[Congressional Record (Bound Edition), Volume 156 (2010), Part 2]
[Senate]
[Pages 2467-2549]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3358. Mr. COBURN submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. ___. SENATE SPENDING DISCLOSURE.

       (a) In General.--The Secretary of the Senate shall post 
     prominently on the front page of the public website of the 
     Senate (http://www.senate.gov/) the following information:
       (1) The total amount of discretionary and direct spending 
     passed by the Senate that has not been paid for, including 
     emergency designated spending or spending otherwise exempted 
     from PAYGO requirements.
       (2) The total amount of net spending authorized in 
     legislation passed by the Senate, as scored by CBO.
       (3) The number of new government programs created in 
     legislation passed by the Senate.
       (4) The totals for paragraphs (1) through (3) as passed by 
     both Houses of Congress and signed into law by the President.
       (b) Display.--The information tallies required by 
     subsection (a) shall be itemized by bill and date, updated 
     weekly, and archived by calendar year.
       (c) Effective Date.--The PAYGO tally required by subsection 
     (a)(1) shall begin with the date of enactment of the 
     Statutory Pay-As-You-Go Act of 2010 and the authorization 
     tally required by subsection (a)(2) shall apply to all 
     legislation passed beginning January 1, 2010.
                                 ______
                                 
  SA 3359. Mr. KOHL submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

TITLE VIII--PENSION BENEFIT GUARANTY CORPORATION GOVERNANCE IMPROVEMENT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Pension Benefit Guaranty 
     Corporation Governance Improvement Act of 2010''.

     SEC. 802. BOARD OF DIRECTORS OF THE PENSION BENEFIT GUARANTY 
                   CORPORATION.

       (a) In General.--Section 4002(d) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1302(d)) is amended to 
     read as follows:
       ``(d)(1) The board of directors of the corporation consists 
     of--
       ``(A) the Secretary of the Treasury, the Secretary of 
     Labor, and the Secretary of Commerce;
       ``(B) a member that is a representative of employers 
     offering defined benefit plans;
       ``(C) a member that is a representative of organized labor 
     and employees; and
       ``(D) 2 other members.
       ``(2)(A) The members of the board of directors described 
     under subparagraphs (B) through (D) of paragraph (1)--
       ``(i) shall be appointed by the President by and with the 
     advice and consent of the Senate--
       ``(I) at the beginning of the second year of the 
     President's term of office, with respect to such members 
     described under subparagraphs (B) and (C) of paragraph (1); 
     and
       ``(II) at the beginning of the fourth year of the 
     President's term of office, with respect to such members 
     described under subparagraph (D) of paragraph (1); and
       ``(ii) shall serve for a term of 4 years.
       ``(B) Not more than 2 members of the board of directors 
     described under subparagraphs (B) through (D) of paragraph 
     (1) shall be affiliated with the same political party.
       ``(C) Each member of the board of directors described under 
     subparagraphs (B) through (D) of paragraph (1) shall not have 
     a direct financial interest in the decisions of the 
     corporation.

[[Page 2468]]

       ``(3) Each member of the board of directors described under 
     subparagraph (A) of paragraph (1) shall designate in writing 
     an official, not below the level of Assistant Secretary, to 
     serve as the voting representative of such member on the 
     board. Such designation shall be effective until revoked or 
     until a date or event specified therein. Any such 
     representative may refer for board action any matter under 
     consideration by the designating board member.
       ``(4) The members of the board of directors described 
     under--
       ``(A) subparagraph (A) of paragraph (1), shall serve 
     without compensation, but shall be reimbursed for travel, 
     subsistence, and other necessary expenses incurred in the 
     performance of their duties as members of the board; and
       ``(B) subparagraphs (B) through (D) of paragraph (1) shall, 
     for each day (including traveltime) during which they are 
     attending meetings or conferences of the board or otherwise 
     engaged in the business of the board, be compensated at a 
     rate fixed by the corporation which is not in excess of the 
     daily equivalent of the annual rate of basic pay in effect 
     for grade GS-18 of the General Schedule, and while away from 
     their homes or regular places of business they may be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     as authorized by section 5703 of title 5, United States Code.
       ``(5)(A) The Secretary of Labor is the chairman of the 
     board of directors.
       ``(B) The President shall designate 1 of the members 
     appointed under paragraph (2) as the vice-chairman of the 
     board of directors.
       ``(6) The Inspector General of the corporation shall report 
     to the board of directors, and not less than twice a year, 
     shall attend a meeting of the board of directors to provide a 
     report on the activities and findings of the Inspector 
     General, including with respect to monitoring and review of 
     the operations of the corporation.
       ``(7) The General Counsel of the corporation shall--
       ``(A) serve as the secretary to the board of directors, and 
     shall advise such board as needed; and
       ``(B) have overall responsibility for all legal matters 
     affecting the corporation and provide the corporation with 
     legal advice and opinions on all matters of law affecting the 
     corporation, except that the authority of the General Counsel 
     shall not extend to the Office of Inspector General and the 
     independent legal counsel of such Office.
       ``(8) Notwithstanding any other provision of this Act, the 
     Office of Inspector General and the legal counsel of such 
     Office is independent of the management of the corporation 
     and the General Counsel of the corporation.''.
       (b) Number of Meetings; Public Availability.--Section 
     4002(e) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1302(e)) is amended--
       (1) by striking ``The board'' and inserting ``(1) The 
     board'';
       (2) by striking ``the corporation.'' and inserting ``the 
     corporation, but in no case less than 4 times a year with a 
     quorum of not less than 5 members. Not less than 1 meeting of 
     the board of directors during each year shall be a joint 
     meeting with the advisory committee under subsection (h).''; 
     and
       (3) by adding at the end the following:
       ``(2) The chairman of the board of directors shall make 
     available to the public the minutes from each meeting of the 
     board, unless the chairman designates a meeting or portion of 
     a meeting as closed to the public, based on the 
     confidentiality of the matters to be discussed during such 
     meeting.''.
       (c) Advisory Committee.--
       (1) Issues considered by the committee.--Section 4002(h)(1) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1302(h)(1)) is amended--
       (A) by striking ``, and (D)'' and inserting ``, (D)''; and
       (B) by striking ``time to time.'' and inserting ``time to 
     time, and (E) other issues as determined appropriate by the 
     advisory committee.''.
       (2) Joint meeting.--Section 4002(h)(3) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1302(h)(3)) 
     is amended by adding at the end the following: ``Not less 
     than 1 meeting of the advisory committee during each year 
     shall be a joint meeting with the board of directors under 
     subsection (e).''.

     SEC. 803. AVOIDING CONFLICTS OF INTEREST.

       Section 4002 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1302) is amended by adding at the end the 
     following:
       ``(j) The Director of the corporation, and each member of 
     the board of directors described under subparagraphs (B) 
     through (D) of subsection (d)(1), shall agree in writing to 
     recuse him or herself from participation in activities which 
     present a potential conflict of interest or appearance of 
     such conflict, including by not serving on a technical 
     evaluation panel.''.

     SEC. 804. SENSE OF CONGRESS.

       (a) Formation of Committees.--It is the sense of Congress 
     that the board of directors of the Pension Benefit Guaranty 
     Corporation established under section 4002 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1302), as 
     amended by this title, should form committees, including an 
     audit committee and an investment committee, to enhance the 
     overall effectiveness of the board of directors.
       (b) Risk Management Position.--It is the sense of Congress 
     that the Pension Benefit Guaranty Corporation established 
     under section 4002 of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1302), as amended by this title, 
     should establish a risk management position that evaluates 
     and mitigates the risk that the corporation might experience. 
     The individual in such position should coordinate the risk 
     management efforts of the corporation, explain risks and 
     controls to senior management and the board of directors of 
     the corporation, and make recommendations.
                                 ______
                                 
  SA 3360. Mr. BUNNING proposed an amendment to amendment SA 3336 
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal 
Revenue Code of 1986 to extend certain expiring provisions, and for 
other purposes; as follows:

       Strike all after the first word and insert the following:

     1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Workers, State, and Business Relief Act of 2010''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

Sec. 101. Alternative motor vehicle credit for new qualified hybrid 
              motor vehicles other than passenger automobiles and light 
              trucks.
Sec. 102. Incentives for biodiesel and renewable diesel.
Sec. 103. Credit for electricity produced at certain open-loop biomass 
              facilities.
Sec. 104. Credit for refined coal facilities.
Sec. 105. Credit for production of low sulfur diesel fuel.
Sec. 106. Credit for producing fuel from coke or coke gas.
Sec. 107. New energy efficient home credit.
Sec. 108. Excise tax credits and outlay payments for alternative fuel 
              and alternative fuel mixtures.
Sec. 109. Special rule for sales or dispositions to implement FERC or 
              State electric restructuring policy for qualified 
              electric utilities.
Sec. 110. Suspension of limitation on percentage depletion for oil and 
              gas from marginal wells.

                   Subtitle B--Individual Tax Relief

                    PART I--Miscellaneous Provisions

Sec. 111. Deduction for certain expenses of elementary and secondary 
              school teachers.
Sec. 112. Additional standard deduction for State and local real 
              property taxes.
Sec. 113. Deduction of State and local sales taxes.
Sec. 114. Contributions of capital gain real property made for 
              conservation purposes.
Sec. 115. Above-the-line deduction for qualified tuition and related 
              expenses.
Sec. 116. Tax-free distributions from individual retirement plans for 
              charitable purposes.
Sec. 117. Look-thru of certain regulated investment company stock in 
              determining gross estate of nonresidents.

                  PART II--Low-Income Housing Credits

Sec. 121. Election for refundable low-income housing credit for 2010.

                    Subtitle C--Business Tax Relief

Sec. 131. Research credit.
Sec. 132. Indian employment tax credit.
Sec. 133. New markets tax credit.
Sec. 134. Railroad track maintenance credit.
Sec. 135. Mine rescue team training credit.
Sec. 136. Employer wage credit for employees who are active duty 
              members of the uniformed services.
Sec. 137. 5-year depreciation for farming business machinery and 
              equipment.
Sec. 138. 15-year straight-line cost recovery for qualified leasehold 
              improvements, qualified restaurant buildings and 
              improvements, and qualified retail improvements.
Sec. 139. 7-year recovery period for motorsports entertainment 
              complexes.
Sec. 140. Accelerated depreciation for business property on an Indian 
              reservation.
Sec. 141. Enhanced charitable deduction for contributions of food 
              inventory.

[[Page 2469]]

Sec. 142. Enhanced charitable deduction for contributions of book 
              inventories to public schools.
Sec. 143. Enhanced charitable deduction for corporate contributions of 
              computer inventory for educational purposes.
Sec. 144. Election to expense mine safety equipment.
Sec. 145. Special expensing rules for certain film and television 
              productions.
Sec. 146. Expensing of environmental remediation costs.
Sec. 147. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 148. Modification of tax treatment of certain payments to 
              controlling exempt organizations.
Sec. 149. Exclusion of gain or loss on sale or exchange of certain 
              brownfield sites from unrelated business income.
Sec. 150. Timber REIT modernization.
Sec. 151. Treatment of certain dividends and assets of regulated 
              investment companies.
Sec. 152. RIC qualified investment entity treatment under FIRPTA.
Sec. 153. Exceptions for active financing income.
Sec. 154. Look-thru treatment of payments between related controlled 
              foreign corporations under foreign personal holding 
              company rules.
Sec. 155. Reduction in corporate rate for qualified timber gain.
Sec. 156. Basis adjustment to stock of S corps making charitable 
              contributions of property.
Sec. 157. Empowerment zone tax incentives.
Sec. 158. Tax incentives for investment in the District of Columbia.
Sec. 159. Renewal community tax incentives.
Sec. 160. Temporary increase in limit on cover over of rum excise taxes 
              to Puerto Rico and the Virgin Islands.
Sec. 161. American Samoa economic development credit.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--National Disaster Relief

Sec. 171. Waiver of certain mortgage revenue bond requirements.
Sec. 172. Losses attributable to federally declared disasters.
Sec. 173. Special depreciation allowance for qualified disaster 
              property.
Sec. 174. Net operating losses attributable to federally declared 
              disasters.
Sec. 175. Expensing of qualified disaster expenses.

                      PART II--Regional Provisions

                    subpart a--new york liberty zone

Sec. 181. Special depreciation allowance for nonresidential and 
              residential real property.
Sec. 182. Tax-exempt bond financing.

                           subpart b--go zone

Sec. 183. Special depreciation allowance.
Sec. 184. Increase in rehabilitation credit.
Sec. 185. Work opportunity tax credit with respect to certain 
              individuals affected by Hurricane Katrina for employers 
              inside disaster areas.

                  subpart c--midwestern disaster areas

Sec. 191. Special rules for use of retirement funds.
Sec. 192. Exclusion of cancellation of mortgage indebtedness.

     TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

                   Subtitle A--Unemployment Insurance

Sec. 201. Extension of unemployment insurance provisions.

                     Subtitle B--Health Provisions

Sec. 211. Extension and improvement of premium assistance for COBRA 
              benefits.
Sec. 212. Extension of therapy caps exceptions process.
Sec. 213. Treatment of pharmacies under durable medical equipment 
              accreditation requirements.
Sec. 214. Enhanced payment for mental health services.
Sec. 215. Extension of ambulance add-ons.
Sec. 216. Extension of geographic floor for work.
Sec. 217. Extension of payment for technical component of certain 
              physician pathology services.
Sec. 218. Extension of outpatient hold harmless provision.
Sec. 219. EHR Clarification.
Sec. 220. Extension of reimbursement for all Medicare part B services 
              furnished by certain indian hospitals and clinics.
Sec. 221. Extension of certain payment rules for long-term care 
              hospital services and of moratorium on the establishment 
              of certain hospitals and facilities.
Sec. 222. Extension of the Medicare rural hospital flexibility program.
Sec. 223. Extension of section 508 hospital reclassifications.
Sec. 224. Technical correction related to critical access hospital 
              services.
Sec. 225. Extension for specialized MA plans for special needs 
              individuals.
Sec. 226. Extension of reasonable cost contracts.
Sec. 227. Extension of particular waiver policy for employer group 
              plans.
Sec. 228. Extension of continuing care retirement community program.
Sec. 229. Funding outreach and assistance for low-income programs.
Sec. 230. Family-to-family health information centers.
Sec. 231. Implementation funding.
Sec. 232. Extension of ARRA increase in FMAP.
Sec. 233. Extension of gainsharing demonstration.

                      Subtitle C--Other Provisions

Sec. 241. Extension of use of 2009 poverty guidelines.
Sec. 242. Refunds disregarded in the administration of Federal programs 
              and federally assisted programs.
Sec. 243. State court improvement program.
Sec. 244. Extension of national flood insurance program.
Sec. 245. Emergency disaster assistance.
Sec. 246. Small business loan guarantee enhancement extensions.

                   TITLE III--PENSION FUNDING RELIEF

                   Subtitle A--Single Employer Plans

Sec. 301. Extended period for single-employer defined benefit plans to 
              amortize certain shortfall amortization bases.
Sec. 302. Application of extended amortization period to plans subject 
              to prior law funding rules.
Sec. 303. Lookback for certain benefit restrictions.

                    Subtitle B--Multiemployer Plans

Sec. 311. Adjustments to funding standard account rules.

                      TITLE IV--OFFSET PROVISIONS

                        Subtitle A--Black Liquor

Sec. 401. Exclusion of unprocessed fuels from the cellulosic biofuel 
              producer credit.
Sec. 402. Prohibition on alternative fuel credit and alternative fuel 
              mixture credit for black liquor.

                      Subtitle B--Homebuyer Credit

Sec. 411. Technical modifications to homebuyer credit.

                     Subtitle C--Economic Substance

Sec. 421. Codification of economic substance doctrine; penalties.

                   Subtitle D--Additional Provisions

Sec. 431. Revision to the Medicare Improvement Fund.

                TITLE V--SATELLITE TELEVISION EXTENSION

Sec. 501. Short title.

                     Subtitle A--Statutory Licenses

Sec. 501. Reference.
Sec. 502. Modifications to statutory license for satellite carriers.
Sec. 503. Modifications to statutory license for satellite carriers in 
              local markets.
Sec. 504. Modifications to cable system secondary transmission rights 
              under section 111.
Sec. 505. Certain waivers granted to providers of local-into-local 
              service for all DMAs.
Sec. 506. Copyright Office fees.
Sec. 507. Termination of license.
Sec. 508. Construction.

                 Subtitle B--Communications Provisions

Sec. 521. Reference.
Sec. 522. Extension of authority.
Sec. 523. Significantly viewed stations.
Sec. 524. Digital television transition conforming amendments.
Sec. 525. Application pending completion of rulemakings.
Sec. 526. Process for issuing qualified carrier certification.
Sec. 527. Nondiscrimination in carriage of high definition digital 
              signals of noncommercial educational television stations.
Sec. 528. Savings clause regarding definitions.
Sec. 529. State public affairs broadcasts.

               Subtitle C--Reports and Savings Provision

Sec. 531. Definition.
Sec. 532. Report on market based alternatives to statutory licensing.
Sec. 533. Report on communications implications of statutory licensing 
              modifications.
Sec. 534. Report on in-state broadcast programming.
Sec. 535. Local network channel broadcast reports.
Sec. 536. Savings provision regarding use of negotiated licenses.
Sec. 537. Effective date; noninfringement of copyright.

                        Subtitle D--Severability

Sec. 541. Severability.

                       TITLE VI--OTHER PROVISIONS

Sec. 601. Increase in the Medicare physician payment update.

             TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

Sec. 701. Determination of budgetary effects.

[[Page 2470]]

                           TITLE VIII--OFFSET

Sec. 801. Rescission.

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

     SEC. 101. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   HYBRID MOTOR VEHICLES OTHER THAN PASSENGER 
                   AUTOMOBILES AND LIGHT TRUCKS.

       (a) In General.--Paragraph (3) of section 30B(k) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property purchased after December 31, 2009.

     SEC. 102. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2010''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2010''.
       (2) Subparagraph (B) of section 6427(e)(6) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 103. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
                   LOOP BIOMASS FACILITIES.

       (a) In General.--Clause (ii) of section 45(b)(4)(B) is 
     amended by striking ``5-year period'' and inserting ``6-year 
     period''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after December 
     31, 2009.

     SEC. 104. CREDIT FOR REFINED COAL FACILITIES.

       (a) In General.--Subparagraphs (A) and (B) of section 
     45(d)(8) are each amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 105. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.

       (a) Applicable Period.--Paragraph (4) of section 45H(c) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 339 of the 
     American Jobs Creation Act of 2004.

     SEC. 106. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

       (a) In General.--Paragraph (1) of section 45K(g) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 107. NEW ENERGY EFFICIENT HOME CREDIT.

       (a) In General.--Subsection (g) of section 45L is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to homes acquired after December 31, 2009.

     SEC. 108. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR 
                   ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

       (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 
     6427(e)(6)(C) are each amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 109. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT 
                   FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
                   QUALIFIED ELECTRIC UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transactions after December 31, 2009.

     SEC. 110. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION 
                   FOR OIL AND GAS FROM MARGINAL WELLS.

       (a) In General.--Clause (ii) of section 613A(c)(6)(H) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                   Subtitle B--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

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

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2009'' and inserting ``2009, or 
     2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 112. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL 
                   REAL PROPERTY TAXES.

       (a) In General.--Subparagraph (C) of section 63(c)(1) is 
     amended by striking ``or 2009'' and inserting ``2009, or 
     2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 113. DEDUCTION OF STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 114. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE 
                   FOR CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 115. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
                   RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 116. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2009

     SEC. 117. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY 
                   STOCK IN DETERMINING GROSS ESTATE OF 
                   NONRESIDENTS.

       (a) In General.--Paragraph (3) of section 2105(d) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to estates of decedents dying after December 31, 
     2009.

                  PART II--LOW-INCOME HOUSING CREDITS

     SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT 
                   FOR 2010.

       (a) In General.--Section 42 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Election for Refundable Credits.--
       ``(1) In general.--The housing credit agency of each State 
     shall be allowed a credit in an amount equal to such State's 
     2010 low-income housing refundable credit election amount, 
     which shall be payable by the Secretary as provided in 
     paragraph (5).
       ``(2) 2010 low-income housing refundable credit election 
     amount.--For purposes of this subsection, the term `2010 low-
     income housing refundable credit election amount' means, with 
     respect to any State, such amount as the State may elect 
     which does not exceed 85 percent of the product of--
       ``(A) the sum of--
       ``(i) 100 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (i) and (iii) of subsection (h)(3)(C), and
       ``(ii) 40 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (ii) and (iv) of such subsection, multiplied by
       ``(B) 10.
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1, 2012' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36A,''.

                    Subtitle C--Business Tax Relief

     SEC. 131. RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Conforming Amendment.--Subparagraph (D) of section 
     45C(b)(1) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.

[[Page 2471]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 132. INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 133. NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (F) of section 45D(f)(1) is 
     amended by inserting ``and 2010'' after ``2009''.
       (b) Conforming Amendment.--Paragraph (3) of section 45D(f) 
     is amended by striking ``2014'' and inserting ``2015''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after 2009.

     SEC. 134. RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 135. MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 136. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
                   DUTY MEMBERS OF THE UNIFORMED SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2009.

     SEC. 137. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY 
                   AND EQUIPMENT.

       (a) In General.--Clause (vii) of section 168(e)(3)(B) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 138. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                   LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
                   BUILDINGS AND IMPROVEMENTS, AND QUALIFIED 
                   RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2010'' 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) Clause (i) of section 168(e)(7)(A) is amended by 
     striking ``if such building is placed in service after 
     December 31, 2008, and before January 1, 2010,''.
       (2) Paragraph (8) of section 168(e) is amended by striking 
     subparagraph (E).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 139. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 140. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 141. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 142. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   BOOK INVENTORIES TO PUBLIC SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 143. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE 
                   CONTRIBUTIONS OF COMPUTER INVENTORY FOR 
                   EDUCATIONAL PURPOSES.

       (a) In General.--Subparagraph (G) of section 170(e)(6) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 144. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 145. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
                   TELEVISION PRODUCTIONS.

       (a) In General.--Subsection (f) of section 181 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to productions commencing after December 31, 
     2009.

     SEC. 146. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2009.

     SEC. 147. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) is 
     amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 5 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 148. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS 
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2009.

     SEC. 149. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF 
                   CERTAIN BROWNFIELD SITES FROM UNRELATED 
                   BUSINESS INCOME.

       (a) In General.--Subparagraph (K) of section 512(b)(19) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property acquired after December 31, 2009.

     SEC. 150. TIMBER REIT MODERNIZATION.

       (a) In General.--Paragraph (8) of section 856(c) is amended 
     by striking ``means'' and all that follows and inserting 
     ``means December 31, 2010.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (I) of section 856(c)(2) is amended by 
     striking ``the first taxable year beginning after the date of 
     the enactment of this subparagraph'' and inserting ``in a 
     taxable year beginning on or before the termination date''.
       (2) Clause (iii) of section 856(c)(5)(H) is amended by 
     inserting ``in taxable years beginning'' after 
     ``dispositions''.
       (3) Clause (v) of section 857(b)(6)(D) is amended by 
     inserting ``in a taxable year beginning'' after ``sale''.
       (4) Subparagraph (G) of section 857(b)(6) is amended by 
     inserting ``in a taxable year beginning'' after ``In the case 
     of a sale''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 151. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C) and (2)(C) of section 
     871(k) are each amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 152. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
                   FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on January 1, 2010. Notwithstanding the preceding 
     sentence, such amendment shall not apply with respect to the 
     withholding requirement under section 1445 of the Internal 
     Revenue Code of 1986 for any payment made before the date of 
     the enactment of this Act.
       (2) Amounts withheld on or before date of enactment.--In 
     the case of a regulated investment company--
       (A) which makes a distribution after December 31, 2009, and 
     before the date of the enactment of this Act, and
       (B) which would (but for the second sentence of paragraph 
     (1)) have been required to withhold with respect to such 
     distribution under section 1445 of such Code,

     such investment company shall not be liable to any person to 
     whom such distribution was made for any amount so withheld 
     and paid over to the Secretary of the Treasury.

     SEC. 153. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

       (a) In General.--Sections 953(e)(10) and 954(h)(9) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.

[[Page 2472]]

       (b) Conforming Amendment.--Section 953(e)(10) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 154. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
                   CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN 
                   PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 155. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER 
                   GAIN.

       (a) In General.--Paragraph (1) of section 1201(b) is 
     amended by striking ``ending'' and all that follows through 
     ``such date''.
       (b) Conforming Amendment.--Paragraph (3) of section 1201(b) 
     is amended to read as follows:
       ``(3) Application of subsection.--The qualified timber gain 
     for any taxable year shall not exceed the qualified timber 
     gain which would be determined by not taking into account any 
     portion of such taxable year after December 31, 2010.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 156. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 157. EMPOWERMENT ZONE TAX INCENTIVES.

       (a) In General.--Section 1391 is amended--
       (1) by striking ``December 31, 2009'' in subsection 
     (d)(1)(A)(i) and inserting ``December 31, 2010'', and
       (2) by striking the last sentence of subsection (h)(2).
       (b) Increased Exclusion of Gain on Stock of Empowerment 
     Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is 
     amended--
       (1) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2015'', and
       (2) by striking ``2014'' in the heading and inserting 
     ``2015''.
       (c) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of an empowerment 
     zone the nomination for which included a termination date 
     which is contemporaneous with the date specified in 
     subparagraph (A)(i) of section 1391(d)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2009.

     SEC. 158. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                   COLUMBIA.

       (a) In General.--Subsection (f) of section 1400 is amended 
     by striking ``December 31, 2009'' each place it appears and 
     inserting ``December 31, 2010''.
       (b) Tax-Exempt DC Empowerment Zone Bonds.--Subsection (b) 
     of section 1400A is amended by striking ``December 31, 2009'' 
     and inserting ``December 31, 2010''.
       (c) Zero-Percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (2) Limitation on period of gains.--
       (A) In general.--Paragraph (2) of section 1400B(e) is 
     amended--
       (i) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2015'', and
       (ii) by striking ``2014'' in the heading and inserting 
     ``2015''.
       (B) Partnerships and s-corps.--Paragraph (2) of section 
     1400B(g) is amended by striking ``December 31, 2014'' and 
     inserting ``December 31, 2015''.
       (d) First-Time Homebuyer Credit.--Subsection (i) of section 
     1400C is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Tax-exempt dc empowerment zone bonds.--The amendment 
     made by subsection (b) shall apply to bonds issued after 
     December 31, 2009.
       (3) Acquisition dates for zero-percent capital gains 
     rate.--The amendments made by subsection (c) shall apply to 
     property acquired or substantially improved after December 
     31, 2009.
       (4) Homebuyer credit.--The amendment made by subsection (d) 
     shall apply to homes purchased after December 31, 2009.

     SEC. 159. RENEWAL COMMUNITY TAX INCENTIVES.

       (a) In General.--Subsection (b) of section 1400E is 
     amended--
       (1) by striking ``December 31, 2009'' in paragraphs (1)(A) 
     and (3) and inserting ``December 31, 2010'', and
       (2) by striking ``January 1, 2010'' in paragraph (3) and 
     inserting ``January 1, 2011''.
       (b) Zero-Percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (2) Limitation on period of gains.--Paragraph (2) of 
     section 1400F(c) is amended--
       (A) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2015'', and
       (B) by striking ``2014'' in the heading and inserting 
     ``2015''.
       (3) Clerical amendment.--Subsection (d) of section 1400F is 
     amended by striking ``and `December 31, 2014' for `December 
     31, 2014'''.
       (c) Commercial Revitalization Deduction.--
       (1) In general.--Subsection (g) of section 1400I is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     1400I(d)(2) is amended by striking ``after 2001 and before 
     2010'' and inserting ``which begins after 2001 and before the 
     date referred to in subsection (g)''.
       (d) Increased Expensing Under Section 179.--Subparagraph 
     (A) of section 1400J(b)(1) is amended by striking ``January 
     1, 2010'' and inserting ``January 1, 2011''.
       (e) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of a renewal 
     community the nomination for which included a termination 
     date which is contemporaneous with the date specified in 
     subparagraph (A) of section 1400E(b)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (f) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Acquisitions.--The amendments made by subsections 
     (b)(1) and (d) shall apply to acquisitions after December 31, 
     2009.
       (3) Commercial revitalization deduction.--
       (A) In general.--The amendment made by subsection (c)(1) 
     shall apply to buildings placed in service after December 31, 
     2009.
       (B) Conforming amendment.--The amendment made by subsection 
     (c)(2) shall apply to calendar years beginning after December 
     31, 2009.

     SEC. 160. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
                   EXCISE TAXES TO PUERTO RICO AND THE VIRGIN 
                   ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2009.

     SEC. 161. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 5 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

     SEC. 171. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS.

       (a) In General.--Paragraph (11) of section 143(k) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Special Rule for Residences Destroyed in Federally 
     Declared Disasters.--Paragraph (13) of section 143(k), as 
     redesignated by subsection (c), is amended by striking 
     ``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and 
     inserting ``January 1, 2011''.
       (c) Technical Amendment.--Subsection (k) of section 143 is 
     amended by redesignating the second paragraph (12) (relating 
     to special rules for residences destroyed in federally 
     declared disasters) as paragraph (13).
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by this section shall apply to 
     bonds issued after December 31, 2009.

