governors to carry out 
     comprehensive and innovative strategies to end childhood 
     hunger, including alternative models for service delivery and 
     benefit levels that promote the reduction or elimination of 
     childhood hunger by 2015.
       ``(c) Projects.--State demonstration projects carried out 
     under this section may include projects that--
       ``(1) enhance benefits provided under the supplemental 
     nutrition assistance program for eligible households with 
     children;
       ``(2) enhance benefits or provide for innovative program 
     delivery models in the school meals, afterschool snack, and 
     child and adult care food programs under this Act and the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
       ``(3) target Federal, State, or local assistance, including 
     emergency housing, family preservation services, child care, 
     or temporary assistance at households with children who are 
     experiencing hunger or food insecurity, to the extent 
     permitted by the legal authority establishing those 
     assistance programs and services;
       ``(4) enhance outreach to increase access and participation 
     in Federal nutrition assistance programs; and
       ``(5) improve the coordination of Federal, State, and 
     community resources and services aimed at preventing food 
     insecurity and hunger, including through the establishment 
     and expansion of State food policy councils.
       ``(d) Grants.--
       ``(1) In general.--In carrying out this section, the 
     Secretary may competitively award grants or enter into 
     competitively awarded cooperative agreements with Governors 
     for use in accordance with demonstration projects that meet 
     the purposes of this section.
       ``(2) Application.--To be eligible to receive a grant or 
     cooperative agreement under this section, a Governor shall 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       ``(3) Selection criteria.--The Secretary shall evaluate 
     proposals based on publicly disseminated criteria that may 
     include--
       ``(A) an identification of a low-income target group that 
     reflects individuals experiencing hunger or food insecurity;
       ``(B) a commitment to approaches that allow for a rigorous 
     outcome evaluation as described in subsection (f);
       ``(C) a comprehensive and innovative strategy to reduce the 
     risk of childhood hunger or provide a significant improvement 
     to the food security status of households with children; and
       ``(D) such other criteria as are determined by the 
     Secretary.
       ``(4) Requirements.--Any project funded under this section 
     shall provide for--
       ``(A) a baseline assessment, and subsequent annual 
     assessments, of the prevalence and severity of very low food 
     security among children in the State, based on a methodology 
     prescribed by the Secretary;
       ``(B) a collaborative planning process including key 
     stakeholders in the State that results in a comprehensive 
     agenda to eliminate childhood hunger that is--
       ``(i) described in a detailed project plan; and
       ``(ii) provided to the Secretary for approval;
       ``(C) an annual budget;
       ``(D) specific performance goals, including the goal to 
     sharply reduce or eliminate food insecurity among children in 
     the State by 2015, as determined through a methodology 
     prescribed by the Secretary and carried out by the Governor; 
     and
       ``(E) an independent outcome evaluation of not less than 1 
     major strategy of the project that measures--
       ``(i) the specific impact of the strategy on food 
     insecurity among children in the State; and
       ``(ii) if applicable, the nutrition assistance 
     participation rate among children in the State.
       ``(e) Consultation.--In determining the range of projects 
     and defining selection criteria under this section, the 
     Secretary shall consult with--
       ``(1) the Secretary of Health and Human Services;
       ``(2) the Secretary of Labor;
       ``(3) the Secretary of Education; and
       ``(4) the Secretary of Housing and Urban Development.
       ``(f) Evaluation and Reporting.--
       ``(1) General performance assessment.--Each project 
     authorized under this section shall require an independent 
     assessment that--
       ``(A) measures the impact of any activities carried out 
     under the project on the level of food insecurity in the 
     State that--
       ``(i) focuses particularly on the level of food insecurity 
     among children in the State; and
       ``(ii) includes a preimplementation baseline and annual 
     measurements taken during the project of the level of food 
     insecurity in the State; and
       ``(B) is carried out using a methodology prescribed by the 
     Secretary.
       ``(2) Independent evaluation.--Each project authorized 
     under this section shall provide for an independent 
     evaluation of not less than 1 major strategy that--
       ``(A) measures the impact of the strategy on appropriate 
     participation, food security, nutrition, and associated 
     behavioral outcomes among participating households; and

[[Page 15335]]

       ``(B) uses rigorous experimental designs and methodologies, 
     particularly random assignment or other methods that are 
     capable of producing scientifically valid information 
     regarding which activities are effective in reducing the 
     prevalence or preventing the incidence of food insecurity and 
     hunger in the community, especially among children.
       ``(3) Reporting.--Not later than December 31, 2011 and each 
     December 31 thereafter until the date on which the last 
     evaluation under paragraph (1) is completed, the Secretary 
     shall--
       ``(A) submit to the Committee on Agriculture and the 
     Committee on Education and Labor of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that includes a 
     description of--
       ``(i) the status of each State demonstration project; and
       ``(ii) the results of any evaluations of the demonstration 
     projects completed during the previous fiscal year; and
       ``(B) ensure that the evaluation results are shared broadly 
     to inform policy makers, service providers, other partners, 
     and the public in order to promote the wide use of successful 
     strategies.
       ``(g) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as are necessary for each 
     of fiscal years 2011 through 2014, to remain available until 
     expended.
       ``(2) Use of funds.--Funds made available under paragraph 
     (1) may be used to carry out this section, including to pay 
     Federal costs associated with developing, soliciting, 
     awarding, monitoring, evaluating, and disseminating the 
     results of each demonstration project under this section.
       ``(3) Limitations.--
       ``(A) Duration.--No project may be funded under this 
     section for more than 5 years.
       ``(B) Performance basis.--Funds provided under this section 
     shall be made available to each Governor on an annual basis, 
     with the amount of funds provided for each year contingent on 
     the satisfactory implementation of the project plan and 
     progress towards the performance goals defined in the project 
     year plan.
       ``(C) Altering nutrition assistance program requirements.--
     No project that makes use of, alters, or coordinates with the 
     supplemental nutrition assistance program may be funded under 
     this section unless the project is fully consistent with the 
     project requirements described in section 17(b)(1)(B) of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)).
       ``(D) Other benefits.--Funds made available under this 
     section may not be used for any project in a manner that is 
     inconsistent with--
       ``(i) this Act;
       ``(ii) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.);
       ``(iii) the Food and Nutrition Act of 2008 (7 U.S.C. 2011 
     et seq.); or
       ``(iv) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.).''.

     SEC. 143. REVIEW OF LOCAL POLICIES ON MEAL CHARGES AND 
                   PROVISION OF ALTERNATE MEALS.

       (a) In General.--
       (1) Review.--The Secretary, in conjunction with States and 
     participating local educational agencies, shall examine the 
     current policies and practices of States and local 
     educational agencies regarding extending credit to children 
     to pay the cost to the children of reimbursable school 
     lunches and breakfasts.
       (2) Scope.--The examination under paragraph (1) shall 
     include the policies and practices in effect as of the date 
     of enactment of this Act relating to providing to children 
     who are without funds a meal other than the reimbursable 
     meals.
       (3) Feasibility.--In carrying out the examination under 
     paragraph (1), the Secretary shall--
       (A) prepare a report on the feasibility of establishing 
     national standards for meal charges and the provision of 
     alternate meals; and
       (B) provide recommendations for implementing those 
     standards.
       (b) Followup Actions.--
       (1) In general.--Based on the findings and recommendations 
     under subsection (a), the Secretary may--
       (A) implement standards described in paragraph (3) of that 
     subsection through regulation;
       (B) test recommendations through demonstration projects; or
       (C) study further the feasibility of recommendations.
       (2) Factors for consideration.--In determining how best to 
     implement recommendations described in subsection (a)(3), the 
     Secretary shall consider such factors as--
       (A) the impact of overt identification on children;
       (B) the manner in which the affected households will be 
     provided with assistance in establishing eligibility for free 
     or reduced price school meals; and
       (C) the potential financial impact on local educational 
     agencies.

    TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF 
                                CHILDREN

               Subtitle A--National School Lunch Program

     SEC. 201. PERFORMANCE-BASED REIMBURSEMENT RATE INCREASES FOR 
                   NEW MEAL PATTERNS.

       Section 4(b) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1753(b)) is amended by adding at the end 
     the following:
       ``(3) Additional reimbursement.--
       ``(A) Regulations.--
       ``(i) Proposed regulations.--Notwithstanding section 9(f), 
     not later than 18 months after the date of enactment of this 
     paragraph, the Secretary shall promulgate proposed 
     regulations to update the meal patterns and nutrition 
     standards for the school lunch program authorized under this 
     Act and the school breakfast program established by section 4 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1773) based on 
     recommendations made by the Food and Nutrition Board of the 
     National Research Council of the National Academy of 
     Sciences.
       ``(ii) Interim or final regulations.--

       ``(I) In general.--Not later than 18 months after 
     promulgation of the proposed regulations under clause (i), 
     the Secretary shall promulgate interim or final regulations.
       ``(II) Date of required compliance.--The Secretary shall 
     establish in the interim or final regulations a date by which 
     all school food authorities participating in the school lunch 
     program authorized under this Act and the school breakfast 
     program established by section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773) are required to comply with the meal 
     pattern and nutrition standards established in the interim or 
     final regulations.

       ``(iii) Report to congress.--Not later than 90 days after 
     the date of enactment of this paragraph, and each 90 days 
     thereafter until the Secretary has promulgated interim or 
     final regulations under clause (ii), the Secretary shall 
     submit to the Committee on Education and Labor of the House 
     of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a quarterly report on 
     progress made toward promulgation of the regulations 
     described in this subparagraph.
       ``(B) Performance-based reimbursement rate increase.--
     Beginning on the later of the date of promulgation of the 
     implementing regulations described in subparagraph (A)(ii), 
     the date of enactment of this paragraph, or October 1, 2012, 
     the Secretary shall provide additional reimbursement for each 
     lunch served in school food authorities determined to be 
     eligible under subparagraph (D).
       ``(C) Additional reimbursement.--
       ``(i) In general.--Each lunch served in school food 
     authorities determined to be eligible under subparagraph (D) 
     shall receive an additional 6 cents, adjusted in accordance 
     with section 11(a)(3), to the national lunch average payment 
     for each lunch served.
       ``(ii) Disbursement.--The State agency shall disburse funds 
     made available under this paragraph to school food 
     authorities eligible to receive additional reimbursement.
       ``(D) Eligible school food authority.--To be eligible to 
     receive an additional reimbursement described in this 
     paragraph, a school food authority shall be certified by the 
     State to be in compliance with the interim or final 
     regulations described in subparagraph (A)(ii).
       ``(E) Failure to comply.--Beginning on the later of the 
     date described in subparagraph (A)(ii)(II), the date of 
     enactment of this paragraph, or October 1, 2012, school food 
     authorities found to be out of compliance with the meal 
     patterns or nutrition standards established by the 
     implementing regulations shall not receive the additional 
     reimbursement for each lunch served described in this 
     paragraph.
       ``(F) Administrative costs.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     Secretary shall make funds available to States for State 
     activities related to training, technical assistance, 
     certification, and oversight activities of this paragraph.
       ``(ii) Provision of funds.--The Secretary shall provide 
     funds described in clause (i) to States administering a 
     school lunch program in a manner proportional to the 
     administrative expense allocation of each State during the 
     preceding fiscal year.
       ``(iii) Funding.--

       ``(I) In general.--In the later of the fiscal year in which 
     the implementing regulations described in subparagraph 
     (A)(ii) are promulgated or the fiscal year in which this 
     paragraph is enacted, and in the subsequent fiscal year, the 
     Secretary shall use not more than $50,000,000 of funds made 
     available under section 3 to make payments to States 
     described in clause (i).
       ``(II) Reservation.--In providing funds to States under 
     clause (i), the Secretary may reserve not more than 
     $3,000,000 per fiscal year to support Federal administrative 
     activities to carry out this paragraph.''.

     SEC. 202. NUTRITION REQUIREMENTS FOR FLUID MILK.

       Section 9(a)(2)(A) of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1758(a)(2)(A)) is amended by 
     striking clause (i) and inserting the following:
       ``(i) shall offer students a variety of fluid milk. Such 
     milk shall be consistent with the most recent Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341);''.

[[Page 15336]]



     SEC. 203. WATER.

       Section 9(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(a)) is amended by adding at the end 
     the following:
       ``(5) Water.--Schools participating in the school lunch 
     program under this Act shall make available to children free 
     of charge, as nutritionally appropriate, potable water for 
     consumption in the place where meals are served during meal 
     service.''.

     SEC. 204. LOCAL SCHOOL WELLNESS POLICY IMPLEMENTATION.

       (a) In General.--The Richard B. Russell National School 
     Lunch Act is amended by inserting after section 9 (42 U.S.C. 
     1758) the following:

     ``SEC. 9A. LOCAL SCHOOL WELLNESS POLICY.

       ``(a) In General.--Each local educational agency 
     participating in a program authorized by this Act or the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall 
     establish a local school wellness policy for all schools 
     under the jurisdiction of the local educational agency.
       ``(b) Guidelines.--The Secretary shall promulgate 
     regulations that provide the framework and guidelines for 
     local educational agencies to establish local school wellness 
     policies, including, at a minimum,--
       ``(1) goals for nutrition promotion and education, physical 
     activity, and other school-based activities that promote 
     student wellness;
       ``(2) for all foods available on each school campus under 
     the jurisdiction of the local educational agency during the 
     school day, nutrition guidelines that--
       ``(A) are consistent with sections 9 and 17 of this Act, 
     and sections 4 and 10 of the Child Nutrition Act of 1966 (42 
     U.S.C. 1773, 1779); and
       ``(B) promote student health and reduce childhood obesity;
       ``(3) a requirement that the local educational agency 
     permit parents, students, representatives of the school food 
     authority, teachers of physical education, school health 
     professionals, the school board, school administrators, and 
     the general public to participate in the development, 
     implementation, and periodic review and update of the local 
     school wellness policy;
       ``(4) a requirement that the local educational agency 
     inform and update the public (including parents, students, 
     and others in the community) about the content and 
     implementation of the local school wellness policy; and
       ``(5) a requirement that the local educational agency--
       ``(A) periodically measure and make available to the public 
     an assessment on the implementation of the local school 
     wellness policy, including--
       ``(i) the extent to which schools under the jurisdiction of 
     the local educational agency are in compliance with the local 
     school wellness policy;
       ``(ii) the extent to which the local school wellness policy 
     of the local educational agency compares to model local 
     school wellness policies; and
       ``(iii) a description of the progress made in attaining the 
     goals of the local school wellness policy; and
       ``(B) designate 1 or more local educational agency 
     officials or school officials, as appropriate, to ensure that 
     each school complies with the local school wellness policy.
       ``(c) Local Discretion.--The local educational agency shall 
     use the guidelines promulgated by the Secretary under 
     subsection (b) to determine specific policies appropriate for 
     the schools under the jurisdiction of the local educational 
     agency.
       ``(d) Technical Assistance and Best Practices.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of Education and the Secretary of Health and Human 
     Services, acting through the Centers for Disease Control and 
     Prevention, shall provide information and technical 
     assistance to local educational agencies, school food 
     authorities, and State educational agencies for use in 
     establishing healthy school environments that are intended to 
     promote student health and wellness.
       ``(2) Content.--The Secretary shall provide technical 
     assistance that--
       ``(A) includes resources and training on designing, 
     implementing, promoting, disseminating, and evaluating local 
     school wellness policies and overcoming barriers to the 
     adoption of local school wellness policies;
       ``(B) includes model local school wellness policies and 
     best practices recommended by Federal agencies, State 
     agencies, and nongovernmental organizations;
       ``(C) includes such other technical assistance as is 
     required to promote sound nutrition and establish healthy 
     school nutrition environments; and
       ``(D) is consistent with the specific needs and 
     requirements of local educational agencies.
       ``(3) Study and report.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Secretary, in conjunction with the 
     Director of the Centers for Disease Control and Prevention, 
     shall prepare a report on the implementation, strength, and 
     effectiveness of the local school wellness policies carried 
     out in accordance with this section.
       ``(B) Study of local school wellness policies.--The study 
     described in subparagraph (A) shall include--
       ``(i) an analysis of the strength and weaknesses of local 
     school wellness policies and how the policies compare with 
     model local wellness policies recommended under paragraph 
     (2)(B); and
       ``(ii) an assessment of the impact of the local school 
     wellness policies in addressing the requirements of 
     subsection (b).
       ``(C) Report.--Not later than January 1, 2014, the 
     Secretary shall submit to the Committee on Education and 
     Labor of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that describes the findings of the study.
       ``(D) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph 
     $3,000,000 for fiscal year 2011, to remain available until 
     expended.''.
       (b) Repeal.--Section 204 of the Child Nutrition and WIC 
     Reauthorization Act of 2004 (42 U.S.C. 1751 note; Public Law 
     108-265) is repealed.

     SEC. 205. EQUITY IN SCHOOL LUNCH PRICING.

       Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) is amended by adding at the end the 
     following:
       ``(p) Price for a Paid Lunch.--
       ``(1) Definition of paid lunch.--In this subsection, the 
     term `paid lunch' means a reimbursable lunch served to 
     students who are not certified to receive free or reduced 
     price meals.
       ``(2) Requirement.--
       ``(A) In general.--For each school year beginning July 1, 
     2011, each school food authority shall establish a price for 
     paid lunches in accordance with this subsection.
       ``(B) Lower price.--
       ``(i) In general.--In the case of a school food authority 
     that established a price for a paid lunch in the previous 
     school year that was less than the difference between the 
     total Federal reimbursement for a free lunch and the total 
     Federal reimbursement for a paid lunch, the school food 
     authority shall establish an average price for a paid lunch 
     that is not less than the price charged in the previous 
     school year, as adjusted by a percentage equal to the sum 
     obtained by adding--

       ``(I) 2 percent; and
       ``(II) the percentage change in the Consumer Price Index 
     for All Urban Consumers (food away from home index) used to 
     increase the Federal reimbursement rate under section 11 for 
     the most recent school year for which data are available, as 
     published in the Federal Register.

       ``(ii) Rounding.--A school food authority may round the 
     adjusted price for a paid lunch under clause (i) down to the 
     nearest 5 cents.
       ``(iii) Maximum required price increase.--

       ``(I) In general.--The maximum annual average price 
     increase required to meet the requirements of this 
     subparagraph shall not exceed 10 cents for any school food 
     authority.
       ``(II) Discretionary increase.--A school food authority may 
     increase the average price for a paid lunch for a school year 
     by more than 10 cents.

       ``(C) Equal or greater price.--
       ``(i) In general.--In the case of a school food authority 
     that established an average price for a paid lunch in the 
     previous school year that was equal to or greater than the 
     difference between the total Federal reimbursement for a free 
     lunch and the total Federal reimbursement for a paid lunch, 
     the school food authority shall establish an average price 
     for a paid lunch that is not less than the difference between 
     the total Federal reimbursement for a free lunch and the 
     total Federal reimbursement for a paid lunch.
       ``(ii) Rounding.--A school food authority may round the 
     adjusted price for a paid lunch under clause (i) down to the 
     nearest 5 cents.
       ``(3) Exceptions.--
       ``(A) Reduction in price.--A school food authority may 
     reduce the average price of a paid lunch established under 
     this subsection if the State agency ensures that funding from 
     non-Federal sources (other than in-kind contributions) is 
     added to the nonprofit school food service account of the 
     school food authority in an amount estimated to be equal to 
     at least the difference between--
       ``(i) the average price required of the school food 
     authority for the paid lunches under paragraph (2); and
       ``(ii) the average price charged by the school food 
     authority for the paid lunches.
       ``(B) Non-federal sources.--For the purposes of 
     subparagraph (A), non-Federal sources does not include 
     revenue from the sale of foods sold in competition with meals 
     served under the school lunch program authorized under this 
     Act or the school breakfast program established by section 4 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
       ``(C) Other programs.--This subsection shall not apply to 
     lunches provided under section 17 of this Act.
       ``(4) Regulations.--The Secretary shall establish 
     procedures to carry out this subsection, including collecting 
     and publishing the prices that school food authorities charge 
     for paid meals on an annual basis and procedures that allow 
     school food authorities to average the pricing of paid 
     lunches at schools throughout the jurisdiction of the school 
     food authority.''.

[[Page 15337]]



     SEC. 206. REVENUE FROM NONPROGRAM FOODS SOLD IN SCHOOLS.

       Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) (as amended by section 205) is amended 
     by adding at the end the following:
       ``(q) Nonprogram Food Sales.--
       ``(1) Definition of nonprogram food.--In this subsection:
       ``(A) In general.--The term `nonprogram food' means food 
     that is--
       ``(i) sold in a participating school other than a 
     reimbursable meal provided under this Act or the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
       ``(ii) purchased using funds from the nonprofit school food 
     service account of the school food authority of the school.
       ``(B) Inclusion.--The term `nonprogram food' includes food 
     that is sold in competition with a program established under 
     this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 
     et seq.).
       ``(2) Revenues.--
       ``(A) In general.--The proportion of total school food 
     service revenue provided by the sale of nonprogram foods to 
     the total revenue of the school food service account shall be 
     equal to or greater than the proportion of total food costs 
     associated with obtaining nonprogram foods to the total costs 
     associated with obtaining program and nonprogram foods from 
     the account.
       ``(B) Accrual.--All revenue from the sale of nonprogram 
     foods shall accrue to the nonprofit school food service 
     account of a participating school food authority.
       ``(C) Effective date.--This subsection shall be effective 
     beginning on July 1, 2011.''.

