[Congressional Record (Bound Edition), Volume 156 (2010), Part 11]
[Senate]
[Pages 15554-15558]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4606. Mr. UDALL of New Mexico submitted an amendment intended to 
be proposed 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; which was ordered 
to lie on the table; as follows:

       On page 243, line 21, strike ``The Secretary'' and insert 
     ``Not later than 1 year after the date of enactment of this 
     Act, and every year thereafter for 5 years, the Secretary''.

       On page 243, line 25, insert ``and every year thereafter 
     for 5 years,'' before ``the Secretary shall submit''.
       On page 244, between lines 8 and 9, insert the following:
       (d) Appropriate Action.--If the Secretary determines that 
     the Program has not effectively served women-owned 
     businesses, veteran-owned businesses, or minority-owned 
     businesses, the Secretary may formulate a plan to redress the 
     needs of the affected businesses.
                                 ______
                                 
  SA 4607. Mr. UDALL of New Mexico submitted an amendment intended to 
be proposed 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; which was ordered 
to lie on the table; as follows:

       On page 220, line 20, insert ``and planned outreach efforts 
     to women-owned businesses, veteran-owned businesses, and 
     minority-owned businesses'' before ``, where appropriate''.
                                 ______
                                 
  SA 4608. Mr. BEGICH (for himself and Mr. Nelson of Nebraska) 
submitted an amendment intended to be proposed by him to the bill H.R. 
5297, to create the Small Business Lending Fund Program to direct the 
Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; 
which was ordered to lie on the table; as follows:

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

                     PART IV--ADDITIONAL PROVISIONS

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

       (a) In General.--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.
       (b) Reports to Congress.--
       (1) In general.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall report to Congress on the compliance rate of taxpayers 
     under section 6041 of the Internal Revenue Code of 1986 as in 
     effect on such date.
       (2) Plan for improved enforcement.--Not later than 12 
     months after such date, the Secretary of the Treasury shall 
     develop a plan to improve enforcement under such section and 
     report such plan to Congress.
       (c) Use of Stimulus Funds To Offset Loss in Revenues.--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 pro rata such that the aggregate 
     amount of such rescissions equals the reduction in revenues 
     to the Treasury by reason of the repeal made by subsection 
     (a). The Director of the Office of Management and Budget 
     shall report to each congressional committee the amounts so 
     rescinded within the jurisdiction of such committee.
                                 ______
                                 
  SA 4609. Mr. UDALL of Colorado (for himself, Ms. Collins, Mr. Reid, 
Mr. Schumer, Mr. Lieberman, Mrs. Boxer, Mrs. Gillibrand, Mr. Sanders, 
Mr. Inouye, and Mr. Franken) submitted an amendment intended to be 
proposed 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; which was ordered to lie 
on the table; as follows:

       On page 41, after line 25, add the following:

     SEC. 1137. LIMITS ON MEMBER BUSINESS LOANS.