[[Page 2473]]

       (2) Residences destroyed in federally declared disasters.--
     The amendments made by subsection (b) shall apply with 
     respect to disasters occurring after December 31, 2009.
       (3) Technical amendment.--The amendment made by subsection 
     (c) shall take effect as if included in section 709 of the 
     Tax Extenders and Alternative Minimum Tax Relief Act of 2008.

     SEC. 172. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
                   DISASTERS.

       (a) In General.--Subclause (I) of section 165(h)(3)(B)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) $500 Limitation.--Paragraph (1) of section 165(h) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to federally declared disasters occurring after 
     December 31, 2009.
       (2) $500 limitation.--The amendment made by subsection (b) 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 173. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
                   DISASTER PROPERTY.

       (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to disasters occurring after December 31, 2009.

     SEC. 174. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY 
                   DECLARED DISASTERS.

       (a) In General.--Subclause (I) of section 172(j)(1)(A)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to losses attributable to disasters occurring 
     after December 31, 2009.

     SEC. 175. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Subparagraph (A) of section 198A(b)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures on account of disasters occurring 
     after December 31, 2009.

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

     SEC. 181. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL 
                   AND RESIDENTIAL REAL PROPERTY.

       (a) In General.--Subparagraph (A) of section 1400L(b)(2) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 182. TAX-EXEMPT BOND FINANCING.

       (a) In General.--Subparagraph (D) of section 1400L(d)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

     SEC. 183. SPECIAL DEPRECIATION ALLOWANCE.

       (a) In General.--Paragraph (6) of section 1400N(d)(6) is 
     amended by striking subparagraph (D).
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 184. INCREASE IN REHABILITATION CREDIT.

       (a) In General.--Subsection (h) of section 1400N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN 
                   INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR 
                   EMPLOYERS INSIDE DISASTER AREAS.

       (a) In General.--Paragraph (1) of section 201(b) of the 
     Katrina Emergency Tax Relief Act of 2005 is amended by 
     striking ``4-year'' and inserting ``5-year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals hired after August 27, 2009.

                  Subpart C--Midwestern Disaster Areas

     SEC. 191. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

       (a) In General.--Section 702(d)(10) of the Heartland 
     Disaster Tax Relief Act of 2008 (Public Law 110-343; 122 
     Stat. 3918) is amended--
       (1) by striking ``January 1, 2010'' both places it appears 
     and inserting ``January 1, 2011'', and
       (2) by striking ``December 31, 2009'' both places it 
     appears and inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 702(d)(10) of the 
     Heartland Disaster Tax Relief Act of 2008.

     SEC. 192. EXCLUSION OF CANCELLATION OF MORTGAGE INDEBTEDNESS.

       (a) In General.--Section 702(e)(4)(C) of the Heartland 
     Disaster Tax Relief Act of 2008 (Public Law 110-343; 122 
     Stat. 3918) is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges of indebtedness after December 31, 
     2009.

     TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

                   Subtitle A--Unemployment Insurance

     SEC. 201. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``February 28, 2010'' each place it appears 
     and inserting ``December 31, 2010'';
       (B) in the heading for subsection (b)(2), by striking 
     ``february 28, 2010'' and inserting ``december 31, 2010''; 
     and
       (C) in subsection (b)(3), by striking ``July 31, 2010'' and 
     inserting ``May 31, 2011''.
       (2) Section 2002(e) of the Assistance for Unemployed 
     Workers and Struggling Families Act, as contained in Public 
     Law 111-5 (26 U.S.C. 3304 note; 123 Stat. 438), is amended--
       (A) in paragraph (1)(B), by striking ``February 28, 2010'' 
     and inserting ``December 31, 2010'';
       (B) in the heading for paragraph (2), by striking 
     ``february 28, 2010'' and inserting ``december 31, 2010''; 
     and
       (C) in paragraph (3), by striking ``August 31, 2010'' and 
     inserting ``June 30, 2011''.
       (3) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``February 28, 2010'' each place it appears 
     and inserting ``January 1, 2011''; and
       (B) in subsection (c), by striking ``July 31, 2010'' and 
     inserting ``June 1, 2011''.
       (4) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``July 31, 2010'' and inserting ``May 31, 
     2011''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking ``1009'' and inserting 
     ``1009(a)(1)''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) the amendments made by section 201(a)(1) of the 
     American Workers, State, and Business Relief Act of 2010; 
     and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Department of Defense Appropriations Act, 2010 (Public Law 
     111-118).

                     Subtitle B--Health Provisions

     SEC. 211. EXTENSION AND IMPROVEMENT OF PREMIUM ASSISTANCE FOR 
                   COBRA BENEFITS.

       (a) Extension of Eligibility Period.--Subsection (a)(3)(A) 
     of section 3001 of division B of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5) is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2010''.
       (b) Clarifications Relating to Section 3001 of ARRA.--
       (1) Clarification regarding cobra continuation resulting 
     from reductions in hours.--Subsection (a) of section 3001 of 
     division B of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5) is amended--
       (A) in paragraph (3)(C), by inserting before the period at 
     the end the following: ``or consists of a reduction of hours 
     followed by such an involuntary termination of employment 
     during such period'';
       (B) in paragraph (16)--
       (i) by striking clause (ii) of subparagraph (A), and 
     inserting the following:
       ``(ii) such individual pays, by the latest of 60 days after 
     the date of the enactment of this paragraph, 30 days after 
     the date of provision of the notification required under 
     subparagraph (D)(ii), or the period described in section 
     4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the 
     amount of such premium, after the application of paragraph 
     (1)(A).''; and
       (ii) by striking subclause (I) of subparagraph (C)(i), and 
     inserting the following:

       ``(I) such assistance eligible individual experienced an 
     involuntary termination that was a qualifying event prior to 
     the date of enactment of the Department of Defense 
     Appropriations Act, 2010; and''; and

       (C) by adding at the end the following:
       ``(17) Special rules in case of individuals losing coverage 
     because of a reduction of hours.--
       ``(A) New election period.--
       ``(i) In general.--For purposes of the COBRA continuation 
     provisions, in the case of an individual described in 
     subparagraph (C) who did not make (or who made and 
     discontinued) an election of COBRA continuation coverage on 
     the basis of the reduction of hours of employment, the 
     involuntary termination of employment of such individual 
     after the date of the enactment of the American Workers, 
     State, and Business Relief Act of 2010 shall be treated as a 
     qualifying event.
       ``(ii) Counting cobra duration period from previous 
     qualifying event.--In any

[[Page 2474]]

     case of an individual referred to in clause (i), the period 
     of such individual's continuation coverage shall be 
     determined as though the qualifying event were the reduction 
     of hours of employment.
       ``(iii) Construction.--Nothing in this paragraph shall be 
     construed as requiring an individual referred to in clause 
     (i) to make a payment for COBRA continuation coverage between 
     the reduction of hours and the involuntary termination of 
     employment.
       ``(iv) Preexisting conditions.--With respect to an 
     individual referred to in clause (i) who elects COBRA 
     continuation coverage pursuant to such clause, rules similar 
     to the rules in paragraph (4)(C) shall apply.
       ``(B) Notices.--In the case of an individual described in 
     subparagraph (C), the administrator of the group health plan 
     (or other entity) involved shall provide, during the 60-day 
     period beginning on the date of such individual's involuntary 
     termination of employment, an additional notification 
     described in paragraph (7)(A), including information on the 
     provisions of this paragraph. Rules similar to the rules of 
     paragraph (7) shall apply with respect to such notification.
       ``(C) Individuals described.--Individuals described in this 
     subparagraph are individuals who are assistance eligible 
     individuals on the basis of a qualifying event consisting of 
     a reduction of hours occurring during the period described in 
     paragraph (3)(A) followed by an involuntary termination of 
     employment insofar as such involuntary termination of 
     employment occurred after the date of the enactment of the 
     American Workers, State, and Business Relief Act of 2010.''.
       (2) Clarification of period of assistance.--Subsection 
     (a)(2)(A)(ii)(I) of such section is amended by striking ``of 
     the first month''.
       (3) Enforcement.--Subsection (a)(5) of such section is 
     amended by adding at the end the following: ``In addition to 
     civil actions that may be brought to enforce applicable 
     provisions of such Act or other laws, the appropriate 
     Secretary or an affected individual may bring a civil action 
     to enforce such determinations and for appropriate relief. In 
     addition, such Secretary may assess a penalty against a plan 
     sponsor or health insurance issuer of not more than $110 per 
     day for each failure to comply with such determination of 
     such Secretary after 10 days after the date of the plan 
     sponsor's or issuer's receipt of the determination.''.
       (4) Amendments relating to section 3001 of arra.--
       (A) Subsection (g) of section 35 is amended by striking 
     ``section 3002(a) of the Health Insurance Assistance for the 
     Unemployed Act of 2009'' and inserting ``section 3001(a) of 
     title III of division B of the American Recovery and 
     Reinvestment Act of 2009''.
       (B) Section 139C is amended by striking ``section 3002 of 
     the Health Insurance Assistance for the Unemployed Act of 
     2009'' and inserting ``section 3001 of title III of division 
     B of the American Recovery and Reinvestment Act of 2009''.
       (C) Section 6432 is amended--
       (i) in subsection (a), by striking ``section 3002(a) of the 
     Health Insurance Assistance for the Unemployed Act of 2009'' 
     and inserting ``section 3001(a) of title III of division B of 
     the American Recovery and Reinvestment Act of 2009'';
       (ii) in subsection (c)(3), by striking ``section 
     3002(a)(1)(A) of such Act'' in subsection (c)(3) and 
     inserting ``section 3001(a)(1)(A) of title III of division B 
     of the American Recovery and Reinvestment Act of 2009''; and
       (iii) by redesignating subsections (e) and (f) as 
     subsections (f) and (g), respectively, and inserting after 
     subsection (d) the following new subsection:.
       ``(e) Employer Determination of Qualifying Event as 
     Involuntary Termination.--For purposes of this section, in 
     any case in which--
       ``(1) based on a reasonable interpretation of section 
     3001(a)(3)(C) of division B of the American Recovery and 
     Reinvestment Act of 2009 and administrative guidance 
     thereunder, an employer determines that the qualifying event 
     with respect to COBRA continuation coverage for an individual 
     was involuntary termination of a covered employee's 
     employment, and
       ``(2) the employer maintains supporting documentation of 
     the determination, including an attestation by the employer 
     of involuntary termination with respect to the covered 
     employee,

     the qualifying event for the individual shall be deemed to be 
     involuntary termination of the covered employee's 
     employment.''.
       (D) Subsection (a) of section 6720C is amended by striking 
     ``section 3002(a)(2)(C) of the Health Insurance Assistance 
     for the Unemployed Act of 2009'' and inserting ``section 
     3001(a)(2)(C) of title III of division B of the American 
     Recovery and Reinvestment Act of 2009''.
       (c) Rules Relating to 2010 Extension.--Subsection (a) of 
     section 3001 of division B of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5), as amended by 
     subsection (b)(1)(C), is further amended by adding at the end 
     the following:
       ``(18) Rules related to 2010 extension.--
       ``(A) Election to pay premiums retroactively and maintain 
     cobra coverage.--In the case of any premium for a period of 
     coverage during an assistance eligible individual's 2010 
     transition period, such individual shall be treated for 
     purposes of any COBRA continuation provision as having timely 
     paid the amount of such premium if--
       ``(i) such individual's qualifying event was on or after 
     March 1, 2010 and prior to the date of enactment of this 
     paragraph, and
       ``(ii) such individual pays, by the latest of 60 days after 
     the date of the enactment of this paragraph, 30 days after 
     the date of provision of the notification required under 
     paragraph (16)(D)(ii) (as applied by subparagraph (D) of this 
     paragraph), or the period described in section 
     4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the 
     amount of such premium, after the application of paragraph 
     (1)(A).
       ``(B) Refunds and credits for retroactive premium 
     assistance eligibility.--In the case of an assistance 
     eligible individual who pays, with respect to any period of 
     COBRA continuation coverage during such individual's 2010 
     transition period, the premium amount for such coverage 
     without regard to paragraph (1)(A), rules similar to the 
     rules of paragraph (12)(E) shall apply.
       ``(C) 2101 transition period.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `transition period' means, with respect to any assistance 
     eligible individual, any period of coverage if--

       ``(I) such assistance eligible individual experienced an 
     involuntary termination that was a qualifying event prior to 
     the date of enactment of the American Workers, State, and 
     Business Relief Act of 2010, and
       ``(II) paragraph (1)(A) applies to such period by reason of 
     the amendments made by section 211 of the American Workers, 
     State, and Business Relief Act of 2010.

       ``(ii) Construction.--Any period during the period 
     described in subclauses (I) and (II) of clause (i) for which 
     the applicable premium has been paid pursuant to subparagraph 
     (A) shall be treated as a period of coverage referred to in 
     such paragraph, irrespective of any failure to timely pay the 
     applicable premium (other than pursuant to subparagraph (A)) 
     for such period.
       ``(D) Notification.--Notification provisions similar to the 
     provisions of paragraph (16)(E) shall apply for purposes of 
     this paragraph.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of section 
     3001 of division B of the American Recovery and Reinvestment 
     Act of 2009 to which they relate, except that--
       (1) the amendments made by subsections (b)(1) shall apply 
     to periods of coverage beginning after the date of the 
     enactment of this Act; and
       (2) the amendments made by paragraphs (2) and (3) of 
     subsection (b) shall take effect on the date of the enactment 
     of this Act.

     SEC. 212. EXTENSION OF THERAPY CAPS EXCEPTIONS PROCESS.

       Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
     1395l(g)(5)) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.

     SEC. 213. TREATMENT OF PHARMACIES UNDER DURABLE MEDICAL 
                   EQUIPMENT ACCREDITATION REQUIREMENTS.

       (a) In General.--Section 1834(a)(20) of the Social Security 
     Act (42 U.S.C. 1395m(a)(20)) is amended--
       (1) in subparagraph (F)--
       (A) in clause (i)--
       (i) by striking ``clause (ii)'' and inserting ``clauses 
     (ii) and (iii)'';
       (ii) by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''; and
       (iii) by striking ``and'' at the end;
       (B) in clause (ii)(II), by striking the period at the end 
     and inserting ``; and'';
       (C) by inserting after clause (ii)(II) the following new 
     clause:
       ``(iii)(I) subject to subclause (II), with respect to items 
     and services furnished on or after January 1, 2011, the 
     accreditation requirement of clause (i) shall not apply to a 
     pharmacy described in subparagraph (G); and
       ``(II) effective with respect to items and services 
     furnished on or after the date of the enactment of this 
     subparagraph, the Secretary may apply to pharmacies quality 
     standards and an accreditation requirement established by the 
     Secretary that are an alternative to the quality standards 
     and accreditation requirement otherwise applicable under this 
     paragraph if the Secretary determines such alternative 
     quality standards and accreditation requirement are 
     appropriate for pharmacies.''; and
       (D) by adding at the end the following flush sentence:

     ``If determined appropriate by the Secretary, any alternative 
     quality standards and accreditation requirement established 
     under clause (iii)(II) may differ for categories of 
     pharmacies established by the Secretary (such as pharmacies 
     described in subparagraph (G)).''; and
       (2) by adding at the end the following new subparagraph:
       ``(G) Pharmacy described.--A pharmacy described in this 
     subparagraph is a pharmacy that meets each of the following 
     criteria:
       ``(i) The total billings by the pharmacy for such items and 
     services under this title are less than 5 percent of total 
     pharmacy sales for a previous period (of not less than 24 
     months) specified by the Secretary.

[[Page 2475]]

       ``(ii) The pharmacy has been enrolled under section 1866(j) 
     as a supplier of durable medical equipment, prosthetics, 
     orthotics, and supplies, has been issued (which may include 
     the renewal of) a provider number for at least 2 years, and 
     for which a final adverse action (as defined in section 
     424.57(a) of title 42, Code of Federal Regulations) has not 
     been imposed in the past 2 years.
       ``(iii) The pharmacy submits to the Secretary an 
     attestation, in a form and manner, and at a time, specified 
     by the Secretary, that the pharmacy meets the criteria 
     described in clauses (i) and (ii).
       ``(iv) The pharmacy agrees to submit materials as requested 
     by the Secretary, or during the course of an audit conducted 
     on a random sample of pharmacies selected annually, to verify 
     that the pharmacy meets the criteria described in clauses (i) 
     and (ii). Materials submitted under the preceding sentence 
     shall include a certification by an independent accountant on 
     behalf of the pharmacy or the submission of tax returns filed 
     by the pharmacy during the relevant periods, as requested by 
     the Secretary.''.
       (b) Conforming Amendments.--Section 1834(a)(20)(E) of the 
     Social Security Act (42 U.S.C. 1395m(a)(20)(E)) is amended--
       (1) in the first sentence, by striking ``The'' and 
     inserting ``Except as provided in the third sentence, the''; 
     and
       (2) by adding at the end the following new sentences: 
     ``Notwithstanding the preceding sentences, any alternative 
     quality standards and accreditation requirement established 
     under subparagraph (F)(iii)(II) shall be established through 
     notice and comment rulemaking. The Secretary may implement by 
     program instruction or otherwise subparagraph (G) after 
     consultation with representatives of relevant parties. The 
     specifications developed by the Secretary in order to 
     implement subparagraph (G) shall be posted on the Internet 
     website of the Centers for Medicare & Medicaid Services.''.
       (c) Administration.--Chapter 35 of title 44, United States 
     Code, shall not apply to this section.
       (d) Rule of Construction.--Nothing in the provisions of, or 
     amendments made by, this section shall be construed as 
     affecting the application of an accreditation requirement for 
     pharmacies to qualify for bidding in a competitive 
     acquisition area under section 1847 of the Social Security 
     Act (42 U.S.C. 1395w-3).
       (e) Waiver of 1-Year Reenrollment Bar.--In the case of a 
     pharmacy described in subparagraph (G) of section 1834(a)(20) 
     of the Social Security Act, as added by subsection (a), whose 
     billing privileges were revoked prior to January 1, 2011, by 
     reason of noncompliance with subparagraph (F)(i) of such 
     section, the Secretary of Health and Human Services shall 
     waive any reenrollment bar imposed pursuant to section 
     424.535(d) of title 42, Code of Federal Regulations (as in 
     effect on the date of the enactment of this Act) for such 
     pharmacy to reapply for such privileges.

     SEC. 214. ENHANCED PAYMENT FOR MENTAL HEALTH SERVICES.

       Section 138(a)(1) of the Medicare Improvements for Patients 
     and Providers Act of 2008 (Public Law 110-275) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.

     SEC. 215. EXTENSION OF AMBULANCE ADD-ONS.

       (a) In General.--Section 1834(l)(13) of the Social Security 
     Act (42 U.S.C. 1395m(l)(13)) is amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking 
     ``before January 1, 2010'' and inserting ``before January 1, 
     2011''; and
       (B) in each of clauses (i) and (ii), by striking ``before 
     January 1, 2010'' and inserting ``before January 1, 2011''.
       (b) Air Ambulance Improvements.--Section 146(b)(1) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275) is amended by striking ``ending on 
     December 31, 2009'' and inserting ``ending on December 31, 
     2010''.
       (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
     Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended--
       (1) in the first sentence, by striking ``2010'' and 
     inserting ``2011''; and
       (2) by adding at the end the following new sentence: ``For 
     purposes of applying this subparagraph for ground ambulance 
     services furnished on or after January 1, 2010, and before 
     January 1, 2011, the Secretary shall use the percent increase 
     that was applicable under this subparagraph to ground 
     ambulance services furnished during 2009.''.

     SEC. 216. EXTENSION OF GEOGRAPHIC FLOOR FOR WORK.

       Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)(E)) is amended by striking ``before January 1, 
     2010'' and inserting ``before January 1, 2011''.

     SEC. 217. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF 
                   CERTAIN PHYSICIAN PATHOLOGY SERVICES.

       Section 542(c) of the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (as enacted 
     into law by section 1(a)(6) of Public Law 106-554), as 
     amended by section 732 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395w-4 
     note), section 104 of division B of the Tax Relief and Health 
     Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the 
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
     Law 110-173), and section 136 of the Medicare Improvements 
     for Patients and Providers Act of 2008 (Public Law 110-275), 
     is amended by striking ``and 2009'' and inserting ``2009, and 
     2010''.

     SEC. 218. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

       (a) In General.--Section 1833(t)(7)(D)(i) of the Social 
     Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) is amended--
       (1) in subclause (II)--
       (A) in the first sentence, by striking ``2010''and 
     inserting ``2011''; and
       (B) in the second sentence, by striking ``or 2009'' and 
     inserting ``, 2009, or 2010''; and
       (2) in subclause (III), by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Permitting All Sole Community Hospitals To Be Eligible 
     for Hold Harmless.--Section 1833(t)(7)(D)(i)(III) of the 
     Social Security Act (42 U.S.C. 1395l(t)(7)(D)(i)(III)) is 
     amended by adding at the end the following new sentence: ``In 
     the case of covered OPD services furnished on or after 
     January 1, 2010, and before January 1, 2011, the preceding 
     sentence shall be applied without regard to the 100-bed 
     limitation.''.

     SEC. 219. EHR CLARIFICATION.

       (a) Qualification for Clinic-Based Physicians.--
       (1) Medicare.--Section 1848(o)(1)(C)(ii) of the Social 
     Security Act (42 U.S.C. 1395w-4(o)(1)(C)(ii)) is amended by 
     striking ``setting (whether inpatient or outpatient)'' and 
     inserting ``inpatient or emergency room setting''.
       (2) Medicaid.--Section 1903(t)(3)(D) of the Social Security 
     Act (42 U.S.C. 1396b(t)(3)(D)) is amended by striking 
     ``setting (whether inpatient or outpatient)'' and inserting 
     ``inpatient or emergency room setting''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective as if included in the enactment of the 
     HITECH Act (included in the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5)).
       (c) Implementation.--Notwithstanding any other provision of 
     law, the Secretary may implement the amendments made by this 
     section by program instruction or otherwise.

     SEC. 220. EXTENSION OF REIMBURSEMENT FOR ALL MEDICARE PART B 
                   SERVICES FURNISHED BY CERTAIN INDIAN HOSPITALS 
                   AND CLINICS.

       Section 1880(e)(1)(A) of the Social Security Act (42 U.S.C. 
     1395qq(e)(1)(A)) is amended by striking ``5-year period'' and 
     inserting ``6-year period''.

     SEC. 221. EXTENSION OF CERTAIN PAYMENT RULES FOR LONG-TERM 
                   CARE HOSPITAL SERVICES AND OF MORATORIUM ON THE 
                   ESTABLISHMENT OF CERTAIN HOSPITALS AND 
                   FACILITIES.

       (a) Extension of Certain Payment Rules.--Section 114(c) of 
     the Medicare, Medicaid, and SCHIP Extension Act of 2007 (42 
     U.S.C. 1395ww note), as amended by section 4302(a) of the 
     American Recovery and Reinvestment Act (Public Law 111-5), is 
     amended by striking ``3-year period'' each place it appears 
     and inserting ``4-year period''.
       (b) Extension of Moratorium.--Section 114(d)(1) of such Act 
     (42 U.S.C. 1395ww note), as amended by section 4302(b) of the 
     American Recovery and Reinvestment Act (Public Law 111-5), in 
     the matter preceding subparagraph (A), is amended by striking 
     ``3-year period'' and inserting ``4-year period''.

     SEC. 222. EXTENSION OF THE MEDICARE RURAL HOSPITAL 
                   FLEXIBILITY PROGRAM.

       Section 1820(j) of the Social Security Act (42 U.S.C. 
     1395i-4(j)) is amended--
       (1) by striking ``2010, and for'' and inserting ``2010, 
     for''; and
       (2) by inserting ``and for making grants to all States 
     under subsection (g), such sums as may be necessary in fiscal 
     year 2011, to remain available until expended'' before the 
     period at the end.

     SEC. 223. EXTENSION OF SECTION 508 HOSPITAL 
                   RECLASSIFICATIONS.

       (a) In General.--Subsection (a) of section 106 of division 
     B of the Tax Relief and Health Care Act of 2006 (42 U.S.C. 
     1395 note), as amended by section 117 of the Medicare, 
     Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
     173) and section 124 of the Medicare Improvements for 
     Patients and Providers Act of 2008 (Public Law 110-275), is 
     amended by striking ``September 30, 2009'' and inserting 
     ``September 30, 2010''.
       (b) Special Rule for Fiscal Year 2010.--For purposes of 
     implementation of the amendment made by subsection (a), 
     including (notwithstanding paragraph (3) of section 117(a) of 
     the Medicare, Medicaid, and SCHIP Extension Act of 2007 
     (Public Law 110-173), as amended by section 124(b) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275)) for purposes of the implementation of 
     paragraph (2) of such section 117(a), during fiscal year 
     2010, the Secretary of Health and Human Services (in this 
     subsection referred to as the ``Secretary'') shall use the 
     hospital wage index that was promulgated by the Secretary in 
     the Federal Register on August 27, 2009 (74 Fed. Reg. 43754), 
     and any subsequent corrections.

     SEC. 224. TECHNICAL CORRECTION RELATED TO CRITICAL ACCESS 
                   HOSPITAL SERVICES.

       (a) In General.--Subsections (g)(2)(A) and (l)(8) of 
     section 1834 of the Social Security

[[Page 2476]]

     Act (42 U.S.C. 1395m) are each amended by inserting ``101 
     percent of'' before ``the reasonable costs''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of section 
     405(a) of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173; 117 Stat. 
     2266).

     SEC. 225. EXTENSION FOR SPECIALIZED MA PLANS FOR SPECIAL 
                   NEEDS INDIVIDUALS.

       (a) In General.--Section 1859(f)(1) of the Social Security 
     Act (42 U.S.C. 1395w-28(f)(1)) is amended by striking 
     ``2011'' and inserting ``2012''.
       (b) Temporary Extension of Authority To Operate but No 
     Service Area Expansion for Dual Special Needs Plans That Do 
     Not Meet Certain Requirements.--Section 164(c)(2) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275) is amended by striking ``December 31, 
     2010'' and inserting ``December 31, 2011''.

     SEC. 226. EXTENSION OF REASONABLE COST CONTRACTS.

       Section 1876(h)(5)(C)(ii) of the Social Security Act (42 
     U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter 
     preceding subclause (I), by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.

     SEC. 227. EXTENSION OF PARTICULAR WAIVER POLICY FOR EMPLOYER 
                   GROUP PLANS.

       For plan year 2011 and subsequent plan years, to the extent 
     that the Secretary of Health and Human Services is applying 
     the 2008 service area extension waiver policy (as modified in 
     the April 11, 2008, Centers for Medicare & Medicaid Services' 
     memorandum with the subject ``2009 Employer Group Waiver-
     Modification of the 2008 Service Area Extension Waiver 
     Granted to Certain MA Local Coordinated Care Plans'') to 
     Medicare Advantage coordinated care plans, the Secretary 
     shall extend the application of such waiver policy to 
     employers who contract directly with the Secretary as a 
     Medicare Advantage private fee-for-service plan under section 
     1857(i)(2) of the Social Security Act (42 U.S.C. 1395w-
     27(i)(2)) and that had enrollment as of January 1, 2010.

     SEC. 228. EXTENSION OF CONTINUING CARE RETIREMENT COMMUNITY 
                   PROGRAM.

       Notwithstanding any other provision of law, the Secretary 
     of Health and Human Services shall continue to conduct the 
     Erickson Advantage Continuing Care Retirement Community 
     (CCRC) program under part C of title XVIII of the Social 
     Security Act through December 31, 2011.

     SEC. 229. FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME 
                   PROGRAMS.

       (a) Additional Funding for State Health Insurance 
     Programs.--Subsection (a)(1)(B) of section 119 of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (42 U.S.C. 1395b-3 note) is amended by striking ``(42 U.S.C. 
     1395w-23(f))'' and all that follows through the period at the 
     end and inserting ``(42 U.S.C. 1395w-23(f)), to the Centers 
     for Medicare & Medicaid Services Program Management Account--
       ``(i) for fiscal year 2009, of $7,500,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (b) Additional Funding for Area Agencies on Aging.--
     Subsection (b)(1)(B) of such section 119 is amended by 
     striking ``(42 U.S.C. 1395w-23(f))'' and all that follows 
     through the period at the end and inserting ``(42 U.S.C. 
     1395w-23(f)), to the Administration on Aging--
       ``(i) for fiscal year 2009, of $7,500,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (c) Additional Funding for Aging and Disability Resource 
     Centers.--Subsection (c)(1)(B) of such section 119 is amended 
     by striking ``(42 U.S.C. 1395w-23(f))'' and all that follows 
     through the period at the end and inserting ``(42 U.S.C. 
     1395w-23(f)), to the Administration on Aging--
       ``(i) for fiscal year 2009, of $5,000,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (d) Additional Funding for Contract With the National 
     Center for Benefits and Outreach Enrollment.--Subsection 
     (d)(2) of such section 119 is amended by striking ``(42 
     U.S.C. 1395w-23(f))'' and all that follows through the period 
     at the end and inserting ``(42 U.S.C. 1395w-23(f)), to the 
     Administration on Aging--
       ``(i) for fiscal year 2009, of $5,000,000; and
       ``(ii) for fiscal year 2010, of $2,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.

     SEC. 230. FAMILY-TO-FAMILY HEALTH INFORMATION CENTERS.