     SEC. 207. REPORTING AND NOTIFICATION OF SCHOOL PERFORMANCE.

       Section 22 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769c) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Unified Accountability System.--
       ``(1) In general.--There shall be a unified system 
     prescribed and administered by the Secretary to ensure that 
     local food service authorities participating in the school 
     lunch program established under this Act and the school 
     breakfast program established by section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773) comply with those 
     Acts, including compliance with--
       ``(A) the nutritional requirements of section 9(f) of this 
     Act for school lunches; and
       ``(B) as applicable, the nutritional requirements for 
     school breakfasts under section 4(e)(1) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)).''; and
       (2) in subsection (b)(1), by striking subparagraphs (A) and 
     (B) and inserting the following:
       ``(A) require that local food service authorities comply 
     with the nutritional requirements described in subparagraphs 
     (A) and (B) of paragraph (1);
       ``(B) to the maximum extent practicable, ensure compliance 
     through reasonable audits and supervisory assistance reviews;
       ``(C) in conducting audits and reviews for the purpose of 
     determining compliance with this Act, including the 
     nutritional requirements of section 9(f)--
       ``(i) conduct audits and reviews during a 3-year cycle or 
     other period prescribed by the Secretary;
       ``(ii) select schools for review in each local educational 
     agency using criteria established by the Secretary;
       ``(iii) report the final results of the reviews to the 
     public in the State in an accessible, easily understood 
     manner in accordance with guidelines promulgated by the 
     Secretary; and
       ``(iv) submit to the Secretary each year a report 
     containing the results of the reviews in accordance with 
     procedures developed by the Secretary; and
       ``(D) when any local food service authority is reviewed 
     under this section, ensure that the final results of the 
     review by the State educational agency are posted and 
     otherwise made available to the public on request in an 
     accessible, easily understood manner in accordance with 
     guidelines promulgated by the Secretary.''.

     SEC. 208. NUTRITION STANDARDS FOR ALL FOODS SOLD IN SCHOOL.

       Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1779) is amended--
       (1) by striking the section heading and all that follows 
     through ``(a) The Secretary'' and inserting the following:

     ``SEC. 10. REGULATIONS.

       ``(a) In General.--The Secretary''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) National School Nutrition Standards.--
       ``(1) Proposed regulations.--
       ``(A) In general.--The Secretary shall--
       ``(i) establish science-based nutrition standards for foods 
     sold in schools other than foods provided under this Act and 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1751 et seq.); and
       ``(ii) not later than 1 year after the date of enactment of 
     this paragraph, promulgate proposed regulations to carry out 
     clause (i).
       ``(B) Application.--The nutrition standards shall apply to 
     all foods sold--
       ``(i) outside the school meal programs;
       ``(ii) on the school campus; and
       ``(iii) at any time during the school day.
       ``(C) Requirements.--In establishing nutrition standards 
     under this paragraph, the Secretary shall--
       ``(i) establish standards that are consistent with the most 
     recent Dietary Guidelines for Americans published under 
     section 301 of the National Nutrition Monitoring and Related 
     Research Act of 1990 (7 U.S.C. 5341), including the food 
     groups to encourage and nutrients of concern identified in 
     the Dietary Guidelines; and
       ``(ii) consider --

       ``(I) authoritative scientific recommendations for 
     nutrition standards;
       ``(II) existing school nutrition standards, including 
     voluntary standards for beverages and snack foods and State 
     and local standards;
       ``(III) the practical application of the nutrition 
     standards; and
       ``(IV) special exemptions for school-sponsored fundraisers 
     (other than fundraising through vending machines, school 
     stores, snack bars, a la carte sales, and any other 
     exclusions determined by the Secretary), if the fundraisers 
     are approved by the school and are infrequent within the 
     school.

       ``(D) Updating standards.--As soon as practicable after the 
     date of publication by the Department of Agriculture and the 
     Department of Health and Human Services of a new edition of 
     the Dietary Guidelines for Americans under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341), the Secretary shall review and update 
     as necessary the school nutrition standards and requirements 
     established under this subsection.
       ``(2) Implementation.--
       ``(A) Effective date.--The interim or final regulations 
     under this subsection shall take effect at the beginning of 
     the school year that is not earlier than 1 year and not later 
     than 2 years following the date on which the regulations are 
     finalized.
       ``(B) Reporting.--The Secretary shall submit to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Education and Labor of the House 
     of Representatives a quarterly report that describes progress 
     made toward promulgating final regulations under this 
     subsection.''.

     SEC. 209. INFORMATION FOR THE PUBLIC ON THE SCHOOL NUTRITION 
                   ENVIRONMENT.

       Section 9 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1758) is amended by adding at the end the 
     following:
       ``(k) Information on the School Nutrition Environment.--
       ``(1) In general.--The Secretary shall--
       ``(A) establish requirements for local educational agencies 
     participating in the school lunch program under this Act and 
     the school breakfast program established by section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773) to report 
     information about the school nutrition environment, for all 
     schools under the jurisdiction of the local educational 
     agencies, to the Secretary and to the public in the State on 
     a periodic basis; and
       ``(B) provide training and technical assistance to States 
     and local educational agencies on the assessment and 
     reporting of the school nutrition environment, including the 
     use of any assessment materials developed by the Secretary.
       ``(2) Requirements.--In establishing the requirements for 
     reporting on the school nutrition environment under paragraph 
     (1), the Secretary shall--
       ``(A) include information pertaining to food safety 
     inspections, local wellness policies, meal program 
     participation, the nutritional quality of program meals, and 
     other information as determined by the Secretary; and
       ``(B) ensure that information is made available to the 
     public by local educational agencies in an accessible, easily 
     understood manner in accordance with guidelines established 
     by the Secretary.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2011 
     through 2015.''.

     SEC. 210. ORGANIC FOOD PILOT PROGRAM.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended by adding at the end the 
     following:
       ``(j) Organic Food Pilot Program.--
       ``(1) Establishment.--The Secretary shall establish an 
     organic food pilot program (referred to in this subsection as 
     the `pilot program') under which the Secretary shall provide 
     grants on a competitive basis to school food authorities 
     selected under paragraph (3).
       ``(2) Use of funds.--
       ``(A) In general.--The Secretary shall use funds provided 
     under this section--
       ``(i) to enter into competitively awarded contracts or 
     cooperative agreements with school food authorities selected 
     under paragraph (3); or
       ``(ii) to make grants to school food authority applicants 
     selected under paragraph (3).
       ``(B) School food authority uses of funds.--A school food 
     authority that receives a grant under this section shall use 
     the grant funds to establish a pilot program that increases 
     the quantity of organic foods provided to schoolchildren 
     under the school lunch program established under this Act.

[[Page 15338]]

       ``(3) Application.--
       ``(A) In general.--A school food authority seeking a 
     contract, grant, or cooperative agreement under this 
     subsection shall submit to the Secretary an application in 
     such form, containing such information, and at such time as 
     the Secretary shall prescribe.
       ``(B) Criteria.--In selecting contract, grant, or 
     cooperative agreement recipients, the Secretary shall 
     consider--
       ``(i) the poverty line (as defined in section 673(2) of the 
     Community Services Block Grant Act (42 U.S.C. 9902(2), 
     including any revision required by that section)) applicable 
     to a family of the size involved of the households in the 
     district served by the school food authority, giving 
     preference to school food authority applicants in which not 
     less than 50 percent of the households in the district are at 
     or below the Federal poverty line;
       ``(ii) the commitment of each school food authority 
     applicant--

       ``(I) to improve the nutritional value of school meals;
       ``(II) to carry out innovative programs that improve the 
     health and wellness of schoolchildren; and
       ``(III) to evaluate the outcome of the pilot program; and

       ``(iii) any other criteria the Secretary determines to be 
     appropriate.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     $10,000,000 for fiscal years 2011 through 2015.''.

             Subtitle B--Child and Adult Care Food Program

     SEC. 221. NUTRITION AND WELLNESS GOALS FOR MEALS SERVED 
                   THROUGH THE CHILD AND ADULT CARE FOOD PROGRAM.

       Section 17 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1766) is amended--
       (1) in subsection (a), by striking ``(a) Grant Authority'' 
     and all that follows through the end of paragraph (1) and 
     inserting the following:
       ``(a) Program Purpose, Grant Authority and Institution 
     Eligibility.--
       ``(1) In general.--
       ``(A) Program purpose.--
       ``(i) Findings.--Congress finds that--

       ``(I) eating habits and other wellness-related behavior 
     habits are established early in life; and
       ``(II) good nutrition and wellness are important 
     contributors to the overall health of young children and 
     essential to cognitive development.

       ``(ii) Purpose.--The purpose of the program authorized by 
     this section is to provide aid to child and adult care 
     institutions and family or group day care homes for the 
     provision of nutritious foods that contribute to the 
     wellness, healthy growth, and development of young children, 
     and the health and wellness of older adults and chronically 
     impaired disabled persons.
       ``(B) Grant authority.--The Secretary may carry out a 
     program to assist States through grants-in-aid and other 
     means to initiate and maintain nonprofit food service 
     programs for children in institutions providing child 
     care.'';
       (2) by striking subsection (g) and inserting the following:
       ``(g) Nutritional Requirements for Meals and Snacks Served 
     in Institutions and Family or Group Day Care Homes.--
       ``(1) Definition of dietary guidelines.--In this 
     subsection, the term `Dietary Guidelines' means the Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341).
       ``(2) Nutritional requirements.--
       ``(A) In general.--Except as provided in subparagraph (C), 
     reimbursable meals and snacks served by institutions, family 
     or group day care homes, and sponsored centers participating 
     in the program under this section shall consist of a 
     combination of foods that meet minimum nutritional 
     requirements prescribed by the Secretary on the basis of 
     tested nutritional research.
       ``(B) Conformity with the dietary guidelines and 
     authoritative science.--
       ``(i) In general.--Not less frequently than once every 10 
     years, the Secretary shall review and, as appropriate, update 
     requirements for meals served under the program under this 
     section to ensure that the meals--

       ``(I) are consistent with the goals of the most recent 
     Dietary Guidelines; and
       ``(II) promote the health of the population served by the 
     program authorized under this section, as indicated by the 
     most recent relevant nutrition science and appropriate 
     authoritative scientific agency and organization 
     recommendations.

       ``(ii) Cost review.--The review required under clause (i) 
     shall include a review of the cost to child care centers and 
     group or family day care homes resulting from updated 
     requirements for meals and snacks served under the program 
     under this section.
       ``(iii) Regulations.--Not later than 18 months after the 
     completion of the review of the meal pattern under clause 
     (i), the Secretary shall promulgate proposed regulations to 
     update the meal patterns for meals and snacks served under 
     the program under this section.
       ``(C) Exceptions.--
       ``(i) Special dietary needs.--The minimum nutritional 
     requirements prescribed under subparagraph (A) shall not 
     prohibit institutions, family or group day care homes, and 
     sponsored centers from substituting foods to accommodate the 
     medical or other special dietary needs of individual 
     participants.
       ``(ii) Exempt institutions.--The Secretary may elect to 
     waive all or part of the requirements of this subsection for 
     emergency shelters participating in the program under this 
     section.
       ``(3) Meal service.--Institutions, family or group day care 
     homes, and sponsored centers shall ensure that reimbursable 
     meal service contributes to the development and socialization 
     of enrolled children by providing that food is not used as a 
     punishment or reward.
       ``(4) Fluid milk.--
       ``(A) In general.--If an institution, family or group day 
     care home, or sponsored center provides fluid milk as part of 
     a reimbursable meal or supplement, the institution, family or 
     group day care home, or sponsored center shall provide the 
     milk in accordance with the most recent version of the 
     Dietary Guidelines.
       ``(B) Milk substitutes.--In the case of children who cannot 
     consume fluid milk due to medical or other special dietary 
     needs other than a disability, an institution, family or 
     group day care home, or sponsored center may substitute for 
     the fluid milk required in meals served, a nondairy beverage 
     that--
       ``(i) is nutritionally equivalent to fluid milk; and
       ``(ii) meets nutritional standards established by the 
     Secretary, including, among other requirements established by 
     the Secretary, fortification of calcium, protein, vitamin A, 
     and vitamin D to levels found in cow's milk.
       ``(C) Approval.--
       ``(i) In general.--A substitution authorized under 
     subparagraph (B) may be made--

       ``(I) at the discretion of and on approval by the 
     participating day care institution; and
       ``(II) if the substitution is requested by written 
     statement of a medical authority, or by the parent or legal 
     guardian of the child, that identifies the medical or other 
     special dietary need that restricts the diet of the child.

       ``(ii) Exception.--An institution, family or group day care 
     home, or sponsored center that elects to make a substitution 
     authorized under this paragraph shall not be required to 
     provide beverages other than beverages the State has 
     identified as acceptable substitutes.
       ``(D) Excess expenses borne by institution.--A 
     participating institution, family or group day care home, or 
     sponsored center shall be responsible for any expenses that--
       ``(i) are incurred by the institution, family or group day 
     care home, or sponsored center to provide substitutions under 
     this paragraph; and
       ``(ii) are in excess of expenses covered under 
     reimbursements under this Act.
       ``(5) Nondiscrimination policy.--No physical segregation or 
     other discrimination against any person shall be made because 
     of the inability of the person to pay, nor shall there be any 
     overt identification of any such person by special tokens or 
     tickets, different meals or meal service, announced or 
     published lists of names, or other means.
       ``(6) Use of abundant and donated foods.--To the maximum 
     extent practicable, each institution shall use in its food 
     service foods that are--
       ``(A) designated from time to time by the Secretary as 
     being in abundance, either nationally or in the food service 
     area; or
       ``(B) donated by the Secretary.'';
       (3) by adding at the end the following:
       ``(u) Promoting Health and Wellness in Child Care.--
       ``(1) Physical activity and electronic media use.--The 
     Secretary shall encourage participating child care centers 
     and family or group day care homes--
       ``(A) to provide to all children under the supervision of 
     the participating child care centers and family or group day 
     care homes daily opportunities for structured and 
     unstructured age-appropriate physical activity; and
       ``(B) to limit among children under the supervision of the 
     participating child care centers and family or group day care 
     homes the use of electronic media to an appropriate level.
       ``(2) Water consumption.--Participating child care centers 
     and family or group day care homes shall make available to 
     children, as nutritionally appropriate, potable water as an 
     acceptable fluid for consumption throughout the day, 
     including at meal times.
       ``(3) Technical assistance and guidance.--
       ``(A) In general.--The Secretary shall provide technical 
     assistance to institutions participating in the program under 
     this section to assist participating child care centers and 
     family or group day care homes in complying with the 
     nutritional requirements and wellness recommendations 
     prescribed by the Secretary in accordance with this 
     subsection and subsection (g).
       ``(B) Guidance.--Not later than January 1, 2012, the 
     Secretary shall issue guidance to States and institutions to 
     encourage participating child care centers and family or 
     group

[[Page 15339]]

     day care homes serving meals and snacks under this section 
     to--
       ``(i) include foods that are recommended for increased 
     serving consumption in amounts recommended by the most recent 
     Dietary Guidelines for Americans published under section 301 
     of the National Nutrition Monitoring and Related Research Act 
     of 1990 (7 U.S.C. 5341), including fresh, canned, dried, or 
     frozen fruits and vegetables, whole grain products, lean meat 
     products, and low-fat and non-fat dairy products; and
       ``(ii) reduce sedentary activities and provide 
     opportunities for regular physical activity in quantities 
     recommended by the most recent Dietary Guidelines for 
     Americans described in clause (i).
       ``(C) Nutrition.--Technical assistance relating to the 
     nutritional requirements of this subsection and subsection 
     (g) shall include--
       ``(i) nutrition education, including education that 
     emphasizes the relationship between nutrition, physical 
     activity, and health;
       ``(ii) menu planning;
       ``(iii) interpretation of nutrition labels; and
       ``(iv) food preparation and purchasing guidance to produce 
     meals and snacks that are--

       ``(I) consistent with the goals of the most recent Dietary 
     Guidelines; and
       ``(II) promote the health of the population served by the 
     program under this section, as recommended by authoritative 
     scientific organizations.

       ``(D) Physical activity.--Technical assistance relating to 
     the physical activity requirements of this subsection shall 
     include--
       ``(i) education on the importance of regular physical 
     activity to overall health and well being; and
       ``(ii) sharing of best practices for physical activity 
     plans in child care centers and homes as recommended by 
     authoritative scientific organizations.
       ``(E) Electronic media use.--Technical assistance relating 
     to the electronic media use requirements of this subsection 
     shall include--
       ``(i) education on the benefits of limiting exposure to 
     electronic media by children; and
       ``(ii) sharing of best practices for the development of 
     daily activity plans that limit use of electronic media.
       ``(F) Minimum assistance.--At a minimum, the technical 
     assistance required under this paragraph shall include a 
     handbook, developed by the Secretary in coordination with the 
     Secretary for Health and Human Services, that includes 
     recommendations, guidelines, and best practices for 
     participating institutions and family or group day care homes 
     that are consistent with the nutrition, physical activity, 
     and wellness requirements and recommendations of this 
     subsection.
       ``(G) Additional assistance.--In addition to the 
     requirements of this paragraph, the Secretary shall develop 
     and provide such appropriate training and education 
     materials, guidance, and technical assistance as the 
     Secretary considers to be necessary to comply with the 
     nutritional and wellness requirements of this subsection and 
     subsection (g).
       ``(H) Funding.--
       ``(i) In general.--On October 1, 2010, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to provide technical 
     assistance under this subsection $10,000,000, to remain 
     available until expended.
       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under clause (i), 
     without further appropriation.''.

     SEC. 222. INTERAGENCY COORDINATION TO PROMOTE HEALTH AND 
                   WELLNESS IN CHILD CARE LICENSING.

       The Secretary shall coordinate with the Secretary of Health 
     and Human Services to encourage State licensing agencies to 
     include nutrition and wellness standards within State 
     licensing standards that ensure, to the maximum extent 
     practicable, that licensed child care centers and family or 
     group day care homes--
       (1) provide to all children under the supervision of the 
     child care centers and family or group day care homes daily 
     opportunities for age-appropriate physical activity;
       (2) limit among children under the supervision of the child 
     care centers and family or group day care homes the use of 
     electronic media and the quantity of time spent in sedentary 
     activity to an appropriate level;
       (3) serve meals and snacks that are consistent with the 
     requirements of the child and adult care food program 
     established under section 17 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766); and
       (4) promote such other nutrition and wellness goals as the 
     Secretaries determine to be necessary.

     SEC. 223. STUDY ON NUTRITION AND WELLNESS QUALITY OF CHILD 
                   CARE SETTINGS.

       (a) In General.--Not less than 3 years after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Secretary of Health and Human Services, shall enter into 
     a contract for the conduct of a nationally representative 
     study of child care centers and family or group day care 
     homes that includes an assessment of--
       (1) the nutritional quality of all foods provided to 
     children in child care settings as compared to the 
     recommendations in most recent Dietary Guidelines for 
     Americans published under section 301 of the National 
     Nutrition Monitoring and Related Research Act of 1990 (7 
     U.S.C. 5341);
       (2) the quantity and type of opportunities for physical 
     activity provided to children in child care settings;
       (3) the quantity of time spent by children in child care 
     settings in sedentary activities;
       (4) an assessment of barriers and facilitators to--
       (A) providing foods to children in child care settings that 
     meet the recommendations of the most recent Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341);
       (B) providing the appropriate quantity and type of 
     opportunities of physical activity for children in child care 
     settings; and
       (C) participation by child care centers and family or group 
     day care homes in the child and adult care food program 
     established under section 17 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766); and
       (5) such other assessment measures as the Secretary may 
     determine to be necessary.
       (b) Report to Congress.--The Secretary shall submit to 
     Congress a report that includes a detailed description of the 
     results of the study conducted under subsection (a).
       (c) Funding.--
       (1) In general.--On October 1, 2010, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     section $5,000,000, to remain available until expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

Subtitle C--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

     SEC. 231. SUPPORT FOR BREASTFEEDING IN THE WIC PROGRAM.

       Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786) is amended--
       (1) in subsection (a), in the second sentence, by striking 
     ``supplemental foods and nutrition education through any 
     eligible local agency'' and inserting ``supplemental foods 
     and nutrition education, including breastfeeding promotion 
     and support, through any eligible local agency'';
       (2) in subsection (b)(4), by inserting ``breastfeeding 
     support and promotion,'' after ``nutrition education,'';
       (3) in subsection (c)(1), in the first sentence, by 
     striking ``supplemental foods and nutrition education to'' 
     and inserting ``supplemental foods, nutrition education, and 
     breastfeeding support and promotion to'';
       (4) in subsection (e)(2), in the second sentence, by 
     inserting ``, including breastfeeding support and 
     education,'' after ``nutrition education'';
       (5) in subsection (f)(6)(B), in the first sentence, by 
     inserting ``and breastfeeding'' after ``nutrition 
     education'';
       (6) in subsection (h)--
       (A) in paragraph (4)--
       (i) by striking ``(4) The Secretary'' and all that follows 
     through ``(A) in consultation'' and inserting the following:
       ``(4) Requirements.--
       ``(A) In general.--The Secretary shall--
       ``(i) in consultation'';
       (ii) by redesignating subparagraphs (B) through (F) as 
     clauses (ii) through (vi), respectively, and indenting 
     appropriately;
       (iii) in clause (v) (as so redesignated), by striking 
     ``and'' at the end;
       (iv) in clause (vi) (as so redesignated), by striking 
     ``2010 initiative.'' and inserting ``initiative; and''; and
       (v) by adding at the end the following:
       ``(vii) annually compile and publish breastfeeding 
     performance measurements based on program participant data on 
     the number of partially and fully breast-fed infants, 
     including breastfeeding performance measurements for--

       ``(I) each State agency; and
       ``(II) each local agency;

       ``(viii) in accordance with subparagraph (B), implement a 
     program to recognize exemplary breastfeeding support 
     practices at local agencies or clinics participating in the 
     special supplemental nutrition program established under this 
     section; and
       ``(ix) in accordance with subparagraph (C), implement a 
     program to provide performance bonuses to State agencies.
       ``(B) Exemplary breastfeeding support practices.--
       ``(i) In general.--In evaluating exemplary practices under 
     subparagraph (A)(viii), the Secretary shall consider--

       ``(I) performance measurements of breastfeeding;
       ``(II) the effectiveness of a peer counselor program;
       ``(III) the extent to which the agency or clinic has 
     partnered with other entities to build a supportive 
     breastfeeding environment for women participating in the 
     program; and

[[Page 15340]]

       ``(IV) such other criteria as the Secretary considers 
     appropriate after consultation with State and local program 
     agencies.

       ``(ii) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out the activities 
     described in clause (viii) of subparagraph (A) such sums as 
     are necessary.
       ``(C) Performance bonuses.--
       ``(i) In general.--Following the publication of 
     breastfeeding performance measurements under subparagraph 
     (A)(vii), the Secretary shall provide performance bonus 
     payments to not more than 15 State agencies that demonstrate, 
     as compared to other State agencies participating in the 
     program--

       ``(I) the highest proportion of breast-fed infants; or
       ``(II) the greatest improvement in proportion of breast-fed 
     infants.

       ``(ii) Consideration.--In providing performance bonus 
     payments to State agencies under this subparagraph, the 
     Secretary shall consider the proportion of fully breast-fed 
     infants in the States.
       ``(iii) Use of funds.--A State agency that receives a 
     performance bonus under clause (i)--

       ``(I) shall treat the funds as program income; and
       ``(II) may transfer the funds to local agencies for use in 
     carrying out the program.

       ``(iv) Implementation.--The Secretary shall provide the 
     first performance bonuses not later than 1 year after the 
     date of enactment of this clause and may subsequently revise 
     the criteria for awarding performance bonuses; and''; and
       (B) by striking paragraph (10) and inserting the following:
       ``(10) Funds for infrastructure, management information 
     systems, and special nutrition education.--
       ``(A) In general.--For each of fiscal years 2010 through 
     2015, the Secretary shall use for the purposes specified in 
     subparagraph (B) $139,000,000 (as adjusted annually for 
     inflation by the same factor used to determine the national 
     average per participant grant for nutrition services and 
     administration for the fiscal year under paragraph (1)(B)).
       ``(B) Purposes.--Subject to subparagraph (C), of the amount 
     made available under subparagraph (A) for a fiscal year--
       ``(i) $14,000,000 shall be used for--

       ``(I) infrastructure for the program under this section;
       ``(II) special projects to promote breastfeeding, including 
     projects to assess the effectiveness of particular 
     breastfeeding promotion strategies; and
       ``(III) special State projects of regional or national 
     significance to improve the services of the program;

       ``(ii) $35,000,000 shall be used to establish, improve, or 
     administer management information systems for the program, 
     including changes necessary to meet new legislative or 
     regulatory requirements of the program, of which up to 
     $5,000,000 may be used for Federal administrative costs; and
       ``(iii) $90,000,000 shall be used for special nutrition 
     education (such as breastfeeding peer counselors and other 
     related activities), of which not more than $10,000,000 of 
     any funding provided in excess of $50,000,000 shall be used 
     to make performance bonus payments under paragraph (4)(C).
       ``(C) Adjustment.--Each of the amounts referred to in 
     clauses (i), (ii), and (iii) of subparagraph (B) shall be 
     adjusted annually for inflation by the same factor used to 
     determine the national average per participant grant for 
     nutrition services and administration for the fiscal year 
     under paragraph (1)(B).
       ``(D) Proportional distribution.--The Secretary shall 
     distribute funds made available under subparagraph (A) in 
     accordance with the proportional distribution described in 
     subparagraphs (B) and (C).''; and
       (7) in subsection (j), by striking ``supplemental foods and 
     nutrition education'' each place it appears in paragraphs (1) 
     and (2) and inserting ``supplemental foods, nutrition 
     education, and breastfeeding support and promotion''.

     SEC. 232. REVIEW OF AVAILABLE SUPPLEMENTAL FOODS.

       Section 17(f)(11)(D) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(f)(11)(D)) is amended in the matter preceding 
     clause (i) by inserting ``but not less than every 10 years,'' 
     after ``scientific knowledge,''.

                       Subtitle D--Miscellaneous

     SEC. 241. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT 
                   PROGRAM.

       (a) In General.--The Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 28. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT 
                   PROGRAM.

       ``(a) Definition of Eligible Individual.--In this section, 
     the term `eligible individual' means an individual who is 
     eligible to receive benefits under a nutrition education and 
     obesity prevention program under this section as a result of 
     being--
       ``(1) an individual eligible for benefits under--
       ``(A) this Act;
       ``(B) sections 9(b)(1)(A) and 17(c)(4) of the Richard B 
     Russell National School Lunch Act (42 U.S.C. 1758(b)(1)(A), 
     1766(c)(4)); or
       ``(C) section 4(e)(1)(A) of the Child Nutrition Act of 1966 
     (42 U.S.C. 1773(e)(1)(A));
       ``(2) an individual who resides in a community with a 
     significant low-income population, as determined by the 
     Secretary; or
       ``(3) such other low-income individual as is determined to 
     be eligible by the Secretary.
       ``(b) Programs.--Consistent with the terms and conditions 
     of grants awarded under this section, State agencies may 
     implement a nutrition education and obesity prevention 
     program for eligible individuals that promotes healthy food 
     choices consistent with the most recent Dietary Guidelines 
     for Americans published under section 301 of the National 
     Nutrition Monitoring and Related Research Act of 1990 (7 
     U.S.C. 5341).
       ``(c) Delivery of Nutrition Education and Obesity 
     Prevention Services.--
       ``(1) In general.--State agencies may deliver nutrition 
     education and obesity prevention services under a program 
     described in subsection (b)--
       ``(A) directly to eligible individuals; or
       ``(B) through agreements with other State or local agencies 
     or community organizations.
       ``(2) Nutrition education state plans.--
       ``(A) In general.--A State agency that elects to provide 
     nutrition education and obesity prevention services under 
     this subsection shall submit to the Secretary for approval a 
     nutrition education State plan.
       ``(B) Requirements.--Except as provided in subparagraph 
     (C), a nutrition education State plan shall--
       ``(i) identify the uses of the funding for local projects;
       ``(ii) ensure that the interventions are appropriate for 
     eligible individuals who are members of low-income 
     populations by recognizing the constrained resources, and the 
     potential eligibility for Federal food assistance programs, 
     of members of those populations; and
       ``(iii) conform to standards established by the Secretary 
     through regulations, guidance, or grant award documents.
       ``(C) Transition period.--During each of fiscal years 2011 
     and 2012, a nutrition education State plan under this section 
     shall be consistent with the requirements of section 11(f) 
     (as that section, other than paragraph (3)(C), existed on the 
     day before the date of enactment of this section).
       ``(3) Use of funds.--
       ``(A) In general.--A State agency may use funds provided 
     under this section for any evidence-based allowable use of 
     funds identified by the Administrator of the Food and 
     Nutrition Service of the Department of Agriculture in 
     consultation with the Director of the Centers for Disease 
     Control and Prevention of the Department of Health and Human 
     Services, including--
       ``(i) individual and group-based nutrition education, 
     health promotion, and intervention strategies;
       ``(ii) comprehensive, multilevel interventions at multiple 
     complementary organizational and institutional levels; and
       ``(iii) community and public health approaches to improve 
     nutrition.
       ``(B) Consultation.--In identifying allowable uses of funds 
     under subparagraph (A) and in seeking to strengthen delivery, 
     oversight, and evaluation of nutrition education, the 
     Administrator of the Food and Nutrition Service shall consult 
     with the Director of the Centers for Disease Control and 
     Prevention and outside stakeholders and experts, including--
       ``(i) representatives of the academic and research 
     communities;
       ``(ii) nutrition education practitioners;
       ``(iii) representatives of State and local governments; and
       ``(iv) community organizations that serve low-income 
     populations.
       ``(4) Notification.--To the maximum extent practicable, 
     State agencies shall notify applicants, participants, and 
     eligible individuals under this Act of the availability of 
     nutrition education and obesity prevention services under 
     this section in local communities.
       ``(5) Coordination.--Subject to the approval of the 
     Secretary, projects carried out with funds received under 
     this section may be coordinated with other health promotion 
     or nutrition improvement strategies, whether public or 
     privately funded, if the projects carried out with funds 
     received under this section remain under the administrative 
     control of the State agency.
       ``(d) Funding.--
       ``(1) In general.--Of funds made available each fiscal year 
     under section 18(a)(1), the Secretary shall reserve for 
     allocation to State agencies to carry out the nutrition 
     education and obesity prevention grant program under this 
     section, to remain available for obligation for a period of 2 
     fiscal years--
       ``(A) for fiscal year 2011, $375,000,000; and
       ``(B) for fiscal year 2012 and each subsequent fiscal year, 
     the applicable amount during the preceding fiscal year, as 
     adjusted to reflect any increases for the 12-month period 
     ending the preceding June 30 in the Consumer Price Index for 
     All Urban Consumers published by the Bureau of Labor 
     Statistics of the Department of Labor.
       ``(2) Allocation.--
       ``(A) Initial allocation.--Of the funds set aside under 
     paragraph (1), as determined by the Secretary--
       ``(i) for each of fiscal years 2011 through 2013, 100 
     percent shall be allocated to State

[[Page 15341]]

     agencies in direct proportion to the amount of funding that 
     the State received for carrying out section 11(f) (as that 
     section existed on the day before the date of enactment of 
     this section) during fiscal year 2009, as reported to the 
     Secretary as of February 2010; and
       ``(ii) subject to a reallocation under subparagraph (B)--

       ``(I) for fiscal year 2014--

       ``(aa) 90 percent shall be allocated to State agencies in 
     accordance with clause (i); and
       ``(bb) 10 percent shall be allocated to State agencies 
     based on the respective share of each State of the number of 
     individuals participating in the supplemental nutrition 
     assistance program during the 12-month period ending the 
     preceding January 31;

       ``(II) for fiscal year 2015--

       ``(aa) 80 percent shall be allocated to State agencies in 
     accordance with clause (i); and
       ``(bb) 20 percent shall be allocated in accordance with 
     subclause (I)(bb);

       ``(III) for fiscal year 2016--

       ``(aa) 70 percent shall be allocated to State agencies in 
     accordance with clause (i); and
       ``(bb) 30 percent shall be allocated in accordance with 
     subclause (I)(bb);

       ``(IV) for fiscal year 2017--

       ``(aa) 60 percent shall be allocated to State agencies in 
     accordance with clause (i); and
       ``(bb) 40 percent shall be allocated in accordance with 
     subclause (I)(bb); and

       ``(V) for fiscal year 2018 and each fiscal year 
     thereafter--

       ``(aa) 50 percent shall be allocated to State agencies in 
     accordance with clause (i); and
       ``(bb) 50 percent shall be allocated in accordance with 
     subclause (I)(bb).
       ``(B) Reallocation.--
       ``(i) In general.--If the Secretary determines that a State 
     agency will not expend all of the funds allocated to the 
     State agency for a fiscal year under paragraph (1) or in the 
     case of a State agency that elects not to receive the entire 
     amount of funds allocated to the State agency for a fiscal 
     year, the Secretary shall reallocate the unexpended funds to 
     other States during the fiscal year or the subsequent fiscal 
     year (as determined by the Secretary) that have approved 
     State plans under which the State agencies may expend the 
     reallocated funds.
       ``(ii) Effect of additional funds.--

       ``(I) Funds received.--Any reallocated funds received by a 
     State agency under clause (i) for a fiscal year shall be 
     considered to be part of the fiscal year 2009 base allocation 
     of funds to the State agency for that fiscal year for 
     purposes of determining allocation under subparagraph (A) for 
     the subsequent fiscal year.
       ``(II) Funds surrendered.--Any funds surrendered by a State 
     agency under clause (i) shall not be considered to be part of 
     the fiscal year 2009 base allocation of funds to a State 
     agency for that fiscal year for purposes of determining 
     allocation under subparagraph (A) for the subsequent fiscal 
     year.

       ``(3) Limitation on federal financial participation.--
       ``(A) In general.--Grants awarded under this section shall 
     be the only source of Federal financial participation under 
     this Act in nutrition education and obesity prevention.
       ``(B) Exclusion.--Any costs of nutrition education and 
     obesity prevention in excess of the grants authorized under 
     this section shall not be eligible for reimbursement under 
     section 16(a).
       ``(e) Implementation.--Not later than January 1, 2012, the 
     Secretary shall publish in the Federal Register a description 
     of the requirements for the receipt of a grant under this 
     section.''.
       (b) Conforming Amendments.--
       (1) Section 4(a) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2013(a)) is amended in the first sentence by striking 
     ``and, through an approved State plan, nutrition education''.
       (2) Section 11 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2020) is amended by striking subsection (f).

     SEC. 242. PROCUREMENT AND PROCESSING OF FOOD SERVICE PRODUCTS 
                   AND COMMODITIES.

       Section 9(a)(4) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(a)(4)) is amended by adding at the 
     end the following:
       ``(C) Procurement and processing of food service products 
     and commodities.--The Secretary shall--
       ``(i) identify, develop, and disseminate to State 
     departments of agriculture and education, school food 
     authorities, local educational agencies, and local processing 
     entities, model product specifications and practices for 
     foods offered in school nutrition programs under this Act and 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to 
     ensure that the foods reflect the most recent Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341);
       ``(ii) not later than 1 year after the date of enactment of 
     this subparagraph--

       ``(I) carry out a study to analyze the quantity and quality 
     of nutritional information available to school food 
     authorities about food service products and commodities; and
       ``(II) submit to Congress a report on the results of the 
     study that contains such legislative recommendations as the 
     Secretary considers necessary to ensure that school food 
     authorities have access to the nutritional information needed 
     for menu planning and compliance assessments; and

       ``(iii) to the maximum extent practicable, in purchasing 
     and processing commodities for use in school nutrition 
     programs under this Act and the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.), purchase the widest variety of 
     healthful foods that reflect the most recent Dietary 
     Guidelines for Americans.''.

     SEC. 243. ACCESS TO LOCAL FOODS: FARM TO SCHOOL PROGRAM.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended--
       (1) by redesignating subsections (h) and (i) and subsection 
     (j) (as added by section 210) as subsections (i) through (k), 
     respectively;
       (2) in subsection (g), by striking ``(g) Access to Local 
     Foods and School Gardens.--'' and all that follows through 
     ``(3) Pilot program for high-poverty schools.--'' and 
     inserting the following:
       ``(g) Access to Local Foods: Farm to School Program.--
       ``(1) Definition of eligible school.--In this subsection, 
     the term `eligible school' means a school or institution that 
     participates in a program under this Act or the school 
     breakfast program established under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773).
       ``(2) Program.--The Secretary shall carry out a program to 
     assist eligible schools, State and local agencies, Indian 
     tribal organizations, agricultural producers or groups of 
     agricultural producers, and nonprofit entities through grants 
     and technical assistance to implement farm to school programs 
     that improve access to local foods in eligible schools.
       ``(3) Grants.--
       ``(A) In general.--The Secretary shall award competitive 
     grants under this subsection to be used for--
       ``(i) training;
       ``(ii) supporting operations;
       ``(iii) planning;
       ``(iv) purchasing equipment;
       ``(v) developing school gardens;
       ``(vi) developing partnerships; and
       ``(vii) implementing farm to school programs.
       ``(B) Regional balance.--In making awards under this 
     subsection, the Secretary shall, to the maximum extent 
     practicable, ensure--
       ``(i) geographical diversity; and
       ``(ii) equitable treatment of urban, rural, and tribal 
     communities.
       ``(C) Maximum amount.--The total amount provided to a grant 
     recipient under this subsection shall not exceed $100,000.
       ``(4) Federal share.--
       ``(A) In general.--The Federal share of costs for a project 
     funded through a grant awarded under this subsection shall 
     not exceed 75 percent of the total cost of the project.
       ``(B) Federal matching.--As a condition of receiving a 
     grant under this subsection, a grant recipient shall provide 
     matching support in the form of cash or in-kind 
     contributions, including facilities, equipment, or services 
     provided by State and local governments, nonprofit 
     organizations, and private sources.
       ``(5) Criteria for selection.--To the maximum extent 
     practicable, in providing assistance under this subsection, 
     the Secretary shall give the highest priority to funding 
     projects that, as determined by the Secretary--
       ``(A) make local food products available on the menu of the 
     eligible school;
       ``(B) serve a high proportion of children who are eligible 
     for free or reduced price lunches;
       ``(C) incorporate experiential nutrition education 
     activities in curriculum planning that encourage the 
     participation of school children in farm and garden-based 
     agricultural education activities;
       ``(D) demonstrate collaboration between eligible schools, 
     nongovernmental and community-based organizations, 
     agricultural producer groups, and other community partners;
       ``(E) include adequate and participatory evaluation plans;
       ``(F) demonstrate the potential for long-term program 
     sustainability; and
       ``(G) meet any other criteria that the Secretary determines 
     appropriate.
       ``(6) Evaluation.--As a condition of receiving a grant 
     under this subsection, each grant recipient shall agree to 
     cooperate in an evaluation by the Secretary of the program 
     carried out using grant funds.
       ``(7) Technical assistance.--The Secretary shall provide 
     technical assistance and information to assist eligible 
     schools, State and local agencies, Indian tribal 
     organizations, and nonprofit entities--
       ``(A) to facilitate the coordination and sharing of 
     information and resources in the Department that may be 
     applicable to the farm to school program;
       ``(B) to collect and share information on best practices; 
     and
       ``(C) to disseminate research and data on existing farm to 
     school programs and the potential for programs in underserved 
     areas.
       ``(8) Funding.--
       ``(A) In general.--On October 1, 2012, and each October 1 
     thereafter, out of any funds

[[Page 15342]]

     in the Treasury not otherwise appropriated, the Secretary of 
     the Treasury shall transfer to the Secretary to carry out 
     this subsection $5,000,000, to remain available until 
     expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(9) Authorization of appropriations.--In addition to the 
     amounts made available under paragraph (8), there are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2011 
     through 2015.
       ``(h) Pilot Program for High-Poverty Schools.--
       ``(1) In general.--''; and
       (3) in subsection (h) (as redesignated by paragraph (2))--
       (A) in subparagraph (F) of paragraph (1) (as so 
     redesignated), by striking ``in accordance with paragraph 
     (1)(H)'' and inserting ``carried out by the Secretary'';
       (B) by redesignating paragraph (4) as paragraph (2); and
       (C) in paragraph (2) (as so redesignated), by striking 
     ``2009'' and inserting ``2015''.

     SEC. 244. RESEARCH ON STRATEGIES TO PROMOTE THE SELECTION AND 
                   CONSUMPTION OF HEALTHY FOODS.