       (a) In General.--
       (1) Revised limitation and criteria.--Effective 6 months 
     after the date of enactment of this Act, section 107A(a) of 
     the Federal Credit Union Act (12 U.S.C. 1757a(a)) is amended 
     to read as follows:
       ``(a) Limitation.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     insured credit union may not make any member business loan 
     that would result in the total amount of such loans 
     outstanding at that credit union at any one time to be equal 
     to more than the lesser of--
       ``(A) 1.75 times the actual net worth of the credit union; 
     or
       ``(B) 12.25 percent of the total assets of the credit 
     union.
       ``(2) Additional authority.--The Board may approve an 
     application by an insured credit union upon a finding that 
     the credit union meets the criteria under this paragraph to 
     make 1 or more member business loans that would result in a 
     total amount of such loans outstanding at any one time of not 
     more than 27.5 percent of the total assets of the credit 
     union, if the credit union--
       ``(A) had member business loans outstanding at the end of 
     each of the 4 consecutive quarters immediately preceding the 
     date of the application, in a total amount of not less than 
     80 percent of the applicable limitation under paragraph (1);
       ``(B) is well capitalized, as defined in section 
     216(c)(1)(A);
       ``(C) can demonstrate at least 5 years of experience of 
     sound underwriting and servicing of member business loans;
       ``(D) has the requisite policies and experience in managing 
     member business loans; and
       ``(E) has satisfied other standards that the Board 
     determines are necessary to maintain the safety and soundness 
     of the insured credit union.
       ``(3) Effect of not being well capitalized.--An insured 
     credit union that has made member business loans under an 
     authorization under paragraph (2) and that is not, as of its 
     most recent quarterly call report, well capitalized, may not 
     make any member business loans, until such time as the credit 
     union becomes well capitalized, as reflected in a subsequent 
     quarterly call report, and obtains the approval of the 
     Board.''.
       (b) Implementation.--
       (1) Tiered approval process.--The Board shall develop a 
     tiered approval process, under which an insured credit union 
     gradually increases the amount of member business lending in 
     a manner that is consistent with safe and sound operations, 
     subject to the limits established under section 107A(a)(2) of 
     the Federal Credit Union Act (as amended by this Act). The 
     rate of increase under the process established under this 
     paragraph may not exceed 30 percent per year.
       (2) Rulemaking required.--The Board shall issue proposed 
     rules, not later than 6 months after the date of enactment of 
     this Act, to establish the tiered approval process required 
     under paragraph (1). The tiered approval process shall 
     establish standards designed to ensure that the new business 
     lending capacity authorized under the amendment made by 
     subsection (a) is being used only by insured credit unions 
     that are well-managed and well capitalized, as required by 
     the amendments made under subsection (a) and as defined by 
     the rules issued by the Board under this paragraph.
       (3) Considerations.--In issuing rules required under this 
     subsection, the Board shall consider--
       (A) the experience level of the institutions, including a 
     demonstrated history of sound member business lending;
       (B) the criteria under section 107A(a)(2) of the Federal 
     Credit Union Act, as amended by this Act; and
       (C) such other factors as the Board determines necessary or 
     appropriate.
       (c) Reports to Congress on Member Business Lending.--
       (1) Report of the board.--
       (A) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Board shall submit a report to 
     Congress on member business lending by insured credit unions.
       (B) Report.--The report required under subparagraph (A) 
     shall include--
       (i) the types and asset size of insured credit unions 
     making member business loans and the member business loan 
     limitations applicable to the insured credit unions;
       (ii) the overall amount and average size of member business 
     loans by each insured credit union;
       (iii) the ratio of member business loans by insured credit 
     unions to total assets and net worth;

[[Page 15555]]

       (iv) the performance of the member business loans, 
     including delinquencies and net charge offs;
       (v) the effect of this section on the number of insured 
     credit unions engaged in member business lending, any change 
     in the amount of member business lending, and the extent to 
     which any increase is attributed to the change in the 
     limitation in section 107A(a) of the Federal Credit Union 
     Act, as amended by this Act;
       (vi) the number, types, and asset size of insured credit 
     unions that were denied or approved by the Board for 
     increased member business loans under section 107A(a)(2), as 
     amended by this Act, including denials and approvals under 
     the tiered approval process;
       (vii) the types and sizes of businesses that receive member 
     business loans, the duration of the credit union membership 
     of the businesses at the time of the loan, the types of 
     collateral used to secure member business loans, and the 
     income level of members receiving member business loans; and
       (viii) the effect of any increases in member business loans 
     on the risk to the National Credit Union Share Insurance Fund 
     and the assessments on insured credit unions.
       (2) GAO study and report.--
       (A) Study.--The Comptroller General of the United States 
     shall conduct a study on the status of member business 
     lending by insured credit unions, including--
       (i) trends in such lending;
       (ii) types and amounts of member business loans;
       (iii) the effectiveness of this section in enhancing small 
     business lending;
       (iv) recommendations for legislative action, if any, with 
     respect to such lending; and
       (v) any other information that the Comptroller General 
     considers relevant with respect to such lending.
       (B) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Comptroller General shall submit a 
     report to Congress on the study required by subparagraph (A).
       (d) Definitions.--In this section--
       (1) the term ``Board'' means the National Credit Union 
     Administration Board;
       (2) the term ``insured credit union'' has the meaning given 
     that term in section 101 of the Federal Credit Union Act (12 
     U.S.C. 1752);
       (3) the term ``member business loan'' has the meaning given 
     that term in section 107A(c)(1) of the Federal Credit Union 
     Act (12 U.S.C. 1757a(c)(1));
       (4) the term ``net worth'' has the meaning given that term 
     in section 107A(c)(2) of the Federal Credit Union Act (12 
     U.S.C. 1757a(c)(2)); and
       (5) the term ``well capitalized'' has the meaning given 
     that term in section 216(c)(1)(A) of the Federal Credit Union 
     Act (12 U.S.C. 1709d(c)(1)(A)).
                                 ______
                                 
  SA 4610. Mr. THUNE submitted an amendment intended to be proposed 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; which was ordered to lie 
on the table; as follows:

       At the end of the amendment, insert the following:

     SEC. __. CREDIT REFORM ACT TREATMENT OF THE PURCHASE OF 
                   PRIVATE STOCK, EQUITY, OR CAPITAL.