       Section 501(c)(1)(A)(iii) of the Social Security Act (42 
     U.S.C. 701(c)(1)(A)(iii)) is amended by striking ``fiscal 
     year 2009'' and inserting ``each of fiscal years 2009 through 
     2011''.

     SEC. 231. IMPLEMENTATION FUNDING.

       For purposes of carrying out the provisions of, and 
     amendments made by, this title that relate to titles XVIII 
     and XIX of the Social Security Act, there are appropriated to 
     the Secretary of Health and Human Services for the Centers 
     for Medicare & Medicaid Services Program Management Account, 
     from amounts in the general fund of the Treasury not 
     otherwise appropriated, $100,000,000. Amounts appropriated 
     under the preceding sentence shall remain available until 
     expended.

     SEC. 232. EXTENSION OF ARRA INCREASE IN FMAP.

       Section 5001 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5) is amended--
       (1) in subsection (a)(3), by striking ``first calendar 
     quarter'' and inserting ``first 3 calendar quarters'';
       (2) in subsection (c)--
       (A) in paragraph (2)(B), by striking ``July 1, 2010'' and 
     inserting ``January 1, 2011'';
       (B) in paragraph (3)(B)(i), by striking ``July 1, 2010'' 
     each place it appears and inserting ``January 1, 2011''; and
       (C) in paragraph (4)(C)(ii), by striking ``the 3-
     consecutive-month period beginning with January 2010'' and 
     inserting ``any 3-consecutive-month period that begins after 
     December 2009 and ends before January 2011'';
       (3) in subsection (g)--
       (A) in paragraph (1), by striking ``September 30, 2011'' 
     and inserting ``March 31, 2012'';
       (B) in paragraph (2)--
       (i) by inserting ``of such Act'' after ``1923''; and
       (ii) by adding at the end the following new sentence: 
     ``Voluntary contributions by a political subdivision to the 
     non-Federal share of expenditures under the State Medicaid 
     plan or to the non-Federal share of payments under section 
     1923 of the Social Security Act shall not be considered to be 
     required contributions for purposes of this section.''; and
       (C) by adding at the end the following:
       ``(3) Certification by chief executive officer.--No 
     additional Federal funds shall be paid to a State as a result 
     of this section with respect to a calendar quarter occurring 
     during the period beginning on January 1, 2011, and ending on 
     June 30, 2011, unless, not later than 45 days after the date 
     of enactment of this paragraph, the chief executive officer 
     of the State certifies that the State will request and use 
     such additional Federal funds.''; and
       (4) in subsection (h)(3), by striking ``December 31, 2010'' 
     and inserting ``June 30, 2011''.

     SEC. 233. EXTENSION OF GAINSHARING DEMONSTRATION.

       (a) In General.--Subsection (d)(3) of section 5007 of the 
     Deficit Reduction Act of 2005 (Public Law 109-171) is amended 
     by inserting ``(or 21 months after the date of the enactment 
     of the American Workers, State, and Business Relief Act of 
     2010, in the case of a demonstration project in operation as 
     of October 1, 2008)'' after ``December 31, 2009''.
       (b) Funding.--
       (1) In general.--Subsection (f)(1) of such section is 
     amended by inserting ``and for fiscal year 2010, 
     $1,600,000,'' after ``$6,000,000,''.
       (2) Availability.--Subsection (f)(2) of such section is 
     amended by striking ``2010'' and inserting ``2014 or until 
     expended''.
       (c) Reports.--
       (1) Quality improvement and savings.--Subsection (e)(3) of 
     such section is amended by striking ``December 1, 2008'' and 
     inserting ``18 months after the date of the enactment of the 
     American Workers, State, and Business Relief Act of 2010''.
       (2) Final report.--Subsection (e)(4) of such section is 
     amended by striking ``May 1, 2010'' and inserting ``42 months 
     after the date of the enactment of the American Workers, 
     State, and Business Relief Act of 2010''.

                      Subtitle C--Other Provisions

     SEC. 241. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.

       Section 1012 of the Department of Defense Appropriations 
     Act, 2010 (Public Law 111-118) is amended--
       (1) by striking ``before March 1, 2010''; and
       (2) by inserting ``for 2011'' after ``until updated poverty 
     guidelines''.

     SEC. 242. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       (a) In General.--Subchapter A of chapter 65 is amended by 
     adding at the end the following new section:

     ``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, any refund (or advance payment with respect to a 
     refundable credit) made to any individual under this title 
     shall not be taken into account as income, and shall not be 
     taken into account as resources for a period of 12 months 
     from receipt, for purposes of determining the eligibility of 
     such individual (or any other individual) for benefits or 
     assistance (or the amount or extent of benefits or 
     assistance) under any Federal program or under any State or 
     local program financed in whole or in part with Federal 
     funds.
       ``(b) Termination.--Subsection (a) shall not apply to any 
     amount received after December 31, 2010.''.

[[Page 2477]]

       (b) Clerical Amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

``Sec. 6409. Refunds disregarded in the administration of Federal 
              programs and federally assisted programs.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received after December 31, 2009.

     SEC. 243. STATE COURT IMPROVEMENT PROGRAM.

       Section 438 of the Social Security Act (42 U.S.C. 629h) is 
     amended--
       (1) in subsection (c)(2)(A), by striking ``2010'' and 
     inserting ``2011''; and
       (2) in subsection (e), by striking ``2010'' and inserting 
     ``2011''.

     SEC. 244. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       Section 129 of the Continuing Appropriations Resolution, 
     2010 (Public Law 111-68), as amended by section 1005 of 
     Public Law 111-118, is further amended by striking ``by 
     substituting'' and all that follows through the period at the 
     end, and inserting ``by substituting December 31, 2010, for 
     the date specified in each such section.''.

     SEC. 245. EMERGENCY DISASTER ASSISTANCE.

       (a) Definitions.--Except as otherwise provided in this 
     section, in this section:
       (1) Disaster county.--
       (A) In general.--The term ``disaster county'' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration for the 2009 crop 
     year.
       (B) Exclusion.--The term ``disaster county'' does not 
     include a contiguous county.
       (2) Eligible aquaculture producer.--The term ``eligible 
     aquaculture producer'' means an aquaculture producer that 
     during the 2009 calendar year, as determined by the 
     Secretary--
       (A) produced an aquaculture species for which feed costs 
     represented a substantial percentage of the input costs of 
     the aquaculture operation; and
       (B) experienced a substantial price increase of feed costs 
     above the previous 5-year average.
       (3) Eligible producer.--The term ``eligible producer'' 
     means an agricultural producer in a disaster county.
       (4) Eligible specialty crop producer.--The term ``eligible 
     specialty crop producer'' means an agricultural producer 
     that, for the 2009 crop year, as determined by the 
     Secretary--
       (A) produced, or was prevented from planting, a specialty 
     crop; and
       (B) experienced crop losses in a disaster county due to 
     excessive rainfall or related condition.
       (5) Qualifying natural disaster declaration.--The term 
     ``qualifying natural disaster declaration'' means a natural 
     disaster declared by the Secretary for production losses 
     under section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a)).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (7) Specialty crop.--The term ``specialty crop'' has the 
     meaning given the term in section 3 of the Specialty Crops 
     Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 
     1621 note).
       (b) Supplemental Direct Payment.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use such sums as are 
     necessary to make supplemental payments under sections 1103 
     and 1303 of the Food, Conservation, and Energy Act of 2008 (7 
     U.S.C. 8713, 8753) to eligible producers on farms located in 
     disaster counties that had at least 1 crop of economic 
     significance (other than crops intended for grazing) suffer 
     at least a 5-percent crop loss due to a natural disaster, 
     including quality losses, as determined by the Secretary, in 
     an amount equal to 90 percent of the direct payment the 
     eligible producers received for the 2009 crop year on the 
     farm.
       (2) ACRE program.--Eligible producers that received 
     payments under section 1105 of the Food, Conservation, and 
     Energy Act of 2008 (7 U.S.C. 8715) for the 2009 crop year and 
     that otherwise meet the requirements of paragraph (1) shall 
     be eligible to receive supplemental payments under that 
     paragraph in an amount equal to 90 percent of the reduced 
     direct payment the eligible producers received for the 2009 
     crop year under section 1103 or 1303 of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753).
       (3) Insurance requirement.--As a condition of receiving 
     assistance under this subsection, eligible producers on a 
     farm that--
       (A) in the case of an insurable commodity, did not obtain a 
     policy or plan of insurance for the insurable commodity under 
     the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (other 
     than for a crop insurance pilot program under that Act) for 
     each crop of economic significance (other than crops intended 
     for grazing), shall obtain such a policy or plan for those 
     crops for the next available crop year, as determined by the 
     Secretary; or
       (B) in the case of a noninsurable commodity, did not file 
     the required paperwork, and pay the administrative fee by the 
     applicable State filing deadline, for the noninsurable 
     commodity under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333) for each 
     crop of economic significance (other than crops intended for 
     grazing), shall obtain such coverage for those crops for the 
     next available crop year, as determined by the Secretary.
       (4) Relationship to other law.--Assistance received under 
     this subsection shall be included in the calculation of farm 
     revenue for the 2009 crop year under section 531(b)(4)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
     section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
     2497(b)(4)(A)).
       (c) Specialty Crop Assistance.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $150,000,000, to remain available until September 30, 2011, 
     to carry out a program of grants to States to assist eligible 
     specialty crop producers for losses due to excessive rainfall 
     and related conditions affecting the 2009 crops.
       (2) Notification.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall notify the State 
     department of agriculture (or similar entity) in each State 
     of the availability of funds to assist eligible specialty 
     crop producers, including such terms as are determined by the 
     Secretary to be necessary for the equitable treatment of 
     eligible specialty crop producers.
       (3) Provision of grants.--
       (A) In general.--The Secretary shall make grants to States 
     for disaster counties with excessive rainfall and related 
     conditions on a pro rata basis based on the value of 
     specialty crop losses in those counties during the 2008 
     calendar year, as determined by the Secretary.
       (B) Timing.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (C) Maximum grant.--The maximum amount of a grant made to a 
     State under this subsection may not exceed $40,000,000.
       (4) Requirements.--The Secretary shall make grants under 
     this subsection only to States that demonstrate to the 
     satisfaction of the Secretary that the State will--
       (A) use grant funds to assist eligible specialty crop 
     producers;
       (B) provide assistance to eligible specialty crop producers 
     not later than 90 days after the date on which the State 
     receives grant funds; and
       (C) not later than 30 days after the date on which the 
     State provides assistance to eligible specialty crop 
     producers, submit to the Secretary a report that describes--
       (i) the manner in which the State provided assistance;
       (ii) the amounts of assistance provided by type of 
     specialty crop; and
       (iii) the process by which the State determined the levels 
     of assistance to eligible specialty crop producers.
       (5) Relation to other law.--Assistance received under this 
     subsection shall be included in the calculation of farm 
     revenue for the 2009 crop year under section 531(b)(4)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
     section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
     2497(b)(4)(A)).
       (d) Cottonseed Assistance.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $42,000,000 to provide supplemental assistance to eligible 
     producers and first-handlers of the 2009 crop of cottonseed 
     in a disaster county.
       (2) General terms.--Except as otherwise provided in this 
     subsection, the Secretary shall provide disaster assistance 
     under this subsection under the same terms and conditions as 
     assistance provided under section 3015 of the Emergency 
     Agricultural Disaster Assistance Act of 2006 (title III of 
     Public Law 109-234; 120 Stat. 477).
       (3) Distribution of assistance.--The Secretary shall 
     distribute assistance to first handlers for the benefit of 
     eligible producers in a disaster county in an amount equal to 
     the product obtained by multiplying--
       (A) the payment rate, as determined under paragraph (4); 
     and
       (B) the county-eligible production, as determined under 
     paragraph (5).
       (4) Payment rate.--The payment rate shall be equal to the 
     quotient obtained by dividing--
       (A) the sum of the county-eligible production, as 
     determined under paragraph (5); by
       (B) the total funds made available to carry out this 
     subsection.
       (5) County-eligible production.--The county-eligible 
     production shall be equal to the product obtained by 
     multiplying--
       (A) the number of acres planted to cotton in the disaster 
     county, as reported to the Secretary by first-handlers;
       (B) the expected cotton lint yield for the disaster county, 
     as determined by the Secretary based on the best available 
     information; and
       (C) the national average seed-to-lint ratio, as determined 
     by the Secretary based on the best available information for 
     the 5 crop years immediately preceding the 2009 crop, 
     excluding the year in which the average ratio was the highest 
     and the year in which the average ratio was the lowest in 
     such period.
       (e) Aquaculture Assistance.--
       (1) Grant program.--

[[Page 2478]]

       (A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $25,000,000, to remain available until September 30, 2011, to 
     carry out a program of grants to States to assist eligible 
     aquaculture producers for losses associated with high feed 
     input costs during the 2009 calendar year.
       (B) Notification.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall notify the State 
     department of agriculture (or similar entity) in each State 
     of the availability of funds to assist eligible aquaculture 
     producers, including such terms as are determined by the 
     Secretary to be necessary for the equitable treatment of 
     eligible aquaculture producers.
       (C) Provision of grants.--
       (i) In general.--The Secretary shall make grants to States 
     under this subsection on a pro rata basis based on the amount 
     of aquaculture feed used in each State during the 2008 
     calendar year, as determined by the Secretary.
       (ii) Timing.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (D) Requirements.--The Secretary shall make grants under 
     this subsection only to States that demonstrate to the 
     satisfaction of the Secretary that the State will--
       (i) use grant funds to assist eligible aquaculture 
     producers;
       (ii) provide assistance to eligible aquaculture producers 
     not later than 60 days after the date on which the State 
     receives grant funds; and
       (iii) not later than 30 days after the date on which the 
     State provides assistance to eligible aquaculture producers, 
     submit to the Secretary a report that describes--

       (I) the manner in which the State provided assistance;
       (II) the amounts of assistance provided per species of 
     aquaculture; and
       (III) the process by which the State determined the levels 
     of assistance to eligible aquaculture producers.

       (2) Reduction in payments.--An eligible aquaculture 
     producer that receives assistance under this subsection shall 
     not be eligible to receive any other assistance under the 
     supplemental agricultural disaster assistance program 
     established under section 531 of the Federal Crop Insurance 
     Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974 
     (19 U.S.C. 2497) for any losses in 2009 relating to the same 
     species of aquaculture.
       (3) Report to congress.--Not later than 240 days after the 
     date of enactment of this Act, the Secretary shall submit to 
     the appropriate committees of Congress a report that--
       (A) describes in detail the manner in which this subsection 
     has been carried out; and
       (B) includes the information reported to the Secretary 
     under paragraph (1)(D)(iii).
       (f) Hawaii Transportation Cooperative.--Notwithstanding any 
     other provision of law, the Secretary shall use $21,000,000 
     of funds of the Commodity Credit Corporation to make a 
     payment to an agricultural transportation cooperative in the 
     State of Hawaii, the members of which are eligible to 
     participate in the commodity loan program of the Farm Service 
     Agency, for assistance to maintain and develop employment.
       (g) Livestock Forage Disaster Program.--
       (1) Definition of disaster county.--In this subsection:
       (A) In general.--The term ``disaster county'' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration announced by the 
     Secretary in calendar year 2009.
       (B) Inclusion.--The term ``disaster county'' includes a 
     contiguous county.
       (2) Payments.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $50,000,000 to carry out a program to make payments to 
     eligible producers that had grazing losses in disaster 
     counties in calendar year 2009.
       (3) Criteria.--
       (A) In general.--Except as provided in subparagraph (B), 
     assistance under this subsection shall be determined under 
     the same criteria as are used to carry out the programs under 
     section 531(d) of the Federal Crop Insurance Act (7 U.S.C. 
     1531(d)) and section 901(d) of the Trade Act of 1974 (19 
     U.S.C. 2497(d)).
       (B) Drought intensity.--For purposes of this subsection, an 
     eligible producer shall not be required to meet the drought 
     intensity requirements of section 531(d)(3)(D)(ii) of the 
     Federal Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) and 
     section 901(d)(3)(D)(ii) of the Trade Act of 1974 (19 U.S.C. 
     2497(d)(3)(D)(ii)).
       (4) Amount.--Assistance under this subsection shall be in 
     an amount equal to 1 monthly payment using the monthly 
     payment rate under section 531(d)(3)(B) of the Federal Crop 
     Insurance Act (7 U.S.C. 1531(d)(3)(B)) and section 
     901(d)(3)(B) of the Trade Act of 1974 (19 U.S.C. 
     2497(d)(3)(B)).
       (5) Relation to other law.--An eligible producer that 
     receives assistance under this subsection shall be ineligible 
     to receive assistance for 2009 grazing losses under the 
     program carried out under section 531(d) of the Federal Crop 
     Insurance Act (7 U.S.C. 1531(d)) and section 901(d) of the 
     Trade Act of 1974 (19 U.S.C. 2497(d)) .
       (h) Emergency Loans for Poultry Producers.--
       (1) Definitions.--In this subsection:
       (A) Announcement date.--The term ``announcement date'' 
     means the date on which the Secretary announces the emergency 
     loan program under this subsection.
       (B) Poultry integrator.--The term ``poultry integrator'' 
     means a poultry integrator that filed proceedings under 
     chapter 11 of title 11, United States Code, in United States 
     Bankruptcy Court during the 30-day period beginning on 
     December 1, 2008.
       (2) Loan program.--
       (A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $75,000,000, to remain available until expended, for the cost 
     of making no-interest emergency loans available to poultry 
     producers that meet the requirements of this subsection.
       (B) Terms and conditions.--Except as otherwise provided in 
     this subsection, emergency loans under this subsection shall 
     be subject to such terms and conditions as are determined by 
     the Secretary.
       (3) Loans.--
       (A) In general.--An emergency loan made to a poultry 
     producer under this subsection shall be for the purpose of 
     providing financing to the poultry producer in response to 
     financial losses associated with the termination or 
     nonrenewal of any contract between the poultry producer and a 
     poultry integrator.
       (B) Eligibility.--
       (i) In general.--To be eligible for an emergency loan under 
     this subsection, not later than 90 days after the 
     announcement date, a poultry producer shall submit to the 
     Secretary evidence that--

       (I) the contract of the poultry producer described in 
     subparagraph (A) was not continued; and
       (II) no similar contract has been awarded subsequently to 
     the poultry producer.

       (ii) Requirement to offer loans.--Notwithstanding any other 
     provision of law, if a poultry producer meets the eligibility 
     requirements described in clause (i), subject to the 
     availability of funds under paragraph (2)(A), the Secretary 
     shall offer to make a loan under this subsection to the 
     poultry producer with a minimum term of 2 years.
       (4) Additional requirements.--
       (A) In general.--A poultry producer that receives an 
     emergency loan under this subsection may use the emergency 
     loan proceeds only to repay the amount that the poultry 
     producer owes to any lender.
       (B) Conversion of the loan.--A poultry producer that 
     receives an emergency loan under this subsection shall be 
     eligible to have the balance of the emergency loan converted, 
     but not refinanced, to a loan that has the same terms and 
     conditions as an operating loan under subtitle B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et 
     seq.).
       (i) Administration.--
       (1) Regulations.--
       (A) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall promulgate such 
     regulations as are necessary to implement this section.
       (B) Procedure.--The promulgation of the regulations and 
     administration of this section shall be made without regard 
     to--
       (i) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (ii) the Statement of Policy of the Secretary of 
     Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), 
     relating to notices of proposed rulemaking and public 
     participation in rulemaking; and
       (iii) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (C) Congressional review of agency rulemaking.--In carrying 
     out this paragraph, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.
       (2) Administrative costs.--Of the funds of the Commodity 
     Credit Corporation, the Secretary may use up to $15,000,000 
     to pay administrative costs incurred by the Secretary that 
     are directly related to carrying out this Act.
       (3) Prohibition.--None of the funds of the Agricultural 
     Disaster Relief Trust Fund established under section 902 of 
     the Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry 
     out this Act.

     SEC. 246. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT 
                   EXTENSIONS.

       (a) Appropriation.--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'', $354,000,000, to remain available through 
     December 31, 2010, for the cost of--
       (1) 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 
     section, for loans guaranteed under section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)), title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.), or 
     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 section; and

[[Page 2479]]

       (2) 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 section,

     Provided, That such costs, including the cost of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974.
       (b) Extension of Programs.--
       (1) Fees.--Section 501 of division A 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 it appears and inserting ``December 31, 2010''.
       (2) 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 ``February 28, 
     2010'' and inserting ``December 31, 2010''.

                   TITLE III--PENSION FUNDING RELIEF

                   Subtitle A--Single Employer Plans

     SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT 
                   PLANS TO AMORTIZE CERTAIN SHORTFALL 
                   AMORTIZATION BASES.

       (a) Amendments to ERISA.--
       (1) In general.--Paragraph (2) of section 303(c) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1083(c)) is amended by adding at the end the following 
     subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury. The Secretary 
     of the Treasury shall, before granting a revocation request, 
     provide the Pension Benefit Guaranty Corporation an 
     opportunity to comment on the conditions applicable to the 
     treatment of any portion of the election year shortfall 
     amortization base that remains unamortized as of the 
     revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required installments in certain cases.--
     Section 303(c) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end 
     the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 
     restriction period with respect to an election year under 
     paragraph (2)(D), then the shortfall amortization installment 
     otherwise determined and payable under such paragraph for 
     such plan year shall, subject to the limitation under 
     subparagraph (B), be increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary of the Treasury, 
     if a shortfall amortization installment with respect to any 
     shortfall amortization base for an election year is required 
     to be increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year in a restriction 
     period with respect to an election year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year (without regard to whether such 
     succeeding plan year is in the restriction period).
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year (without regard to whether such succeeding plan year is 
     in the restriction period).
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under 
     chapter 1 of the Internal Revenue Code of 1986 for 
     remuneration during the calendar year in which such plan year 
     begins for services performed by the employee for the plan 
     sponsor (whether or not performed during such calendar year), 
     over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved

[[Page 2480]]

     (directly or indirectly) in a trust (or other arrangement as 
     determined by the Secretary of the Treasury), or transferred 
     to such a trust or other arrangement, by a plan sponsor for 
     purposes of paying deferred compensation of an employee under 
     a nonqualified deferred compensation plan (as defined in 
     section 409A of such Code) of the plan sponsor, then, for 
     purposes of clause (i), the amount of such assets shall be 
     treated as remuneration of the employee includible in income 
     for the calendar year unless such amount is otherwise 
     includible in income for such year. An amount to which the 
     preceding sentence applies shall not be taken into account 
     under this paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--There shall not be taken into account 
     under clause (i)(I) any amount includible in income with 
     respect to the granting on or after February 4, 2010, of 
     service recipient stock (within the meaning of section 409A 
     of the Internal Revenue Code of 1986) that, upon such grant, 
     is subject to a substantial risk of forfeiture (as defined 
     under section 83(c)(1) of such Code) for at least 5 years 
     from the date of such grant.

       ``(II) Secretarial authority.--The Secretary of the 
     Treasury may by regulation provide for the application of 
     this clause in the case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Certain payments under existing contracts.--Any 
     remuneration consisting of nonqualified deferred 
     compensation, restricted stock, stock options, or stock 
     appreciation rights payable or granted under a written 
     binding contract that was in effect on February 4, 2010, and 
     which was not modified in any material respect before such 
     remuneration is paid.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) of such Code for the taxable year ending 
     during such calendar year, and the term `compensation' shall 
     include earned income of such individual with respect to such 
     self-employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) of such Code for the calendar year, 
     determined by substituting `calendar year 2009' for `calendar 
     year 1992' in subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the excess (if any) of--

       ``(I) the sum of the dividends declared during the plan 
     year by the plan sponsor plus the aggregate fair market value 
     of the stock of the plan sponsor redeemed during the plan 
     year, over
       ``(II) the adjusted net income (within the meaning of 
     section 4043) of the plan sponsor for the preceding plan 
     year.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i), there shall only be 
     taken into account dividends declared, and redemptions 
     occurring, after February 4, 2010.
       ``(iii) Exception for intra-group dividends.--Dividends 
     paid by one member of a controlled group (as defined in 
     section 302(d)(3)) to another member of such group shall not 
     be taken into account under clause (i).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 302(d)(3)).
       ``(ii) Restriction period.--The term `restriction period' 
     means, with respect to any election year--

       ``(I) except as provided in subclause (II), the 4-year 
     period beginning with the election year, and
       ``(II) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the election year, the 7-
     year period beginning with the election year.

       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary of the Treasury shall provide rules 
     for the application of this paragraph to such plans, 
     including rules for the ratable allocation of any installment 
     acceleration amount among such plans on the basis of each 
     plan's relative reduction in the plan's shortfall 
     amortization installment for the first plan year in the 
     amortization period described in subparagraph (A) (determined 
     without regard to this paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary of the 
     Treasury shall prescribe rules for the application of 
     paragraph (2)(D) and this paragraph in any case where there 
     is a merger or acquisition involving a plan sponsor making 
     the election under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 303 of such Act (29 
     U.S.C. 1083) is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (b) Amendments to Internal Revenue Code of 1986.--
       (1) In general.--Paragraph (2) of section 430(c) is amended 
     by adding at the end the following subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary, and may be revoked only with the consent of 
     the Secretary. The Secretary shall, before granting a 
     revocation request, provide the Pension Benefit Guaranty 
     Corporation an opportunity to comment on the conditions 
     applicable to the treatment of any portion of the election 
     year shortfall amortization base that remains unamortized as 
     of the revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required

[[Page 2481]]

     contributions in cases of excess compensation or 
     extraordinary dividends or stock redemptions, see paragraph 
     (7).''.
       (2) Increases in required contributions if excess 
     compensation paid.--Section 430(c) is amended by adding at 
     the end the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 
     restriction period with respect to an election year under 
     paragraph (2)(D), then the shortfall amortization installment 
     otherwise determined and payable under such paragraph for 
     such plan year shall, subject to the limitation under 
     subparagraph (B), be increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary, if a shortfall 
     amortization installment with respect to any shortfall 
     amortization base for an election year is required to be 
     increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year in a restriction 
     period with respect to an election year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year (without regard to whether such 
     succeeding plan year is in the restriction period).
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year (without regard to whether such succeeding plan year is 
     in the restriction period).
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under this 
     chapter for remuneration during the calendar year in which 
     such plan year begins for services performed by the employee 
     for the plan sponsor (whether or not performed during such 
     calendar year), over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary), or 
     transferred to such a trust or other arrangement, by a plan 
     sponsor for purposes of paying deferred compensation of an 
     employee under a nonqualified deferred compensation plan (as 
     defined in section 409A) of the plan sponsor, then, for 
     purposes of clause (i), the amount of such assets shall be 
     treated as remuneration of the employee includible in income 
     for the calendar year unless such amount is otherwise 
     includible in income for such year. An amount to which the 
     preceding sentence applies shall not be taken into account 
     under this paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--There shall not be taken into account 
     under clause (i)(I) any amount includible in income with 
     respect to the granting on or after February 4, 2010, of 
     service recipient stock (within the meaning of section 409A) 
     that, upon such grant, is subject to a substantial risk of 
     forfeiture (as defined under section 83(c)(1)) for at least 5 
     years from the date of such grant.
       ``(II) Secretarial authority.--The Secretary may by 
     regulation provide for the application of this clause in the 
     case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Certain payments under existing contracts.--Any 
     remuneration consisting of nonqualified deferred 
     compensation, restricted stock, stock options, or stock 
     appreciation rights payable or granted under a written 
     binding contract that was in effect on February 4, 2010, and 
     which was not modified in any material respect before such 
     remuneration is paid.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) for the taxable year ending during such 
     calendar year, and the term `compensation' shall include 
     earned income of such individual with respect to such self-
     employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2009' for `calendar year 1992' in 
     subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the excess (if any) of--

       ``(I) the sum of the dividends declared during the plan 
     year by the plan sponsor plus the aggregate fair market value 
     of the stock of the plan sponsor redeemed during the plan 
     year, over
       ``(II) the adjusted net income (within the meaning of 
     section 4043 of the Employee Retirement Income Security Act 
     of 1974) of the plan sponsor for the preceding plan year.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i), there shall only be 
     taken into account dividends declared, and redemptions 
     occurring, after February 4, 2010.
       ``(iii) Exception for intra-group dividends.--Dividends 
     paid by one member of a controlled group (as defined in 
     section 412(d)(3)) to another member of such group shall not 
     be taken into account under clause (i).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 412(d)(3)).
       ``(ii) Restriction period.--The term `restriction period' 
     means, with respect to any election year--

       ``(I) except as provided in subclause (II), the 4-year 
     period beginning with the election year, and
       ``(II) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the election year, the 7-
     year period beginning with the election year.

       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary shall provide rules for the 
     application of this paragraph to such plans, including rules 
     for the ratable allocation of any installment acceleration 
     amount among

[[Page 2482]]

     such plans on the basis of each plan's relative reduction in 
     the plan's shortfall amortization installment for the first 
     plan year in the amortization period described in 
     subparagraph (A) (determined without regard to this 
     paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary shall 
     prescribe rules for the application of paragraph (2)(D) and 
     this paragraph in any case where there is a merger or 
     acquisition involving a plan sponsor making the election 
     under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 430 is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2007.

     SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO 
                   PLANS SUBJECT TO PRIOR LAW FUNDING RULES.

       (a) In General.--Title I of the Pension Protection Act of 
     2006 is amended by redesignating section 107 as section 108 
     and by inserting the following after section 106:

     ``SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO 
                   PLANS WITH DELAYED EFFECTIVE DATE.