       (a) In General.--The Secretary, in consultation with the 
     Secretary of Health and Human Services, shall establish a 
     research, demonstration, and technical assistance program to 
     promote healthy eating and reduce the prevalence of obesity, 
     among all population groups but especially among children, by 
     applying the principles and insights of behavioral economics 
     research in schools, child care programs, and other settings.
       (b) Priorities.--The Secretary shall--
       (1) identify and assess the impacts of specific 
     presentation, placement, and other strategies for structuring 
     choices on selection and consumption of healthful foods in a 
     variety of settings, consistent with the most recent version 
     of the Dietary Guidelines for Americans published under 
     section 301 of the National Nutrition Monitoring and Related 
     Research Act of 1990 (7 U.S.C. 5341);
       (2) demonstrate and rigorously evaluate behavioral 
     economics-related interventions that hold promise to improve 
     diets and promote health, including through demonstration 
     projects that may include evaluation of the use of portion 
     size, labeling, convenience, and other strategies to 
     encourage healthy choices; and
       (3) encourage adoption of the most effective strategies 
     through outreach and technical assistance.
       (c) Authority.--In carrying out the program under 
     subsection (a), the Secretary may--
       (1) enter into competitively awarded contracts or 
     cooperative agreements; or
       (2) provide grants to States or public or private agencies 
     or organizations, as determined by the Secretary.
       (d) Application.--To be eligible to enter into a contract 
     or cooperative agreement or receive a grant under this 
     section, a State or public or private agency or organization 
     shall submit to the Secretary an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (e) Coordination.--The solicitation and evaluation of 
     contracts, cooperative agreements, and grant proposals 
     considered under this section shall be coordinated with the 
     Food and Nutrition Service as appropriate to ensure that 
     funded projects are consistent with the operations of 
     Federally supported nutrition assistance programs and related 
     laws (including regulations).
       (f) Annual Reports.--Not later than 90 days after the end 
     of each fiscal year, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that includes a description of--
       (1) the policies, priorities, and operations of the program 
     carried out by the Secretary under this section during the 
     fiscal year;
       (2) the results of any evaluations completed during the 
     fiscal year; and
       (3) the efforts undertaken to disseminate successful 
     practices through outreach and technical assistance.
       (g) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section such sums as are necessary for each of 
     fiscal years 2011 through 2015.
       (2) Use of funds.--The Secretary may use up to 5 percent of 
     the funds made available under paragraph (1) for Federal 
     administrative expenses incurred in carrying out this 
     section.

 TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION 
                                PROGRAMS

               Subtitle A--National School Lunch Program

     SEC. 301. PRIVACY PROTECTION.

       Section 9(d)(1) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(d)(1)) is amended--
       (1) in the first sentence, by inserting ``the last 4 digits 
     of'' before ``the social security account number''; and
       (2) by striking the second sentence.

     SEC. 302. APPLICABILITY OF FOOD SAFETY PROGRAM ON ENTIRE 
                   SCHOOL CAMPUS.

       Section 9(h)(5) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(h)(5)) is amended--
       (1) by striking ``Each school food'' and inserting the 
     following:
       ``(A) In general.--Each school food''; and
       (2) by adding at the end the following:
       ``(B) Applicability.--Subparagraph (A) shall apply to any 
     facility or part of a facility in which food is stored, 
     prepared, or served for the purposes of the school nutrition 
     programs under this Act or section 4 of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1773).''.

     SEC. 303. FINES FOR VIOLATING PROGRAM REQUIREMENTS.

       Section 22 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769c) is amended by adding at the end the 
     following:
       ``(e) Fines for Violating Program Requirements.--
       ``(1) School food authorities and schools.--
       ``(A) In general.--The Secretary shall establish criteria 
     by which the Secretary or a State agency may impose a fine 
     against any school food authority or school administering a 
     program authorized under this Act or the Child Nutrition Act 
     of 1966 (42 U.S.C. 1771 et seq.) if the Secretary or the 
     State agency determines that the school food authority or 
     school has--
       ``(i) failed to correct severe mismanagement of the 
     program;
       ``(ii) disregarded a program requirement of which the 
     school food authority or school had been informed; or
       ``(iii) failed to correct repeated violations of program 
     requirements.
       ``(B) Limits.--
       ``(i) In general.--In calculating the fine for a school 
     food authority or school, the Secretary shall base the amount 
     of the fine on the reimbursement earned by school food 
     authority or school for the program in which the violation 
     occurred.
       ``(ii) Amount.--The amount under clause (i) shall not 
     exceed--

       ``(I) 1 percent of the amount of meal reimbursements earned 
     for the fiscal year for the first finding of 1 or more 
     program violations under subparagraph (A);
       ``(II) 5 percent of the amount of meal reimbursements 
     earned for the fiscal year for the second finding of 1 or 
     more program violations under subparagraph (A); and
       ``(III) 10 percent of the amount of meal reimbursements 
     earned for the fiscal year for the third or subsequent 
     finding of 1 or more program violations under subparagraph 
     (A).

       ``(2) State agencies.--
       ``(A) In general.--The Secretary shall establish criteria 
     by which the Secretary may impose a fine against any State 
     agency administering a program authorized under this Act or 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) if 
     the Secretary determines that the State agency has--
       ``(i) failed to correct severe mismanagement of the 
     program;
       ``(ii) disregarded a program requirement of which the State 
     had been informed; or
       ``(iii) failed to correct repeated violations of program 
     requirements.
       ``(B) Limits.--In the case of a State agency, the amount of 
     a fine under subparagraph (A) shall not exceed--
       ``(i) 1 percent of funds made available under section 7(a) 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) for 
     State administrative expenses during a fiscal year for the 
     first finding of 1 or more program violations under 
     subparagraph (A);
       ``(ii) 5 percent of funds made available under section 7(a) 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) for 
     State administrative expenses during a fiscal year for the 
     second finding of 1 or more program violations under 
     subparagraph (A); and
       ``(iii) 10 percent of funds made available under section 
     7(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) 
     for State administrative expenses during a fiscal year for 
     the third or subsequent finding of 1 or more program 
     violations under subparagraph (A).
       ``(3) Source of funding.--Funds to pay a fine imposed under 
     paragraph (1) or (2) shall be derived from non-Federal 
     sources.''.

     SEC. 304. INDEPENDENT REVIEW OF APPLICATIONS.

       Section 22(b) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769c(b)) is amended by adding at the 
     end the following:
       ``(6) Eligibility determination review for selected local 
     educational agencies.--
       ``(A) In general.--A local educational agency that has 
     demonstrated a high level of, or a high risk for, 
     administrative error associated with certification, 
     verification, and other administrative processes, as 
     determined by the Secretary, shall ensure that the initial 
     eligibility determination for each application is reviewed 
     for accuracy prior to notifying a household of the 
     eligibility or ineligibility of the household for free or 
     reduced price meals.
       ``(B) Timeliness.--The review of initial eligibility 
     determinations--
       ``(i) shall be completed in a timely manner; and
       ``(ii) shall not result in the delay of an eligibility 
     determination for more than 10 operating days after the date 
     on which the application is submitted.

[[Page 15343]]

       ``(C) Acceptable types of review.--Subject to standards 
     established by the Secretary, the system used to review 
     eligibility determinations for accuracy shall be conducted by 
     an individual or entity that did not make the initial 
     eligibility determination.
       ``(D) Notification of household.--Once the review of an 
     eligibility determination has been completed under this 
     paragraph, the household shall be notified immediately of the 
     determination of eligibility or ineligibility for free or 
     reduced price meals.
       ``(E) Reporting.--
       ``(i) Local educational agencies.--In accordance with 
     procedures established by the Secretary, each local 
     educational agency required to review initial eligibility 
     determinations shall submit to the relevant State agency a 
     report describing the results of the reviews, including--

       ``(I) the number and percentage of reviewed applications 
     for which the eligibility determination was changed and the 
     type of change made; and
       ``(II) such other information as the Secretary determines 
     to be necessary.

       ``(ii) State agencies.--In accordance with procedures 
     established by the Secretary, each State agency shall submit 
     to the Secretary a report describing the results of the 
     reviews of initial eligibility determinations, including--

       ``(I) the number and percentage of reviewed applications 
     for which the eligibility determination was changed and the 
     type of change made; and
       ``(II) such other information as the Secretary determines 
     to be necessary.

       ``(iii) Transparency.--The Secretary shall publish annually 
     the results of the reviews of initial eligibility 
     determinations by State, number, percentage, and type of 
     error.''.

     SEC. 305. PROGRAM EVALUATION.

       Section 28 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769i) is amended by adding at the end the 
     following:
       ``(c) Cooperation With Program Research and Evaluation.--
     States, State educational agencies, local educational 
     agencies, schools, institutions, facilities, and contractors 
     participating in programs authorized under this Act and the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall 
     cooperate with officials and contractors acting on behalf of 
     the Secretary, in the conduct of evaluations and studies 
     under those Acts.''.

     SEC. 306. PROFESSIONAL STANDARDS FOR SCHOOL FOOD SERVICE.

       Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1776) is amended by striking subsection (g) and inserting the 
     following:
       ``(g) Professional Standards for School Food Service.--
       ``(1) Criteria for school food service and state agency 
     directors.--
       ``(A) School food service directors.--
       ``(i) In general.--The Secretary shall establish a program 
     of required education, training, and certification for all 
     school food service directors responsible for the management 
     of a school food authority.
       ``(ii) Requirements.--The program shall include--

       ``(I) minimum educational requirements necessary to 
     successfully manage the school lunch program established 
     under the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.) and the school breakfast program 
     established by section 4 of this Act;
       ``(II) minimum program training and certification criteria 
     for school food service directors; and
       ``(III) minimum periodic training criteria to maintain 
     school food service director certification.

       ``(B) School nutrition state agency directors.--The 
     Secretary shall establish criteria and standards for States 
     to use in the selection of State agency directors with 
     responsibility for the school lunch program established under 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1751 et seq.) and the school breakfast program established by 
     section 4 of this Act.
       ``(C) Training program partnership.--The Secretary may 
     provide financial and other assistance to 1 or more 
     professional food service management organizations--
       ``(i) to establish and manage the program under this 
     paragraph; and
       ``(ii) to develop voluntary training and certification 
     programs for other school food service workers.
       ``(D) Required date of compliance.--
       ``(i) School food service directors.--The Secretary shall 
     establish a date by which all school food service directors 
     whose local educational agencies are participating in the 
     school lunch program established under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.) and the 
     school breakfast program established by section 4 of this Act 
     shall be required to comply with the education, training, and 
     certification criteria established in accordance with 
     subparagraph (A).
       ``(ii) School nutrition state agency directors.--The 
     Secretary shall establish a date by which all State agencies 
     shall be required to comply with criteria and standards 
     established in accordance with subparagraph (B) for the 
     selection of State agency directors with responsibility for 
     the school lunch program established under the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1751 et seq.) 
     and the school breakfast program established by section 4 of 
     this Act.
       ``(2) Training and certification of food service 
     personnel.--
       ``(A) Training for individuals conducting or overseeing 
     administrative procedures.--
       ``(i) In general.--At least annually, each State shall 
     provide training in administrative practices (including 
     training in application, certification, verification, meal 
     counting, and meal claiming procedures) to local educational 
     agency and school food authority personnel and other 
     appropriate personnel.
       ``(ii) Federal role.--The Secretary shall--

       ``(I) provide training and technical assistance described 
     in clause (i) to the State; or
       ``(II) at the option of the Secretary, directly provide 
     training and technical assistance described in clause (i).

       ``(iii) Required participation.--In accordance with 
     procedures established by the Secretary, each local 
     educational agency or school food authority shall ensure that 
     an individual conducting or overseeing administrative 
     procedures described in clause (i) receives training at least 
     annually, unless determined otherwise by the Secretary.
       ``(B) Training and certification of all local food service 
     personnel.--
       ``(i) In general.--The Secretary shall provide training 
     designed to improve--

       ``(I) the accuracy of approvals for free and reduced price 
     meals; and
       ``(II) the identification of reimbursable meals at the 
     point of service.

       ``(ii) Certification of local personnel.--In accordance 
     with criteria established by the Secretary, local food 
     service personnel shall complete annual training and receive 
     annual certification--

       ``(I) to ensure program compliance and integrity; and
       ``(II) to demonstrate competence in the training provided 
     under clause (i).

       ``(iii) Training modules.--In addition to the topics 
     described in clause (i), a training program carried out under 
     this subparagraph shall include training modules on--

       ``(I) nutrition;
       ``(II) health and food safety standards and methodologies; 
     and
       ``(III) any other appropriate topics, as determined by the 
     Secretary.

       ``(3) Funding.--
       ``(A) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this subsection, to 
     remain available until expended--
       ``(i) on October 1, 2010, $5,000,000; and
       ``(ii) on each October 1 thereafter, $1,000,000.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.''.

     SEC. 307. INDIRECT COSTS.

       (a) Guidance on Indirect Costs Rules.--Not later than 180 
     days after the date of enactment of this Act, the Secretary 
     shall issue guidance to school food authorities participating 
     in the school lunch program established under the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1751 et seq.) 
     and the school breakfast program established by section 4 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1773) covering 
     program rules pertaining to indirect costs, including 
     allowable indirect costs that may be charged to the nonprofit 
     school food service account.
       (b) Indirect Cost Study.--The Secretary shall--
       (1) conduct a study to assess the extent to which school 
     food authorities participating in the school lunch program 
     established under the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1751 et seq.) and the school breakfast 
     program established by section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773) pay indirect costs, including 
     assessments of--
       (A) the allocation of indirect costs to, and the 
     methodologies used to establish indirect cost rates for, 
     school food authorities participating in the school lunch 
     program established under the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1751 et seq.) and the school 
     breakfast program established by section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773);
       (B) the impact of indirect costs charged to the nonprofit 
     school food service account;
       (C) the types and amounts of indirect costs charged and 
     recovered by school districts;
       (D) whether the indirect costs charged or recovered are 
     consistent with requirements for the allocation of indirect 
     costs and school food service operations; and
       (E) the types and amounts of indirect costs that could be 
     charged or recovered under requirements for the allocation of 
     indirect costs and school food service operations but are not 
     charged or recovered; and
       (2) after completing the study required under paragraph 
     (1), issue additional guidance relating to the types of costs 
     that are reasonable and necessary to provide meals under the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1751 
     et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 
     et seq.).
       (c) Regulations.--After conducting the study under 
     subsection (b)(1) and identifying

[[Page 15344]]

     costs under subsection (b)(2), the Secretary may promulgate 
     regulations to address--
       (1) any identified deficiencies in the allocation of 
     indirect costs; and
       (2) the authority of school food authorities to reimburse 
     only those costs identified by the Secretary as reasonable 
     and necessary under subsection (b)(2).
       (d) Report.--Not later than October 1, 2013, the Secretary 
     shall submit to the Committee on Education and Labor of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that describes 
     the results of the study under subsection (b).
       (e) Funding.--
       (1) In general.--On October 1, 2010, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     section $2,000,000, to remain available until expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     SEC. 308. ENSURING SAFETY OF SCHOOL MEALS.

       The Richard B. Russell National School Lunch Act is amended 
     by after section 28 (42 U.S.C. 1769i) the following:

     ``SEC. 29. ENSURING SAFETY OF SCHOOL MEALS.

       ``(a) Food and Nutrition Service.--Not later than 1 year 
     after the date of enactment of the Healthy, Hunger-Free Kids 
     Act of 2010, the Secretary, acting through the Administrator 
     of the Food and Nutrition Service, shall--
       ``(1) in consultation with the Administrator of the 
     Agricultural Marketing Service and the Administrator of the 
     Farm Service Agency, develop guidelines to determine the 
     circumstances under which it is appropriate for the Secretary 
     to institute an administrative hold on suspect foods 
     purchased by the Secretary that are being used in school meal 
     programs under this Act and the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.);
       ``(2) work with States to explore ways for the States to 
     increase the timeliness of notification of food recalls to 
     schools and school food authorities;
       ``(3) improve the timeliness and completeness of direct 
     communication between the Food and Nutrition Service and 
     States about holds and recalls, such as through the commodity 
     alert system of the Food and Nutrition Service; and
       ``(4) establish a timeframe to improve the commodity hold 
     and recall procedures of the Department of Agriculture to 
     address the role of processors and determine the involvement 
     of distributors with processed products that may contain 
     recalled ingredients, to facilitate the provision of more 
     timely and complete information to schools.
       ``(b) Food Safety and Inspection Service.--Not later than 1 
     year after the date of enactment of the Healthy, Hunger-Free 
     Kids Act of 2010, the Secretary, acting through the 
     Administrator of the Food Safety and Inspection Service, 
     shall revise the procedures of the Food Safety and Inspection 
     Service to ensure that schools are included in effectiveness 
     checks.''.

                Subtitle B--Summer Food Service Program

     SEC. 321. SUMMER FOOD SERVICE PROGRAM PERMANENT OPERATING 
                   AGREEMENTS.

       Section 13(b) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1761(b)) is amended by striking 
     paragraph (3) and inserting the following:
       ``(3) Permanent operating agreements and budget for 
     administrative costs.--
       ``(A) Permanent operating agreements.--
       ``(i) In general.--Subject to clauses (ii) and (iii), to 
     participate in the program, a service institution that meets 
     the conditions of eligibility described in this section and 
     in regulations promulgated by the Secretary, shall be 
     required to enter into a permanent agreement with the 
     applicable State agency.
       ``(ii) Amendments.--A permanent agreement described in 
     clause (i) may be amended as necessary to ensure that the 
     service institution is in compliance with all requirements 
     established in this section or by the Secretary.
       ``(iii) Termination.--A permanent agreement described in 
     clause (i)--

       ``(I) may be terminated for convenience by the service 
     institution and State agency that is a party to the permanent 
     agreement; and
       ``(II) shall be terminated--

       ``(aa) for cause by the applicable State agency in 
     accordance with subsection (q) and with regulations 
     promulgated by the Secretary; or
       ``(bb) on termination of participation of the service 
     institution in the program.
       ``(B) Budget for administrative costs.--
       ``(i) In general.--When applying for participation in the 
     program, and not less frequently than annually thereafter, 
     each service institution shall submit a complete budget for 
     administrative costs related to the program, which shall be 
     subject to approval by the State.
       ``(ii) Amount.--Payment to service institutions for 
     administrative costs shall equal the levels determined by the 
     Secretary pursuant to the study required in paragraph (4).''.

     SEC. 322. SUMMER FOOD SERVICE PROGRAM DISQUALIFICATION.

       Section 13 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1761) is amended--
       (1) by redesignating subsection (q) as subsection (r); and
       (2) by inserting after subsection (p) the following:
       ``(q) Termination and Disqualification of Participating 
     Organizations.--
       ``(1) In general.--Each State agency shall follow the 
     procedures established by the Secretary for the termination 
     of participation of institutions under the program.
       ``(2) Fair hearing.--The procedures described in paragraph 
     (1) shall include provision for a fair hearing and prompt 
     determination for any service institution aggrieved by any 
     action of the State agency that affects--
       ``(A) the participation of the service institution in the 
     program; or
       ``(B) the claim of the service institution for 
     reimbursement under this section.
       ``(3) List of disqualified institutions and individuals.--
       ``(A) In general.--The Secretary shall maintain a list of 
     service institutions and individuals that have been 
     terminated or otherwise disqualified from participation in 
     the program under the procedures established pursuant to 
     paragraph (1).
       ``(B) Availability.--The Secretary shall make the list 
     available to States for use in approving or renewing 
     applications by service institutions for participation in the 
     program.''.

             Subtitle C--Child and Adult Care Food Program

     SEC. 331. RENEWAL OF APPLICATION MATERIALS AND PERMANENT 
                   OPERATING AGREEMENTS.

       (a) Permanent Operating Agreements.--Section 17(d)(1) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1766(d)(1)) is amended by adding at the end the following:
       ``(E) Permanent operating agreements.--
       ``(i) In general.--Subject to clauses (ii) and (iii), to 
     participate in the child and adult care food program, an 
     institution that meets the conditions of eligibility 
     described in this subsection shall be required to enter into 
     a permanent agreement with the applicable State agency.
       ``(ii) Amendments.--A permanent agreement described in 
     clause (i) may be amended as necessary to ensure that the 
     institution is in compliance with all requirements 
     established in this section or by the Secretary.
       ``(iii) Termination.--A permanent agreement described in 
     clause (i)--

       ``(I) may be terminated for convenience by the institution 
     or State agency that is a party to the permanent agreement; 
     and
       ``(II) shall be terminated--

       ``(aa) for cause by the applicable State agency in 
     accordance with paragraph (5); or
       ``(bb) on termination of participation of the institution 
     in the child and adult care food program.''.
       (b) Applications and Reviews.--Section 17(d) of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1766(d)) is 
     amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Program applications.--
       ``(A) In general.--The Secretary shall develop a policy 
     under which each institution providing child care that 
     participates in the program under this section shall--
       ``(i) submit to the State agency an initial application to 
     participate in the program that meets all requirements 
     established by the Secretary by regulation;
       ``(ii) annually confirm to the State agency that the 
     institution, and any facilities of the institution in which 
     the program is operated by a sponsoring organization, is in 
     compliance with subsection (a)(5); and
       ``(iii) annually submit to the State agency any additional 
     information necessary to confirm that the institution is in 
     compliance with all other requirements to participate in the 
     program, as established in this Act and by the Secretary by 
     regulation.
       ``(B) Required reviews of sponsored facilities.--
       ``(i) In general.--The Secretary shall develop a policy 
     under which each sponsoring organization participating in the 
     program under this section shall conduct--

       ``(I) periodic unannounced site visits at not less than 3-
     year intervals to sponsored child and adult care centers and 
     family or group day care homes to identify and prevent 
     management deficiencies and fraud and abuse under the 
     program; and
       ``(II) at least 1 scheduled site visit each year to 
     sponsored child and adult care centers and family or group 
     day care homes to identify and prevent management 
     deficiencies and fraud and abuse under the program and to 
     improve program operations.