       Section 502(5) of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a(5) is amended by inserting at the end the 
     following:
       ``(G)(i) The cost of the purchase of stock, equity, or 
     capital in a private or publicly-traded company shall be 
     determined on a fair market value basis.
       ``(ii) For purposes of this subparagraph, the term `fair 
     market value' means present value of future expected cash 
     flows using a discount rate that incorporates market risk.''.
                                 ______
                                 
  SA 4611. Mr. NELSON of Florida submitted an amendment intended to be 
proposed by him to the bill H.R. 5297, to create the Small Business 
Lending Fund Program to direct the Secretary of the Treasury to make 
capital investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the 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 Certain Payments.--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. In the case of any payment to a 
     corporation which is not an organization exempt from tax 
     under section 501(a), 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 two 
     immediately preceding sentences, 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 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

[[Page 15556]]

     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 4612. Mrs. HUTCHISON submitted an amendment intended to be 
proposed 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; which was ordered to lie 
on the table; as follows:

       At the end of the bill, insert the following:

                     TITLE VI--EDUCATION JOBS FUND

     SEC. 6001. ELIMINATION OF PROVISIONS RELATING TO TEXAS.

       Section 101 of Public Law 111-226 (124 Stat. 2389) is 
     amended by striking paragraph (11).
                                 ______
                                 
  SA 4613. Mrs. HUTCHISON submitted an amendment intended to be 
proposed by her to the bill H.R. 5297, to create the Small Business 
Lending Fund Program to direct the Secretary of the Treasury to make 
capital investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SHAREHOLDER REGISTRATION THRESHOLD.

       (a) Amendments to the Securities Exchange Act of 1934.--
       (1) Section 12.--Section 12(g) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 781(g)) is amended--
       (A) in paragraph (1)--
       (i) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) in the case of an issuer that is a bank, as such term 
     is defined in section 3(a)(6) of this title, or a bank 
     holding company, as such term is defined in section (2) of 
     the Bank Holding Company Act of 1956 (12 U.S.C. 1841), 2000 
     persons or more; and
       ``(B) in the case of an issuer that is not a bank or bank 
     holding company, 500 persons or more,''; and
       (ii) by striking ``commerce shall'' and inserting 
     ``commerce shall, not later than 120 days after the last day 
     of its first fiscal year ended after the effective date of 
     this subsection, on which the issuer has total assets 
     exceeding $10,000,000 and a class of equity security (other 
     than an exempted security) held of record by''; and
       (B) in paragraph (4), by striking ``three hundred'' and 
     inserting ``300 persons, or, in the case of a bank, as such 
     term is defined in section 3(a)(6) of this title, or a bank 
     holding company, as such term is defined in section (2) of 
     the Bank Holding Company Act of 1956 (12 U.S.C. 1841), 
     1200''.
       (2) Section 15.--Section 15(d) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78o(d)) is amended, in the third 
     sentence, by striking ``three hundred'' and inserting ``300 
     persons, or, in the case of bank, as such term is defined in 
     section 3(a)(6) of this title, or a bank holding company, as 
     such term is defined in section (2) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841), 1200''.
       (b) Study of Registration Thresholds.--
       (1) Study.--
       (A) Analysis required.--The Chief Economist and Director of 
     the Division of Corporation Finance of the Commission shall 
     jointly conduct a study, including a cos-benefit analysis, of 
     shareholder registration thresholds.
       (B) Costs and benefits.--The cost-benefit analysis under 
     subparagraph (A) shall take into account--
       (i) the incremental benefits to investors of the increased 
     disclosure that results from registration;
       (ii) the incremental costs to issuers associated with 
     registration and reporting requirements; and
       (iii) the incremental administrative costs to the 
     Commission associated with different thresholds.
       (C) Thresholds.--The cost-benefit analysis under 
     subparagraph (A) shall evaluate whether it is advisable to--
       (i) increase the asset threshold;
       (ii) index the asset threshold to a measure of inflation;
       (iii) increase the shareholder threshold;
       (iv) change the shareholder threshold to be based on the 
     number of beneficial owners; and
       (v) create new thresholds based on other criteria.
       (2) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Chief Economist and the Director 
     of the Division of Corporation Finance of the Commission 
     shall jointly submit to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives a report 
     that includes--
       (A) the findings of the study required under paragraph (1); 
     and
       (B) recommendations for statutory changes to improve the 
     shareholder registration thresholds.
       (c) Rulemaking.--Not later than one year after the date of 
     enactment of this Act, the Commission shall issue final 
     regulations to implement this section and the amendments made 
     by this section.
                                 ______
                                 
  SA 4614. Mr. THUNE submitted an amendment intended to be proposed 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; which was ordered to lie 
on the table; as follows:

       On page 223, strike line 19 and all that follows through 
     page 232, line 9, and insert the following:
       (4) Ineligible institutions.--
       (A) Ineligibility of institutions on fdic problem bank 
     list.--
       (i) 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.