       ``(a) In General.--If the plan sponsor of a plan to which 
     section 104, 105, or 106 of this Act applies elects to have 
     this section apply for any eligible plan year (in this 
     section referred to as an `election year'), section 302 of 
     the Employee Retirement Income Security Act of 1974 and 
     section 412 of the Internal Revenue Code of 1986 (as in 
     effect before the amendments made by this subtitle and 
     subtitle B) shall apply to such year in the manner described 
     in subsection (b) or (c), whichever is specified in the 
     election. All references in this section to `such Act' or 
     `such Code' shall be to such Act or such Code as in effect 
     before the amendments made by this subtitle and subtitle B.
       ``(b) Application of 2 and 7 Rule.--In the case of an 
     election year to which this subsection applies--
       ``(1) 2-year lookback for determining deficit reduction 
     contributions for certain plans.--For purposes of applying 
     section 302(d)(9) of such Act and section 412(l)(9) of such 
     Code, the funded current liability percentage (as defined in 
     subparagraph (C) thereof) for such plan for such plan year 
     shall be such funded current liability percentage of such 
     plan for the second plan year preceding the first election 
     year of such plan.
       ``(2) Calculation of deficit reduction contribution.--For 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code to a plan to which such sections apply 
     (after taking into account paragraph (1))--
       ``(A) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code shall be the third segment rate described in sections 
     104(b), 105(b), and 106(b) of this Act, and
       ``(B) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(c) Application of 15-Year Amortization.--In the case of 
     an election year to which this subsection applies, for 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code--
       ``(1) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code for any pre-effective date plan year beginning with or 
     after the first election year shall be the ratio of--
       ``(A) the annual installments payable in each year if the 
     increased unfunded new liability for such plan year were 
     amortized over 15 years, using an interest rate equal to the 
     third segment rate described in sections 104(b), 105(b), and 
     106(b) of this Act, to
       ``(B) the increased unfunded new liability for such plan 
     year, and
       ``(2) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(d) Election.--
       ``(1) In general.--The plan sponsor of a plan may elect to 
     have this section apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan to which section 106 of this Act applies, the plan 
     sponsor may only elect to have this section apply to 1 
     eligible plan year.
       ``(2) Amortization schedule.--Such election shall specify 
     whether the rules under subsection (b) or (c) shall apply to 
     an election year, except that if a plan sponsor elects to 
     have this section apply to 2 eligible plan years, the plan 
     sponsor must elect the same rule for both years.
       ``(3) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year beginning in 2008 shall only be treated as an 
     eligible plan year if the due date for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this clause.
       ``(2) Pre-effective date plan year.--The term `pre-
     effective date plan year' means, with respect to a plan, any 
     plan year prior to the first year in which the amendments 
     made by this subtitle and subtitle B apply to the plan.
       ``(3) Increased unfunded new liability.--The term 
     `increased unfunded new liability' means, with respect to a 
     year, the excess (if any) of the unfunded new liability over 
     the amount of unfunded new liability determined as if the 
     value of the plan's assets determined under subsection 
     302(c)(2) of such Act and section 412(c)(2) of such Code 
     equaled the product of the current liability of the plan for 
     the year multiplied by the funded current liability 
     percentage (as defined in section 302(d)(8)(B) of such Act 
     and 412(l)(8)(B) of such Code) of the plan for the second 
     plan year preceding the first election year of such plan.
       ``(4) Other definitions.--The terms `unfunded new 
     liability' and `current liability' shall have the meanings 
     set forth in section 302(d) of such Act and section 412(l) of 
     such Code.''.
       (b) Eligible Charity Plans.--Section 104 of the Pension 
     Protection Act of 2006 is amended--
       (1) by striking ``eligible cooperative plan'' wherever it 
     appears in subsections (a) and (b) and inserting ``eligible 
     cooperative plan or an eligible charity plan'', and
       (2) by adding at the end the following new subsection:
       ``(d) Eligible Charity Plan Defined.--For purposes of this 
     section, a plan shall be treated as an eligible charity plan 
     for a plan year if the plan is maintained by more than one 
     employer and 100 percent of the employers are described in 
     section 501(c)(3) of such Code.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect as if included in the Pension Protection Act of 
     2006.
       (2) Eligible charity plan.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2007, except that a plan sponsor may elect to 
     apply such amendments to plan years beginning after December 
     31, 2008. Any such election shall be made at such time, and 
     in such form and manner, as shall be prescribed by the 
     Secretary of the Treasury, and may be revoked only with the 
     consent of the Secretary of the Treasury.

     SEC. 303. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.

       (a) In General.--
       (1) Amendment to erisa.--Section 206(g)(9) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following:
       ``(D) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(i) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--

       ``(I) such percentage, as determined without regard to this 
     subparagraph, or
       ``(II) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary of the Treasury.

       ``(ii) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--

       ``(I) clause (i) shall apply to plan years beginning after 
     December 31, 2007, and before January 1, 2010, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before November 1, 2007, as determined under 
     rules prescribed by the Secretary of the Treasury.

       ``(iii) Applicable provision.--For purposes of this 
     subparagraph, the term `applicable provision' means--

       ``(I) paragraph (3), but only for purposes of applying such 
     paragraph to a payment which, as determined under rules 
     prescribed by the Secretary of the Treasury, is a payment 
     under a social security leveling option which accelerates 
     payments under the plan before, and reduces payments after, a 
     participant starts receiving social security benefits in 
     order to provide substantially similar aggregate payments 
     both before and after such benefits are received, and
       ``(II) paragraph (4).''.

[[Page 2483]]

       (2) Amendment to internal revenue code of 1986.--Section 
     436(j) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following:
       ``(3) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(A) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--
       ``(i) such percentage, as determined without regard to this 
     paragraph, or
       ``(ii) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary.
       ``(B) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--
       ``(i) subparagraph (A) shall apply to plan years beginning 
     after December 31, 2007, and before January 1, 2010, and
       ``(ii) subparagraph (A)(ii) shall apply based on the last 
     plan year beginning before November 1, 2007, as determined 
     under rules prescribed by the Secretary.
       ``(C) Applicable provision.--For purposes of this 
     paragraph, the term `applicable provision' means--
       ``(i) subsection (d), but only for purposes of applying 
     such paragraph to a payment which, as determined under rules 
     prescribed by the Secretary, is a payment under a social 
     security leveling option which accelerates payments under the 
     plan before, and reduces payments after, a participant starts 
     receiving social security benefits in order to provide 
     substantially similar aggregate payments both before and 
     after such benefits are received, and
       ``(ii) subsection (e).''.
       (b) Interaction With Wrera Rule.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 shall 
     apply to a plan for any plan year in lieu of the amendments 
     made by this section applying to sections 206(g)(4) of the 
     Employee Retirement Income Security Act of 1974 and 436(e) of 
     the Internal Revenue Code of 1986 only to the extent that 
     such section produces a higher adjusted funding target 
     attainment percentage for such plan for such year.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning on or after October 1, 2008.
       (2) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year, the 
     amendments made by this section shall apply to plan years 
     beginning after December 31, 2007.

                    Subtitle B--Multiemployer Plans

     SEC. 311. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.

       (a) Adjustments.--
       (1) Amendment to erisa.--Section 304(b) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years ending after August 31, 2008, as an 
     item separate from other experience losses, to be amortized 
     in equal annual installments (until fully amortized) over a 
     period of 30 plan years.
       ``(ii) Coordination with extensions.--If this subparagraph 
     applies for any plan year--

       ``(I) no extension of the amortization period under clause 
     (i) shall be allowed under subsection (d), and
       ``(II) if an extension was granted under subsection (d) for 
     any plan year before the election to have this subparagraph 
     apply to the plan year, such extension shall not result in 
     such amortization period exceeding 30 years.

       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary of the 
     Treasury on the basis of the difference between actual and 
     expected returns (including any difference attributable to 
     any criminally fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary of the Treasury for purposes of section 165 of the 
     Internal Revenue Code of 1986.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years ending 
     after August 31, 2008, over a period of not more than 10 
     years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary of the Treasury shall not treat the 
     asset valuation method of the plan as unreasonable solely 
     because of the changes in such method described in clause 
     (i), and
       ``(II) such changes shall be deemed approved by such 
     Secretary under section 302(d)(1) and section 412(d)(1) of 
     such Code.

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and

       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     at least as high as such percentage and balances would have 
     been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D of chapter 1 of 
     the Internal Revenue Code of 1986 or to comply with other 
     applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (2) Amendment to internal revenue code of 1986.--Section 
     431(b) is amended by adding at the end the following new 
     paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years ending after August 31, 2008, as an 
     item separate from other experience losses, to be amortized 
     in equal annual installments (until fully amortized) over a 
     period of 30 plan years.
       ``(ii) Coordination with extensions.--If this subparagraph 
     applies for any plan year--

       ``(I) no extension of the amortization period under clause 
     (i) shall be allowed under subsection (d), and
       ``(II) if an extension was granted under subsection (d) for 
     any plan year before the election to have this subparagraph 
     apply to the plan year, such extension shall not result in 
     such amortization period exceeding 30 years.

       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary on the 
     basis of the difference between actual and expected returns 
     (including any difference attributable to any criminally 
     fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary for purposes of section 165.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years ending 
     after August 31, 2008, over a period of not more than 10 
     years,

[[Page 2484]]

       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or

       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary shall not treat the asset valuation 
     method of the plan as unreasonable solely because of the 
     changes in such method described in clause (i), and
       ``(II) such changes shall be deemed approved by the 
     Secretary under section 302(d)(1) of the Employee Retirement 
     Income Security Act of 1974 and section 412(d)(1).

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     at least as high as such percentage and balances would have 
     been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D or to comply with 
     other applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (b) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     take effect as of the first day of the first plan year ending 
     after August 31, 2008, except that any election a plan makes 
     pursuant to this section that affects the plan's funding 
     standard account for the first plan year ending after August 
     31, 2008, shall be disregarded for purposes of applying the 
     provisions of section 305 of the Employee Retirement Income 
     Security Act of 1974 and section 432 of the Internal Revenue 
     Code of 1986 to such plan year.
       (2) Restrictions on benefit increases.--Notwithstanding 
     paragraph (1), the restrictions on plan amendments increasing 
     benefits in sections 304(b)(8)(D) of such Act and 
     431(b)(8)(D) of such Code, as added by this section, shall 
     take effect on the date of enactment of this Act.

                      TITLE IV--OFFSET PROVISIONS

                        Subtitle A--Black Liquor

     SEC. 401. EXCLUSION OF UNPROCESSED FUELS FROM THE CELLULOSIC 
                   BIOFUEL PRODUCER CREDIT.

       (a) In General.--Subparagraph (E) of section 40(b)(6) is 
     amended by adding at the end the following new clause:
       ``(iii) Exclusion of unprocessed fuels.--The term 
     `cellulosic biofuel' shall not include any fuel if--

       ``(I) more than 4 percent of such fuel (determined by 
     weight) is any combination of water and sediment, or
       ``(II) the ash content of such fuel is more than 1 percent 
     (determined by weight).''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to fuels sold or used after the date of the 
     enactment of this Act.

     SEC. 402. PROHIBITION ON ALTERNATIVE FUEL CREDIT AND 
                   ALTERNATIVE FUEL MIXTURE CREDIT FOR BLACK 
                   LIQUOR.

       (a) In General.--The last sentence of section 6426(d)(2) is 
     amended by striking ``or biodiesel'' and inserting 
     ``biodiesel, or any fuel (including lignin, wood residues, or 
     spent pulping liquors) derived from the production of paper 
     or pulp''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to fuel sold or used after December 31, 2009.

                      Subtitle B--Homebuyer Credit

     SEC. 411. TECHNICAL MODIFICATIONS TO HOMEBUYER CREDIT.

       (a) Expanded Documentation Requirement.--Subsection (d) of 
     section 36, as amended by the Worker, Homeownership, and 
     Business Assistance Act of 2009, is amended--
       (1) by striking ``or'' at the end of paragraph (3),
       (2) by striking the period at the end of paragraph (4) and 
     inserting a comma, and
       (3) by adding at the end the following new paragraphs:
       ``(5) in the case of a taxpayer to whom such a credit would 
     be allowed (but for this paragraph) by reason of subsection 
     (c)(6), the taxpayer fails to attach to the return of tax for 
     such taxable year a copy of such property tax bills or other 
     documentation as are required by the Secretary to demonstrate 
     compliance with the requirements of subsection (c)(6), or
       ``(6) in the case of a taxpayer to whom such a credit would 
     be allowed (but for this paragraph) by reason of subsection 
     (h)(2), the taxpayer fails to attach to the return of tax for 
     such taxable year a copy of the binding contract which meets 
     the requirements of subsection (h)(2).''.
       (b) Modification of Effective Date of Documentation 
     Requirements.--Paragraph (2) of section 12(e) of the Worker, 
     Homeownership, and Business Assistance Act of 2009 is amended 
     by striking ``returns for taxable years ending after the date 
     of the enactment of this Act'' and inserting ``returns filed 
     after the date of the enactment of this Act''.
       (c) Effective Dates.--
       (1) Documentation requirements.--The amendments made by 
     subsection (a) shall apply to purchases on or after the date 
     of the enactment of this Act.
       (2) Effective date of worker, homeownership, and business 
     assistance act.--The amendment made by subsection (b) shall 
     apply to purchases of a principal residence on or after the 
     date of the enactment of the Worker, Homeownership, and 
     Business Assistance Act of 2009.

                     Subtitle C--Economic Substance

     SEC. 421. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE; 
                   PENALTIES.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine.--
       ``(1) Application of doctrine.--In the case of any 
     transaction to which the economic substance doctrine is 
     relevant, such transaction shall be treated as having 
     economic substance only if--
       ``(A) the transaction changes in a meaningful way (apart 
     from Federal income tax effects) the taxpayer's economic 
     position, and
       ``(B) the taxpayer has a substantial purpose (apart from 
     Federal income tax effects) for entering into such 
     transaction.
       ``(2) Special rule where taxpayer relies on profit 
     potential.--
       ``(A) In general.--The potential for profit of a 
     transaction shall be taken into account in determining 
     whether the requirements of subparagraphs (A) and (B) of 
     paragraph (1) are met with respect to the transaction only if 
     the present value of the reasonably expected pre-tax profit 
     from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected.
       ``(B) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses shall be taken into account as expenses 
     in determining pre-tax profit under subparagraph (A). The 
     Secretary may issue regulations requiring foreign taxes to be 
     treated as expenses in determining pre-tax profit in 
     appropriate cases.
       ``(3) State and local tax benefits.--For purposes of 
     paragraph (1), any State or local income tax effect which is 
     related to a Federal income tax effect shall be treated in 
     the same manner as a Federal income tax effect.
       ``(4) Financial accounting benefits.--For purposes of 
     paragraph (1)(B), achieving a financial accounting benefit 
     shall not be taken into account as a purpose for entering 
     into a transaction if the origin of such financial accounting 
     benefit is a reduction of Federal income tax.
       ``(5) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Exception for personal transactions of individuals.--
     In the case of an individual, paragraph (1) shall apply only 
     to transactions entered into in connection with a trade or 
     business or an activity engaged in for the production of 
     income.
       ``(C) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(D) Determination of application of doctrine not 
     affected.--The determination of whether the economic 
     substance doctrine is relevant to a transaction shall be made 
     in the same manner as if this subsection had never been 
     enacted.
       ``(E) Transaction.--The term `transaction' includes a 
     series of transactions.

[[Page 2485]]

       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection.''.
       (b) Penalty for Underpayments Attributable to Transactions 
     Lacking Economic Substance.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (5) the following new paragraph:
       ``(6) Any disallowance of claimed tax benefits by reason of 
     a transaction lacking economic substance (within the meaning 
     of section 7701(o)) or failing to meet the requirements of 
     any similar rule of law.''.
       (2) Increased penalty for nondisclosed transactions.--
     Section 6662 is amended by adding at the end the following 
     new subsection:
       ``(i) Increase in Penalty in Case of Nondisclosed 
     Noneconomic Substance Transactions.--
       ``(1) In general.--In the case of any portion of an 
     underpayment which is attributable to one or more 
     nondisclosed noneconomic substance transactions, subsection 
     (a) shall be applied with respect to such portion by 
     substituting `40 percent' for `20 percent'.
       ``(2) Nondisclosed noneconomic substance transactions.--For 
     purposes of this subsection, the term `nondisclosed 
     noneconomic substance transaction' means any portion of a 
     transaction described in subsection (b)(6) with respect to 
     which the relevant facts affecting the tax treatment are not 
     adequately disclosed in the return nor in a statement 
     attached to the return.
       ``(3) Special rule for amended returns.--Except as provided 
     in regulations, in no event shall any amendment or supplement 
     to a return of tax be taken into account for purposes of this 
     subsection if the amendment or supplement is filed after the 
     earlier of the date the taxpayer is first contacted by the 
     Secretary regarding the examination of the return or such 
     other date as is specified by the Secretary.''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6662A(e)(2) is amended--
       (A) by striking ``section 6662(h)'' and inserting 
     ``subsections (h) or (i) of section 6662''; and
       (B) by striking ``gross valuation misstatement penalty'' in 
     the heading and inserting ``certain increased underpayment 
     penalties''.
       (c) Reasonable Cause Exception Not Applicable to 
     Noneconomic Substance Transactions.--
       (1) Reasonable cause exception for underpayments.--
     Subsection (c) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by striking ``paragraph (2)'' in paragraph (4)(A), as 
     so redesignated, and inserting ``paragraph (3)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     portion of an underpayment which is attributable to one or 
     more transactions described in section 6662(b)(6).''.
       (2) Reasonable cause exception for reportable transaction 
     understatements.--Subsection (d) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by striking ``paragraph (2)(C)'' in paragraph (4), as 
     so redesignated, and inserting ``paragraph (3)(C)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     portion of a reportable transaction understatement which is 
     attributable to one or more transactions described in section 
     6662(b)(6).''.
       (d) Application of Penalty for Erroneous Claim for Refund 
     or Credit to Noneconomic Substance Transactions.--Section 
     6676 is amended by redesignating subsection (c) as subsection 
     (d) and inserting after subsection (b) the following new 
     subsection:
       ``(c) Noneconomic Substance Transactions Treated as Lacking 
     Reasonable Basis.--For purposes of this section, any 
     excessive amount which is attributable to any transaction 
     described in section 6662(b)(6) shall not be treated as 
     having a reasonable basis.''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to transactions entered into after the date of the enactment 
     of this Act.
       (2) Underpayments.--The amendments made by subsections (b) 
     and (c)(1) shall apply to underpayments attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
       (3) Understatements.--The amendments made by subsection 
     (c)(2) shall apply to understatements attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
       (4) Refunds and credits.--The amendment made by subsection 
     (d) shall apply to refunds and credits attributable to 
     transactions entered into after the date of the enactment of 
     this Act.

                   Subtitle D--Additional Provisions

     SEC. 431. REVISION TO THE MEDICARE IMPROVEMENT FUND.

       Section 1898(b)(1)(A) of the Social Security Act (42 U.S.C. 
     1395iii(b)(1)(A)), as amended by section 1011(b) of the 
     Department of Defense Appropriations Act, 2010 (Public Law 
     111-118), is amended by striking ``$20,740,000,000'' and 
     inserting ``$12,740,000,000''.

                TITLE V--SATELLITE TELEVISION EXTENSION

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Satellite Television 
     Extension and Localism Act of 2010''.

                     Subtitle A--Statutory Licenses

     SEC. 501. REFERENCE.

       Except as otherwise provided, whenever in this subtitle an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of title 17, United States Code.

     SEC. 502. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 119 is amended by 
     striking ``superstations and network stations for private 
     home viewing'' and inserting ``distant television programming 
     by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 119 and 
     inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions of 
              distant television programming by satellite.''.
       (b) Unserved Household Defined.--
       (1) In general.--Section 119(d)(10) is amended--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) cannot receive, through the use of an antenna, an 
     over-the-air signal containing the primary stream, or, on or 
     after the qualifying date, the multicast stream, originating 
     in that household's local market and affiliated with that 
     network of--
       ``(i) if the signal originates as an analog signal, Grade B 
     intensity as defined by the Federal Communications Commission 
     in section 73.683(a) of title 47, Code of Federal 
     Regulations, as in effect on January 1, 1999; or
       ``(ii) if the signal originates as a digital signal, 
     intensity defined in the values for the digital television 
     noise-limited service contour, as defined in regulations 
     issued by the Federal Communications Commission (section 
     73.622(e) of title 47, Code of Federal Regulations), as such 
     regulations may be amended from time to time;'';
       (B) in subparagraph (B)--
       (i) by striking ``subsection (a)(14)'' and inserting 
     ``subsection (a)(13),''; and
       (ii) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (C) in subparagraph (D), by striking ``(a)(12)'' and 
     inserting ``(a)(11)''.
       (2) Qualifying date defined.--Section 119(d) is amended by 
     adding at the end the following:
       ``(14) Qualifying date.--The term `qualifying date', for 
     purposes of paragraph (10)(A), means--
       ``(A) July 1, 2010, for multicast streams that exist on 
     December 31, 2009; and
       ``(B) January 1, 2011, for all other multicast streams.''.
       (c) Filing Fee.--Section 119(b)(1) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) a filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).''.
       (d) Deposit of Statements and Fees; Verification 
     Procedures.--Section 119(b) is amended--
       (1) by amending the subsection heading to read as follows: 
     ``(b) Deposit of Statements and Fees; Verification 
     Procedures.--'';
       (2) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) a royalty fee payable to copyright owners pursuant to 
     paragraph (4) for that 6-month period, computed by 
     multiplying the total number of subscribers receiving each 
     secondary transmission of a primary stream or multicast 
     stream of each non-network station or network station during 
     each calendar year month by the appropriate rate in effect 
     under this subsection; and'';
       (3) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to permit 
     interested parties to verify and audit the statements of 
     account and royalty fees submitted by satellite carriers 
     under this subsection.'';
       (5) in paragraph (3), as redesignated, in the first 
     sentence--
       (A) by inserting ``(including the filing fee specified in 
     paragraph (1)(C))'' after ``shall receive all fees''; and
       (B) by striking ``paragraph (4)'' and inserting ``paragraph 
     (5)'';
       (6) in paragraph (4), as redesignated--

[[Page 2486]]

       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (B) by striking ``paragraph (4)'' each place it appears and 
     inserting ``paragraph (5)''; and
       (7) in paragraph (5), as redesignated, by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)''.
       (e) Adjustment of Royalty Fees.--Section 119(c) is amended 
     as follows:
       (1) Paragraph (1) is amended--
       (A) in the heading for such paragraph, by striking 
     ``analog'';
       (B) in subparagraph (A)--
       (i) by striking ``primary analog transmissions'' and 
     inserting ``primary transmissions''; and
       (ii) by striking ``July 1, 2004'' and inserting ``July 1, 
     2009'';
       (C) in subparagraph (B)--
       (i) by striking ``January 2, 2005, the Librarian of 
     Congress'' and inserting ``March 1, 2010, the Copyright 
     Royalty Judges''; and
       (ii) by striking ``primary analog transmission'' and 
     inserting ``primary transmissions'';
       (D) in subparagraph (C), by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Judges'';
       (E) in subparagraph (D)--
       (i) in clause (i)--

       (I) by striking ``(i) Voluntary agreements'' and inserting 
     the following:

       ``(i) Voluntary agreements; filing.--Voluntary 
     agreements''; and

       (II) by striking ``that a parties'' and inserting ``that 
     are parties''; and

       (ii) in clause (ii)--

       (I) by striking ``(ii)(I) Within'' and inserting the 
     following:

       ``(ii) Procedure for adoption of fees.--

       ``(I) Publication of notice.--Within'';
       (II) in subclause (I), by striking ``an arbitration 
     proceeding pursuant to subparagraph (E)'' and inserting ``a 
     proceeding under subparagraph (F)'';
       (III) in subclause (II), by striking ``(II) Upon receiving 
     a request under subclause (I), the Librarian of Congress'' 
     and inserting the following:
       ``(II) Public notice of fees.--Upon receiving a request 
     under subclause (I), the Copyright Royalty Judges''; and
       (IV) in subclause (III)--

       (aa) by striking ``(III) The Librarian'' and inserting the 
     following:

       ``(III) Adoption of fees.--The Copyright Royalty Judges'';

       (bb) by striking ``an arbitration proceeding'' and 
     inserting ``the proceeding under subparagraph (F)''; and
       (cc) by striking ``the arbitration proceeding'' and 
     inserting ``that proceeding'';
       (F) in subparagraph (E)--
       (i) by striking ``Copyright Office'' and inserting 
     ``Copyright Royalty Judges''; and
       (ii) by striking ``February 28, 2010'' and inserting 
     ``December 31, 2014''; and
       (G) in subparagraph (F)--
       (i) in the heading, by striking ``compulsory arbitration'' 
     and inserting `` copyright royalty judges proceeding'';
       (ii) in clause (i)--

       (I) in the heading, by striking ``proceedings'' and 
     inserting ``the proceeding'';
       (II) in the matter preceding subclause (I)--

       (aa) by striking ``May 1, 2005, the Librarian of Congress'' 
     and inserting ``May 3, 2010, the Copyright Royalty Judges'';
       (bb) by striking ``arbitration proceedings'' and inserting 
     ``a proceeding'';
       (cc) by striking ``fee to be paid'' and inserting ``fees to 
     be paid'';
       (dd) by striking ``primary analog transmission'' and 
     inserting ``the primary transmissions''; and
       (ee) by striking ``distributors'' and inserting 
     ``distributors--'';

       (III) in subclause (II)--

       (aa) by striking ``Librarian of Congress'' and inserting 
     ``Copyright Royalty Judges''; and
       (bb) by striking ``arbitration''; and

       (IV) by amending the last sentence to read as follows: 
     ``Such proceeding shall be conducted under chapter 8.'';

       (iii) in clause (ii), by amending the matter preceding 
     subclause (I) to read as follows:
       ``(ii) Establishment of royalty fees.--In determining 
     royalty fees under this subparagraph, the Copyright Royalty 
     Judges shall establish fees for the secondary transmissions 
     of the primary transmissions of network stations and non-
     network stations that most clearly represent the fair market 
     value of secondary transmissions, except that the Copyright 
     Royalty Judges shall adjust royalty fees to account for the 
     obligations of the parties under any applicable voluntary 
     agreement filed with the Copyright Royalty Judges in 
     accordance with subparagraph (D). In determining the fair 
     market value, the Judges shall base their decision on 
     economic, competitive, and programming information presented 
     by the parties, including--'';
       (iv) by amending clause (iii) to read as follows:
       ``(iii) Effective date for decision of copyright royalty 
     judges.--The obligation to pay the royalty fees established 
     under a determination that is made by the Copyright Royalty 
     Judges in a proceeding under this paragraph shall be 
     effective as of January 1, 2010.''; and
       (v) in clause (iv)--

       (I) in the heading, by striking ``fee'' and inserting 
     ``fees''; and
       (II) by striking ``fee referred to in (iii)'' and inserting 
     ``fees referred to in clause (iii)''.

       (2) Paragraph (2) is amended to read as follows:
       ``(2) Annual royalty fee adjustment.--Effective January 1 
     of each year, the royalty fee payable under subsection 
     (b)(1)(B) for the secondary transmission of the primary 
     transmissions of network stations and non-network stations 
     shall be adjusted by the Copyright Royalty Judges to reflect 
     any changes occurring in the cost of living as determined by 
     the most recent Consumer Price Index (for all consumers and 
     for all items) published by the Secretary of Labor before 
     December 1 of the preceding year. Notification of the 
     adjusted fees shall be published in the Federal Register at 
     least 25 days before January 1.''.
       (f) Definitions.--
       (1) Subscriber.--Section 119(d)(8) is amended to read as 
     follows:
       ``(8) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (2) Local market.--Section 119(d)(11) is amended to read as 
     follows:
       ``(11) Local market.--The term `local market' has the 
     meaning given such term under section 122(j).''.
       (3) Low power television station.--Section 119(d) is 
     amended by striking paragraph (12) and redesignating 
     paragraphs (13) and (14) as paragraphs (12) and (13), 
     respectively.
       (4) Multicast stream.--Section 119(d), as amended by 
     paragraph (3), is further amended by adding at the end the 
     following new paragraph:
       ``(14) Multicast stream.--The term `multicast stream' means 
     a digital stream containing programming and program-related 
     material affiliated with a television network, other than the 
     primary stream.''.
       (5) Primary stream.--Section 119(d), as amended by 
     paragraph (4), is further amended by adding at the end the 
     following new paragraph:
       ``(15) Primary stream.--The term `primary stream' means--
       ``(A) the single digital stream of programming as to which 
     a television broadcast station has the right to mandatory 
     carriage with a satellite carrier under the rules of the 
     Federal Communications Commission in effect on July 1, 2009; 
     or
       ``(B) if there is no stream described in subparagraph (A), 
     then either--
       ``(i) the single digital stream of programming associated 
     with the network last transmitted by the station as an analog 
     signal; or
       ``(ii) if there is no stream described in clause (i), then 
     the single digital stream of programming affiliated with the 
     network that, as of July 1, 2009, had been offered by the 
     television broadcast station for the longest period of 
     time.''.
       (6) Clerical amendment.--Section 119(d) is amended in 
     paragraphs (1), (2), and (5) by striking ``which'' each place 
     it appears and inserting ``that''.
       (g) Superstation Redesignated as Non-Network Station.--
     Section 119 is amended--
       (1) by striking ``superstation'' each place it appears in a 
     heading and each place it appears in text and inserting 
     ``non-network station''; and
       (2) by striking ``superstations'' each place it appears in 
     a heading and each place it appears in text and inserting 
     ``non-network stations''.
       (h) Removal of Certain Provisions.--
       (1) Removal of provisions.--Section 119(a) is amended--
       (A) in paragraph (2), by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C);
       (B) by striking paragraph (3) and redesignating paragraphs 
     (4) through (14) as paragraphs (3) through (13), 
     respectively; and
       (C) by striking paragraph (15) and redesignating paragraph 
     (16) as paragraph (14).
       (2) Conforming amendments.--Section 119 is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``(5), (6), and (8)'' and 
     inserting ``(4), (5), and (7)'';
       (ii) in paragraph (2)--

       (I) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C) of this paragraph and paragraphs (5), (6), (7), and 
     (8)'' and inserting ``subparagraph (B) of this paragraph and 
     paragraphs (4), (5), (6), and (7)'';
       (II) in subparagraph (B)(i), by striking the second 
     sentence; and
       (III) in subparagraph (C) (as redesignated), by striking 
     clauses (i) and (ii) and inserting the following:

       ``(i) Initial lists.--A satellite carrier that makes 
     secondary transmissions of a primary transmission made by a 
     network station pursuant to subparagraph (A) shall, not later 
     than 90 days after commencing such secondary transmissions, 
     submit to the network that owns or is affiliated with the 
     network station a list identifying (by name and address, 
     including street or rural route number, city, State, and 9-
     digit zip code) all subscribers to which the satellite 
     carrier makes secondary transmissions of that primary 
     transmission to subscribers in unserved households.