       ``(ii) Varied timing.--Sponsoring organizations shall vary 
     the timing of unannounced reviews under clause (i)(I) in a 
     manner that makes the reviews unpredictable to sponsored 
     facilities.
       ``(C) Required reviews of institutions.--The Secretary 
     shall develop a policy under which each State agency shall 
     conduct--
       ``(i) at least 1 scheduled site visit at not less than 3-
     year intervals to each institution under the State agency 
     participating in the program under this section--

       ``(I) to identify and prevent management deficiencies and 
     fraud and abuse under the program; and

[[Page 15345]]

       ``(II) to improve program operations; and

       ``(ii) more frequent reviews of any institution that--

       ``(I) sponsors a significant share of the facilities 
     participating in the program;
       ``(II) conducts activities other than the program 
     authorized under this section;
       ``(III) has serious management problems, as identified in a 
     prior review, or is at risk of having serious management 
     problems; or
       ``(IV) meets such other criteria as are defined by the 
     Secretary.

       ``(D) Detection and deterrence of erroneous payments and 
     false claims.--
       ``(i) In general.--The Secretary may develop a policy to 
     detect and deter, and recover erroneous payments to, and 
     false claims submitted by, institutions, sponsored child and 
     adult care centers, and family or group day care homes 
     participating in the program under this section.
       ``(ii) Block claims.--

       ``(I) Definition of block claim.--In this clause, the term 
     `block claim' has the meaning given the term in section 226.2 
     of title 7, Code of Federal Regulations (or successor 
     regulations).
       ``(II) Program edit checks.--The Secretary may not require 
     any State agency, sponsoring organization, or other 
     institution to perform edit checks or on-site reviews 
     relating to the detection of block claims by any child care 
     facility.
       ``(III) Allowance.--Notwithstanding subclause (II), the 
     Secretary may require any State agency, sponsoring 
     organization, or other institution to collect, store, and 
     transmit to the appropriate entity information necessary to 
     develop any other policy developed under clause (i).''.

       (c) Agreements.--Section 17(j)(1) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(j)(1)) is amended--
       (1) by striking ``may'' and inserting ``shall'';
       (2) by striking ``family or group day care'' the first 
     place it appears; and
       (3) by inserting ``or sponsored day care centers'' before 
     ``participating''.

     SEC. 332. STATE LIABILITY FOR PAYMENTS TO AGGRIEVED CHILD 
                   CARE INSTITUTIONS.

       Section 17(e) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766(e)) is amended--
       (1) in paragraph (3), by striking ``(3) If a State'' and 
     inserting the following:
       ``(5) Secretarial hearing.--If a State''; and
       (2) by striking ``(e) Except as provided'' and all that 
     follows through ``(2) A State'' and inserting the following:
       ``(e) Hearings.--
       ``(1) In general.--Except as provided in paragraph (4), 
     each State agency shall provide, in accordance with 
     regulations promulgated by the Secretary, an opportunity for 
     a fair hearing and a prompt determination to any institution 
     aggrieved by any action of the State agency that affects--
       ``(A) the participation of the institution in the program 
     authorized by this section; or
       ``(B) the claim of the institution for reimbursement under 
     this section.
       ``(2) Reimbursement.--In accordance with paragraph (3), a 
     State agency that fails to meet timeframes for providing an 
     opportunity for a fair hearing and a prompt determination to 
     any institution under paragraph (1) in accordance with 
     regulations promulgated by the Secretary, shall pay, from 
     non-Federal sources, all valid claims for reimbursement to 
     the institution and the facilities of the institution during 
     the period beginning on the day after the end of any 
     regulatory deadline for providing the opportunity and making 
     the determination and ending on the date on which a hearing 
     determination is made.
       ``(3) Notice to state agency.--The Secretary shall provide 
     written notice to a State agency at least 30 days prior to 
     imposing any liability for reimbursement under paragraph (2).
       ``(4) Federal audit determination.--A State''.

     SEC. 333. TRANSMISSION OF INCOME INFORMATION BY SPONSORED 
                   FAMILY OR GROUP DAY CARE HOMES.

       Section 17(f)(3)(A)(iii)(III) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(f)(3)(A)(iii)(III)) 
     is amended by adding at the end the following:
       ``(dd) Transmission of income information by sponsored 
     family or group day care homes.--If a family or group day 
     care home elects to be provided reimbursement factors 
     described in subclause (II), the family or group day care 
     home may assist in the transmission of necessary household 
     income information to the family or group day care home 
     sponsoring organization in accordance with the policy 
     described in item (ee).
       ``(ee) Policy.--The Secretary shall develop a policy under 
     which a sponsored family or group day care home described in 
     item (dd) may, under terms and conditions specified by the 
     Secretary and with the written consent of the parents or 
     guardians of a child in a family or group day care home 
     participating in the program, assist in the transmission of 
     the income information of the family to the family or group 
     day care home sponsoring organization.''.

     SEC. 334. SIMPLIFYING AND ENHANCING ADMINISTRATIVE PAYMENTS 
                   TO SPONSORING ORGANIZATIONS.

       Section 17(f)(3) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766(f)(3)) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Administrative funds.--
       ``(i) In general.--In addition to reimbursement factors 
     described in subparagraph (A), a family or group day care 
     home sponsoring organization shall receive reimbursement for 
     the administrative expenses of the sponsoring organization in 
     an amount that is not less than the product obtained each 
     month by multiplying--

       ``(I) the number of family and group day care homes of the 
     sponsoring organization submitting a claim for reimbursement 
     during the month; by
       ``(II) the appropriate administrative rate determined by 
     the Secretary.

       ``(ii) Annual adjustment.--The administrative reimbursement 
     levels specified in clause (i) shall be adjusted July 1 of 
     each year to reflect changes in the Consumer Price Index for 
     All Urban Consumers published by the Bureau of Labor 
     Statistics of the Department of Labor for the most recent 12-
     month period for which such data are available.
       ``(iii) Carryover funds.--The Secretary shall develop 
     procedures under which not more than 10 percent of the amount 
     made available to sponsoring organizations under this section 
     for administrative expenses for a fiscal year may remain 
     available for obligation or expenditure in the succeeding 
     fiscal year.''.

     SEC. 335. CHILD AND ADULT CARE FOOD PROGRAM AUDIT FUNDING.

       Section 17(i) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766(i)) is amended by striking 
     paragraph (2) and inserting the following:
       ``(2) Funding.--
       ``(A) In general.--The Secretary shall make available for 
     each fiscal year to each State agency administering the child 
     and adult care food program, for the purpose of conducting 
     audits of participating institutions, an amount of up to 1.5 
     percent of the funds used by each State in the program under 
     this section, during the second preceding fiscal year.
       ``(B) Additional funding.--
       ``(i) In general.--Subject to clause (ii), for fiscal year 
     2016 and each fiscal year thereafter, the Secretary may 
     increase the amount of funds made available to any State 
     agency under subparagraph (A), if the State agency 
     demonstrates that the State agency can effectively use the 
     funds to improve program management under criteria 
     established by the Secretary.
       ``(ii) Limitation.--The total amount of funds made 
     available to any State agency under this paragraph shall not 
     exceed 2 percent of the funds used by each State agency in 
     the program under this section, during the second preceding 
     fiscal year.''.

     SEC. 336. REDUCING PAPERWORK AND IMPROVING PROGRAM 
                   ADMINISTRATION.

       (a) Definition of Program.--In this section, the term 
     ``program'' means the child and adult care food program 
     established under section 17 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766).
       (b) Establishment.--The Secretary, in conjunction with 
     States and participating institutions, shall continue to 
     examine the feasibility of reducing unnecessary or 
     duplicative paperwork resulting from regulations and 
     recordkeeping requirements for State agencies, institutions, 
     family and group day care homes, and sponsored centers 
     participating in the program.
       (c) Duties.--At a minimum, the examination shall include--
       (1) review and evaluation of the recommendations, guidance, 
     and regulatory priorities developed and issued to comply with 
     section 119(i) of the Child Nutrition and WIC Reauthorization 
     Act of 2004 (42 U.S.C. 1766 note; Public Law 108-265); and
       (2) examination of additional paperwork and administrative 
     requirements that have been established since February 23, 
     2007, that could be reduced or simplified.
       (d) Additional Duties.--The Secretary, in conjunction with 
     States and institutions participating in the program, may 
     also examine any aspect of administration of the program.
       (e) Report.--Not later than 4 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that describes the actions that have been taken to 
     carry out this section, including--
       (1) actions taken to address administrative and paperwork 
     burdens identified as a result of compliance with section 
     119(i) of the Child Nutrition and WIC Reauthorization Act of 
     2004 (42 U.S.C. 1766 note; Public Law 108-265);
       (2) administrative and paperwork burdens identified as a 
     result of compliance with section 119(i) of that Act for 
     which no regulatory action or policy guidance has been taken;
       (3) additional steps that the Secretary is taking or plans 
     to take to address any administrative and paperwork burdens 
     identified under subsection (c)(2) and paragraph (2), 
     including--
       (A) new or updated regulations, policy, guidance, or 
     technical assistance; and
       (B) a timeframe for the completion of those steps; and
       (4) recommendations to Congress for modifications to 
     existing statutory authorities

[[Page 15346]]

     needed to address identified administrative and paperwork 
     burdens.

     SEC. 337. STUDY RELATING TO THE CHILD AND ADULT CARE FOOD 
                   PROGRAM.

       (a) Study.--The Secretary, acting through the Administrator 
     of the Food and Nutrition Service, shall carry out a study of 
     States participating in an afterschool supper program under 
     the child and adult care food program established under 
     section 17(r) of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1766(r)).
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to 
     Congress, and make available on the website of the Food and 
     Nutrition Service, a report that describes--
       (1) best practices of States in soliciting sponsors for an 
     afterschool supper program described in subsection (a); and
       (2) any Federal or State laws or requirements that may be a 
     barrier to participation in the program.

Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

     SEC. 351. SHARING OF MATERIALS WITH OTHER PROGRAMS.

       Section 17(e)(3) of the Child Nutrition Act (42 U.S.C. 
     1786(e)(3)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) Sharing of materials with other programs.--
       ``(i) Commodity supplemental food program.--The Secretary 
     may provide, in bulk quantity, nutrition education materials 
     (including materials promoting breastfeeding) developed with 
     funds made available for the program authorized under this 
     section to State agencies administering the commodity 
     supplemental food program established under section 5 of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) at no cost to that program.
       ``(ii) Child and adult care food program.--A State agency 
     may allow the local agencies or clinics under the State 
     agency to share nutrition educational materials with 
     institutions participating in the child and adult care food 
     program established under section 17 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766) at no cost 
     to that program, if a written materials sharing agreement 
     exists between the relevant agencies.''.

     SEC. 352. WIC PROGRAM MANAGEMENT.

       (a) WIC Evaluation Funds.--Section 17(g)(5) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(g)(5)) is amended by 
     striking ``$5,000,000'' and inserting ``$15,000,000''.
       (b) WIC Rebate Payments.--Section 17(h)(8) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)) is amended by 
     adding at the end the following:
       ``(K) Reporting.--Effective beginning October 1, 2011, each 
     State agency shall report rebate payments received from 
     manufacturers in the month in which the payments are 
     received, rather than in the month in which the payments were 
     earned.''.
       (c) Cost Containment Measure.--Section 17(h) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended--
       (1) in paragraph (8)(A)(iv)(III), by striking ``Any'' and 
     inserting ``Except as provided in paragraph (9)(B)(i)(II), 
     any''; and
       (2) by striking paragraph (9) and inserting the following:
       ``(9) Cost containment measure.--
       ``(A) Definition of cost containment measure.--In this 
     subsection, the term `cost containment measure' means a 
     competitive bidding, rebate, direct distribution, or home 
     delivery system implemented by a State agency as described in 
     the approved State plan of operation and administration of 
     the State agency.
       ``(B) Solicitation and rebate billing requirements.--Any 
     State agency instituting a cost containment measure for any 
     authorized food, including infant formula, shall--
       ``(i) in the bid solicitation--

       ``(I) identify the composition of State alliances for the 
     purposes of a cost containment measure; and
       ``(II) verify that no additional States shall be added to 
     the State alliance between the date of the bid solicitation 
     and the end of the contract;

       ``(ii) have a system to ensure that rebate invoices under 
     competitive bidding provide a reasonable estimate or an 
     actual count of the number of units sold to participants in 
     the program under this section;
       ``(iii) open and read aloud all bids at a public proceeding 
     on the day on which the bids are due; and
       ``(iv) unless otherwise exempted by the Secretary, provide 
     a minimum of 30 days between the publication of the 
     solicitation and the date on which the bids are due.
       ``(C) State alliances for authorized foods other than 
     infant formula.--Program requirements relating to the size of 
     State alliances under paragraph (8)(A)(iv) shall apply to 
     cost containment measures established for any authorized food 
     under this section.''.
       (d) Electronic Benefit Transfer.--Section 17(h) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by 
     striking paragraph (12) and inserting the following:
       ``(12) Electronic benefit transfer.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Electronic benefit transfer.--The term `electronic 
     benefit transfer' means a food delivery system that provides 
     benefits using a card or other access device approved by the 
     Secretary that permits electronic access to program benefits.
       ``(ii) Program.--The term `program' means the special 
     supplemental nutrition program established by this section.
       ``(B) Requirements.--
       ``(i) In general.--Not later than October 1, 2020, each 
     State agency shall be required to implement electronic 
     benefit transfer systems throughout the State, unless the 
     Secretary grants an exemption under subparagraph (C) for a 
     State agency that is facing unusual barriers to implement an 
     electronic benefit transfer system.
       ``(ii) Responsibility.--The State agency shall be 
     responsible for the coordination and management of the 
     electronic benefit transfer system of the agency.
       ``(C) Exemptions.--
       ``(i) In general.--To be eligible for an exemption from the 
     statewide implementation requirements of subparagraph (B)(i), 
     a State agency shall demonstrate to the satisfaction of the 
     Secretary 1 or more of the following:

       ``(I) There are unusual technological barriers to 
     implementation.
       ``(II) Operational costs are not affordable within the 
     nutrition services and administration grant of the State 
     agency.
       ``(III) It is in the best interest of the program to grant 
     the exemption.

       ``(ii) Specific date.--A State agency requesting an 
     exemption under clause (i) shall specify a date by which the 
     State agency anticipates statewide implementation described 
     in subparagraph (B)(i).
       ``(D) Reporting.--
       ``(i) In general.--Each State agency shall submit to the 
     Secretary electronic benefit transfer project status reports 
     to demonstrate the progress of the State toward statewide 
     implementation.
       ``(ii) Consultation.--If a State agency plans to 
     incorporate additional programs in the electronic benefit 
     transfer system of the State, the State agency shall consult 
     with the State agency officials responsible for administering 
     the programs prior to submitting the planning documents to 
     the Secretary for approval.
       ``(iii) Requirements.--At a minimum, a status report 
     submitted under clause (i) shall contain--

       ``(I) an annual outline of the electronic benefit transfer 
     implementation goals and objectives of the State;
       ``(II) appropriate updates in accordance with approval 
     requirements for active electronic benefit transfer State 
     agencies; and
       ``(III) such other information as the Secretary may 
     require.

       ``(E) Imposition of costs on vendors.--
       ``(i) Cost prohibition.--Except as otherwise provided in 
     this paragraph, the Secretary may not impose, or allow a 
     State agency to impose, the costs of any equipment or system 
     required for electronic benefit transfers on any authorized 
     vendor in order to transact electronic benefit transfers if 
     the vendor equipment or system is used solely to support the 
     program.
       ``(ii) Cost-sharing.--The Secretary shall establish 
     criteria for cost-sharing by State agencies and vendors of 
     costs associated with any equipment or system that is not 
     solely dedicated to transacting electronic benefit transfers 
     for the program.
       ``(iii) Fees.--

       ``(I) In general.--A vendor that elects to accept 
     electronic benefit transfers using multifunction equipment 
     shall pay commercial transaction processing costs and fees 
     imposed by a third-party processor that the vendor elects to 
     use to connect to the electronic benefit transfer system of 
     the State.
       ``(II) Interchange fees.--No interchange fees shall apply 
     to electronic benefit transfer transactions under this 
     paragraph.

       ``(iv) Statewide operations.--After completion of statewide 
     expansion of a system for transaction of electronic benefit 
     transfers--

       ``(I) a State agency may not be required to incur ongoing 
     maintenance costs for vendors using multifunction systems and 
     equipment to support electronic benefit transfers; and
       ``(II) any retail store in the State that applies for 
     authorization to become a program vendor shall be required to 
     demonstrate the capability to accept program benefits 
     electronically prior to authorization, unless the State 
     agency determines that the vendor is necessary for 
     participant access.

       ``(F) Minimum lane coverage.--
       ``(i) In general.--The Secretary shall establish minimum 
     lane coverage guidelines for vendor equipment and systems 
     used to support electronic benefit transfers.
       ``(ii) Provision of equipment.--If a vendor does not elect 
     to accept electronic benefit transfers using its own 
     multifunction equipment, the State agency shall provide such 
     equipment as is necessary to solely support the program to 
     meet the established minimum lane coverage guidelines.
       ``(G) Technical standards.--The Secretary shall--
       ``(i) establish technical standards and operating rules for 
     electronic benefit transfer systems; and
       ``(ii) require each State agency, contractor, and 
     authorized vendor participating in the program to demonstrate 
     compliance with the technical standards and operating 
     rules.''.

[[Page 15347]]

       (e) Universal Product Codes Database.--Section 17(h) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by 
     striking paragraph (13) and inserting the following:
       ``(13) Universal product codes database.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of the Healthy, Hunger-Free Kids Act of 2010, the 
     Secretary shall establish a national universal product code 
     database to be used by all State agencies in carrying out the 
     requirements of paragraph (12).
       ``(B) Funding.--
       ``(i) In general.--On October 1, 2010, and on each October 
     1 thereafter, out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary to carry out this paragraph $1,000,000, to 
     remain available until expended.
       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this paragraph the funds transferred under clause (i), 
     without further appropriation.
       ``(iii) Use of funds.--The Secretary shall use the funds 
     provided under clause (i) for development, hosting, hardware 
     and software configuration, and support of the database 
     required under subparagraph (A).''.
       (f) Temporary Spending Authority.--Section 17(i) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(i)) is amended by 
     adding at the end the following:
       ``(8) Temporary spending authority.--During each of fiscal 
     years 2012 and 2013, the Secretary may authorize a State 
     agency to expend more than the amount otherwise authorized 
     under paragraph (3)(C) for expenses incurred under this 
     section for supplemental foods during the preceding fiscal 
     year, if the Secretary determines that--
       ``(A) there has been a significant reduction in reported 
     infant formula cost containment savings for the preceding 
     fiscal year due to the implementation of subsection 
     (h)(8)(K); and
       ``(B) the reduction would affect the ability of the State 
     agency to serve all eligible participants.''.

                       Subtitle E--Miscellaneous

     SEC. 361. FULL USE OF FEDERAL FUNDS.

       Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) Agreements.--
       ``(1) In general.--The Secretary shall incorporate, in the 
     agreement of the Secretary with the State agencies 
     administering programs authorized under this Act or the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the express 
     requirements with respect to the operation of the programs to 
     the extent applicable and such other provisions as in the 
     opinion of the Secretary are reasonably necessary or 
     appropriate to effectuate the purposes of this Act and the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
       ``(2) Expectations for use of funds.--Agreements described 
     in paragraph (1) shall include a provision that--
       ``(A) supports full use of Federal funds provided to State 
     agencies for the administration of programs authorized under 
     this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 
     et seq.); and
       ``(B) excludes the Federal funds from State budget 
     restrictions or limitations including, at a minimum--
       ``(i) hiring freezes;
       ``(ii) work furloughs; and
       ``(iii) travel restrictions.''.

     SEC. 362. DISQUALIFIED SCHOOLS, INSTITUTIONS, AND 
                   INDIVIDUALS.

       Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) (as amended by section 206) is amended 
     by adding at the end the following:
       ``(r) Disqualified Schools, Institutions, and 
     Individuals.--Any school, institution, service institution, 
     facility, or individual that has been terminated from any 
     program authorized under this Act or the Child Nutrition Act 
     of 1966 (42 U.S.C. 1771 et seq.) and is on a list of 
     disqualified institutions and individuals under section 13 or 
     section 17(d)(5)(E) of this Act may not be approved to 
     participate in or administer any program authorized under 
     this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 
     et seq.).''.

                        TITLE IV--MISCELLANEOUS

           Subtitle A--Reauthorization of Expiring Provisions

          PART I--RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

     SEC. 401. COMMODITY SUPPORT.

       Section 6(e)(1)(B) of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by 
     striking ``September 30, 2010'' and inserting ``September 30, 
     2020''.

     SEC. 402. FOOD SAFETY AUDITS AND REPORTS BY STATES.

       Section 9(h) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(h)) is amended--
       (1) in paragraph (3), by striking ``2006 through 2010'' and 
     inserting ``2011 through 2015''; and
       (2) in paragraph (4), by striking ``2006 through 2010'' and 
     inserting ``2011 through 2015''.

     SEC. 403. PROCUREMENT TRAINING.

       Section 12(m)(4) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1760(m)(4)) is amended by striking 
     ``2005 through 2009'' and inserting ``2010 through 2015''.

     SEC. 404. AUTHORIZATION OF THE SUMMER FOOD SERVICE PROGRAM 
                   FOR CHILDREN.

       Subsection (r) of section 13 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1761) (as redesignated 
     by section 322(1)) is amended by striking ``September 30, 
     2009'' and inserting ``September 30, 2015''.

     SEC. 405. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.

       Subsection (i)(5) of section 18 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769) (as redesignated 
     by section 243(1)) is amended by striking ``2005 through 
     2010'' and inserting ``2011 through 2015''.

     SEC. 406. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE 
                   MANAGEMENT INSTITUTE.

       Section 21(e) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769b-1(e)) is amended--
       (1) by striking ``(e) Authorization of Appropriations'' and 
     all that follows through the end of paragraph (2)(A) and 
     inserting the following:
       ``(e) Food Service Management Institute.--
       ``(1) Funding.--
       ``(A) In general.--In addition to any amounts otherwise 
     made available for fiscal year 2011, on October 1, 2010, and 
     each October 1 thereafter, out of any funds in the Treasury 
     not otherwise appropriated, the Secretary of the Treasury 
     shall transfer to the Secretary to carry out subsection 
     (a)(2) $5,000,000, to remain available until expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     subsection (a)(2) the funds transferred under subparagraph 
     (A), without further appropriation.'';
       (2) by redesignating subparagraphs (B) and (C) as 
     paragraphs (2) and (3), respectively, and indenting 
     appropriately;
       (3) in paragraph (2) (as so redesignated), by striking 
     ``subparagraph (A)'' each place it appears and inserting 
     ``paragraph (1)''; and
       (4) in paragraph (3) (as so redesignated), by striking 
     ``subparagraphs (A) and (B)'' and inserting ``paragraphs (1) 
     and (2)''.

     SEC. 407. FEDERAL ADMINISTRATIVE SUPPORT.

       Section 21(g)(1)(A)) of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1769b-1(g)(1)(A)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause(ii), by striking the period at the end and 
     inserting ``; and''
       (3) and by adding at the end the following:
       ``(iii) on October 1, 2010, and every October 1 thereafter, 
     $4,000,000.''.

     SEC. 408. COMPLIANCE AND ACCOUNTABILITY.

       Section 22(d) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769c(d)) is amended by striking 
     ``$6,000,000 for each of fiscal years 2004 through 2009'' and 
     inserting ``$10,000,000 for each of fiscal years 2011 through 
     2015''.

     SEC. 409. INFORMATION CLEARINGHOUSE.

       Section 26(d) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769g(d)) is amended in the first 
     sentence by striking ``2005 through 2010'' and inserting 
     ``2010 through 2015''.

                  PART II--CHILD NUTRITION ACT OF 1966

     SEC. 421. TECHNOLOGY INFRASTRUCTURE IMPROVEMENT.

       Section 7(i)(4) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1776(i)(4)) is amended by striking ``2005 through 
     2009'' and inserting ``2010 through 2015''.

     SEC. 422. STATE ADMINISTRATIVE EXPENSES.

       Section 7(j) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1776(j)) is amended by striking ``October 1, 2009'' and 
     inserting ``October 1, 2015''.

     SEC. 423. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       Section 17(g)(1)(A) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(g)(1)(A)) is amended by striking ``each of fiscal 
     years 2004 through 2009'' and inserting ``each of fiscal 
     years 2010 through 2015''.

     SEC. 424. FARMERS MARKET NUTRITION PROGRAM.

       Section 17(m)(9) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(m)(9)) is amended by striking subparagraph (A) 
     and inserting the following:
       ``(A) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2010 
     through 2015.''.

                    Subtitle B--Technical Amendments

     SEC. 441. TECHNICAL AMENDMENTS.

       (a) Richard B. Russell National School Lunch Act.--
       (1) Nutritional requirements.--Section 9(f) of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1758(f)) is 
     amended--
       (A) by striking ``(f)'' and all that follows through the 
     end of paragraph (1) and inserting the following:
       ``(f) Nutritional Requirements.--
       ``(1) In general.--Schools that are participating in the 
     school lunch program or school

[[Page 15348]]

     breakfast program shall serve lunches and breakfasts that--
       ``(A) are consistent with the goals of the most recent 
     Dietary Guidelines for Americans published under section 301 
     of the National Nutrition Monitoring and Related Research Act 
     of 1990 (7 U.S.C. 5341); and
       ``(B) consider the nutrient needs of children who may be at 
     risk for inadequate food intake and food insecurity.'';
       (B) by striking paragraph (2); and
       (C) by redesignating paragraphs (3) through (5) as 
     paragraphs (2) through (4), respectively.
       (2) Rounding rules for computation of adjustment.--Section 
     11(a)(3)(B) of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1759a(a)(3)(B)) is amended by striking 
     ``Rounding.--'' and all that follows through ``On July'' in 
     subclause (II) and inserting ``Rounding.--On July''.
       (3) Information and assistance concerning reimbursement 
     options.--Section 11 of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1759a) is amended by striking 
     subsection (f).
       (4) 1995 regulations to implement dietary guidelines.--
     Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) is amended by striking subsection (k).
       (5) Summer food service program for children.--
       (A) In general.--Section 13 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1761) is amended by 
     striking the section heading and all that follows through the 
     end of subsection (a)(1) and inserting the following:

     ``SEC. 13. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

       ``(a) In General.--
       ``(1) Definitions.--In this section:
       ``(A) Area in which poor economic conditions exist.--
       ``(i) In general.--Subject to clause (ii), the term `area 
     in which poor economic conditions exist', as the term relates 
     to an area in which a program food service site is located, 
     means--

       ``(I) the attendance area of a school in which at least 50 
     percent of the enrolled children have been determined 
     eligible for free or reduced price school meals under this 
     Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.);
       ``(II) a geographic area, as defined by the Secretary based 
     on the most recent census data available, in which at least 
     50 percent of the children residing in that area are eligible 
     for free or reduced price school meals under this Act and the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
       ``(III) an area--

       ``(aa) for which the program food service site documents 
     the eligibility of enrolled children through the collection 
     of income eligibility statements from the families of 
     enrolled children or other means; and
       ``(bb) at least 50 percent of the children enrolled at the 
     program food service site meet the income standards for free 
     or reduced price school meals under this Act and the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);

       ``(IV) a geographic area, as defined by the Secretary based 
     on information provided from a department of welfare or 
     zoning commission, in which at least 50 percent of the 
     children residing in that area are eligible for free or 
     reduced price school meals under this Act and the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
       ``(V) an area for which the program food service site 
     demonstrates through other means approved by the Secretary 
     that at least 50 percent of the children enrolled at the 
     program food service site are eligible for free or reduced 
     price school meals under this Act and the Child Nutrition Act 
     of 1966 (42 U.S.C. 1771 et seq.).

       ``(ii) Duration of determination.--A determination that an 
     area is an `area in which poor economic conditions exist' 
     under clause (i) shall be in effect for--

       ``(I) in the case of an area described in clause (i)(I), 5 
     years;
       ``(II) in the case of an area described in clause (i)(II), 
     until more recent census data are available;
       ``(III) in the case of an area described in clause 
     (i)(III), 1 year; and
       ``(IV) in the case of an area described in subclause (IV) 
     or (V) of clause (i), a period of time to be determined by 
     the Secretary, but not less than 1 year.

       ``(B) Children.--The term `children' means--
       ``(i) individuals who are 18 years of age and under; and
       ``(ii) individuals who are older than 18 years of age who 
     are--

       ``(I) determined by a State educational agency or a local 
     public educational agency of a State, in accordance with 
     regulations promulgated by the Secretary, to have a 
     disability, and
       ``(II) participating in a public or nonprofit private 
     school program established for individuals who have a 
     disability.

       ``(C) Program.--The term `program' means the summer food 
     service program for children authorized by this section.
       ``(D) Service institution.--The term `service institution' 
     means a public or private nonprofit school food authority, 
     local, municipal, or county government, public or private 
     nonprofit higher education institution participating in the 
     National Youth Sports Program, or residential public or 
     private nonprofit summer camp, that develops special summer 
     or school vacation programs providing food service similar to 
     food service made available to children during the school 
     year under the school lunch program under this Act or the 
     school breakfast program under the Child Nutrition Act of 
     1966 (42 U.S.C. 1771 et seq.).
       ``(E) State.--The term `State' means--
       ``(i) each of the several States of the United States;
       ``(ii) the District of Columbia;
       ``(iii) the Commonwealth of Puerto Rico;
       ``(iv) Guam;
       ``(v) American Samoa;
       ``(vi) the Commonwealth of the Northern Mariana Islands; 
     and
       ``(vii) the United States Virgin Islands.''.
       (B) Conforming amendments.--Section 13(a) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1761(a)) is 
     amended--
       (i) in paragraph (2)--

       (I) by striking ``(2) To the maximum extent feasible,'' and 
     inserting the following:

       ``(2) Program authorization.--
       ``(A) In general.--The Secretary may carry out a program to 
     assist States, through grants-in-aid and other means, to 
     initiate and maintain nonprofit summer food service programs 
     for children in service institutions.
       ``(B) Preparation of food.--
       ``(i) In general.--To the maximum extent feasible,''; and

       (II) by striking ``The Secretary shall'' and inserting the 
     following:

       ``(ii) Information and technical assistance.--The Secretary 
     shall'';
       (ii) in paragraph (3)--

       (I) by striking ``(3) Eligible service institutions'' and 
     inserting the following:

       ``(3) Eligible service institutions.--Eligible service 
     institutions''; and

       (II) by indenting subparagraphs (A) through (D) 
     appropriately;

       (iii) in paragraph (4)--

       (I) by redesignating subparagraphs (A) through (D) as 
     clauses (i) through (iv), respectively, and indenting 
     appropriately;
       (II) by striking ``(4) The following'' and inserting the 
     following:

       ``(4) Priority.--
       ``(A) In general.--The following''; and

       (III) by striking ``The Secretary and the States'' and 
     inserting the following:

       ``(B) Rural areas.--The Secretary and the States'';
       (iv) by striking ``(5) Camps'' and inserting the following:
       ``(5) Camps.--Camps''; and
       (v) by striking ``(6) Service institutions'' and inserting 
     the following:
       ``(6) Government institutions.--Service institutions''.
       (6) Report on impact of procedures to secure state school 
     input on commodity selection.--Section 14(d) of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1762a(d)) is 
     amended by striking the matter that follows paragraph (5).
       (7) Rural area day care home pilot program.--Section 17 of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1766) is amended by striking subsection (p).
       (8) Child and adult care food program training and 
     technical assistance.--Section 17(q) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766(q)) is 
     amended by striking paragraph (3).
       (9) Pilot project for private nonprofit state agencies.--
     Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended by striking subsection (a).
       (10) Meal counting and application pilot programs.--Section 
     18(c) of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1769(c)) is amended--
       (A) by striking paragraphs (1) and (2);
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (1) and (2), respectively; and
       (C) in paragraph (1) (as so redesignated), by striking ``In 
     addition to the pilot projects described in this subsection, 
     the Secretary may conduct other'' and inserting ``The 
     Secretary may conduct''.
       (11) Milk fortification pilot.--Section 18 of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1769) is 
     amended by striking subsection (d).
       (12) Free breakfast pilot project.--Section 18 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
     is amended by striking subsection (e).
       (13) Summer food service residential camp eligibility.--
     Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended by striking subsection (f).
       (14) Accommodation of the special dietary needs of 
     individuals with disabilities.--Section 27 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1769h) is 
     repealed.
       (b) Child Nutrition Act of 1966.--
       (1) State administrative expenses minimum levels for 2005 
     through 2007.--Section 7(a)(1) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1776(a)(1)) is amended--
       (A) in subparagraph (A), by striking ``Except as provided 
     in subparagraph (B), each fiscal year'' and inserting ``Each 
     fiscal year'';

[[Page 15349]]

       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B).
       (2) Fruit and vegetable grants under the special 
     supplemental nutrition program for women, infants, and 
     children.--Section 17(f)(11) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1786(f)(11)) is amended--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraph (D) as subparagraph (C).

     SEC. 442. USE OF UNSPENT FUTURE FUNDS FROM THE AMERICAN 
                   RECOVERY AND REINVESTMENT ACT OF 2009.

       Section 101(a) of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120) is 
     amended--
       (1) in paragraph (1), by inserting before the period at the 
     end ``, if the value of the benefits and block grants would 
     be greater under that calculation than in the absence of this 
     subsection''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Termination.--The authority provided by this 
     subsection shall terminate after October 31, 2013.''.

     SEC. 443. EQUIPMENT ASSISTANCE TECHNICAL CORRECTION.

       (a) In General.--Notwithstanding any other provision of 
     law, school food authorities that received a grant for 
     equipment assistance under the grant program carried out 
     under the heading ``FOOD AND NUTRITION SERVICE CHILD 
     NUTRITION PROGRAMS'' in title I of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
     Stat. 119) shall be eligible to receive a grant under section 
     749(j) of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 2010 
     (Public Law 111-80; 123 Stat. 2134).
       (b) Use of Grant.--A school food authority receiving a 
     grant for equipment assistance described in subsection (a) 
     may use the grant only to make equipment available to schools 
     that did not previously receive equipment from a grant under 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 115).

     SEC. 444. 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.

     SEC. 445. EFFECTIVE DATE.

       Except as otherwise specifically provided in this Act or 
     any of the amendments made by this Act, this Act and the 
     amendments made by this Act take effect on October 1, 2010.
                                 ______
                                 
  SA 4590. Mr. KYL (for himself and Mr. McCain) submitted an amendment 
intended to be proposed by him to the bill H.R. 5875, making emergency 
supplemental appropriations for border security for the fiscal year 
ending September 30, 2010, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:
       Sec. __. (a) For the Department of Justice, $20,000,000 are 
     made available for 150 additional investigators or the Law 
     Enforcement Support Center (LESC), administered by U.S. 
     Immigration and Customs Enforcement (ICE).
       (b)(1) The unobligated balance of each amount appropriated 
     or made available under the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5) (other than under 
     title X of division A of such Act) is rescinded on a pro rata 
     basis so that the aggregate amount of such rescissions is 
     equal to the net reduction in revenues to the Treasury 
     resulting from amounts appropriated under this section.
       (2) The Director of the Office of Management and Budget 
     shall report to each congressional committee the amounts 
     rescinded under paragraph (1) within the jurisdiction of such 
     committee.
                                 ______
                                 
  SA 4591. Mr. KYL (for himself and Mr. McCain) submitted an amendment 
intended to be proposed by him to the bill H.R. 5875, making emergency 
supplemental appropriations for border security for the fiscal year 
ending September 30, 2010, and for other purposes; which was ordered to 
lie on the table; as follows:

       On page 2, strike lines 5 through 17 and insert the 
     following:
       (a) For an additional amount for ``Salaries and Expenses'' 
     for U.S. Customs and Border Protection, $356,900,000, to 
     remain available until September 30, 2012, of which 
     $78,000,000 shall be for costs to maintain U.S. Customs and 
     Border Protection Officer staffing on the Southwest Border of 
     the United States, of which $58,000,000 shall be for hiring 
     additional U.S. Customs and Border Protection Officers for 
     deployment at ports of entry on the Southwest Border of the 
     United States.
       (b)(1) The unobligated balance of each amount appropriated 
     or made available under the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5) (other than under 
     title X of division A of such Act) is rescinded on a pro rata 
     basis so that the aggregate amount of such rescissions is 
     equal to the net reduction in revenues to the Treasury 
     resulting from amounts appropriated under this section.
       (2) The Director of the Office of Management and Budget 
     shall report to each congressional committee the amounts 
     rescinded under paragraph (1) within the jurisdiction of such 
     committee.
                                 ______
                                 
  SA 4592. Mr. KYL (for himself and Mr. McCain) submitted an amendment 
intended to be proposed by him to the bill H.R. 5875, making emergency 
supplemental appropriations for border security for the fiscal year 
ending September 30, 2010, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:
       Sec. __. (a) For an additional amount to fully implement a 
     multi-agency law enforcement initiative to address illegal 
     crossings of the Southwest border, including in the Tucson 
     Sector, as authorized under title II of the Department of 
     Homeland Security Appropriations Act, 2010 (Public Law 111-
     83), $200,000,000, of which--
       (1) $155,000,000 shall be available for--
       (A) hiring additional Deputy United States Marshals;
       (B) constructing additional permanent and temporary 
     detention space; and
       (C) related needs, as determined by the Secretary of 
     Homeland Security and the Attorney General; and
       (2) $45,000,000 shall be available for--
       (A) courthouse renovation;
       (B) administrative support, including hiring additional 
     clerks for each District to process additional criminal 
     cases; and
       (C) hiring additional judges.
       (b)(1) The unobligated balance of each amount appropriated 
     or made available under the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5) (other than under 
     title X of division A of such Act) is rescinded on a pro rata 
     basis so that the aggregate amount of such rescissions is 
     equal to the net reduction in revenues to the Treasury 
     resulting from amounts appropriated under this section.
       (2) The Director of the Office of Management and Budget 
     shall report to each congressional committee the amounts 
     rescinded under paragraph (1) within the jurisdiction of such 
     committee.
                                 ______
                                 
  SA 4593. Mr. SCHUMER (for himself, Mr. Reid, Mr. Inouye, Mrs. Murray, 
Mrs. Feinstein, Mr. Bingaman, Mrs. McCaskill, Mr. Casey, Mr. Merkley, 
Mr. Udall of Colorado, Mr. Begich, Mr. Burris, Mrs. Lincoln, Mr. Udall 
of New Mexico, Mr. Kyl, and Mr. McCain) proposed an amendment to the 
bill H.R. 5875, making emergency supplemental appropriations for border 
security for the fiscal year ending September 30, 2010, and for other 
purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2010, and for other purposes, namely:

                                TITLE I

                    DEPARTMENT OF HOMELAND SECURITY

                   U.S. Customs and Border Protection

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $253,900,000, to remain available until September 30, 2011, 
     of which $39,000,000 shall be for costs to maintain U.S. 
     Customs and Border Protection Officer staffing on the 
     Southwest Border of the United States, $29,000,000 shall be 
     for hiring additional U.S. Customs and Border Protection 
     Officers for deployment at ports of entry on the Southwest 
     Border of the United States, $175,900,000 shall be for hiring 
     additional Border Patrol agents for deployment to the 
     Southwest Border of the United States, and $10,000,000 shall 
     be to support integrity and background investigation 
     programs.

        border security fencing, infrastructure, and technology

       For an additional amount for ``Border Security Fencing, 
     Infrastructure, and Technology,'' $14,000,000, to remain 
     available until September 30, 2011, for costs of designing, 
     building, and deploying tactical communications for support 
     of enforcement activities on the Southwest Border of the 
     United States.

 air and marine interdiction, operations, maintenance, and procurement

       For an additional amount for ``Air and Marine Interdiction, 
     Operations, Maintenance, and Procurement'', $32,000,000, to 
     remain available until September 30, 2012, for costs of 
     acquisition and deployment of unmanned aircraft systems.

                 construction and facilities management

       For an additional amount for ``Construction and Facilities 
     Management'', $6,000,000,

[[Page 15350]]

     to remain available until September 30, 2011, for costs to 
     construct up to 2 forward operating bases for use by the 
     Border Patrol to carry out enforcement activities on the 
     Southwest Border of the United States.

                U.S. Immigration and Customs Enforcement

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $80,000,000 to remain available until September 30, 2011, of 
     which $30,000,000 shall be for law enforcement activities 
     targeted at reducing the threat of violence along the 
     Southwest Border of the United States, and $50,000,000 shall 
     be for hiring of additional agents, investigators, 
     intelligence analysts, and support personnel.