       (ii) FDIC problem bank list defined.--For purposes of this 
     subparagraph, 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.
       (B) Ineligibility of non-paying cpp participants.--
       (i) In general.--An eligible institution that has missed 
     more than one dividend payment due under the CPP may not 
     receive any capital investment under the Program.
       (ii) Determination of missed dividend payments.--For 
     purposes of this subparagraph, a CPP dividend payment that is 
     submitted within 60 days of the due date of such payment 
     shall not be considered a missed dividend payment.
       (C) Construction.--Nothing in subparagraph (A) or (B) 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 and that has not missed more 
     than one dividend payment due under the CPP.
       (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

[[Page 15557]]

     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 purposes 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.
                                 ______
                                 
  SA 4615. Mr. ENSIGN submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MAXIMUM 35 PERCENT RATE ON TRADE OR BUSINESS INCOME.

       (a) In General.--Section 1 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(j) Maximum Rate on Trade or Business Income.--
       ``(1) In general.--If, for any applicable taxable year, a 
     taxpayer who is an individual (other than an estate or trust) 
     has qualified trade or business income, then, in lieu of the 
     tax imposed on the taxpayer by subsection (a), (b), (c), or 
     (d), there is hereby imposed a tax equal to the lesser of--
       ``(A) the tax imposed by this section without regard to 
     this subsection, or
       ``(B) a tax equal to the sum of--
       ``(i) a tax computed at the rates and in the manner as if 
     this subsection had not been enacted on the greater of--

       ``(I) taxable income reduced by qualified trade or business 
     income and any net capital gain, or
       ``(II) the amount of taxable income (reduced by any net 
     capital gain) taxed at a rate below the highest rate of tax 
     imposed by section 11(b) for such taxable year, plus

       ``(ii) a tax equal to the product of such highest rate of 
     tax and the taxpayer's qualified trade or business income 
     which was not taken into account under clause (i).
       ``(2) Coordination with rate on net capital gains.--If a 
     taxpayer has qualified small business income for any 
     applicable taxable year and also has a net capital gain for 
     such taxable year--
       ``(A) this subsection shall not apply, and
       ``(B) the tax computed under subsection (h)(1)(A) shall not 
     exceed the amount determined under paragraph (1).
       ``(3) Qualified trade or business income.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified trade or business 
     income' means, with respect to any taxable year, an amount 
     equal to the excess (if any) of--
       ``(i) the aggregate income from the actual conduct of a 
     trade or business which--

       ``(I) is income from sources within the United States 
     (within the meaning of section 861), and
       ``(II) is not passive income (as defined in section 
     904(d)(2)(B)), over

       ``(ii) the sum of--

       ``(I) the cost of goods sold that are allocable to such 
     income, and
       ``(II) other expenses, losses, or deductions that are 
     properly allocable to such income.

       ``(B) Capital gains and losses disregarded.--Items taken 
     into account in determining net capital gain shall not be 
     taken into account in determining qualified trade or business 
     income.
       ``(4) Applicable taxable year.--For purposes of this 
     subsection, the term `applicable taxable year' means any 
     taxable year of the taxpayer with respect to which any rate 
     of tax under the applicable table contained in subsection 
     (a), (b), (c), or (d) exceeds 35 percent.
       ``(5) Net capital gain.--For purposes of this subsection, 
     the term `net capital gain' has the meaning given such term 
     by subsection (h).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.
                                 ______
                                 
  SA 4616. Mr. UDALL of New Mexico submitted an amendment intended to 
be proposed 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; which was ordered 
to lie on the table; as follows:

       On page 237, line 25, before the period insert ``including, 
     to the extent possible based

[[Page 15558]]

     on the available reporting data, details on lending to women-
     owned businesses, veteran-owned businesses, and minority-
     owned businesses''.
                                 ______
                                 
  SA 4617. Mr. FRANKEN submitted an amendment intended to be proposed 
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; which was ordered to lie 
on the table; as follows:

       On page 41, after line 25, add the following:

     SEC. 1137. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF 
                   RENEWABLE ENERGY AND ELECTRIC POWER 
                   TRANSMISSION PROJECTS.

       Section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 
     16516(a)) is amended by adding at the end the following:
       ``(4) Energy efficiency projects, including projects to 
     retrofit residential, commercial, and industrial buildings, 
     facilities, and equipment.''.

                          ____________________