[[Page 2487]]

       ``(ii) Monthly lists.--After the submission of the initial 
     lists under clause (i), the satellite carrier shall, not 
     later than the 15th of each month, submit to the network a 
     list, aggregated by designated market area, identifying (by 
     name and address, including street or rural route number, 
     city, State, and 9-digit zip code) any persons who have been 
     added or dropped as subscribers under clause (i) since the 
     last submission under this subparagraph.''; and
       (iii) in subparagraph (E) of paragraph (3) (as 
     redesignated)--

       (I) by striking ``under paragraph (3) or''; and
       (II) by striking ``paragraph (12)'' and inserting 
     ``paragraph (11)''; and

       (B) in subsection (b)(1), by striking the final sentence.
       (i) Modifications to Provisions for Secondary Transmissions 
     by Satellite Carriers.--
       (1) Predictive model.--Section 119(a)(2)(B)(ii) is amended 
     by adding at the end the following:

       ``(III) Accurate predictive model with respect to digital 
     signals.--Notwithstanding subclause (I), in determining 
     presumptively whether a person resides in an unserved 
     household under subsection (d)(10)(A) with respect to digital 
     signals, a court shall rely on a predictive model set forth 
     by the Federal Communications Commission pursuant to a 
     rulemaking as provided in section 339(c)(3) of the 
     Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that 
     model may be amended by the Commission over time under such 
     section to increase the accuracy of that model. Until such 
     time as the Commission sets forth such model, a court shall 
     rely on the predictive model as recommended by the Commission 
     with respect to digital signals in its Report to Congress in 
     ET Docket No. 05-182, FCC 05-199 (released December 9, 
     2005).''.

       (2) Modifications to statutory license where 
     retransmissions into local market available.--Section 
     119(a)(3) (as redesignated) is amended--
       (A) by striking ``analog'' each place it appears in a 
     heading and text;
       (B) by striking subparagraphs (B), (C), and (D), and 
     inserting the following:
       ``(B) Rules for lawful subscribers as of date of enactment 
     of 2010 act.--In the case of a subscriber of a satellite 
     carrier who, on the day before the date of the enactment of 
     the Satellite Television Extension and Localism Act of 2010, 
     was lawfully receiving the secondary transmission of the 
     primary transmission of a network station under the statutory 
     license under paragraph (2) (in this subparagraph referred to 
     as the `distant signal'), other than subscribers to whom 
     subparagraph (A) applies, the statutory license under 
     paragraph (2) shall apply to secondary transmissions by that 
     satellite carrier to that subscriber of the distant signal of 
     a station affiliated with the same television network, and 
     the subscriber's household shall continue to be considered to 
     be an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, whether or not the subscriber elects 
     to subscribe to receive the secondary transmission of the 
     primary transmission of a local network station affiliated 
     with the same network pursuant to the statutory license under 
     section 122.
       ``(C) Future applicability.--
       ``(i) When local signal available at time of 
     subscription.--The statutory license under paragraph (2) 
     shall not apply to the secondary transmission by a satellite 
     carrier of the primary transmission of a network station to a 
     person who is not a subscriber lawfully receiving such 
     secondary transmission as of the date of the enactment of the 
     Satellite Television Extension and Localism Act of 2010 and, 
     at the time such person seeks to subscribe to receive such 
     secondary transmission, resides in a local market where the 
     satellite carrier makes available to that person the 
     secondary transmission of the primary transmission of a local 
     network station affiliated with the same network pursuant to 
     the statutory license under section 122.
       ``(ii) When local signal available after subscription.--In 
     the case of a subscriber who lawfully subscribes to and 
     receives the secondary transmission by a satellite carrier of 
     the primary transmission of a network station under the 
     statutory license under paragraph (2) (in this clause 
     referred to as the `distant signal') on or after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the statutory license under paragraph 
     (2) shall apply to secondary transmissions by that satellite 
     carrier to that subscriber of the distant signal of a station 
     affiliated with the same television network, and the 
     subscriber's household shall continue to be considered to be 
     an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, but only if such subscriber 
     subscribes to the secondary transmission of the primary 
     transmission of a local network station affiliated with the 
     same network within 60 days after the satellite carrier makes 
     available to the subscriber such secondary transmission of 
     the primary transmission of such local network station.'';
       (C) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (D), (E), and (F), respectively;
       (D) in subparagraph (E) (as redesignated), by striking 
     ``(C) or (D)'' and inserting ``(B) or (C)''; and
       (E) in subparagraph (F) (as redesignated), by inserting 
     ``9-digit'' before ``zip code''.
       (3) Statutory damages for territorial restrictions.--
     Section 119(a)(6) (as redesignated) is amended--
       (A) in subparagraph (A)(ii), by striking ``$5'' and 
     inserting ``$250'';
       (B) in subparagraph (B)----
       (i) in clause (i), by striking ``$250,000 for each 6-month 
     period'' and inserting ``$2,500,000 for each 3-month 
     period''; and
       (ii) in clause (ii), by striking ``$250,000'' and inserting 
     ``$2,500,000''; and
       (C) by adding at the end the following flush sentences:
     ``The court shall direct one half of any statutory damages 
     ordered under clause (i) to be deposited with the Register of 
     Copyrights for distribution to copyright owners pursuant to 
     subsection (b). The Copyright Royalty Judges shall issue 
     regulations establishing procedures for distributing such 
     funds, on a proportional basis, to copyright owners whose 
     works were included in the secondary transmissions that were 
     the subject of the statutory damages.''.
       (4) Technical amendment.--Section 119(a)(4) (as 
     redesignated) is amended by striking ``and 509''.
       (5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is 
     amended by striking ``In this clause'' and inserting ``In 
     this clause,''.
       (j) Moratorium Extension.--Section 119(e) is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2014''.
       (k) Clerical Amendments.--Section 119 is amended--
       (1) by striking ``of the Code of Federal Regulations'' each 
     place it appears and inserting ``, Code of Federal 
     Regulations''; and
       (2) in subsection (d)(6), by striking ``or the Direct'' and 
     inserting ``, or the Direct''.

     SEC. 503. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS IN LOCAL MARKETS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 122 is amended by 
     striking ``BY SATELLITE CARRIERS WITHIN LOCAL MARKETS'' and 
     inserting ``OF LOCAL TELEVISION PROGRAMMING BY SATELLITE''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 122 and 
     inserting the following:

``122. Limitations on exclusive rights: Secondary transmissions of 
              local television programming by satellite.''.

       (b) Statutory License.--Section 122(a) is amended to read 
     as follows:
       ``(a) Secondary Transmissions Into Local Markets.--
       ``(1) Secondary transmissions of television broadcast 
     stations within a local market.--A secondary transmission of 
     a performance or display of a work embodied in a primary 
     transmission of a television broadcast station into the 
     station's local market shall be subject to statutory 
     licensing under this section if--
       ``(A) the secondary transmission is made by a satellite 
     carrier to the public;
       ``(B) with regard to secondary transmissions, the satellite 
     carrier is in compliance with the rules, regulations, or 
     authorizations of the Federal Communications Commission 
     governing the carriage of television broadcast station 
     signals; and
       ``(C) the satellite carrier makes a direct or indirect 
     charge for the secondary transmission to--
       ``(i) each subscriber receiving the secondary transmission; 
     or
       ``(ii) a distributor that has contracted with the satellite 
     carrier for direct or indirect delivery of the secondary 
     transmission to the public.
       ``(2) Significantly viewed stations.--
       ``(A) In general.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall be subject to statutory licensing 
     under this paragraph if the secondary transmission is of the 
     primary transmission of a network station or a non-network 
     station to a subscriber who resides outside the station's 
     local market but within a community in which the signal has 
     been determined by the Federal Communications Commission to 
     be significantly viewed in such community, pursuant to the 
     rules, regulations, and authorizations of the Federal 
     Communications Commission in effect on April 15, 1976, 
     applicable to determining with respect to a cable system 
     whether signals are significantly viewed in a community.
       ``(B) Waiver.--A subscriber who is denied the secondary 
     transmission of the primary transmission of a network station 
     or a non-network station under subparagraph (A) may request a 
     waiver from such denial by submitting a request, through the 
     subscriber's satellite carrier, to the network station or 
     non-network station in the local market affiliated with the 
     same network or non-network where the subscriber is located. 
     The network station or non-network station shall accept

[[Page 2488]]

     or reject the subscriber's request for a waiver within 30 
     days after receipt of the request. If the network station or 
     non-network station fails to accept or reject the 
     subscriber's request for a waiver within that 30-day period, 
     that network station or non-network station shall be deemed 
     to agree to the waiver request.
       ``(3) Secondary transmission of low power programming.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), a 
     secondary transmission of a performance or display of a work 
     embodied in a primary transmission of a television broadcast 
     station to subscribers who receive secondary transmissions of 
     primary transmissions under paragraph (1) shall be subject to 
     statutory licensing under this paragraph if the secondary 
     transmission is of the primary transmission of a television 
     broadcast station that is licensed as a low power television 
     station, to a subscriber who resides within the same 
     designated market area as the station that originates the 
     transmission.
       ``(B) No applicability to repeaters and translators.--
     Secondary transmissions provided for in subparagraph (A) 
     shall not apply to any low power television station that 
     retransmits the programs and signals of another television 
     station for more than 2 hours each day.
       ``(C) No impact on other secondary transmissions 
     obligations.--A satellite carrier that makes secondary 
     transmissions of a primary transmission of a low power 
     television station under a statutory license provided under 
     this section is not required, by reason of such secondary 
     transmissions, to make any other secondary transmissions.
       ``(4) Special exceptions.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall, if the secondary transmission is 
     made by a satellite carrier that complies with the 
     requirements of paragraph (1), be subject to statutory 
     licensing under this paragraph as follows:
       ``(A) States with single full-power network station.--In a 
     State in which there is licensed by the Federal 
     Communications Commission a single full-power station that 
     was a network station on January 1, 1995, the statutory 
     license provided for in this paragraph shall apply to the 
     secondary transmission by a satellite carrier of the primary 
     transmission of that station to any subscriber in a community 
     that is located within that State and that is not within the 
     first 50 television markets as listed in the regulations of 
     the Commission as in effect on such date (47 C.F.R. 76.51).
       ``(B) States with all network stations and non-network 
     stations in same local market.--In a State in which all 
     network stations and non-network stations licensed by the 
     Federal Communications Commission within that State as of 
     January 1, 1995, are assigned to the same local market and 
     that local market does not encompass all counties of that 
     State, the statutory license provided under this paragraph 
     shall apply to the secondary transmission by a satellite 
     carrier of the primary transmissions of such station to all 
     subscribers in the State who reside in a local market that is 
     within the first 50 major television markets as listed in the 
     regulations of the Commission as in effect on such date 
     (section 76.51 of title 47, Code of Federal Regulations).
       ``(C) Additional stations.--In the case of that State in 
     which are located 4 counties that--
       ``(i) on January 1, 2004, were in local markets principally 
     comprised of counties in another State, and
       ``(ii) had a combined total of 41,340 television 
     households, according to the U.S. Television Household 
     Estimates by Nielsen Media Research for 2004,
     the statutory license provided under this paragraph shall 
     apply to secondary transmissions by a satellite carrier to 
     subscribers in any such county of the primary transmissions 
     of any network station located in that State, if the 
     satellite carrier was making such secondary transmissions to 
     any subscribers in that county on January 1, 2004.
       ``(D) Certain additional stations.--If 2 adjacent counties 
     in a single State are in a local market comprised principally 
     of counties located in another State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission by a satellite carrier to subscribers in those 2 
     counties of the primary transmissions of any network station 
     located in the capital of the State in which such 2 counties 
     are located, if--
       ``(i) the 2 counties are located in a local market that is 
     in the top 100 markets for the year 2003 according to Nielsen 
     Media Research; and
       ``(ii) the total number of television households in the 2 
     counties combined did not exceed 10,000 for the year 2003 
     according to Nielsen Media Research.
       ``(E) Networks of noncommercial educational broadcast 
     stations.--In the case of a system of three or more 
     noncommercial educational broadcast stations licensed to a 
     single State, public agency, or political, educational, or 
     special purpose subdivision of a State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission of the primary transmission of such system to 
     any subscriber in any county or county equivalent within such 
     State, if such subscriber is located in a designated market 
     area that is not otherwise eligible to receive the secondary 
     transmission of the primary transmission of a noncommercial 
     educational broadcast station located within the State 
     pursuant to paragraph (1).
       ``(5) Applicability of royalty rates and procedures.--The 
     royalty rates and procedures under section 119(b) shall apply 
     to the secondary transmissions to which the statutory license 
     under paragraph (4) applies.''.
       (c) Reporting Requirements.--Section 122(b) is amended--
       (1) in paragraph (1), by striking ``station a list'' and 
     all that follows through the end and inserting the following: 
     ``station--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) all 
     subscribers to which the satellite carrier makes secondary 
     transmissions of that primary transmission under subsection 
     (a); and
       ``(B) a separate list, aggregated by designated market area 
     (by name and address, including street or rural route number, 
     city, State, and 9-digit zip code), which shall indicate 
     those subscribers being served pursuant to paragraph (2) of 
     subsection (a).''; and
       (2) in paragraph (2), by striking ``network a list'' and 
     all that follows through the end and inserting the following: 
     ``network--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) any 
     subscribers who have been added or dropped as subscribers 
     since the last submission under this subsection; and
       ``(B) a separate list, aggregated by designated market area 
     (by name and street address, including street or rural route 
     number, city, State, and 9-digit zip code), identifying those 
     subscribers whose service pursuant to paragraph (2) of 
     subsection (a) has been added or dropped since the last 
     submission under this subsection.''.
       (d) No Royalty Fee for Certain Secondary Transmissions.--
     Section 122(c) is amended--
       (1) in the heading, by inserting ``for Certain Secondary 
     Transmissions'' after ``Required''; and
       (2) by striking ``subsection (a)'' and inserting 
     ``paragraphs (1), (2), and (3) of subsection (a)''.
       (e)  Violations for Territorial Restrictions.--
       (1) Modification to statutory damages.--Section 122(f) is 
     amended--
       (A) in paragraph (1)(B), by striking ``$5'' and inserting 
     ``$250''; and
       (B) in paragraph (2), by striking ``$250,000'' each place 
     it appears and inserting ``$2,500,000''.
       (2) Conforming amendments for additional stations.--Section 
     122 is amended--
       (A) in subsection (f), by striking ``section 119 or'' each 
     place it appears and inserting the following: ``section 119, 
     subject to statutory licensing by reason of paragraph (2)(A), 
     (3), or (4) of subsection (a), or subject to''; and
       (B) in subsection (g), by striking ``section 119 or'' and 
     inserting the following: ``section 119, paragraph (2)(A), 
     (3), or (4) of subsection (a), or''.
       (f) Definitions.--Section 122(j) is amended--
       (1) in paragraph (1), by striking ``which contracts'' and 
     inserting ``that contracts'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (6) and (7), respectively;
       (3) in paragraph (3)--
       (A) by redesignating such paragraph as paragraph (4);
       (B) in the heading of such paragraph, by inserting ``non-
     network station;'' after ``Network station;''; and
       (C) by inserting ```non-network station','' after 
     ```network station','';
       (4) by inserting after paragraph (2) the following:
       ``(3) Low power television station.--The term `low power 
     television station' means a low power TV station as defined 
     in section 74.701(f) of title 47, Code of Federal 
     Regulations, as in effect on June 1, 2004. For purposes of 
     this paragraph, the term `low power television station' 
     includes a low power television station that has been 
     accorded primary status as a Class A television licensee 
     under section 73.6001(a) of title 47, Code of Federal 
     Regulations.'';
       (5) by inserting after paragraph (4) (as redesignated) the 
     following:
       ``(5) Noncommercial educational broadcast station.--The 
     term `noncommercial educational broadcast station' means a 
     television broadcast station that is a noncommercial 
     educational broadcast station as defined in section 397 of 
     the Communications Act of 1934, as in effect on the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010.''; and
       (6) by amending paragraph (6) (as redesignated) to read as 
     follows:
       ``(6) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.''.

[[Page 2489]]



     SEC. 504. MODIFICATIONS TO CABLE SYSTEM SECONDARY 
                   TRANSMISSION RIGHTS UNDER SECTION 111.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 111 is amended by 
     inserting at the end the following: ``OF BROADCAST 
     PROGRAMMING BY CABLE''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 111 and 
     inserting the following:

``111. Limitations on exclusive rights: Secondary transmissions of 
              broadcast programming by cable.''.

       (b) Technical Amendment.--Section 111(a)(4) is amended by 
     striking ``; or'' and inserting ``or section 122;''.
       (c) Statutory License for Secondary Transmissions by Cable 
     Systems.--Section 111(d) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``A cable system whose secondary'' and 
     inserting the following: ``Statement of account and royalty 
     fees.--Subject to paragraph (5), a cable system whose 
     secondary''; and
       (ii) by striking ``by regulation--'' and inserting ``by 
     regulation the following:'';
       (B) in subparagraph (A)--
       (i) by striking ``a statement of account'' and inserting 
     ``A statement of account''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking subparagraphs (B), (C), and (D) and 
     inserting the following:
       ``(B) Except in the case of a cable system whose royalty 
     fee is specified in subparagraph (E) or (F), a total royalty 
     fee payable to copyright owners pursuant to paragraph (3) for 
     the period covered by the statement, computed on the basis of 
     specified percentages of the gross receipts from subscribers 
     to the cable service during such period for the basic service 
     of providing secondary transmissions of primary broadcast 
     transmitters, as follows:
       ``(i) 1.064 percent of such gross receipts for the 
     privilege of further transmitting, beyond the local service 
     area of such primary transmitter, any non-network programming 
     of a primary transmitter in whole or in part, such amount to 
     be applied against the fee, if any, payable pursuant to 
     clauses (ii) through (iv);
       ``(ii) 1.064 percent of such gross receipts for the first 
     distant signal equivalent;
       ``(iii) 0.701 percent of such gross receipts for each of 
     the second, third, and fourth distant signal equivalents; and
       ``(iv) 0.330 percent of such gross receipts for the fifth 
     distant signal equivalent and each distant signal equivalent 
     thereafter.
       ``(C) In computing amounts under clauses (ii) through (iv) 
     of subparagraph (B)--
       ``(i) any fraction of a distant signal equivalent shall be 
     computed at its fractional value;
       ``(ii) in the case of any cable system located partly 
     within and partly outside of the local service area of a 
     primary transmitter, gross receipts shall be limited to those 
     gross receipts derived from subscribers located outside of 
     the local service area of such primary transmitter; and
       ``(iii) if a cable system provides a secondary transmission 
     of a primary transmitter to some but not all communities 
     served by that cable system--

       ``(I) the gross receipts and the distant signal equivalent 
     values for such secondary transmission shall be derived 
     solely on the basis of the subscribers in those communities 
     where the cable system provides such secondary transmission; 
     and
       ``(II) the total royalty fee for the period paid by such 
     system shall not be less than the royalty fee calculated 
     under subparagraph (B)(i) multiplied by the gross receipts 
     from all subscribers to the system.

       ``(D) A cable system that, on a statement submitted before 
     the date of the enactment of the Satellite Television 
     Extension and Localism Act of 2010, computed its royalty fee 
     consistent with the methodology under subparagraph (C)(iii), 
     or that amends a statement filed before such date of 
     enactment to compute the royalty fee due using such 
     methodology, shall not be subject to an action for 
     infringement, or eligible for any royalty refund or offset, 
     arising out of its use of such methodology on such statement.
       ``(E) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are $263,800 or less--
       ``(i) gross receipts of the cable system for the purpose of 
     this paragraph shall be computed by subtracting from such 
     actual gross receipts the amount by which $263,800 exceeds 
     such actual gross receipts, except that in no case shall a 
     cable system's gross receipts be reduced to less than 
     $10,400; and
       ``(ii) the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be 0.5 
     percent, regardless of the number of distant signal 
     equivalents, if any.
       ``(F) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are more than $263,800 but less than 
     $527,600, the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be--
       ``(i) 0.5 percent of any gross receipts up to $263,800, 
     regardless of the number of distant signal equivalents, if 
     any; and
       ``(ii) 1 percent of any gross receipts in excess of 
     $263,800, but less than $527,600, regardless of the number of 
     distant signal equivalents, if any.
       ``(G) A filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).'';
       (2) in paragraph (2), in the first sentence--
       (A) by striking ``The Register of Copyrights'' and 
     inserting the following ``Handling of fees.--The Register of 
     Copyrights''; and
       (B) by inserting ``(including the filing fee specified in 
     paragraph (1)(G))'' after ``shall receive all fees'';
       (3) in paragraph (3)--
       (A) by striking ``The royalty fees'' and inserting the 
     following: ``Distribution of royalty fees to copyright 
     owners.--The royalty fees'';
       (B) in subparagraph (A)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking ``; and'' and inserting a period;
       (C) in subparagraph (B)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking the semicolon and inserting a period; and
       (D) in subparagraph (C), by striking ``any such'' and 
     inserting ``Any such'';
       (4) in paragraph (4), by striking ``The royalty fees'' and 
     inserting the following: ``Procedures for royalty fee 
     distribution.--The royalty fees''; and
       (5) by adding at the end the following new paragraphs:
       ``(5) 3.75 percent rate and syndicated exclusivity 
     surcharge not applicable to multicast streams.--The royalty 
     rates specified in sections 256.2(c) and 256.2(d) of title 
     37, Code of Federal Regulations (commonly referred to as the 
     `3.75 percent rate' and the `syndicated exclusivity 
     surcharge', respectively), as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010, as such rates may be adjusted, or such sections 
     redesignated, thereafter by the Copyright Royalty Judges, 
     shall not apply to the secondary transmission of a multicast 
     stream.
       ``(6) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to provide for 
     the confidential verification by copyright owners whose works 
     were embodied in the secondary transmissions of primary 
     transmissions pursuant to this section of the information 
     reported on the semiannual statements of account filed under 
     this subsection on or after January 1, 2010, in order that 
     the auditor designated under subparagraph (A) is able to 
     confirm the correctness of the calculations and royalty 
     payments reported therein. The regulations shall--
       ``(A) establish procedures for the designation of a 
     qualified independent auditor--
       ``(i) with exclusive authority to request verification of 
     such a statement of account on behalf of all copyright owners 
     whose works were the subject of secondary transmissions of 
     primary transmissions by the cable system (that deposited the 
     statement) during the accounting period covered by the 
     statement; and
       ``(ii) who is not an officer, employee, or agent of any 
     such copyright owner for any purpose other than such audit;
       ``(B) establish procedures for safeguarding all non-public 
     financial and business information provided under this 
     paragraph;
       ``(C)(i) require a consultation period for the independent 
     auditor to review its conclusions with a designee of the 
     cable system;
       ``(ii) establish a mechanism for the cable system to remedy 
     any errors identified in the auditor's report and to cure any 
     underpayment identified; and
       ``(iii) provide an opportunity to remedy any disputed facts 
     or conclusions;
       ``(D) limit the frequency of requests for verification for 
     a particular cable system and the number of audits that a 
     multiple system operator can be required to undergo in a 
     single year; and
       ``(E) permit requests for verification of a statement of 
     account to be made only within 3 years after the last day of 
     the year in which the statement of account is filed.
       ``(7) Acceptance of additional deposits.--Any royalty fee 
     payments received by the Copyright Office from cable systems 
     for the secondary transmission of primary transmissions that 
     are in addition to the payments calculated and deposited in 
     accordance with this subsection shall be deemed to have been 
     deposited for the particular accounting period for which they 
     are received and shall be distributed as specified under this 
     subsection.''.
       (d) Effective Date of New Royalty Fee Rates.--The royalty 
     fee rates established in section 111(d)(1)(B) of title 17, 
     United States Code, as amended by subsection (c)(1)(C) of 
     this section, shall take effect commencing with the first 
     accounting period occurring in 2010.