                Federal Law Enforcement Training Center

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $8,100,000, to remain available until September 30, 2011, for 
     costs to provide basic training for new U.S. Customs and 
     Border Protection Officers, Border Patrol agents, and U.S. 
     Immigration and Customs Enforcement personnel.

                           GENERAL PROVISIONS

                              (rescission)

       Sec. 101.  From unobligated balances made available to U.S. 
     Customs and Border Protection ``Border Security Fencing, 
     Infrastructure, and Technology'', $100,000,000 are rescinded: 
     Provided, That section 401 shall not apply to the amount in 
     this section.

                                TITLE II

                         DEPARTMENT OF JUSTICE

       Sec. 201.  For an additional amount for the Department of 
     Justice for necessary expenses for increased law enforcement 
     activities related to Southwest Border enforcement, 
     $196,000,000, to remain available until September 30, 2011: 
     Provided, That funds shall be distributed to the following 
     accounts and in the following specified amounts:
       (1) ``Administrative Review and Appeals'', $2,118,000.
       (2) ``Detention Trustee'', $7,000,000.
       (3) ``Legal Activities, Salaries and Expenses, General 
     Legal Activities'', $3,862,000.
       (4) ``Legal Activities, Salaries and Expenses, United 
     States Attorneys'', $9,198,000.
       (5) ``United States Marshals Service, Salaries and 
     Expenses'', $29,651,000.
       (6) ``United States Marshals Service, Construction'', 
     $8,000,000.
       (7) ``Interagency Law Enforcement, Interagency Crime and 
     Drug Enforcement'', $21,000,000.
       (8) ``Federal Bureau of Investigation, Salaries and 
     Expenses'', $24,000,000.
       (9) ``Drug Enforcement Administration, Salaries and 
     Expenses'', $33,671,000.
       (10) ``Bureau of Alcohol, Tobacco, Firearms and Explosives, 
     Salaries and Expenses'', $37,500,000.
       (11) ``Federal Prison System, Salaries and Expenses'', 
     $20,000,000.

                               TITLE III

                             THE JUDICIARY

    Courts of Appeals, District Courts, and Other Judicial Services

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $10,000,000, to remain available until September 30, 2011: 
     Provided, That notwithstanding section 302 of division C of 
     Public Law 111-117, funding shall be available for transfer 
     between Judiciary accounts to meet increased workload 
     requirements resulting from immigration and other law 
     enforcement initiatives.

                                TITLE IV

                           GENERAL PROVISIONS

       Sec. 401.  Each amount appropriated or otherwise made 
     available under this Act is designated as an emergency 
     requirement and necessary to meet emergency needs pursuant to 
     sections 403(a) and 423(b) of S. Con. Res. 13 (111th 
     Congress), the concurrent resolution on the budget for fiscal 
     year 2010.
       Sec. 402. (a) Notwithstanding any other provision of this 
     Act or any other provision of law, during the period 
     beginning on the date of the enactment of this Act and ending 
     on September 30, 2014, the filing fee and fraud prevention 
     and detection fee required to be submitted with an 
     application for admission as a nonimmigrant under section 
     101(a)(15)(L) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(L)) shall be increased by $2,250 for 
     applicants that employ 50 or more employees in the United 
     States if more than 50 percent of the applicant's employees 
     are nonimmigrants admitted pursuant to section 
     101(a)(15)(H)(i)(b) of such Act or section 101(a)(15)(L) of 
     such Act.
       (b) Notwithstanding any other provision of this Act or any 
     other provision of law, during the period beginning on the 
     date of the enactment of this Act and ending on September 30, 
     2014, the filing fee and fraud prevention and detection fee 
     required to be submitted with an application for admission as 
     a nonimmigrant under section 101(a)(15)(H)(i)(b) of the 
     Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(i)(b)) shall be increased by $2,000 for 
     applicants that employ 50 or more employees in the United 
     States if more than 50 percent of the applicant's employees 
     are such nonimmigrants or nonimmigrants described in section 
     101(a)(15)(L) of such Act.
       (c) During the period beginning on the date of the 
     enactment of this Act and ending on September 30, 2014, all 
     amounts collected pursuant to the fee increases authorized 
     under this section shall be deposited in the General Fund of 
     the Treasury.
                                 ______
                                 
  SA 4594. Mr. REID (for Mr. Baucus (for himself, Ms. Landrieu, and 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:

       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.

[[Page 15351]]

    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--ADDITIONAL SMALL BUSINESS PROVISIONS

                Subtitle A--Small Business Lending Fund

Sec. 4101. Purpose.
Sec. 4102. Definitions.
Sec. 4103. Small business lending fund.
Sec. 4104. Additional authorities of the Secretary.
Sec. 4105. Considerations.
Sec. 4106. Reports.
Sec. 4107. Oversight and audits.
Sec. 4108. Credit reform; funding.
Sec. 4109. Termination and continuation of authorities.
Sec. 4110. Preservation of authority.
Sec. 4111. Assurances.
Sec. 4112. Study and report with respect to women-owned, veteran-owned, 
              and minority-owned businesses.
Sec. 4113. Sense of congress.

                      Subtitle B--Other Provisions

          PART I--Small Business Export Promotion Initiatives

Sec. 4221. Short title.
Sec. 4222. Global business development and promotion activities of the 
              Department of Commerce.
Sec. 4223. Additional funding to improve access to global markets for 
              rural businesses.
Sec. 4224. Additional funding for the ExporTech program.
Sec. 4225. Additional funding for the market development cooperator 
              program of the department of commerce.
Sec. 4226. Hollings Manufacturing Partnership Program; Technology 
              Innovation Program.
Sec. 4227. Sense of the Senate concerning Federal collaboration with 
              States on export promotion issues.
Sec. 4228. Report on tariff and nontariff barriers.

                        PART II--Medicare Fraud

Sec. 4241. Use of predictive modeling and other analytics technologies 
              to identify and prevent waste, fraud, and abuse in the 
              Medicare fee-for-service program.

                     TITLE V--BUDGETARY PROVISIONS

Sec. 5001. 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).

              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

[[Page 15352]]

       (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.

       ``(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

[[Page 15353]]

     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.''.
       (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

[[Page 15354]]

     (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;
       ``(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

[[Page 15355]]

     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:
       ``(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

[[Page 15356]]

       ``(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 in foreign markets;
       ``(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;
       ``(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

[[Page 15357]]

     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;
       (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

[[Page 15358]]

     (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 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

[[Page 15359]]

       (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 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

[[Page 15360]]

     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 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:

[[Page 15361]]

       ``(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 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:

[[Page 15362]]

       ``(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)).
       (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

[[Page 15363]]

       ``(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 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

[[Page 15364]]

     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 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.

[[Page 15365]]

       ``(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''.
       (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,

[[Page 15366]]

     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
       (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--

[[Page 15367]]

       ``(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''.
       (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

[[Page 15368]]

     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 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

[[Page 15369]]

       (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 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

[[Page 15370]]

     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 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

[[Page 15371]]

       (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 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

[[Page 15372]]

     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--ADDITIONAL SMALL BUSINESS PROVISIONS

                Subtitle A--Small Business Lending Fund

     SEC. 4101. 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. 4102. 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);
       (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

[[Page 15373]]

     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 4103(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 
     4103(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. 4103. 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 4108, 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 $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

[[Page 15374]]

     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 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 4104(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

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     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 4104(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. 4104. 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 4103(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. 4105. 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. 4106. 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. 4107. 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 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

[[Page 15376]]

     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. 4108. 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. 4109. 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 4104 shall not be limited by the 
     termination date in subsection (a).

     SEC. 4110. PRESERVATION OF AUTHORITY.

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

     SEC. 4111. 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. 4112. 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. 4113. 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. 4221. SHORT TITLE.

       This part may be cited as the ``Export Promotion Act of 
     2010''.

     SEC. 4222. 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.

     SEC. 4223. 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. 4224. 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. 4225. 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.

[[Page 15377]]



     SEC. 4226. 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. 4227. 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. 4228. 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. 4241. 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 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

[[Page 15378]]

     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.

                     TITLE V--BUDGETARY PROVISIONS

     SEC. 5001. 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 4595. Mr. REID (for Mr. Nelson of Florida) proposed an amendment 
to amendment SA 4594 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; as follows:

       At the end of subtitle B of title II, add the following:

                     PART V--ADDITIONAL PROVISIONS

     SEC. ___. CERTAIN EXCEPTIONS TO INFORMATION REPORTING 
                   PROVISIONS.

       (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 and section 2101 of this Act, is 
     amended by redesignating subsection (j) as subsection (k) and 
     inserting after subsection (i) the following new subsection:
       ``(j) Coordination With Returns Relating to Payment Card 
     and Third Party Network Transactions.--This section shall not 
     apply to any amount with respect to which a return is 
     required to be made under section 6050W.''.
       (b) Increase in Threshold Amount and Exemption for Small 
     Employers for Reporting of Payments Relating to Property.--
     Subsection (a) of section 6041 of the Internal Revenue Code 
     of 1986, as amended by the Patient Protection and Affordable 
     Care Act, is amended by adding at the end the following new 
     sentences: ``In the case of payments in consideration of 
     property, this subsection shall be applied by substituting 
     `$5,000' for `$600' and this subsection shall not apply in 
     the case of any person employing not more than 25 employees 
     at any time during the taxable year. For purposes of the 
     preceding sentence, all persons treated as a single employer 
     under subsection (b), (c), (m), or (o) of section 414 shall 
     be treated as one employer.''.
       (c) Regulatory Authority.--Subsection (k) of section 6041 
     of the Internal Revenue Code of 1986, as redesignated by 
     subsection (a), is amended by striking ``including'' and all 
     that follows and inserting ``including--
       ``(1) rules to prevent duplicative reporting of 
     transactions, and
       ``(2) rules which identify, and provide exceptions for, 
     payments which bear minimal risk of noncompliance.''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to amounts with 
     respect

[[Page 15379]]

     to which a return is required to be made in calendar years 
     beginning after December 31, 2010.
       (2) Property threshold.--The amendment made by subsection 
     (b) shall apply as if included in the amendments made by 
     section 9006 of the Patient Protection and Affordable Care 
     Act.
       (e) Public Comments and Suggestions.--In order to minimize 
     the burden on small businesses and to avoid duplicative 
     information reporting by small businesses, the Secretary of 
     the Treasury or the Secretary's designee is directed to 
     request and consider comments and suggestions from the public 
     concerning implementation and administration of the 
     amendments made by section 9006 of the Patient Protection and 
     Affordable Care Act, including--
       (1) the appropriate scope of the terms ``gross proceeds'' 
     and ``amounts in consideration for property'' in section 
     6041(a) of the Internal Revenue Code of 1986, as amended by 
     such section 9006,
       (2) whether or how the reporting requirements should apply 
     to payments between affiliated corporations, including 
     payments related to intercompany transactions within the same 
     consolidated group,
       (3) the appropriate time and manner of reporting to the 
     Internal Revenue Service, and whether, and what, changes to 
     existing procedures, forms, and software for filing 
     information returns are needed, including electronic filing 
     of information returns to the Internal Revenue Service,
       (4) whether, and what, changes to existing procedures and 
     forms to acquire taxpayer identification numbers are needed, 
     and
       (5) how back-up withholding requirements should apply.
       (f) Timely Guidance.--The Secretary of the Treasury is 
     directed to issue timely guidance that will implement and 
     administer the amendments made by section 9006 of the Patient 
     Protection and Affordable Care Act in a manner that minimizes 
     the burden on small businesses and avoids duplicative 
     reporting by small businesses.
       (g) Reports to Congress.--
       (1) In general.--Prior to the effective date of the 
     amendments made by section 9006 of the Patient Protection and 
     Affordable Care Act, the Secretary of the Treasury shall 
     report quarterly to Congress concerning the steps taken to 
     implement such amendments, including ways to limit compliance 
     burdens and to avoid duplicative reporting. Such reports 
     shall include--
       (A) a description of actions taken to minimize, reduce or 
     eliminate burdens associated with information reporting by 
     small businesses, and
       (B) a description of business transactions exempted from 
     reporting requirements to avoid duplicative reporting or 
     because such transactions represent minimal compliance risk.
       (2) Comparison.--Not later than 6 months prior to the 
     effective date of the amendments made by section 9006 of the 
     Patient Protection and Affordable Care Act, the Secretary of 
     the Treasury shall report to Congress a comparison of the 
     expected compliance requirements after the implementation of 
     such amendments to the compliance requirements under section 
     6041 of the Internal Revenue Code of 1986 prior to the 
     effective date of such amendments.

     SEC. ___. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED OIL 
                   COMPANIES FOR INCOME ATTRIBUTABLE TO DOMESTIC 
                   PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS 
                   THEREOF.

       (a) In General.--Subparagraph (B) of section 199(c)(4) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``or'' at the end of clause (ii), by striking the period at 
     the end of clause (iii) and inserting ``, or'', and by 
     inserting after clause (iii) the following new clause:
       ``(iv) in the case of a taxpayer which is a major 
     integrated oil company (as defined in section 167(h)(5)(B)), 
     oil related qualified production activities (within the 
     meaning of subsection (d)(9)(B)).''.
       (b) Conforming Amendment.--Section 199(d)(9)(A) of the 
     Internal Revenue Code of 1986 is amended by inserting 
     ``(other than a major integrated oil company (as defined in 
     section 167(h)(5)(B))'' after ``taxpayer''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.
                                 ______
                                 
  SA 4596. Mr. REID (for Mr. Johanns) proposed an amendment to 
amendment SA 4595 proposed by Mr. Reid (for Mr. Nelson of Florida) to 
the amendment SA 4594 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; as follows:

       At the appropriate place, insert the following:

                     PART IV--ADDITIONAL PROVISIONS

     SEC. 4271. REPEAL OF EXPANSION OF INFORMATION REPORTING 
                   REQUIREMENTS.

       Section 9006 of the Patient Protection and Affordable Care 
     Act, and the amendments made thereby, are hereby repealed; 
     and the Internal Revenue Code of 1986 shall be applied as if 
     such section, and amendments, had never been enacted.

     SEC. 4272. EXPANSION OF AFFORDABILITY EXCEPTION TO INDIVIDUAL 
                   MANDATE.

       Section 5000A(e)(1)(A) of the Internal Revenue Code of 1986 
     is amended by striking ``8 percent'' and inserting ``5 
     percent''.

     SEC. 4273. USE OF PREVENTION AND PUBLIC HEALTH FUND.

       (a) Use of Funds as Offset Through Fiscal Year 2017.--
     Section 4002(b) of the Patient Protection and Affordable Care 
     Act is amended by striking ``appropriated--'' and all that 
     follows and inserting ``appropriated, for fiscal year 2018, 
     and each fiscal year thereafter, $2,000,000,000''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of section 
     4002 of the Patient Protection and Affordable Care Act.

     SEC. 4274. 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 4.25 
     percentage points.
                                 ______
                                 
  SA 4597. 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 6 days after enactment.
                                 ______
                                 
  SA 4598. Mr. REID proposed an amendment to amendment SA 4597 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 the amendment, strike ``6'' and insert ``4''.
                                 ______
                                 
  SA 4599. 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 puropses; 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 all opportunities for access to capital.
                                 ______
                                 
  SA 4600. Mr. REID proposed an amendment to amendment SA 4599 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 4601. Mr. REID proposed an amendment to amendment SA 4600 proposed 
by Mr. Reid to the amendment SA 4599 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

[[Page 15380]]

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 4602. Mr. REID (for Mr. Rockefeller) proposed an amendment to the 
bill S. 3729, to authorize the programs of the National Aeronautics and 
Space Administration for fiscal years 2011 through 2013, and for other 
purposes; as follows:

       On page 2, after the item relating to section 504, insert 
     the following:

Sec. 505. Scientific access to the International Space Station.

       On page 4, before line 1, after the item relating to 
     section 1210, insert the following:

    TITLE XIII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

Sec. 1301. Compliance provision.

       On page 36, after line 25, insert the following:
       Sec. 309. Report Requirement.--Within 90 days after the 
     date of enactment of this Act, or upon completion of 
     reference designs for the Space Launch System and Multi-
     Purpose Crew Vehicle authorized by this Act, whichever occurs 
     first, the Administrator shall provide a detailed report to 
     the appropriate committees of Congress that provides an 
     overall description of the reference vehicle design, the 
     assumptions, description, data, and analysis of the systems 
     trades and resolution process, justification of trade 
     decisions, the design factors which implement the essential 
     system and vehicle capability requirements established by 
     this Act, the explanation and justification of any deviations 
     from those requirements, the plan for utilization of existing 
     contracts, civil service and contract workforce, supporting 
     infrastructure utilization and modifications, and procurement 
     strategy to expedite development activities through 
     modification of existing contract vehicles, and the schedule 
     of design and development milestones and related schedules 
     leading to the accomplishment of operational goals 
     established by this Act. The Administrator shall provide an 
     update of this report as part of the President's annual 
     Budget Request.
       On page 32, line 4, strike ``measures'' and insert 
     ``measures, including investments to improve launch 
     infrastructure at NASA flight facilities scheduled to launch 
     cargo to the ISS under the commercial orbital transportation 
     services program,''.
       On page 33, after line 25, insert the following:
       (2) The extent to which the United States is reliant on 
     non-United States systems, including foreign rocket motors 
     and foreign launch vehicles.
       On page 34, line 1, strike ``(2)'' and insert ``(3)''.
       On page 38, strike lines 10 through 14 and insert the 
     following:
       (a) FY 2011 Contracts and Procurement Agreements.--
       (1) In general.--Except as provided in paragraph (2), the 
     Administrator may not execute a contract or procurement 
     agreement with respect to follow-on commercial crew services 
     during fiscal year 2011.
       (2) Exception.--Notwithstanding paragraph (1), the 
     Administrator may execute a contract or procurement agreement 
     with respect to follow-on commercial crew services during 
     fiscal year 2011 if--
       (A) the requirements of paragraphs (1), (2), and (3) of 
     subsection (b) are met; and
       (B) the total amount involved for all such contracts and 
     procurement agreements executed during fiscal year 2011 does 
     not exceed $50,000,000 for fiscal year 2011.
       On page 88, beginning with ``Upon'' in line 4, strike 
     through ``centers.'' in line 9 and insert ``Upon completion 
     of the study required by Section 1102, the Administrator 
     shall establish an independent panel to examine alternative 
     management models for NASA's workforce, centers, and related 
     facilities in order to improve efficiency and productivity, 
     while nonetheless maintaining core Federal competencies and 
     keeping appropriately governmental functions internal to 
     NASA.''.
       On page 89, beginning with ``involuntary'' in line 24, 
     strike through line 2 on page 90 and insert ``involuntary 
     separations of permanent, non-Senior-Executive-Service, civil 
     servant employees before September 30, 2013, except for cause 
     on charges of misconduct, delinquency, or inefficiency.
       On page 103, after line 9, insert the following:

    TITLE XIII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

     SEC. 1301. COMPLIANCE PROVISION.

       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.
       On page 61, line 23, after ``--ers'' insert ``or the 
     retrieval of NASA manned space vehicles, or significant 
     contributions to human space flight.''
                                 ______
                                 
  SA 4603. Mr. REID (for Mr. Pryor (for himself, Mr. Ensign, Mr. Kerry, 
and Mrs. Hutchison)) proposed an amendment to the bill S. 3304, to 
increase the access of persons with disabilities to modern 
communications, and for other purposes; as follows:

       On page 46, after line 16, after the item relating to 
     section 2 insert the following:

Sec. 3. Proprietary technology.
       On page 48, between lines 3 and 4, insert the following:

     SEC. 3. PROPRIETARY TECHNOLOGY.