[[Page 2490]]

       (e) Definitions.--Section 111(f) is amended--
       (1) by striking the first undesignated paragraph and 
     inserting the following:
       ``(1) Primary transmission.--A `primary transmission' is a 
     transmission made to the public by a transmitting facility 
     whose signals are being received and further transmitted by a 
     secondary transmission service, regardless of where or when 
     the performance or display was first transmitted. In the case 
     of a television broadcast station, the primary stream and any 
     multicast streams transmitted by the station constitute 
     primary transmissions.'';
       (2) in the second undesignated paragraph--
       (A) by striking ``A `secondary transmission''' and 
     inserting the following:
       ``(2) Secondary transmission.--A `secondary 
     transmission'''; and
       (B) by striking ```cable system''' and inserting ``cable 
     system'';
       (3) in the third undesignated paragraph--
       (A) by striking ``A `cable system''' and inserting the 
     following:
       ``(3) Cable system.--A `cable system'''; and
       (B) by striking ``Territory, Trust Territory, or 
     Possession'' and inserting ``territory, trust territory, or 
     possession of the United States'';
       (4) in the fourth undesignated paragraph, in the first 
     sentence--
       (A) by striking ``The `local service area of a primary 
     transmitter', in the case of a television broadcast station, 
     comprises the area in which such station is entitled to 
     insist'' and inserting the following:
       ``(4) Local service area of a primary transmitter.--The 
     `local service area of a primary transmitter', in the case of 
     both the primary stream and any multicast streams transmitted 
     by a primary transmitter that is a television broadcast 
     station, comprises the area where such primary transmitter 
     could have insisted'';
       (B) by striking ``76.59 of title 47 of the Code of Federal 
     Regulations'' and inserting the following: ``76.59 of title 
     47, Code of Federal Regulations, or within the noise-limited 
     contour as defined in 73.622(e)(1) of title 47, Code of 
     Federal Regulations''; and
       (C) by striking ``as defined by the rules and regulations 
     of the Federal Communications Commission,'';
       (5) by amending the fifth undesignated paragraph to read as 
     follows:
       ``(5) Distant signal equivalent.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), a `distant signal equivalent'--
       ``(i) is the value assigned to the secondary transmission 
     of any non-network television programming carried by a cable 
     system in whole or in part beyond the local service area of 
     the primary transmitter of such programming; and
       ``(ii) is computed by assigning a value of one to each 
     primary stream and to each multicast stream (other than a 
     simulcast) that is an independent station, and by assigning a 
     value of one-quarter to each primary stream and to each 
     multicast stream (other than a simulcast) that is a network 
     station or a noncommercial educational station.
       ``(B) Exceptions.--The values for independent, network, and 
     noncommercial educational stations specified in subparagraph 
     (A) are subject to the following:
       ``(i) Where the rules and regulations of the Federal 
     Communications Commission require a cable system to omit the 
     further transmission of a particular program and such rules 
     and regulations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, or where such rules and 
     regulations in effect on the date of the enactment of the 
     Copyright Act of 1976 permit a cable system, at its election, 
     to effect such omission and substitution of a nonlive program 
     or to carry additional programs not transmitted by primary 
     transmitters within whose local service area the cable system 
     is located, no value shall be assigned for the substituted or 
     additional program.
       ``(ii) Where the rules, regulations, or authorizations of 
     the Federal Communications Commission in effect on the date 
     of the enactment of the Copyright Act of 1976 permit a cable 
     system, at its election, to omit the further transmission of 
     a particular program and such rules, regulations, or 
     authorizations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, the value assigned for the 
     substituted or additional program shall be, in the case of a 
     live program, the value of one full distant signal equivalent 
     multiplied by a fraction that has as its numerator the number 
     of days in the year in which such substitution occurs and as 
     its denominator the number of days in the year.
       ``(iii) In the case of the secondary transmission of a 
     primary transmitter that is a television broadcast station 
     pursuant to the late-night or specialty programming rules of 
     the Federal Communications Commission, or the secondary 
     transmission of a primary transmitter that is a television 
     broadcast station on a part-time basis where full-time 
     carriage is not possible because the cable system lacks the 
     activated channel capacity to retransmit on a full-time basis 
     all signals that it is authorized to carry, the values for 
     independent, network, and noncommercial educational stations 
     set forth in subparagraph (A), as the case may be, shall be 
     multiplied by a fraction that is equal to the ratio of the 
     broadcast hours of such primary transmitter retransmitted by 
     the cable system to the total broadcast hours of the primary 
     transmitter.
       ``(iv) No value shall be assigned for the secondary 
     transmission of the primary stream or any multicast streams 
     of a primary transmitter that is a television broadcast 
     station in any community that is within the local service 
     area of the primary transmitter.'';
       (6) by striking the sixth undesignated paragraph and 
     inserting the following:
       ``(6) Network station.--
       ``(A) Treatment of primary stream.--The term `network 
     station' shall be applied to a primary stream of a television 
     broadcast station that is owned or operated by, or affiliated 
     with, one or more of the television networks in the United 
     States providing nationwide transmissions, and that transmits 
     a substantial part of the programming supplied by such 
     networks for a substantial part of the primary stream's 
     typical broadcast day.
       ``(B) Treatment of multicast streams.--The term `network 
     station' shall be applied to a multicast stream on which a 
     television broadcast station transmits all or substantially 
     all of the programming of an interconnected program service 
     that--
       ``(i) is owned or operated by, or affiliated with, one or 
     more of the television networks described in subparagraph 
     (A); and
       ``(ii) offers programming on a regular basis for 15 or more 
     hours per week to at least 25 of the affiliated television 
     licensees of the interconnected program service in 10 or more 
     States.'';
       (7) by striking the seventh undesignated paragraph and 
     inserting the following:
       ``(7) Independent station.--The term `independent station' 
     shall be applied to the primary stream or a multicast stream 
     of a television broadcast station that is not a network 
     station or a noncommercial educational station.'';
       (8) by striking the eighth undesignated paragraph and 
     inserting the following:
       ``(8) Noncommercial educational station.--The term 
     `noncommercial educational station' shall be applied to the 
     primary stream or a multicast stream of a television 
     broadcast station that is a noncommercial educational 
     broadcast station as defined in section 397 of the 
     Communications Act of 1934, as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.''; and
       (9) by adding at the end the following:
       ``(9) Primary stream.--A `primary stream' is--
       ``(A) the single digital stream of programming that, before 
     June 12, 2009, was substantially duplicating the programming 
     transmitted by the television broadcast station as an analog 
     signal; or
       ``(B) if there is no stream described in subparagraph (A), 
     then the single digital stream of programming transmitted by 
     the television broadcast station for the longest period of 
     time.
       ``(10) Primary transmitter.--A `primary transmitter' is a 
     television or radio broadcast station licensed by the Federal 
     Communications Commission, or by an appropriate governmental 
     authority of Canada or Mexico, that makes primary 
     transmissions to the public.
       ``(11) Multicast stream.--A `multicast stream' is a digital 
     stream of programming that is transmitted by a television 
     broadcast station and is not the station's primary stream.
       ``(12) Simulcast.--A `simulcast' is a multicast stream of a 
     television broadcast station that duplicates the programming 
     transmitted by the primary stream or another multicast stream 
     of such station.
       ``(13) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     cable system and pays a fee for the service, directly or 
     indirectly, to the cable system.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (f) Timing of Section 111 Proceedings.--Section 804(b)(1) 
     is amended by striking ``2005'' each place it appears and 
     inserting ``2015''.
       (g) Technical and Conforming Amendments.--
       (1) Corrections to fix level designations.--Section 111 is 
     amended--
       (A) in subsections (a), (c), and (e), by striking 
     ``clause'' each place it appears and inserting ``paragraph'';
       (B) in subsection (c)(1), by striking ``clauses'' and 
     inserting ``paragraphs''; and
       (C) in subsection (e)(1)(F), by striking ``subclause'' and 
     inserting ``subparagraph''.
       (2) Conforming amendment to hyphenate nonnetwork.--Section 
     111 is amended by striking ``nonnetwork'' each place it 
     appears and inserting ``non-network''.
       (3) Previously undesignated paragraph.--Section 111(e)(1) 
     is amended by striking ``second paragraph of subsection (f)'' 
     and inserting ``subsection (f)(2)''.
       (4) Removal of superfluous ands.--Section 111(e) is 
     amended--

[[Page 2491]]

       (A) in paragraph (1)(A), by striking ``and'' at the end;
       (B) in paragraph (1)(B), by striking ``and'' at the end;
       (C) in paragraph (1)(C), by striking ``and'' at the end;
       (D) in paragraph (1)(D), by striking ``and'' at the end; 
     and
       (E) in paragraph (2)(A), by striking ``and'' at the end.
       (5) Removal of variant forms references.--Section 111 is 
     amended--
       (A) in subsection (e)(4), by striking ``, and each of its 
     variant forms,''; and
       (B) in subsection (f), by striking ``and their variant 
     forms''.
       (6) Correction to territory reference.--Section 111(e)(2) 
     is amended in the matter preceding subparagraph (A) by 
     striking ``three territories'' and inserting ``five 
     entities''.
       (h) Effective Date With Respect to Multicast Streams.--
       (1) In general.--Subject to paragraphs (2) and (3), the 
     amendments made by this section, to the extent such 
     amendments assign a distant signal equivalent value to the 
     secondary transmission of the multicast stream of a primary 
     transmitter, shall take effect on the date of the enactment 
     of this Act.
       (2) Delayed applicability.--
       (A) Secondary transmissions of a multicast stream beyond 
     the local service area of its primary transmitter before 2010 
     act.--In any case in which a cable system was making 
     secondary transmissions of a multicast stream beyond the 
     local service area of its primary transmitter before the date 
     of the enactment of this Act, a distant signal equivalent 
     value (referred to in paragraph (1)) shall not be assigned to 
     secondary transmissions of such multicast stream that are 
     made on or before June 30, 2010.
       (B) Multicast streams subject to preexisting written 
     agreements for the secondary transmission of such streams.--
     In any case in which the secondary transmission of a 
     multicast stream of a primary transmitter is the subject of a 
     written agreement entered into on or before June 30, 2009, 
     between a cable system or an association representing the 
     cable system and a primary transmitter or an association 
     representing the primary transmitter, a distant signal 
     equivalent value (referred to in paragraph (1)) shall not be 
     assigned to secondary transmissions of such multicast stream 
     beyond the local service area of its primary transmitter that 
     are made on or before the date on which such written 
     agreement expires.
       (C) No refunds or offsets for prior statements of 
     account.--A cable system that has reported secondary 
     transmissions of a multicast stream beyond the local service 
     area of its primary transmitter on a statement of account 
     deposited under section 111 of title 17, United States Code, 
     before the date of the enactment of this Act shall not be 
     entitled to any refund, or offset, of royalty fees paid on 
     account of such secondary transmissions of such multicast 
     stream.
       (3) Definitions.--In this subsection, the terms ``cable 
     system'', ``secondary transmission'', ``multicast stream'', 
     and ``local service area of a primary transmitter'' have the 
     meanings given those terms in section 111(f) of title 17, 
     United States Code, as amended by this section.

     SEC. 505. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-
                   LOCAL SERVICE FOR ALL DMAS.

       Section 119 is amended by adding at the end the following 
     new subsection:
       ``(g) Certain Waivers Granted to Providers of Local-Into-
     Local Service to All DMAs.--
       ``(1) Injunction waiver.--A court that issued an injunction 
     pursuant to subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction if 
     the court recognizes the entity against which the injunction 
     was issued as a qualified carrier.
       ``(2) Limited temporary waiver.--
       ``(A) In general.--Upon a request made by a satellite 
     carrier, a court that issued an injunction against such 
     carrier under subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction with 
     respect to the statutory license provided under subsection 
     (a)(2) to the extent necessary to allow such carrier to make 
     secondary transmissions of primary transmissions made by a 
     network station to unserved households located in short 
     markets in which such carrier was not providing local service 
     pursuant to the license under section 122 as of December 31, 
     2009.
       ``(B) Expiration of temporary waiver.--A temporary waiver 
     of an injunction under subparagraph (A) shall expire after 
     the end of the 120-day period beginning on the date such 
     temporary waiver is issued unless extended for good cause by 
     the court making the temporary waiver.
       ``(C) Failure to provide local-into-local service to all 
     dmas.--
       ``(i) Failure to act reasonably and in good faith.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to act reasonably or has failed to 
     make a good faith effort to provide local-into-local service 
     to all DMAs, such failure--

       ``(I) is actionable as an act of infringement under section 
     501 and the court may in its discretion impose the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(II) shall result in the termination of the waiver issued 
     under subparagraph (A).

       ``(ii) Failure to provide local-into-local service.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to provide local-into-local 
     service to all DMAs, but determines that the carrier acted 
     reasonably and in good faith, the court may in its discretion 
     impose financial penalties that reflect--

       ``(I) the degree of control the carrier had over the 
     circumstances that resulted in the failure;
       ``(II) the quality of the carrier's efforts to remedy the 
     failure; and
       ``(III) the severity and duration of any service 
     interruption.

       ``(D) Single temporary waiver available.--An entity may 
     only receive one temporary waiver under this paragraph.
       ``(E) Short market defined.--For purposes of this 
     paragraph, the term `short market' means a local market in 
     which programming of one or more of the four most widely 
     viewed television networks nationwide as measured on the date 
     of the enactment of this subsection is not offered on the 
     primary stream transmitted by any local television broadcast 
     station.
       ``(3) Establishment of qualified carrier recognition.--
       ``(A) Statement of eligibility.--An entity seeking to be 
     recognized as a qualified carrier under this subsection shall 
     file a statement of eligibility with the court that imposed 
     the injunction. A statement of eligibility must include--
       ``(i) an affidavit that the entity is providing local-into-
     local service to all DMAs;
       ``(ii) a request for a waiver of the injunction; and
       ``(iii) a certification issued pursuant to section 342(a) 
     of Communications Act of 1934.
       ``(B) Grant of recognition as a qualified carrier.--Upon 
     receipt of a statement of eligibility, the court shall 
     recognize the entity as a qualified carrier and issue the 
     waiver under paragraph (1).
       ``(C) Voluntary termination.--At any time, an entity 
     recognized as a qualified carrier may file a statement of 
     voluntary termination with the court certifying that it no 
     longer wishes to be recognized as a qualified carrier. Upon 
     receipt of such statement, the court shall reinstate the 
     injunction waived under paragraph (1).
       ``(D) Loss of recognition prevents future recognition.--No 
     entity may be recognized as a qualified carrier if such 
     entity had previously been recognized as a qualified carrier 
     and subsequently lost such recognition or voluntarily 
     terminated such recognition under subparagraph (C).
       ``(4) Qualified carrier obligations and compliance.--
       ``(A) Continuing obligations.--
       ``(i) In general.--An entity recognized as a qualified 
     carrier shall continue to provide local-into-local service to 
     all DMAs.
       ``(ii) Cooperation with gao examination.--An entity 
     recognized as a qualified carrier shall fully cooperate with 
     the Comptroller General in the examination required by 
     subparagraph (B).
       ``(B) Qualified carrier compliance examination.--
       ``(i) Examination and report.--The Comptroller General 
     shall conduct an examination and publish a report concerning 
     the qualified carrier's compliance with the royalty payment 
     and household eligibility requirements of the license under 
     this section. The report shall address the qualified 
     carrier's conduct during the period beginning on the date on 
     which the qualified carrier is recognized as such under 
     paragraph (3)(B) and ending on December 31, 2011.
       ``(ii) Records of qualified carrier.--Beginning on the date 
     that is one year after the date on which the qualified 
     carrier is recognized as such under paragraph (3)(B), but not 
     later than October 1, 2011, the qualified carrier shall 
     provide the Comptroller General with all records that the 
     Comptroller General, in consultation with the Register of 
     Copyrights, considers to be directly pertinent to the 
     following requirements under this section:

       ``(I) Proper calculation and payment of royalties under the 
     statutory license under this section.
       ``(II) Provision of service under this license to eligible 
     subscribers only.

       ``(iii) Submission of report.--The Comptroller General 
     shall file the report required by clause (i) not later than 
     March 1, 2012, with the court referred to in paragraph (1) 
     that issued the injunction, the Register of Copyrights, the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives, and the Committees on the Judiciary 
     and on Commerce, Science, and Transportation of the Senate.
       ``(iv) Evidence of infringement.--The Comptroller General 
     shall include in the report a statement of whether the 
     examination by the Comptroller General indicated that there 
     is substantial evidence that a copyright holder could bring a 
     successful action

[[Page 2492]]

     under this section against the qualified carrier for 
     infringement. The Comptroller General shall consult with the 
     Register of Copyrights in preparing such statement.
       ``(v) Subsequent examination.--If the report includes the 
     Comptroller General's statement that there is substantial 
     evidence that a copyright holder could bring a successful 
     action under this section against the qualified carrier for 
     infringement, the Comptroller General shall, not later than 6 
     months after the report under clause (i) is published, 
     initiate another examination of the qualified carrier's 
     compliance with the royalty payment and household eligibility 
     requirements of the license under this section since the last 
     report was filed under clause (iii). The Comptroller General 
     shall file a report on such examination with the court 
     referred to in paragraph (1) that issued the injunction, the 
     Register of Copyrights, the Committees on the Judiciary and 
     on Energy and Commerce of the House of Representatives, and 
     the Committees on the Judiciary and on Commerce, Science, and 
     Transportation of the Senate. The report shall include a 
     statement described in clause (iv), prepared in consultation 
     with the Register of Copyrights.
       ``(vi) Compliance.--Upon motion filed by an aggrieved 
     copyright owner, the court recognizing an entity as a 
     qualified carrier shall terminate such designation upon 
     finding that the entity has failed to cooperate with the 
     examinations required by this subparagraph.
       ``(C) Affirmation.--A qualified carrier shall file an 
     affidavit with the district court and the Register of 
     Copyrights 30 months after such status was granted stating 
     that, to the best of the affiant's knowledge, it is in 
     compliance with the requirements for a qualified carrier.
       ``(D) Compliance determination.--Upon the motion of an 
     aggrieved television broadcast station, the court recognizing 
     an entity as a qualified carrier may make a determination of 
     whether the entity is providing local-into-local service to 
     all DMAs.
       ``(E) Pleading requirement.--In any motion brought under 
     subparagraph (D), the party making such motion shall specify 
     one or more designated market areas (as such term is defined 
     in section 122(j)(2)(C)) for which the failure to provide 
     service is being alleged, and, for each such designated 
     market area, shall plead with particularity the circumstances 
     of the alleged failure.
       ``(F) Burden of proof.--In any proceeding to make a 
     determination under subparagraph (D), and with respect to a 
     designated market area for which failure to provide service 
     is alleged, the entity recognized as a qualified carrier 
     shall have the burden of proving that the entity provided 
     local-into-local service with a good quality satellite signal 
     to at least 90 percent of the households in such designated 
     market area (based on the most recent census data released by 
     the United States Census Bureau) at the time and place 
     alleged.
       ``(5) Failure to provide service.--
       ``(A) Penalties.--If the court recognizing an entity as a 
     qualified carrier finds that such entity has willfully failed 
     to provide local-into-local service to all DMAs, such finding 
     shall result in the loss of recognition of the entity as a 
     qualified carrier and the termination of the waiver provided 
     under paragraph (1), and the court may, in its discretion--
       ``(i) treat such failure as an act of infringement under 
     section 501, and subject such infringement to the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(ii) impose a fine of not less than $250,000 and not more 
     than $5,000,000.
       ``(B) Exception for nonwillful violation.--If the court 
     determines that the failure to provide local-into-local 
     service to all DMAs is nonwillful, the court may in its 
     discretion impose financial penalties for noncompliance that 
     reflect--
       ``(i) the degree of control the entity had over the 
     circumstances that resulted in the failure;
       ``(ii) the quality of the entity's efforts to remedy the 
     failure and restore service; and
       ``(iii) the severity and duration of any service 
     interruption.
       ``(6) Penalties for violations of license.--A court that 
     finds, under subsection (a)(6)(A), that an entity recognized 
     as a qualified carrier has willfully made a secondary 
     transmission of a primary transmission made by a network 
     station and embodying a performance or display of a work to a 
     subscriber who is not eligible to receive the transmission 
     under this section shall reinstate the injunction waived 
     under paragraph (1), and the court may order statutory 
     damages of not more than $2,500,000.
       ``(7) Local-into-local service to all dmas defined.--For 
     purposes of this subsection:
       ``(A) In general.--An entity provides `local-into-local 
     service to all DMAs' if the entity provides local service in 
     all designated market areas (as such term is defined in 
     section 122(j)(2)(C)) pursuant to the license under section 
     122.
       ``(B) Household coverage.--For purposes of subparagraph 
     (A), an entity that makes available local-into-local service 
     with a good quality satellite signal to at least 90 percent 
     of the households in a designated market area based on the 
     most recent census data released by the United States Census 
     Bureau shall be considered to be providing local service to 
     such designated market area.
       ``(C) Good quality satellite signal defined.--The term 
     `good quality signal' has the meaning given such term under 
     section 342(e)(2) of Communications Act of 1934.''.

     SEC. 506. COPYRIGHT OFFICE FEES.

       Section 708(a) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon;
       (3) by inserting after paragraph (9) the following:
       ``(10) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     119 or 122; and
       ``(11) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     111.''; and
       (4) by adding at the end the following new sentence: ``Fees 
     established under paragraphs (10) and (11) shall be 
     reasonable and may not exceed one-half of the cost necessary 
     to cover reasonable expenses incurred by the Copyright Office 
     for the collection and administration of the statements of 
     account and any royalty fees deposited with such 
     statements.''.

     SEC. 507. TERMINATION OF LICENSE.

       Section 1003(a)(2)(A) of Public Law 111-118 is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2014''.

     SEC. 508. CONSTRUCTION.

       Nothing in section 111, 119, or 122 of title 17, United 
     States Code, including the amendments made to such sections 
     by this subtitle, shall be construed to affect the meaning of 
     any terms under the Communications Act of 1934, except to the 
     extent that such sections are specifically cross-referenced 
     in such Act or the regulations issued thereunder.

                 Subtitle B--Communications Provisions

     SEC. 521. REFERENCE.

       Except as otherwise provided, whenever in this subtitle an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of the Communications Act of 1934 (47 U.S.C. 151 et 
     seq.).

     SEC. 522. EXTENSION OF AUTHORITY.

       Section 325(b) is amended--
       (1) in paragraph (2)(C), by striking ``February 28, 2010'' 
     and inserting ``December 31, 2014''; and
       (2) in paragraph (3)(C), by striking ``March 1, 2010'' each 
     place it appears in clauses (ii) and (iii) and inserting 
     ``January 1, 2015''.

     SEC. 523. SIGNIFICANTLY VIEWED STATIONS.

       (a) In General.--Paragraphs (1) and (2) of section 340(b) 
     are amended to read as follows:
       ``(1) Service limited to subscribers taking local-into-
     local service.--This section shall apply only to 
     retransmissions to subscribers of a satellite carrier who 
     receive retransmissions of a signal from that satellite 
     carrier pursuant to section 338.
       ``(2) Service limitations.--A satellite carrier may 
     retransmit to a subscriber in high definition format the 
     signal of a station determined by the Commission to be 
     significantly viewed under subsection (a) only if such 
     carrier also retransmits in high definition format the signal 
     of a station located in the local market of such subscriber 
     and affiliated with the same network whenever such format is 
     available from such station.''.
       (b) Rulemaking Required.--Within 180 days after the date of 
     the enactment of this Act, the Federal Communications 
     Commission shall take all actions necessary to promulgate a 
     rule to implement the amendments made by subsection (a).

     SEC. 524. DIGITAL TELEVISION TRANSITION CONFORMING 
                   AMENDMENTS.

       (a) Section 338.--Section 338 is amended--
       (1) in subsection (a), by striking ``(3)  effective date.--
     No satellite'' and all that follows through ``until January 
     1, 2002.''; and
       (2) by amending subsection (g) to read as follows:
       ``(g) Carriage of Local Stations on a Single Reception 
     Antenna.--
       ``(1) Single reception antenna.--Each satellite carrier 
     that retransmits the signals of local television broadcast 
     stations in a local market shall retransmit such stations in 
     such market so that a subscriber may receive such stations by 
     means of a single reception antenna and associated equipment.
       ``(2) Additional reception antenna.--If the carrier 
     retransmits the signals of local television broadcast 
     stations in a local market in high definition format, the 
     carrier shall retransmit such signals in such market so that 
     a subscriber may receive such signals by means of a single 
     reception antenna and associated equipment, but such antenna 
     and associated equipment may be separate from the single 
     reception antenna and associated equipment used to comply 
     with paragraph (1).''.
       (b) Section 339.--Section 339 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(B), by striking ``Such two network 
     stations'' and all that follows through ``more than two 
     network stations.''; and
       (B) in paragraph (2)--
       (i) in the heading for subparagraph (A), by striking ``to 
     analog signals'';

[[Page 2493]]

       (ii) in subparagraph (A)--

       (I) in the heading for clause (i), by striking ``analog'';
       (II) in clause (i)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``October 1, 2004'' and inserting 
     ``October 1, 2009'';

       (III) in the heading for clause (ii), by striking 
     ``analog''; and
       (IV) in clause (ii)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``2004'' and inserting ``2009'';
       (iii) by amending subparagraph (B) to read as follows:
       ``(B) Rules for other subscribers.--
       ``(i) In general.--In the case of a subscriber of a 
     satellite carrier who is eligible to receive the signal of a 
     network station under this section (in this subparagraph 
     referred to as a `distant signal'), other than subscribers to 
     whom subparagraph (A) applies, the following shall apply:

       ``(I) In a case in which the satellite carrier makes 
     available to that subscriber, on January 1, 2005, the signal 
     of a local network station affiliated with the same 
     television network pursuant to section 338, the carrier may 
     only provide the secondary transmissions of the distant 
     signal of a station affiliated with the same network to that 
     subscriber if the subscriber's satellite carrier, not later 
     than March 1, 2005, submits to that television network the 
     list and statement required by subparagraph (F)(i).
       ``(II) In a case in which the satellite carrier does not 
     make available to that subscriber, on January 1, 2005, the 
     signal of a local network station pursuant to section 338, 
     the carrier may only provide the secondary transmissions of 
     the distant signal of a station affiliated with the same 
     network to that subscriber if--

       ``(aa) that subscriber seeks to subscribe to such distant 
     signal before the date on which such carrier commences to 
     carry pursuant to section 338 the signals of stations from 
     the local market of such local network station; and
       ``(bb) the satellite carrier, within 60 days after such 
     date, submits to each television network the list and 
     statement required by subparagraph (F)(ii).
       ``(ii) Special circumstances.--A subscriber of a satellite 
     carrier who was lawfully receiving the distant signal of a 
     network station on the day before the date of enactment of 
     the Satellite Television Extension and Localism Act of 2010 
     may receive both such distant signal and the local signal of 
     a network station affiliated with the same network until such 
     subscriber chooses to no longer receive such distant signal 
     from such carrier, whether or not such subscriber elects to 
     subscribe to such local signal.'';
       (iv) in subparagraph (C)--

       (I) by striking ``analog'';
       (II) in clause (i), by striking ``the Satellite Home Viewer 
     Extension and Reauthorization Act of 2004; and'' and 
     inserting the following:

     ``the Satellite Television Extension and Localism Act of 2010 
     and, at the time such person seeks to subscribe to receive 
     such secondary transmission, resides in a local market where 
     the satellite carrier makes available to that person the 
     signal of a local network station affiliated with the same 
     television network pursuant to section 338 (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber); or''; and

       (III) by amending clause (ii) to read as follows:

       ``(ii) lawfully subscribes to and receives a distant signal 
     on or after the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, and, subsequent to such 
     subscription, the satellite carrier makes available to that 
     subscriber the signal of a local network station affiliated 
     with the same network as the distant signal (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber), unless such person subscribes to the signal of 
     the local network station within 60 days after such signal is 
     made available.'';
       (v) in subparagraph (D)--

       (I) in the heading, by striking ``digital'';
       (II) by striking clauses (i), (iii) through (v), (vii) 
     through (ix), and (xi);
       (III) by redesignating clause (vi) as clause (i) and 
     transferring such clause to appear before clause (ii);
       (IV) by amending such clause (i) (as so redesignated) to 
     read as follows:

       ``(i) Eligibility and signal testing.--A subscriber of a 
     satellite carrier shall be eligible to receive a distant 
     signal of a network station affiliated with the same network 
     under this section if, with respect to a local network 
     station, such subscriber--

       ``(I) is a subscriber whose household is not predicted by 
     the model specified in subsection (c)(3) to receive the 
     signal intensity required under section 73.622(e)(1) or, in 
     the case of a low-power station or translator station 
     transmitting an analog signal, section 73.683(a) of title 47, 
     Code of Federal Regulations, or a successor regulation;
       ``(II) is determined, based on a test conducted in 
     accordance with section 73.686(d) of title 47, Code of 
     Federal Regulations, or any successor regulation, not to be 
     able to receive a signal that exceeds the signal intensity 
     standard in section 73.622(e)(1) or, in the case of a low-
     power station or translator station transmitting an analog 
     signal, section 73.683(a) of such title, or a successor 
     regulation; or
       ``(III) is in an unserved household, as determined under 
     section 119(d)(10)(A) of title 17, United States Code.'';
       (V) in clause (ii)--

       (aa) by striking ``digital'' in the heading;
       (bb) by striking ``digital'' the first two places such term 
     appears;
       (cc) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (dd) by striking ``, whether or not such subscriber elects 
     to subscribe to local digital signals'';

       (VI) by inserting after clause (ii) the following new 
     clause:

       ``(iii) Time-shifting prohibited.--In a case in which the 
     satellite carrier makes available to an eligible subscriber 
     under this subparagraph the signal of a local network station 
     pursuant to section 338, the carrier may only provide the 
     distant signal of a station affiliated with the same network 
     to that subscriber if, in the case of any local market in the 
     48 contiguous States of the United States, the distant signal 
     is the secondary transmission of a station whose prime time 
     network programming is generally broadcast simultaneously 
     with, or later than, the prime time network programming of 
     the affiliate of the same network in the local market.''; and

       (VII) by redesignating clause (x) as clause (iv); and

       (vi) in subparagraph (E), by striking ``distant analog 
     signal or'' and all that follows through ``(B), or (D))'' and 
     inserting ``distant signal'';
       (2) in subsection (c)--
       (A) by amending paragraph (3) to read as follows:
       ``(3) Establishment of improved predictive model and on-
     location testing required.--
       ``(A) Predictive model.--Within 180 days after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the Commission shall develop and 
     prescribe by rule a point-to-point predictive model for 
     reliably and presumptively determining the ability of 
     individual locations, through the use of an antenna, to 
     receive signals in accordance with the signal intensity 
     standard in section 73.622(e)(1) of title 47, Code of Federal 
     Regulations, or a successor regulation, including to account 
     for the continuing operation of translator stations and low 
     power television stations. In prescribing such model, the 
     Commission shall rely on the Individual Location Longley-Rice 
     model set forth by the Commission in CS Docket No. 98-201, as 
     previously revised with respect to analog signals, and as 
     recommended by the Commission with respect to digital signals 
     in its Report to Congress in ET Docket No. 05-182, FCC 05-199 
     (released December 9, 2005). The Commission shall establish 
     procedures for the continued refinement in the application of 
     the model by the use of additional data as it becomes 
     available.
       ``(B) On-location testing.--The Commission shall issue an 
     order completing its rulemaking proceeding in ET Docket No. 
     06-94 within 180 days after the date of enactment of the 
     Satellite Television Extension and Localism Act of 2010. In 
     conducting such rulemaking, the Commission shall seek ways to 
     minimize consumer burdens associated with on-location 
     testing.'';
       (B) by amending paragraph (4)(A) to read as follows:
       ``(A) In general.--If a subscriber's request for a waiver 
     under paragraph (2) is rejected and the subscriber submits to 
     the subscriber's satellite carrier a request for a test 
     verifying the subscriber's inability to receive a signal of 
     the signal intensity referenced in clause (i) of subsection 
     (a)(2)(D), the satellite carrier and the network station or 
     stations asserting that the retransmission is prohibited with 
     respect to that subscriber shall select a qualified and 
     independent person to conduct the test referenced in such 
     clause. Such test shall be conducted within 30 days after the 
     date the subscriber submits a request for the test. If the 
     written findings and conclusions of a test conducted in 
     accordance with such clause demonstrate that the subscriber 
     does not receive a signal that meets or exceeds the requisite 
     signal intensity standard in such clause, the subscriber 
     shall not be denied the retransmission of a signal of a 
     network station under section 119(d)(10)(A) of title 17, 
     United States Code.'';
       (C) in paragraph (4)(B), by striking ``the signal 
     intensity'' and all that follows through ``United States 
     Code'' and inserting ``such requisite signal intensity 
     standard''; and
       (D) in paragraph (4)(E), by striking ``Grade B intensity''.
       (c) Section 340.--Section 340(i) is amended by striking 
     paragraph (4).

     SEC. 525. APPLICATION PENDING COMPLETION OF RULEMAKINGS.