       No action taken by the Federal Communications Commission to 
     implement this Act or any amendment made by this Act shall 
     mandate the use or incorporation of proprietary technology.
       On page 48, beginning in line 21, strike ``sites and 
     venues'' and insert ``websites and services''.
       On page 49, line 6, strike ``persons'' and insert 
     ``individuals''
       On page 56, beginning with line 22, strike through line 12 
     on page 57, and insert the following:
       ``(a) Manufacturing.--
       ``(1) In general.--With respect to equipment manufactured 
     after the effective date of the regulations established 
     pursuant to subsection (e), and subject to those regulations, 
     a manufacturer of equipment used for advanced communications 
     services, including end user equipment, network equipment, 
     and software, shall ensure that the equipment and software 
     that such manufacturer offers for sale or otherwise 
     distributes in interstate commerce shall be accessible to and 
     usable by individuals with disabilities, unless the 
     requirements of this subsection are not achievable.
       ``(2) Industry flexibility.--A manufacturer of equipment 
     may satisfy the requirements of paragraph (1) with respect to 
     such equipment by--
       ``(A) ensuring that the equipment that such manufacturer 
     offers is accessible to and usable by individuals with 
     disabilities without the use of third party applications, 
     peripheral devices, software, hardware, or customer premises 
     equipment; or
       ``(B) if such manufacturer chooses, using third party 
     applications, peripheral devices, software, hardware, or 
     customer premises equipment that is available to the consumer 
     at nominal cost and that individuals with disabilities can 
     access.
       ``(b) Service Providers.--
       ``(1) In general.--With respect to services provided after 
     the effective date of the regulations established pursuant to 
     subsection (e), and subject to those regulations, a provider 
     of advanced communications services shall ensure that such 
     services offered by such provider in or affecting interstate 
     commerce are accessible to and usable by individuals with 
     disabilities, unless the requirements of this subsection are 
     not achievable.
       ``(2) Industry flexibility.--A provider of services may 
     satisfy the requirements of paragraph (1) with respect to 
     such services by--
       ``(A) ensuring that the services that such provider offers 
     are accessible to and usable by individuals with disabilities 
     without the use of third party applications, peripheral 
     devices, software, hardware, or customer premises equipment; 
     or
       ``(B) if such provider chooses, using third party 
     applications, peripheral devices, software, hardware, or 
     customer premises equipment that is available to the consumer 
     at nominal cost and that individuals with disabilities can 
     access.
       On page 58, beginning with line 1, strike through line 7 on 
     page 59, and insert the following:
       ``(e) Regulations.--
       ``(1) In general.--Within one year after the date of 
     enactment of the Twenty-First Century Communications and 
     Video Accessibility Act of 2010, the Commission shall 
     promulgate such regulations as are necessary to implement 
     this section. In prescribing the regulations, the Commission 
     shall--
       ``(A) include performance objectives to ensure the 
     accessibility, usability, and compatibility of advanced 
     communications services and the equipment used for advanced 
     communications services by individuals with disabilities;
       ``(B) provide that advanced communications services, the 
     equipment used for advanced communications services, and 
     networks used to provide advanced communications services may 
     not impair or impede the accessibility of information content 
     when accessibility has been incorporated into that content 
     for transmission through advanced communications services, 
     equipment used for advanced communications services, or 
     networks used to provide advanced communications services;
       ``(C) determine the obligations under this section of 
     manufacturers, service providers, and providers of 
     applications or services accessed over service provider 
     networks; and
       ``(D) not mandate technical standards, except that the 
     Commission may adopt technical standards as a safe harbor for 
     such compliance if necessary to facilities the manufacturers' 
     and service providers' compliance with sections (a) through 
     (c).

[[Page 15381]]

       ``(2) Prospective guidelines.--The Commission shall issue 
     prospective guidelines for a manufacturer or provider 
     regarding the requirements of this section.
       On page 59, beginning in line 16, strike ``section,'' and 
     insert ``section and section 718,''.
       On page 60, strike lines 11 through 21, and insert the 
     following:
       ``(h) Commission Flexibility.--
       ``(1) Waiver.--The Commission shall have the authority, on 
     its own motion or in response to a petition by a manufacturer 
     or provider of advanced communications services or any 
     interested party, to waive the requirements of this section 
     for any feature or function of equipment used to provide or 
     access advanced communications services, or for any class of 
     such equipment, for any provider of advanced communications 
     services, or for any class of such services, that--
       ``(A) is capable of accessing an advanced communications 
     service; and
       ``(B) is designed for multiple purposes, but is designed 
     primarily for purposes other than using advanced 
     communications services.
       ``(2) Small entity exemption.--The Commission may exempt 
     small entities from the requirements of this section.
       ``(i) Customized Equipment or Services.--The provisions of 
     this section shall not apply to customized equipment or 
     services that are not offered directly to the public, or to 
     such classes of users as to be effectively available directly 
     to the public, regardless of the facilities used.
       ``(j) Rule of Construction.--This section shall not be 
     construed to require a manufacturer of equipment used for 
     advanced communications or a provider of advanced 
     communications services to make every feature and function of 
     every device or service accessible for every disability.
       On page 61, line 4, strike ``section 255 or 716,'' and 
     insert ``section 255, 716, or 718,''.
       On page 61, line 12, strike ``section 255 or 716.'' and 
     insert ``section 255, 716, or 718.''.
       On page 61, line 16, strike ``section 255 or 716.'' and 
     insert ``section 255, 716, or 718.''.
       On page 61, line 19, strike ``section 255 or 716'' and 
     insert ``section 255, 716, or 718''.
       On page 62, strike lines 7 through 14 and insert the 
     following:
       (i) If the Commission determines that a violation has 
     occurred, the Commission may, in the order issued under this 
     subparagraph or in a subsequent order, direct the 
     manufacturer or service provider to bring the service, or in 
     the case of a manufacturer, the next generation of the 
     equipment or device, into compliance with requirements of 
     those sections within a reasonable time established by the 
     Commission in its order.
       On page 63, line 4, after the period insert ``Before 
     issuing a final order under paragraph (3)(B)(i), the 
     Commission shall provide such party a reasonable opportunity 
     to comment on any proposed remedial action.''.
       On page 63, line 8, strike ``sections 255 and 716'' and 
     insert ``sections 255, 716, and 718''.
       On page 63, beginning in line 11, strike ``sections 255 and 
     716,'' and insert ``sections 255, 716, and 718,''.
       On page 64, line 21, strike ``section 255 or 716.'' and 
     insert ``section 255, 716, or 718.''.
       On page 65, line 20, strike ``section 255 and 716.'' and 
     insert ``sections 255, 716, and 718.''.
       On page 68, line 15, strike ``sections 255 and 716.'' and 
     insert ``sections 255, 716, and 718.''.
       On page 69, line 2, strike ``sections 255 and 716.'', the 
     closing quotation marks, and the second period and insert 
     ``sections 255, 716, and 718.''.
       On page 69, between lines 2 and 3, insert the following:

     ``SEC. 718. INTERNET BROWSERS BUILT INTO TELEPHONES USED WITH 
                   PUBLIC MOBILE SERVICES.

       ``(a) Accessibility.--If a manufacturer of a telephone used 
     with public mobile services (as such term is defined in 
     section 710(b)(4)(B)) includes an Internet browser in such 
     telephone, or if a provider of mobile service arranges for 
     the inclusion of a browser in telephones to sell to 
     customers, the manufacturer or provider shall ensure that the 
     functions of the included browser (including the ability to 
     launch the browser) are accessible to and usable by 
     individuals who are blind or have a visual impairment, unless 
     doing so is not achievable, except that this subsection shall 
     not impose any requirement on such manufacturer or provider--
       ``(1) to make accessible or usable any Internet browser 
     other than a browser that such manufacturer or provider 
     includes or arranges to include in the telephone; or
       ``(2) to make Internet content, applications, or services 
     accessible or usable (other than enabling individuals with 
     disabilities to use an included browser to access such 
     content, applications, or services).
       ``(b) Industry Flexibility.--A manufacturer or provider may 
     satisfy the requirements of subsection (a) with respect to 
     such telephone or services by--
       ``(1) ensuring that the telephone or services that such 
     manufacture or provider offers is accessible to and usable by 
     individuals with disabilities without the use of third party 
     applications, peripheral devices, software, hardware, or 
     customer premises equipment; or
       ``(2) using third party applications, peripheral devices, 
     software, hardware, or customer premises equipment that is 
     available to the consumer at nominal cost and that 
     individuals with disabilities can access.''.
       (b) Effective Date for Section 718.--Section 718 of the 
     Communications Act of 1934, as added by subsection (a), shall 
     take effect 3 years after the date of enactment of this Act.
       On page 69, line 3, strike ``(b)'' and insert ``(c)''.
       On page 69, line 9, strike ``255 or 716,'' and insert 
     ``255, 716, or 718,''.
       On page 69, line 18, strike ``(c)'' and insert ``(d)''.
       On page 70, line 5, strike ``SEC. 718.'' and insert ``SEC. 
     719.''.
       On page 79, line 20, strike ``performance requirements'' 
     and insert ``performance objectives''.
       On page 79, line 23, strike ``performance requirements'' 
     and insert ``performance objectives''.
       On page 81, line 12, strike ``performance requirements'' 
     and insert ``performance objectives''.
       On page 81, line 15, strike ``performance requirements'' 
     and insert ``performance objectives''.
       On page 87, strike line 12-25 and on page 85, strike lines 
     1-24.
       On page 86, line 16, after ``(2000)),'' insert ``recon. 
     granted in part and denied in part, (16 F.C.C.R. 1251 
     (2001)),''.
       On page 86, line 22, strike ``that'' and insert ``insofar 
     as such programming''.
       On page 87, line 1, after ``networks'' insert ``that at 
     least 50 hours per quarter of prime time programming that is 
     not exempt under this paragraph.''
       On page 88, between line 22 and 23, insert the following:
       ``(4) Continuing commission authority.--
       ``(A) In general.--The Commission may not issue additional 
     regulations unless the Commission determines, at least 2 
     years after completing the reports required in paragraph (3), 
     that the need for and benefits of providing video description 
     for video programming, insofar as such programming is 
     transmitted for display on television, are greater than the 
     technical and economic costs of providing such additional 
     programming.
       ``(B) Limitation.--If the Commission makes the 
     determination under subparagraph (A) and issues additional 
     regulations, the Commission may not increase, in total, the 
     hour requirement for additional described programming by more 
     than 75 percent of the requirement in the regulations 
     reinstated under paragraph (1).
       ``(C) Application to designated market areas.--
       ``(i) In general.--After the Commission completes the 
     reports on video description required in paragraph (3), the 
     Commission shall phase in the video description regulations 
     for the top 60 designated market areas, except that the 
     Commission may grant waivers to entities in specific 
     designated market areas where it deems appropriate.
       ``(ii) Phase-in deadline.--The phase-in described in clause 
     (i) shall be completed not later than 6 years after the date 
     of enactment of the Twenty-First Century Communications and 
     Video Accessibility Act of 2010.
       ``(iii) Report.--Nine years after the date of enactment of 
     the Twenty-First Century Communications and Video 
     Accessibility Act of 2010, the Commission shall submit to the 
     Committee on Energy of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate a report assessing--

       ``(I) the types of described video programming that is 
     available to consumers;
       ``(II) consumer use of such programming;
       ``(III) the costs to program owners, providers, and 
     distributors of creating such programming;
       ``(IV) the potential costs to program owners, providers, 
     and distributors in designated market areas outside of the 
     top 60 of creating such programming;
       ``(IV) the benefits to consumers of such programming;
       ``(V) the amount of such programming currently available; 
     and
       ``(VI) the need for additional described programming in 
     designated market areas outside the top 60.

       (iv) Additional market areas.--Ten years after the date of 
     enactment of the Twenty-First Century Communications and 
     Video Accessibility Act of 2010, the Commission shall have 
     the authority, based upon the findings, conclusions, and 
     recommendations contained in the report under clause (iii), 
     to phase in the video description regulations for up to an 
     additional 10 designated market areas each year--

       ``(I) if the costs of implementing the video description 
     regulations to program owners, providers, and distributors in 
     those additional markets are reasonable, as determined by the 
     Commission; and
       ``(II) except that the Commission may grant waivers to 
     entities in specific designated market areas where it deems 
     appropriate.

       Beginning with line 15 on page 89, strike through line 3 on 
     page 90.
       On page 90, line 4, strike ``(i)'' and insert ``(h)''.
       On page 92, line 24, strike the closing quotation marks and 
     the second period.
       On page 92, after line 24, insert the following:
       ``(3) Alternate means of compliance.--An entity may meet 
     the requirements of this

[[Page 15382]]

     section through alternate means than those prescribed by 
     regulations pursuant to subsection (b), as revised pursuant 
     to paragraph (2)(A) of this subsection, if the requirements 
     of this section are met, as determined by the Commission.''.
       On page 93, line 23, strike ``that--'' and insert ``that, 
     if technically feasible--''.
       On page 98, between lines 7 and 8, insert the following:
       (e) Alternate Means of Compliance.--An entity may meet the 
     requirements of sections 303(u), 303(z), and 330(b) of the 
     Communications Act of 1934 through alternate means than those 
     prescribed by regulations pursuant to subsection (d) if the 
     requirements of those sections are met, as determined by the 
     Commission.
       On page 100, between lines 2 and 3, insert the following:
       (c) Alternate Means of Compliance.--An entity may meet the 
     requirements of section 303(aa) of the Communications Act of 
     1934 through alternate means than those prescribed by 
     regulations pursuant to subsection (b) if the requirements of 
     those sections are met, as determined by the Commission.
       On page 100, line 3, strike ``(c)'' and insert ``(d)''.
       On page 92, line 19, strike ``and'' and on page 92, after 
     line 19, insert ``(iii) shall clarify that, for the purposes 
     of implementation, of this subsection, the terms ``video 
     programming distribution'' and ``video programming 
     providers'' include an entity that makes available directly 
     to the end user video programming through a distribution 
     method that uses Internet protocol; and''
       On page 92, line 20, strike (iii) and insert (vii)''
       On page 92, between line 19 and 20, insert ``(v) and 
     describe the responsibilities of video programming providers 
     or distributors and video programming owners. (vi) shall 
     establish a mechanism to make available to video programming 
     providers and distributors information on video programming 
     subject to the Act on an ongoing basis. (vii) shall consider 
     that the video programming provider or distributor shall be 
     deemed in compliance if such entity enables the rendering or 
     pass through of closed captions and video description signals 
     and make a good faith effort to identify video programming 
     subject to the Act using the mechanism created in (vi).
                                 ______
                                 
  SA 4604. Mr. REID (for Mr. Levin (for himself and Mr. Lugar)) 
proposed an amendment to the resolution S. Res. 322, expressing the 
sense of the Senate on religious minorities in Iraq; as follows:

       Strike all after the resolving clause and insert the 
     following: That it is the sense of the Senate that--
       (1) the United States remains deeply concerned about the 
     plight of vulnerable religious minorities of Iraq;
       (2) the United States Government and the United Nations 
     Assistance Mission for Iraq should urge the Government of 
     Iraq to enhance security at places of worship in Iraq, 
     particularly where religious minorities are known to be at 
     risk;
       (3) the United States Government should continue to work 
     with the Government of Iraq to ensure that members of ethnic 
     and religious minorities communities in Iraq--
       (A) suffer no discrimination in recruitment, employment, or 
     advancement in the Iraqi police and security forces; and
       (B) while employed in the Iraqi police and security forces, 
     where appropriate, be assigned to their locations of origin, 
     rather than being transferred to other areas;
       (4) the Government of Iraq and the Kurdistan regional 
     government should work towards a peaceful and timely 
     resolution of disputes over territories, particularly those 
     where many religious communities reside;
       (5) the United States Government and the United Nations 
     Assistance Mission for Iraq should urge the Government of 
     Iraq to--
       (A) implement in full those provisions of the Constitution 
     of Iraq that provide protections for the individual rights to 
     freedom of thought, conscience, religion, and belief and 
     protections for religious minorities to enjoy their culture 
     and language and practice their religion; and
       (B) reduce onerous registration requirements so that 
     smaller religious groups are not disadvantaged in 
     registering;
       (6) the Government of Iraq should take affirmative measures 
     to reverse the legal, political, and economic marginalization 
     of religious minorities in Iraq;
       (7) the United States Government should assist, consistent 
     with local aspirations and developmental needs, ethnic and 
     religious minorities in Iraq to organize themselves civically 
     and politically to effectively convey their concerns to 
     government;
       (8) the United States Government should continue to fund 
     capacity-building programs for the Iraqi Ministry of Human 
     Rights and the independent national Human Rights Commission, 
     and should continue to help reconstitute the minorities 
     committee to make it an effective voice for Iraqi minorities;
       (9) the Government of Iraq should direct the Iraqi Ministry 
     of Human Rights to investigate and issue a public report on 
     abuses against and the marginalization of minority 
     communities in Iraq and make recommendations to address such 
     abuses; and
       (10) the United States Government should encourage the 
     Government of Iraq and the Kurdistan Regional Government to 
     protect the linguistic and cultural heritage, religious 
     beliefs, and ethnic and religious identities of minority 
     groups, in particular those living in the Nineveh Plain.
                                 ______
                                 
  SA 4605. Mr. REID (for Mr. Levin (for himself and Mr. Lugar)) 
proposed an amendment to the resolution S. Res. 322, expressing the 
sense of the Senate on religious minorities in Iraq; as follows:

       Strike the preamble and insert the following:
       Whereas the territory of Iraq, the land of Mesopotamia, has 
     millennia of rich cultural and religious history;
       Whereas the Sumerians, Babylonians, and Assyrians thrived 
     within what are now the borders of Iraq;
       Whereas the biblical patriarch Abraham was born in Ur, King 
     Hammurabi ruled from Babylon, and Imam Ali, the founder of 
     Shiite Islam, died in Kufa;
       Whereas during the 35-year rule of the Baath Party and 
     Saddam Hussein, and despite the Provisional Constitution of 
     1968 that provided for individual religious freedom in Iraq, 
     the Government of Iraq severely limited freedom of religion, 
     especially for religious minorities, and sought to exploit 
     religious differences for political purposes, leading the 
     United States Government to designate Iraq as a ``country of 
     particular concern'' under the International Religious 
     Freedom Act of 1998 (Public Law 105-292) because of 
     systematic, ongoing, egregious violations of religious 
     freedom;
       Whereas members of religious minority communities of Iraq, 
     both those who have been forced to flee the homeland in which 
     their ancestors have lived for thousands of years and those 
     who remain in Iraq, are committed to maintaining their 
     presence in Iraq and keeping alive their communities' 
     cultures, heritage, and religions, but threats against them 
     jeopardize the future of Iraq as a diverse, pluralistic, and 
     free society;
       Whereas despite the reduction in violence in Iraq in recent 
     years, serious threats to religious freedom remain, including 
     religiously motivated violence directed at vulnerable 
     religious minorities, their leaders, and their holy sites, 
     including Chaldeans, Syriacs, Assyrians, Armenians and other 
     Christians, Sabean Mandeans, Yeazidis, Baha'is, Kaka'is, 
     Jews, and Shi'a Shabak;
       Whereas the March 2010 Report on Human Rights issued by the 
     Department of State identifies ``insurgent and extremist 
     violence, coupled with weak government performance in 
     upholding the rule of law'' resulting in ``widespread and 
     severe human rights abuses'' as among the significant and 
     continuing human rights problems in Iraq;
       Whereas although violence has impacted all aspects of 
     society in Iraq, there have been alarming levels of 
     religiously motivated violence in Iraq in recent years;
       Whereas the United States Commission on International 
     Religious Freedom continues to recommend that the Secretary 
     of State designate Iraq as a ``country of particular 
     concern'' under the International Religious Freedom Act of 
     1998, because of the systematic, ongoing, egregious 
     violations of religious freedom in Iraq;
       Whereas scores of holy sites in Iraq have been bombed since 
     2004;
       Whereas members of small religious minority communities in 
     Iraq do not have militia or tribal structures to defend them, 
     often receive inadequate official protection, and are 
     legally, politically, and economically marginalized;
       Whereas in the Nineveh and Kirkuk governorates, where 
     control is disputed between the Government of Iraq and the 
     Kurdistan regional government, religious minorities have been 
     targeted for abuse, violence, and discrimination;
       Whereas before 1951, non-Muslims comprised some 6 percent 
     of the population of Iraq, with Jews as the oldest and 
     largest of these communities, tracing back to the Babylonian 
     captivity of the sixth century BCE, but today the Jewish 
     community in Iraq numbers in the single digits and 
     essentially lives in hiding;
       Whereas religious minorities in Iraq, who made up about 3 
     percent of the population of Iraq in 2003, make up a 
     disproportionately high percentage of registered Iraqi 
     refugees;
       Whereas the number of Christians in Iraq was approximately 
     1,400,000 according to the 1987 Iraqi census but, according 
     to the 2009 Report on International Religious Freedom issued 
     by the Department of State, may now number only 500,000 to 
     600,000;
       Whereas the United States is gravely concerned about the 
     viability of the indigenous Christian communities of Iraq and 
     other religious minority communities, and the possible 
     disappearance of their ancient languages, culture, and 
     heritage;
       Whereas the Sabean Mandean community in Iraq reports that 
     almost 90 percent of its members have fled Iraq, leaving only 
     about 3,500 to 5,000 Mandeans in Iraq as of 2009;
       Whereas the Baha'i faith, estimated to have fewer than 
     2,000 adherents in Iraq, remains prohibited in Iraq under a 
     1970 law;

[[Page 15383]]

       Whereas although hundreds of thousands of Iraqi refugees 
     and internally displaced persons have returned to their areas 
     of origin, the numbers of religious minority returnees to 
     Iraq are disproportionately low; and
       Whereas members of religious minority communities of Iraq 
     in diaspora have organized to support their communities in 
     Iraq in ways that also benefit the whole of Iraq society by 
     encouraging the rule of law, enhanced security, employment, 
     education and health services: Now therefore be it

                          ____________________