       (a) In General.--During the period beginning on the date of 
     the enactment of this Act and ending on the date on which the 
     Federal Communications Commission adopts rules pursuant to 
     the amendments to the Communications Act of 1934 made by 
     section 523 and

[[Page 2494]]

     section 524 of this title, the Federal Communications 
     Commission shall follow its rules and regulations promulgated 
     pursuant to sections 338, 339, and 340 of the Communications 
     Act of 1934 as in effect on the day before the date of the 
     enactment of this Act.
       (b) Translator Stations and Low Power Television 
     Stations.--Notwithstanding subsection (a), for purposes of 
     determining whether a subscriber within the local market 
     served by a translator station or a low power television 
     station affiliated with a television network is eligible to 
     receive distant signals under section 339 of the 
     Communications Act of 1934, the rules and regulations of the 
     Federal Communications Commission for determining such 
     subscriber's eligibility as in effect on the day before the 
     date of the enactment of this Act shall apply until the date 
     on which the translator station or low power television 
     station is licensed to broadcast a digital signal.
       (c) Definitions.--As used in this subtitle:
       (1) Local market; low power television station; satellite 
     carrier; subscriber; television broadcast station.--The terms 
     ``local market'', ``low power television station'', 
     ``satellite carrier'', ``subscriber'', and ``television 
     broadcast station'' have the meanings given such terms in 
     section 338(k) of the Communications Act of 1934.
       (2) Network station; television network.--The terms 
     ``network station'' and ``television network'' have the 
     meanings given such terms in section 339(d) of such Act.

     SEC. 526. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       Part I of title III is amended by adding at the end the 
     following new section:

     ``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       ``(a) Certification.--The Commission shall issue a 
     certification for the purposes of section 119(g)(3)(A)(iii) 
     of title 17, United States Code, if the Commission determines 
     that--
       ``(1) a satellite carrier is providing local service 
     pursuant to the statutory license under section 122 of such 
     title in each designated market area; and
       ``(2) with respect to each designated market area in which 
     such satellite carrier was not providing such local service 
     as of the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010--
       ``(A) the satellite carrier's satellite beams are designed, 
     and predicted by the satellite manufacturer's pre-launch test 
     data, to provide a good quality satellite signal to at least 
     90 percent of the households in each such designated market 
     area based on the most recent census data released by the 
     United States Census Bureau; and
       ``(B) there is no material evidence that there has been a 
     satellite or sub-system failure subsequent to the satellite's 
     launch that precludes the ability of the satellite carrier to 
     satisfy the requirements of subparagraph (A).
       ``(b) Information Required.--Any entity seeking the 
     certification provided for in subsection (a) shall submit to 
     the Commission the following information:
       ``(1) An affidavit stating that, to the best of the 
     affiant's knowledge, the satellite carrier provides local 
     service in all designated market areas pursuant to the 
     statutory license provided for in section 122 of title 17, 
     United States Code, and listing those designated market areas 
     in which local service was provided as of the date of 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.
       ``(2) For each designated market area not listed in 
     paragraph (1):
       ``(A) Identification of each such designated market area 
     and the location of its local receive facility.
       ``(B) Data showing the number of households, and maps 
     showing the geographic distribution thereof, in each such 
     designated market area based on the most recent census data 
     released by the United States Census Bureau.
       ``(C) Maps, with superimposed effective isotropically 
     radiated power predictions obtained in the satellite 
     manufacturer's pre-launch tests, showing that the contours of 
     the carrier's satellite beams as designed and the geographic 
     area that the carrier's satellite beams are designed to cover 
     are predicted to provide a good quality satellite signal to 
     at least 90 percent of the households in such designated 
     market area based on the most recent census data released by 
     the United States Census Bureau.
       ``(D) For any satellite relied upon for certification under 
     this section, an affidavit stating that, to the best of the 
     affiant's knowledge, there have been no satellite or sub-
     system failures subsequent to the satellite's launch that 
     would degrade the design performance to such a degree that a 
     satellite transponder used to provide local service to any 
     such designated market area is precluded from delivering a 
     good quality satellite signal to at least 90 percent of the 
     households in such designated market area based on the most 
     recent census data released by the United States Census 
     Bureau.
       ``(E) Any additional engineering, designated market area, 
     or other information the Commission considers necessary to 
     determine whether the Commission shall grant a certification 
     under this section.
       ``(c) Certification Issuance.--
       ``(1) Public comment.--The Commission shall provide 30 days 
     for public comment on a request for certification under this 
     section.
       ``(2) Deadline for decision.--The Commission shall grant or 
     deny a request for certification within 90 days after the 
     date on which such request is filed.
       ``(d) Subsequent Affirmation.--An entity granted qualified 
     carrier status pursuant to section 119(g) of title 17, United 
     States Code, shall file an affidavit with the Commission 30 
     months after such status was granted stating that, to the 
     best of the affiant's knowledge, it is in compliance with the 
     requirements for a qualified carrier.
       ``(e) Definitions.--For the purposes of this section:
       ``(1) Designated market area.--The term `designated market 
     area' has the meaning given such term in section 122(j)(2)(C) 
     of title 17, United States Code.
       ``(2) Good quality satellite signal.--
       ``(A) In general.--The term ``good quality satellite 
     signal'' means--
       ``(i) a satellite signal whose power level as designed 
     shall achieve reception and demodulation of the signal at an 
     availability level of at least 99.7 percent using--

       ``(I) models of satellite antennas normally used by the 
     satellite carrier's subscribers; and
       ``(II) the same calculation methodology used by the 
     satellite carrier to determine predicted signal availability 
     in the top 100 designated market areas; and

       ``(ii) taking into account whether a signal is in standard 
     definition format or high definition format, compression 
     methodology, modulation, error correction, power level, and 
     utilization of advances in technology that do not circumvent 
     the intent of this section to provide for non-discriminatory 
     treatment with respect to any comparable television broadcast 
     station signal, a video signal transmitted by a satellite 
     carrier such that--

       ``(I) the satellite carrier treats all television broadcast 
     stations' signals the same with respect to statistical 
     multiplexer prioritization; and
       ``(II) the number of video signals in the relevant 
     satellite transponder is not more than the then current 
     greatest number of video signals carried on any equivalent 
     transponder serving the top 100 designated market areas.

       ``(B) Determination.--For the purposes of subparagraph (A), 
     the top 100 designated market areas shall be as determined by 
     Nielsen Media Research and published in the Nielsen Station 
     Index Directory and Nielsen Station Index United States 
     Television Household Estimates or any successor publication 
     as of the date of a satellite carrier's application for 
     certification under this section.''.

     SEC. 527. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION 
                   DIGITAL SIGNALS OF NONCOMMERCIAL EDUCATIONAL 
                   TELEVISION STATIONS.

       (a) In General.--Section 338(a) is amended by adding at the 
     end the following new paragraph:
       ``(5) Nondiscrimination in carriage of high definition 
     signals of noncommercial educational television stations.--
       ``(A) Existing carriage of high definition signals.--If, 
     before the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, an eligible satellite 
     carrier is providing, under section 122 of title 17, United 
     States Code, any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of qualified noncommercial 
     educational television stations located within that local 
     market in accordance with the following schedule:
       ``(i) By December 31, 2010, in at least 50 percent of the 
     markets in which such satellite carrier provides such 
     secondary transmissions in high definition format.
       ``(ii) By December 31, 2011, in every market in which such 
     satellite carrier provides such secondary transmissions in 
     high definition format.
       ``(B) New initiation of service.--If, on or after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010, an eligible satellite carrier initiates 
     the provision, under section 122 of title 17, United States 
     Code, of any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of all qualified 
     noncommercial educational television stations located within 
     that local market.''.
       (b) Definitions.--Section 338(k) is amended--
       (1) by redesignating paragraphs (2) through (8) as 
     paragraphs (3) through (9), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Eligible satellite carrier.--The term `eligible 
     satellite carrier' means any satellite carrier that is not a 
     party to a carriage contract that--
       ``(A) governs carriage of at least 30 qualified 
     noncommercial educational television stations; and

[[Page 2495]]

       ``(B) is in force and effect within 60 days after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010.'';
       (3) by redesignating paragraphs (6) through (9) (as 
     previously redesignated) as paragraphs (7) through (10), 
     respectively; and
       (4) by inserting after paragraph (5) (as so redesignated) 
     the following new paragraph:
       ``(6) Qualified noncommercial educational television 
     station.--The term `qualified noncommercial educational 
     television station' means any full-power television broadcast 
     station that--
       ``(A) under the rules and regulations of the Commission in 
     effect on March 29, 1990, is licensed by the Commission as a 
     noncommercial educational broadcast station and is owned and 
     operated by a public agency, nonprofit foundation, nonprofit 
     corporation, or nonprofit association; and
       ``(B) has as its licensee an entity that is eligible to 
     receive a community service grant, or any successor grant 
     thereto, from the Corporation for Public Broadcasting, or any 
     successor organization thereto, on the basis of the formula 
     set forth in section 396(k)(6)(B) of this title.''.

     SEC. 528. SAVINGS CLAUSE REGARDING DEFINITIONS.

       Nothing in this subtitle or the amendments made by this 
     subtitle shall be construed to affect--
       (1) the meaning of the terms ``program related'' and 
     ``primary video'' under the Communications Act of 1934; or
       (2) the meaning of the term ``multicast'' in any 
     regulations issued by the Federal Communications Commission.

     SEC. 529. STATE PUBLIC AFFAIRS BROADCASTS.

       Section 335(b) is amended--
       (1) by inserting ``STATE PUBLIC AFFAIRS,'' after 
     ``EDUCATIONAL,'' in the heading;
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Channel capacity required.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Commission shall require, as a condition of any 
     provision, initial authorization, or authorization renewal 
     for a provider of direct broadcast satellite service 
     providing video programming, that the provider of such 
     service reserve a portion of its channel capacity, equal to 
     not less than 4 percent nor more than 7 percent, exclusively 
     for noncommercial programming of an educational or 
     informational nature.
       ``(B) Requirement for qualified satellite provider.--The 
     Commission shall require, as a condition of any provision, 
     initial authorization, or authorization renewal for a 
     qualified satellite provider of direct broadcast satellite 
     service providing video programming, that such provider 
     reserve a portion of its channel capacity, equal to not less 
     than 3.5 percent nor more than 7 percent, exclusively for 
     noncommercial programming of an educational or informational 
     nature.'';
       (3) in paragraph (5), by striking ``For purposes of the 
     subsection--'' and inserting ``For purposes of this 
     subsection:''; and
       (4) by adding at the end of paragraph (5) the following:
       ``(C) The term `qualified satellite provider' means any 
     provider of direct broadcast satellite service that--
       ``(i) provides the retransmission of the State public 
     affairs networks of at least 15 different States;
       ``(ii) offers the programming of State public affairs 
     networks upon reasonable prices, terms, and conditions as 
     determined by the Commission under paragraph (4); and
       ``(iii) does not delete any noncommercial programming of an 
     educational or informational nature in connection with the 
     carriage of a State public affairs network.
       ``(D) The term `State public affairs network' means a non-
     commercial non-broadcast network or a noncommercial 
     educational television station--
       ``(i) whose programming consists of information about State 
     government deliberations and public policy events; and
       ``(ii) that is operated by--

       ``(I) a State government or subdivision thereof;
       ``(II) an organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986 that is exempt from 
     taxation under section 501(a) of such Code and that is 
     governed by an independent board of directors; or
       ``(III) a cable system.''.

               Subtitle C--Reports and Savings Provision

     SEC. 531. DEFINITION.

       In this subtitle, the term ``appropriate Congressional 
     committees'' means the Committees on the Judiciary and on 
     Commerce, Science, and Transportation of the Senate and the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives.

     SEC. 532. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY 
                   LICENSING.

       Not later than 1 year after the date of the enactment of 
     this Act, and after consultation with the Federal 
     Communications Commission, the Register of Copyrights shall 
     submit to the appropriate Congressional committees a report 
     containing--
       (1) proposed mechanisms, methods, and recommendations on 
     how to implement a phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code, by making such sections inapplicable 
     to the secondary transmission of a performance or display of 
     a work embodied in a primary transmission of a broadcast 
     station that is authorized to license the same secondary 
     transmission directly with respect to all of the performances 
     and displays embodied in such primary transmission;
       (2) any recommendations for alternative means to implement 
     a timely and effective phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code; and
       (3) any recommendations for legislative or administrative 
     actions as may be appropriate to achieve such a phase-out.

     SEC. 533. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY 
                   LICENSING MODIFICATIONS.

       (a) Study.--The Comptroller General shall conduct a study 
     that analyzes and evaluates the changes to the carriage 
     requirements currently imposed on multichannel video 
     programming distributors under the Communications Act of 1934 
     (47 U.S.C. 151 et seq.) and the regulations promulgated by 
     the Federal Communications Commission that would be required 
     or beneficial to consumers, and such other matters as the 
     Comptroller General deems appropriate, if Congress 
     implemented a phase-out of the current statutory licensing 
     requirements set forth under sections 111, 119, and 122 of 
     title 17, United States Code. Among other things, the study 
     shall consider the impact such a phase-out and related 
     changes to carriage requirements would have on consumer 
     prices and access to programming.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall report 
     to the appropriate Congressional committees the results of 
     the study, including any recommendations for legislative or 
     administrative actions.

     SEC. 534. REPORT ON IN-STATE BROADCAST PROGRAMMING.

       Not later than 1 year after the date of the enactment of 
     this Act, the Federal Communications Commission shall submit 
     to the appropriate Congressional committees a report 
     containing an analysis of--
       (1) the number of households in a State that receive the 
     signals of local broadcast stations assigned to a community 
     of license that is located in a different State;
       (2) the extent to which consumers in each local market have 
     access to in-state broadcast programming over the air or from 
     a multichannel video programming distributor; and
       (3) whether there are alternatives to the use of designated 
     market areas, as defined in section 122 of title 17, United 
     States Code, to define local markets that would provide more 
     consumers with in-state broadcast programming.

     SEC. 535. LOCAL NETWORK CHANNEL BROADCAST REPORTS.

       (a) Requirement.--
       (1) In general.--On the 180th day after the date of the 
     enactment of this Act, and on each succeeding anniversary of 
     such 180th day, each satellite carrier shall submit an annual 
     report to the Federal Communications Commission setting 
     forth--
       (A) each local market in which it--
       (i) retransmits signals of 1 or more television broadcast 
     stations with a community of license in that market;
       (ii) has commenced providing such signals in the preceding 
     1-year period; and
       (iii) has ceased to provide such signals in the preceding 
     1-year period; and
       (B) detailed information regarding the use and potential 
     use of satellite capacity for the retransmission of local 
     signals in each local market.
       (2) Termination.--The requirement under paragraph (1) shall 
     cease after each satellite carrier has submitted 5 reports 
     under such paragraph.
       (b) FCC Study; Report.--
       (1) Study.--If no satellite carrier files a request for a 
     certification under section 342 of the Communications Act of 
     1934 (as added by section 526 of this title) within 180 days 
     after the date of the enactment of this Act, the Federal 
     Communications Commission shall initiate a study of--
       (A) incentives that would induce a satellite carrier to 
     provide the signals of 1 or more television broadcast 
     stations licensed to provide signals in local markets in 
     which the satellite carrier does not provide such signals; 
     and
       (B) the economic and satellite capacity conditions 
     affecting delivery of local signals by satellite carriers to 
     these markets.
       (2) Report.--Within 1 year after the date of the initiation 
     of the study under paragraph (1), the Federal Communications 
     Commission shall submit a report to the appropriate 
     Congressional committees containing its findings, 
     conclusions, and recommendations.
       (c) Definitions.--In this section--
       (1) the terms ``local market'' and ``satellite carrier'' 
     have the meaning given such terms in section 339(d) of the 
     Communications Act of 1934 (47 U.S.C. 339(d)); and
       (2) the term ``television broadcast station'' has the 
     meaning given such term in section 325(b)(7) of such Act (47 
     U.S.C. 325(b)(7)).

     SEC. 536. SAVINGS PROVISION REGARDING USE OF NEGOTIATED 
                   LICENSES.

       (a) In General.--Nothing in this title, title 17, United 
     States Code, the Communications

[[Page 2496]]

     Act of 1934, regulations promulgated by the Register of 
     Copyrights under this title or title 17, United States Code, 
     or regulations promulgated by the Federal Communications 
     Commission under this title or the Communications Act of 1934 
     shall be construed to prevent a multichannel video 
     programming distributor from retransmitting a performance or 
     display of a work pursuant to an authorization granted by the 
     copyright owner or, if within the scope of its authorization, 
     its licensee.
       (b) Limitation.--Nothing in subsection (a) shall be 
     construed to affect any obligation of a multichannel video 
     programming distributor under section 325(b) of the 
     Communications Act of 1934 to obtain the authority of a 
     television broadcast station before retransmitting that 
     station's signal.

     SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.

       Unless specifically provided otherwise, this title, and the 
     amendments made by this title, shall take effect on February 
     27, 2010, and all references to enactment of this Act shall 
     be deemed to refer to such date unless otherwise specified. 
     The secondary transmission of a performance or display of a 
     work embodied in a primary transmission is not an 
     infringement of copyright if it was made by a satellite 
     carrier on or after February 27, 2010 and prior to enactment 
     of this Act, and was in compliance with the law as in 
     existence on February 27, 2010.

                        Subtitle D--Severability

     SEC. 541. SEVERABILITY.

       If any provision of this title, an amendment made by this 
     title, or the application of such provision or amendment to 
     any person or circumstance is held to be unconstitutional, 
     the remainder of this title, the amendments made by this 
     title, and the application of such provision or amendment to 
     any person or circumstance shall not be affected thereby.

                       TITLE VI--OTHER PROVISIONS

     SEC. 601. INCREASE IN THE MEDICARE PHYSICIAN PAYMENT UPDATE.

       Paragraph (10) of section 1848(d) of the Social Security 
     Act, as added by section 1011(a) of the Department of Defense 
     Appropriations Act, 2010 (Public Law 111-118), is amended--
       (1) in subparagraph (A), by striking ``February 28, 2010'' 
     and inserting ``September 30, 2010''; and
       (2) in subparagraph (B), by striking ``March 1, 2010'' and 
     inserting ``October 1, 2010''.

             TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

     SEC. 701. DETERMINATION OF BUDGETARY EFFECTS.

       (a) In General.--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.
       (b) Emergency Designation.--Sections 201, 211, and 232 of 
     this Act are designated as an emergency requirement pursuant 
     to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 
     (Public Law 111-139; 2 U.S.C. 933(g)) and section 403(a) of 
     S. Con. Res. 13 (111th Congress), the concurrent resolution 
     on the budget for fiscal year 2010. In the House of 
     Representatives, sections 201, 211, and 232 of this Act are 
     designated as an emergency for purposes of pay-as-you-go 
     principles.  

                           TITLE VIII--OFFSET

     SEC. 801. RESCISSION.

       (a) Unobligated Amounts.--Any amounts appropriated or made 
     available and remaining unobligated under division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 115) (other than under title X of such 
     division A), are hereby rescinded.
       (b) Deobligation.--
       (1) In general.--The Director of the Office of Management 
     and Budget shall deobligate a total of not less than 
     $20,000,000,000 of the amounts appropriated or made available 
     under division A of the American Recovery and Reinvestment 
     Act of 2009 (Public Law 111-5; 123 Stat. 115) (other than 
     under title X of such division A)--
       (A) that are not expended as of October 1, 2012; or
       (B) relating to which the Director determines, on or after 
     October 1, 2012, that the amounts are not being expended for 
     the purpose for which the amounts were appropriated or made 
     available.
       (2) Rescission.--Any amounts deobligated under paragraph 
     (1) are hereby rescinded.
                                 ______
                                 
  SA 3361. Mr. BUNNING proposed an amendment to amendment SA 3336 
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal 
Revenue Code of 1986 to extend certain expiring provisions, and for 
other purposes; as follows:

       Strike all after the first word and insert the following:

     1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Workers, State, and Business Relief Act of 2010''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

Sec. 101. Alternative motor vehicle credit for new qualified hybrid 
              motor vehicles other than passenger automobiles and light 
              trucks.
Sec. 102. Incentives for biodiesel and renewable diesel.
Sec. 103. Credit for electricity produced at certain open-loop biomass 
              facilities.
Sec. 104. Credit for refined coal facilities.
Sec. 105. Credit for production of low sulfur diesel fuel.
Sec. 106. Credit for producing fuel from coke or coke gas.
Sec. 107. New energy efficient home credit.
Sec. 108. Excise tax credits and outlay payments for alternative fuel 
              and alternative fuel mixtures.
Sec. 109. Special rule for sales or dispositions to implement FERC or 
              State electric restructuring policy for qualified 
              electric utilities.
Sec. 110. Suspension of limitation on percentage depletion for oil and 
              gas from marginal wells.

                   Subtitle B--Individual Tax Relief

                    PART I--Miscellaneous Provisions

Sec. 111. Deduction for certain expenses of elementary and secondary 
              school teachers.
Sec. 112. Additional standard deduction for State and local real 
              property taxes.
Sec. 113. Deduction of State and local sales taxes.
Sec. 114. Contributions of capital gain real property made for 
              conservation purposes.
Sec. 115. Above-the-line deduction for qualified tuition and related 
              expenses.
Sec. 116. Tax-free distributions from individual retirement plans for 
              charitable purposes.
Sec. 117. Look-thru of certain regulated investment company stock in 
              determining gross estate of nonresidents.

                  PART II--Low-Income Housing Credits

Sec. 121. Election for refundable low-income housing credit for 2010.

                    Subtitle C--Business Tax Relief

Sec. 131. Research credit.
Sec. 132. Indian employment tax credit.
Sec. 133. New markets tax credit.
Sec. 134. Railroad track maintenance credit.
Sec. 135. Mine rescue team training credit.
Sec. 136. Employer wage credit for employees who are active duty 
              members of the uniformed services.
Sec. 137. 5-year depreciation for farming business machinery and 
              equipment.
Sec. 138. 15-year straight-line cost recovery for qualified leasehold 
              improvements, qualified restaurant buildings and 
              improvements, and qualified retail improvements.
Sec. 139. 7-year recovery period for motorsports entertainment 
              complexes.
Sec. 140. Accelerated depreciation for business property on an Indian 
              reservation.
Sec. 141. Enhanced charitable deduction for contributions of food 
              inventory.
Sec. 142. Enhanced charitable deduction for contributions of book 
              inventories to public schools.
Sec. 143. Enhanced charitable deduction for corporate contributions of 
              computer inventory for educational purposes.
Sec. 144. Election to expense mine safety equipment.
Sec. 145. Special expensing rules for certain film and television 
              productions.
Sec. 146. Expensing of environmental remediation costs.
Sec. 147. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 148. Modification of tax treatment of certain payments to 
              controlling exempt organizations.
Sec. 149. Exclusion of gain or loss on sale or exchange of certain 
              brownfield sites from unrelated business income.
Sec. 150. Timber REIT modernization.
Sec. 151. Treatment of certain dividends and assets of regulated 
              investment companies.
Sec. 152. RIC qualified investment entity treatment under FIRPTA.
Sec. 153. Exceptions for active financing income.

[[Page 2497]]

Sec. 154. Look-thru treatment of payments between related controlled 
              foreign corporations under foreign personal holding 
              company rules.
Sec. 155. Reduction in corporate rate for qualified timber gain.
Sec. 156. Basis adjustment to stock of S corps making charitable 
              contributions of property.
Sec. 157. Empowerment zone tax incentives.
Sec. 158. Tax incentives for investment in the District of Columbia.
Sec. 159. Renewal community tax incentives.
Sec. 160. Temporary increase in limit on cover over of rum excise taxes 
              to Puerto Rico and the Virgin Islands.
Sec. 161. American Samoa economic development credit.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--National Disaster Relief

Sec. 171. Waiver of certain mortgage revenue bond requirements.
Sec. 172. Losses attributable to federally declared disasters.
Sec. 173. Special depreciation allowance for qualified disaster 
              property.
Sec. 174. Net operating losses attributable to federally declared 
              disasters.
Sec. 175. Expensing of qualified disaster expenses.

                      PART II--Regional Provisions

                    subpart a--new york liberty zone

Sec. 181. Special depreciation allowance for nonresidential and 
              residential real property.
Sec. 182. Tax-exempt bond financing.

                           subpart b--go zone

Sec. 183. Special depreciation allowance.
Sec. 184. Increase in rehabilitation credit.
Sec. 185. Work opportunity tax credit with respect to certain 
              individuals affected by Hurricane Katrina for employers 
              inside disaster areas.

                  subpart c--midwestern disaster areas

Sec. 191. Special rules for use of retirement funds.
Sec. 192. Exclusion of cancellation of mortgage indebtedness.

     TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

                   Subtitle A--Unemployment Insurance

Sec. 201. Extension of unemployment insurance provisions.

                     Subtitle B--Health Provisions

Sec. 211. Extension and improvement of premium assistance for COBRA 
              benefits.
Sec. 212. Extension of therapy caps exceptions process.
Sec. 213. Treatment of pharmacies under durable medical equipment 
              accreditation requirements.
Sec. 214. Enhanced payment for mental health services.
Sec. 215. Extension of ambulance add-ons.
Sec. 216. Extension of geographic floor for work.
Sec. 217. Extension of payment for technical component of certain 
              physician pathology services.
Sec. 218. Extension of outpatient hold harmless provision.
Sec. 219. EHR Clarification.
Sec. 220. Extension of reimbursement for all Medicare part B services 
              furnished by certain indian hospitals and clinics.
Sec. 221. Extension of certain payment rules for long-term care 
              hospital services and of moratorium on the establishment 
              of certain hospitals and facilities.
Sec. 222. Extension of the Medicare rural hospital flexibility program.
Sec. 223. Extension of section 508 hospital reclassifications.
Sec. 224. Technical correction related to critical access hospital 
              services.
Sec. 225. Extension for specialized MA plans for special needs 
              individuals.
Sec. 226. Extension of reasonable cost contracts.
Sec. 227. Extension of particular waiver policy for employer group 
              plans.
Sec. 228. Extension of continuing care retirement community program.
Sec. 229. Funding outreach and assistance for low-income programs.
Sec. 230. Family-to-family health information centers.
Sec. 231. Implementation funding.
Sec. 232. Extension of ARRA increase in FMAP.
Sec. 233. Extension of gainsharing demonstration.

                      Subtitle C--Other Provisions

Sec. 241. Extension of use of 2009 poverty guidelines.
Sec. 242. Refunds disregarded in the administration of Federal programs 
              and federally assisted programs.
Sec. 243. State court improvement program.
Sec. 244. Extension of national flood insurance program.
Sec. 245. Emergency disaster assistance.
Sec. 246. Small business loan guarantee enhancement extensions.

                   TITLE III--PENSION FUNDING RELIEF

                   Subtitle A--Single Employer Plans

Sec. 301. Extended period for single-employer defined benefit plans to 
              amortize certain shortfall amortization bases.
Sec. 302. Application of extended amortization period to plans subject 
              to prior law funding rules.
Sec. 303. Lookback for certain benefit restrictions.

                    Subtitle B--Multiemployer Plans

Sec. 311. Adjustments to funding standard account rules.

                      TITLE IV--OFFSET PROVISIONS

                        Subtitle A--Black Liquor

Sec. 401. Exclusion of unprocessed fuels from the cellulosic biofuel 
              producer credit.
Sec. 402. Prohibition on alternative fuel credit and alternative fuel 
              mixture credit for black liquor.

                      Subtitle B--Homebuyer Credit

Sec. 411. Technical modifications to homebuyer credit.

                     Subtitle C--Economic Substance

Sec. 421. Codification of economic substance doctrine; penalties.

                   Subtitle D--Additional Provisions

Sec. 431. Revision to the Medicare Improvement Fund.

                TITLE V--SATELLITE TELEVISION EXTENSION

Sec. 501. Short title.

                     Subtitle A--Statutory Licenses

Sec. 501. Reference.
Sec. 502. Modifications to statutory license for satellite carriers.
Sec. 503. Modifications to statutory license for satellite carriers in 
              local markets.
Sec. 504. Modifications to cable system secondary transmission rights 
              under section 111.
Sec. 505. Certain waivers granted to providers of local-into-local 
              service for all DMAs.
Sec. 506. Copyright Office fees.
Sec. 507. Termination of license.
Sec. 508. Construction.

                 Subtitle B--Communications Provisions

Sec. 521. Reference.
Sec. 522. Extension of authority.
Sec. 523. Significantly viewed stations.
Sec. 524. Digital television transition conforming amendments.
Sec. 525. Application pending completion of rulemakings.
Sec. 526. Process for issuing qualified carrier certification.
Sec. 527. Nondiscrimination in carriage of high definition digital 
              signals of noncommercial educational television stations.
Sec. 528. Savings clause regarding definitions.
Sec. 529. State public affairs broadcasts.

               Subtitle C--Reports and Savings Provision

Sec. 531. Definition.
Sec. 532. Report on market based alternatives to statutory licensing.
Sec. 533. Report on communications implications of statutory licensing 
              modifications.
Sec. 534. Report on in-state broadcast programming.
Sec. 535. Local network channel broadcast reports.
Sec. 536. Savings provision regarding use of negotiated licenses.
Sec. 537. Effective date; Noninfringement of copyright.

                        Subtitle D--Severability

Sec. 541. Severability.

                       TITLE VI--OTHER PROVISIONS

Sec. 601. Increase in the Medicare physician payment update.

             TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

Sec. 701. Determination of budgetary effect.

                     TITLE VIII--ADDITIONAL OFFSETS

Sec. 801. Repeal of increase of the office budgets of Members of 
              Congress.
Sec. 802. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Agriculture.
Sec. 803. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Commerce.
Sec. 804. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Education.
Sec. 805. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Energy.
Sec. 806. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Health and Human Services.

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Sec. 807. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Homeland Security.
Sec. 808. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Housing and Urban Development.
Sec. 809. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Interior.
Sec. 810. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Justice.
Sec. 811. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Labor.
Sec. 812. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of State.
Sec. 813. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Transportation.
Sec. 814. Repeal of excessive overhead, elimination of wasteful 
              spending, and consolidation of duplicative programs at 
              the Department of Treasury.
Sec. 815. Rescission of unspent and uncommitted funds Federal funds.
Sec. 816. Implementation of rescissions.

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

     SEC. 101. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   HYBRID MOTOR VEHICLES OTHER THAN PASSENGER 
                   AUTOMOBILES AND LIGHT TRUCKS.

       (a) In General.--Paragraph (3) of section 30B(k) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property purchased after December 31, 2009.

     SEC. 102. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2010''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2010''.
       (2) Subparagraph (B) of section 6427(e)(6) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 103. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
                   LOOP BIOMASS FACILITIES.

       (a) In General.--Clause (ii) of section 45(b)(4)(B) is 
     amended by striking ``5-year period'' and inserting ``6-year 
     period''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after December 
     31, 2009.

     SEC. 104. CREDIT FOR REFINED COAL FACILITIES.

       (a) In General .--Subparagraphs (A) and (B) of section 
     45(d)(8) are each amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 105. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.

       (a) Applicable Period.--Paragraph (4) of section 45H(c) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 339 of the 
     American Jobs Creation Act of 2004.

     SEC. 106. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

       (a) In General.--Paragraph (1) of section 45K(g) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 107. NEW ENERGY EFFICIENT HOME CREDIT.

       (a) In General.--Subsection (g) of section 45L is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to homes acquired after December 31, 2009.

     SEC. 108. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR 
                   ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

       (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 
     6427(e)(6)(C) are each amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 109. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT 
                   FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
                   QUALIFIED ELECTRIC UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transactions after December 31, 2009.

     SEC. 110. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION 
                   FOR OIL AND GAS FROM MARGINAL WELLS.

       (a) In General.--Clause (ii) of section 613A(c)(6)(H) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                   Subtitle B--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

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

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2009'' and inserting ``2009, or 
     2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 112. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL 
                   REAL PROPERTY TAXES.

       (a) In General.--Subparagraph (C) of section 63(c)(1) is 
     amended by striking ``or 2009'' and inserting ``2009, or 
     2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 113. DEDUCTION OF STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 114. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE 
                   FOR CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 115. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
                   RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 116. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2009

     SEC. 117. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY 
                   STOCK IN DETERMINING GROSS ESTATE OF 
                   NONRESIDENTS.

       (a) In General.--Paragraph (3) of section 2105(d) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to estates of decedents dying after December 31, 
     2009.

                  PART II--LOW-INCOME HOUSING CREDITS

     SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT 
                   FOR 2010.

       (a) In General.--Section 42 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Election for Refundable Credits.--
       ``(1) In general.--The housing credit agency of each State 
     shall be allowed a credit in an amount equal to such State's 
     2010 low-income housing refundable credit election amount, 
     which shall be payable by the Secretary as provided in 
     paragraph (5).
       ``(2) 2010 low-income housing refundable credit election 
     amount.--For purposes of this subsection, the term `2010 low-
     income housing refundable credit election amount' means, with 
     respect to any State, such amount as the State may elect 
     which does not exceed 85 percent of the product of--
       ``(A) the sum of--
       ``(i) 100 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (i) and (iii) of subsection (h)(3)(C), and
       ``(ii) 40 percent of the State housing credit ceiling for 
     2010 which is attributable to

[[Page 2499]]

     amounts described in clauses (ii) and (iv) of such 
     subsection, multiplied by
       ``(B) 10.
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1, 2012' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36A,''.

                    Subtitle C--Business Tax Relief

     SEC. 131. RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Conforming Amendment.--Subparagraph (D) of section 
     45C(b)(1) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 132. INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 133. NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (F) of section 45D(f)(1) is 
     amended by inserting ``and 2010'' after ``2009''.
       (b) Conforming Amendment.--Paragraph (3) of section 45D(f) 
     is amended by striking ``2014'' and inserting ``2015''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after 2009.

     SEC. 134. RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 135. MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 136. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
                   DUTY MEMBERS OF THE UNIFORMED SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2009.

     SEC. 137. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY 
                   AND EQUIPMENT.

       (a) In General.--Clause (vii) of section 168(e)(3)(B) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 138. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                   LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
                   BUILDINGS AND IMPROVEMENTS, AND QUALIFIED 
                   RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2010'' 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) Clause (i) of section 168(e)(7)(A) is amended by 
     striking ``if such building is placed in service after 
     December 31, 2008, and before January 1, 2010,''.
       (2) Paragraph (8) of section 168(e) is amended by striking 
     subparagraph (E).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 139. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 140. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 141. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 142. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   BOOK INVENTORIES TO PUBLIC SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 143. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE 
                   CONTRIBUTIONS OF COMPUTER INVENTORY FOR 
                   EDUCATIONAL PURPOSES.

       (a) In General.--Subparagraph (G) of section 170(e)(6) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 144. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 145. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
                   TELEVISION PRODUCTIONS.

       (a) In General.--Subsection (f) of section 181 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to productions commencing after December 31, 
     2009.

     SEC. 146. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2009.

     SEC. 147. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) is 
     amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 5 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 148. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS 
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2009.

     SEC. 149. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF 
                   CERTAIN BROWNFIELD SITES FROM UNRELATED 
                   BUSINESS INCOME.

       (a) In General.--Subparagraph (K) of section 512(b)(19) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property acquired after December 31, 2009.

     SEC. 150. TIMBER REIT MODERNIZATION.

       (a) In General.--Paragraph (8) of section 856(c) is amended 
     by striking ``means'' and all that follows and inserting 
     ``means December 31, 2010.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (I) of section 856(c)(2) is amended by 
     striking ``the first taxable year beginning after the date of 
     the enactment of this subparagraph'' and inserting ``in a 
     taxable year beginning on or before the termination date''.
       (2) Clause (iii) of section 856(c)(5)(H) is amended by 
     inserting ``in taxable years beginning'' after 
     ``dispositions''.
       (3) Clause (v) of section 857(b)(6)(D) is amended by 
     inserting ``in a taxable year beginning'' after ``sale''.
       (4) Subparagraph (G) of section 857(b)(6) is amended by 
     inserting ``in a taxable year beginning'' after ``In the case 
     of a sale''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 151. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C) and (2)(C) of section 
     871(k) are each amended by

[[Page 2500]]

     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 152. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
                   FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on January 1, 2010. Notwithstanding the preceding 
     sentence, such amendment shall not apply with respect to the 
     withholding requirement under section 1445 of the Internal 
     Revenue Code of 1986 for any payment made before the date of 
     the enactment of this Act.
       (2) Amounts withheld on or before date of enactment.--In 
     the case of a regulated investment company--
       (A) which makes a distribution after December 31, 2009, and 
     before the date of the enactment of this Act, and
       (B) which would (but for the second sentence of paragraph 
     (1)) have been required to withhold with respect to such 
     distribution under section 1445 of such Code,

     such investment company shall not be liable to any person to 
     whom such distribution was made for any amount so withheld 
     and paid over to the Secretary of the Treasury.

     SEC. 153. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

       (a) In General.--Sections 953(e)(10) and 954(h)(9) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Conforming Amendment.--Section 953(e)(10) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 154. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
                   CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN 
                   PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 155. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER 
                   GAIN.

       (a) In General.--Paragraph (1) of section 1201(b) is 
     amended by striking ``ending'' and all that follows through 
     ``such date''.
       (b) Conforming Amendment.--Paragraph (3) of section 1201(b) 
     is amended to read as follows:
       ``(3) Application of subsection.--The qualified timber gain 
     for any taxable year shall not exceed the qualified timber 
     gain which would be determined by not taking into account any 
     portion of such taxable year after December 31, 2010.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 156. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 157. EMPOWERMENT ZONE TAX INCENTIVES.

       (a) In General.--Section 1391 is amended--
       (1) by striking ``December 31, 2009'' in subsection 
     (d)(1)(A)(i) and inserting ``December 31, 2010'', and
       (2) by striking the last sentence of subsection (h)(2).
       (b) Increased Exclusion of Gain on Stock of Empowerment 
     Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is 
     amended--
       (1) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2015'', and
       (2) by striking ``2014'' in the heading and inserting 
     ``2015''.
       (c) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of an empowerment 
     zone the nomination for which included a termination date 
     which is contemporaneous with the date specified in 
     subparagraph (A)(i) of section 1391(d)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2009.

     SEC. 158. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                   COLUMBIA.

       (a) In General.--Subsection (f) of section 1400 is amended 
     by striking ``December 31, 2009'' each place it appears and 
     inserting ``December 31, 2010''.
       (b) Tax-Exempt DC Empowerment Zone Bonds.--Subsection (b) 
     of section 1400A is amended by striking ``December 31, 2009'' 
     and inserting ``December 31, 2010''.
       (c) Zero-Percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (2) Limitation on period of gains.--
       (A) In general.--Paragraph (2) of section 1400B(e) is 
     amended--
       (i) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2015'', and
       (ii) by striking ``2014'' in the heading and inserting 
     ``2015''.
       (B) Partnerships and s-corps.--Paragraph (2) of section 
     1400B(g) is amended by striking ``December 31, 2014'' and 
     inserting ``December 31, 2015''.
       (d) First-Time Homebuyer Credit.--Subsection (i) of section 
     1400C is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Tax-exempt dc empowerment zone bonds.--The amendment 
     made by subsection (b) shall apply to bonds issued after 
     December 31, 2009.
       (3) Acquisition dates for zero-percent capital gains 
     rate.--The amendments made by subsection (c) shall apply to 
     property acquired or substantially improved after December 
     31, 2009.
       (4) Homebuyer credit.--The amendment made by subsection (d) 
     shall apply to homes purchased after December 31, 2009.

     SEC. 159. RENEWAL COMMUNITY TAX INCENTIVES.

       (a) In General.--Subsection (b) of section 1400E is 
     amended--
       (1) by striking ``December 31, 2009'' in paragraphs (1)(A) 
     and (3) and inserting ``December 31, 2010'', and
       (2) by striking ``January 1, 2010'' in paragraph (3) and 
     inserting ``January 1, 2011''.
       (b) Zero-Percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (2) Limitation on period of gains.--Paragraph (2) of 
     section 1400F(c) is amended--
       (A) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2015'', and
       (B) by striking ``2014'' in the heading and inserting 
     ``2015''.
       (3) Clerical amendment.--Subsection (d) of section 1400F is 
     amended by striking ``and `December 31, 2014' for `December 
     31, 2014'''.
       (c) Commercial Revitalization Deduction.--
       (1) In general.--Subsection (g) of section 1400I is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     1400I(d)(2) is amended by striking ``after 2001 and before 
     2010'' and inserting ``which begins after 2001 and before the 
     date referred to in subsection (g)''.
       (d) Increased Expensing Under Section 179.--Subparagraph 
     (A) of section 1400J(b)(1) is amended by striking ``January 
     1, 2010'' and inserting ``January 1, 2011''.
       (e) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of a renewal 
     community the nomination for which included a termination 
     date which is contemporaneous with the date specified in 
     subparagraph (A) of section 1400E(b)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (f) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Acquisitions.--The amendments made by subsections 
     (b)(1) and (d) shall apply to acquisitions after December 31, 
     2009.
       (3) Commercial revitalization deduction.--
       (A) In general.--The amendment made by subsection (c)(1) 
     shall apply to buildings placed in service after December 31, 
     2009.
       (B) Conforming amendment.--The amendment made by subsection 
     (c)(2) shall apply to calendar years beginning after December 
     31, 2009.

     SEC. 160. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
                   EXCISE TAXES TO PUERTO RICO AND THE VIRGIN 
                   ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.

[[Page 2501]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2009.

     SEC. 161. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 5 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

     SEC. 171. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS.

       (a) In General.--Paragraph (11) of section 143(k) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Special Rule for Residences Destroyed in Federally 
     Declared Disasters.--Paragraph (13) of section 143(k), as 
     redesignated by subsection (c), is amended by striking 
     ``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and 
     inserting ``January 1, 2011''.
       (c) Technical Amendment.--Subsection (k) of section 143 is 
     amended by redesignating the second paragraph (12) (relating 
     to special rules for residences destroyed in federally 
     declared disasters) as paragraph (13).
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by this section shall apply to 
     bonds issued after December 31, 2009.
       (2) Residences destroyed in federally declared disasters.--
     The amendments made by subsection (b) shall apply with 
     respect to disasters occurring after December 31, 2009.
       (3) Technical amendment.--The amendment made by subsection 
     (c) shall take effect as if included in section 709 of the 
     Tax Extenders and Alternative Minimum Tax Relief Act of 2008.

     SEC. 172. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
                   DISASTERS.

       (a) In General.--Subclause (I) of section 165(h)(3)(B)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) $500 Limitation.--Paragraph (1) of section 165(h) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to federally declared disasters occurring after 
     December 31, 2009.
       (2) $500 limitation.--The amendment made by subsection (b) 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 173. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
                   DISASTER PROPERTY.

       (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to disasters occurring after December 31, 2009.

     SEC. 174. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY 
                   DECLARED DISASTERS.

       (a) In General.--Subclause (I) of section 172(j)(1)(A)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to losses attributable to disasters occurring 
     after December 31, 2009.

     SEC. 175. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Subparagraph (A) of section 198A(b)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures on account of disasters occurring 
     after December 31, 2009.

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

     SEC. 181. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL 
                   AND RESIDENTIAL REAL PROPERTY.

       (a) In General.--Subparagraph (A) of section 1400L(b)(2) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 182. TAX-EXEMPT BOND FINANCING.

       (a) In General.--Subparagraph (D) of section 1400L(d)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

     SEC. 183. SPECIAL DEPRECIATION ALLOWANCE.

       (a) In General.--Paragraph (6) of section 1400N(d)(6) is 
     amended by striking subparagraph (D).
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 184. INCREASE IN REHABILITATION CREDIT.

       (a) In General.--Subsection (h) of section 1400N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN 
                   INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR 
                   EMPLOYERS INSIDE DISASTER AREAS.

       (a) In General.--Paragraph (1) of section 201(b) of the 
     Katrina Emergency Tax Relief Act of 2005 is amended by 
     striking ``4-year'' and inserting ``5-year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals hired after August 27, 2009.

                  Subpart C--Midwestern Disaster Areas

     SEC. 191. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

       (a) In General.--Section 702(d)(10) of the Heartland 
     Disaster Tax Relief Act of 2008 (Public Law 110-343; 122 
     Stat. 3918) is amended--
       (1) by striking ``January 1, 2010'' both places it appears 
     and inserting ``January 1, 2011'', and
       (2) by striking ``December 31, 2009'' both places it 
     appears and inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 702(d)(10) of the 
     Heartland Disaster Tax Relief Act of 2008.

     SEC. 192. EXCLUSION OF CANCELLATION OF MORTGAGE INDEBTEDNESS.

       (a) In General.--Section 702(e)(4)(C) of the Heartland 
     Disaster Tax Relief Act of 2008 (Public Law 110-343; 122 
     Stat. 3918) is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges of indebtedness after December 31, 
     2009.

     TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

                   Subtitle A--Unemployment Insurance

     SEC. 201. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``February 28, 2010'' each place it appears 
     and inserting ``December 31, 2010'';
       (B) in the heading for subsection (b)(2), by striking 
     ``february 28, 2010'' and inserting ``december 31, 2010''; 
     and
       (C) in subsection (b)(3), by striking ``July 31, 2010'' and 
     inserting ``May 31, 2011''.
       (2) Section 2002(e) of the Assistance for Unemployed 
     Workers and Struggling Families Act, as contained in Public 
     Law 111-5 (26 U.S.C. 3304 note; 123 Stat. 438), is amended--
       (A) in paragraph (1)(B), by striking ``February 28, 2010'' 
     and inserting ``December 31, 2010'';
       (B) in the heading for paragraph (2), by striking 
     ``february 28, 2010'' and inserting ``december 31, 2010''; 
     and
       (C) in paragraph (3), by striking ``August 31, 2010'' and 
     inserting ``June 30, 2011''.
       (3) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``February 28, 2010'' each place it appears 
     and inserting ``January 1, 2011''; and
       (B) in subsection (c), by striking ``July 31, 2010'' and 
     inserting ``June 1, 2011''.
       (4) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``July 31, 2010'' and inserting ``May 31, 
     2011''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking ``1009'' and inserting 
     ``1009(a)(1)''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) the amendments made by section 201(a)(1) of the 
     American Workers, State, and Business Relief Act of 2010; 
     and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Department of Defense Appropriations Act, 2010 (Public Law 
     111-118).

                     Subtitle B--Health Provisions

     SEC. 211. EXTENSION AND IMPROVEMENT OF PREMIUM ASSISTANCE FOR 
                   COBRA BENEFITS.

       (a) Extension of Eligibility Period.--Subsection (a)(3)(A) 
     of section 3001 of division B of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5) is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2010''.
       (b) Clarifications Relating to Section 3001 of ARRA.--
       (1) Clarification regarding cobra continuation resulting 
     from reductions in hours.--Subsection (a) of section 3001 of 
     division B of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5) is amended--
       (A) in paragraph (3)(C), by inserting before the period at 
     the end the following: ``or consists of a reduction of hours 
     followed by such

[[Page 2502]]

     an involuntary termination of employment during such 
     period'';
       (B) in paragraph (16)--
       (i) by striking clause (ii) of subparagraph (A), and 
     inserting the following:
       ``(ii) such individual pays, by the latest of 60 days after 
     the date of the enactment of this paragraph, 30 days after 
     the date of provision of the notification required under 
     subparagraph (D)(ii), or the period described in section 
     4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the 
     amount of such premium, after the application of paragraph 
     (1)(A).''; and
       (ii) by striking subclause (I) of subparagraph (C)(i), and 
     inserting the following:

       ``(I) such assistance eligible individual experienced an 
     involuntary termination that was a qualifying event prior to 
     the date of enactment of the Department of Defense 
     Appropriations Act, 2010; and''; and

       (C) by adding at the end the following:
       ``(17) Special rules in case of individuals losing coverage 
     because of a reduction of hours.--
       ``(A) New election period.--
       ``(i) In general.--For purposes of the COBRA continuation 
     provisions, in the case of an individual described in 
     subparagraph (C) who did not make (or who made and 
     discontinued) an election of COBRA continuation coverage on 
     the basis of the reduction of hours of employment, the 
     involuntary termination of employment of such individual 
     after the date of the enactment of the American Workers, 
     State, and Business Relief Act of 2010 shall be treated as a 
     qualifying event.
       ``(ii) Counting cobra duration period from previous 
     qualifying event.--In any case of an individual referred to 
     in clause (i), the period of such individual's continuation 
     coverage shall be determined as though the qualifying event 
     were the reduction of hours of employment.
       ``(iii) Construction.--Nothing in this paragraph shall be 
     construed as requiring an individual referred to in clause 
     (i) to make a payment for COBRA continuation coverage between 
     the reduction of hours and the involuntary termination of 
     employment.
       ``(iv) Preexisting conditions.--With respect to an 
     individual referred to in clause (i) who elects COBRA 
     continuation coverage pursuant to such clause, rules similar 
     to the rules in paragraph (4)(C) shall apply.
       ``(B) Notices.--In the case of an individual described in 
     subparagraph (C), the administrator of the group health plan 
     (or other entity) involved shall provide, during the 60-day 
     period beginning on the date of such individual's involuntary 
     termination of employment, an additional notification 
     described in paragraph (7)(A), including information on the 
     provisions of this paragraph. Rules similar to the rules of 
     paragraph (7) shall apply with respect to such notification.
       ``(C) Individuals described.--Individuals described in this 
     subparagraph are individuals who are assistance eligible 
     individuals on the basis of a qualifying event consisting of 
     a reduction of hours occurring during the period described in 
     paragraph (3)(A) followed by an involuntary termination of 
     employment insofar as such involuntary termination of 
     employment occurred after the date of the enactment of the 
     American Workers, State, and Business Relief Act of 2010.''.
       (2) Clarification of period of assistance.--Subsection 
     (a)(2)(A)(ii)(I) of such section is amended by striking ``of 
     the first month''.
       (3) Enforcement.--Subsection (a)(5) of such section is 
     amended by adding at the end the following: ``In addition to 
     civil actions that may be brought to enforce applicable 
     provisions of such Act or other laws, the appropriate 
     Secretary or an affected individual may bring a civil action 
     to enforce such determinations and for appropriate relief. In 
     addition, such Secretary may assess a penalty against a plan 
     sponsor or health insurance issuer of not more than $110 per 
     day for each failure to comply with such determination of 
     such Secretary after 10 days after the date of the plan 
     sponsor's or issuer's receipt of the determination.''.
       (4) Amendments relating to section 3001 of arra.--
       (A) Subsection (g) of section 35 is amended by striking 
     ``section 3002(a) of the Health Insurance Assistance for the 
     Unemployed Act of 2009'' and inserting ``section 3001(a) of 
     title III of division B of the American Recovery and 
     Reinvestment Act of 2009''.
       (B) Section 139C is amended by striking ``section 3002 of 
     the Health Insurance Assistance for the Unemployed Act of 
     2009'' and inserting ``section 3001 of title III of division 
     B of the American Recovery and Reinvestment Act of 2009''.
       (C) Section 6432 is amended--
       (i) in subsection (a), by striking ``section 3002(a) of the 
     Health Insurance Assistance for the Unemployed Act of 2009'' 
     and inserting ``section 3001(a) of title III of division B of 
     the American Recovery and Reinvestment Act of 2009'';
       (ii) in subsection (c)(3), by striking ``section 
     3002(a)(1)(A) of such Act'' in subsection (c)(3) and 
     inserting ``section 3001(a)(1)(A) of title III of division B 
     of the American Recovery and Reinvestment Act of 2009''; and
       (iii) by redesignating subsections (e) and (f) as 
     subsections (f) and (g), respectively, and inserting after 
     subsection (d) the following new subsection:.
       ``(e) Employer Determination of Qualifying Event as 
     Involuntary Termination.--For purposes of this section, in 
     any case in which--
       ``(1) based on a reasonable interpretation of section 
     3001(a)(3)(C) of division B of the American Recovery and 
     Reinvestment Act of 2009 and administrative guidance 
     thereunder, an employer determines that the qualifying event 
     with respect to COBRA continuation coverage for an individual 
     was involuntary termination of a covered employee's 
     employment, and
       ``(2) the employer maintains supporting documentation of 
     the determination, including an attestation by the employer 
     of involuntary termination with respect to the covered 
     employee,

     the qualifying event for the individual shall be deemed to be 
     involuntary termination of the covered employee's 
     employment.''.
       (D) Subsection (a) of section 6720C is amended by striking 
     ``section 3002(a)(2)(C) of the Health Insurance Assistance 
     for the Unemployed Act of 2009'' and inserting ``section 
     3001(a)(2)(C) of title III of division B of the American 
     Recovery and Reinvestment Act of 2009''.
       (c) Rules Relating to 2010 Extension.--Subsection (a) of 
     section 3001 of division B of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5), as amended by 
     subsection (b)(1)(C), is further amended by adding at the end 
     the following:
       ``(18) Rules related to 2010 extension.--
       ``(A) Election to pay premiums retroactively and maintain 
     cobra coverage.--In the case of any premium for a period of 
     coverage during an assistance eligible individual's 2010 
     transition period, such individual shall be treated for 
     purposes of any COBRA continuation provision as having timely 
     paid the amount of such premium if--
       ``(i) such individual's qualifying event was on or after 
     March 1, 2010 and prior to the date of enactment of this 
     paragraph, and
       ``(ii) such individual pays, by the latest of 60 days after 
     the date of the enactment of this paragraph, 30 days after 
     the date of provision of the notification required under 
     paragraph (16)(D)(ii) (as applied by subparagraph (D) of this 
     paragraph), or the period described in section 
     4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the 
     amount of such premium, after the application of paragraph 
     (1)(A).
       ``(B) Refunds and credits for retroactive premium 
     assistance eligibility.--In the case of an assistance 
     eligible individual who pays, with respect to any period of 
     COBRA continuation coverage during such individual's 2010 
     transition period, the premium amount for such coverage 
     without regard to paragraph (1)(A), rules similar to the 
     rules of paragraph (12)(E) shall apply.
       ``(C) 2101 transition period.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `transition period' means, with respect to any assistance 
     eligible individual, any period of coverage if--

       ``(I) such assistance eligible individual experienced an 
     involuntary termination that was a qualifying event prior to 
     the date of enactment of the American Workers, State, and 
     Business Relief Act of 2010, and
       ``(II) paragraph (1)(A) applies to such period by reason of 
     the amendments made by section 211 of the American Workers, 
     State, and Business Relief Act of 2010.

       ``(ii) Construction.--Any period during the period 
     described in subclauses (I) and (II) of clause (i) for which 
     the applicable premium has been paid pursuant to subparagraph 
     (A) shall be treated as a period of coverage referred to in 
     such paragraph, irrespective of any failure to timely pay the 
     applicable premium (other than pursuant to subparagraph (A)) 
     for such period.
       ``(D) Notification.--Notification provisions similar to the 
     provisions of paragraph (16)(E) shall apply for purposes of 
     this paragraph.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of section 
     3001 of division B of the American Recovery and Reinvestment 
     Act of 2009 to which they relate, except that--
       (1) the amendments made by subsections (b)(1) shall apply 
     to periods of coverage beginning after the date of the 
     enactment of this Act; and
       (2) the amendments made by paragraphs (2) and (3) of 
     subsection (b) shall take effect on the date of the enactment 
     of this Act.

     SEC. 212. EXTENSION OF THERAPY CAPS EXCEPTIONS PROCESS.

       Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
     1395l(g)(5)) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.

     SEC. 213. TREATMENT OF PHARMACIES UNDER DURABLE MEDICAL 
                   EQUIPMENT ACCREDITATION REQUIREMENTS.

       (a) In General.--Section 1834(a)(20) of the Social Security 
     Act (42 U.S.C. 1395m(a)(20)) is amended--
       (1) in subparagraph (F)--
       (A) in clause (i)--
       (i) by striking ``clause (ii)'' and inserting ``clauses 
     (ii) and (iii)'';
       (ii) by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''; and
       (iii) by striking ``and'' at the end;
       (B) in clause (ii)(II), by striking the period at the end 
     and inserting ``; and'';

[[Page 2503]]

       (C) by inserting after clause (ii)(II) the following new 
     clause:
       ``(iii)(I) subject to subclause (II), with respect to items 
     and services furnished on or after January 1, 2011, the 
     accreditation requirement of clause (i) shall not apply to a 
     pharmacy described in subparagraph (G); and
       ``(II) effective with respect to items and services 
     furnished on or after the date of the enactment of this 
     subparagraph, the Secretary may apply to pharmacies quality 
     standards and an accreditation requirement established by the 
     Secretary that are an alternative to the quality standards 
     and accreditation requirement otherwise applicable under this 
     paragraph if the Secretary determines such alternative 
     quality standards and accreditation requirement are 
     appropriate for pharmacies.''; and
       (D) by adding at the end the following flush sentence:

     ``If determined appropriate by the Secretary, any alternative 
     quality standards and accreditation requirement established 
     under clause (iii)(II) may differ for categories of 
     pharmacies established by the Secretary (such as pharmacies 
     described in subparagraph (G)).''; and
       (2) by adding at the end the following new subparagraph:
       ``(G) Pharmacy described.--A pharmacy described in this 
     subparagraph is a pharmacy that meets each of the following 
     criteria:
       ``(i) The total billings by the pharmacy for such items and 
     services under this title are less than 5 percent of total 
     pharmacy sales for a previous period (of not less than 24 
     months) specified by the Secretary.
       ``(ii) The pharmacy has been enrolled under section 1866(j) 
     as a supplier of durable medical equipment, prosthetics, 
     orthotics, and supplies, has been issued (which may include 
     the renewal of) a provider number for at least 2 years, and 
     for which a final adverse action (as defined in section 
     424.57(a) of title 42, Code of Federal Regulations) has not 
     been imposed in the past 2 years.
       ``(iii) The pharmacy submits to the Secretary an 
     attestation, in a form and manner, and at a time, specified 
     by the Secretary, that the pharmacy meets the criteria 
     described in clauses (i) and (ii).
       ``(iv) The pharmacy agrees to submit materials as requested 
     by the Secretary, or during the course of an audit conducted 
     on a random sample of pharmacies selected annually, to verify 
     that the pharmacy meets the criteria described in clauses (i) 
     and (ii). Materials submitted under the preceding sentence 
     shall include a certification by an independent accountant on 
     behalf of the pharmacy or the submission of tax returns filed 
     by the pharmacy during the relevant periods, as requested by 
     the Secretary.''.
       (b) Conforming Amendments.--Section 1834(a)(20)(E) of the 
     Social Security Act (42 U.S.C. 1395m(a)(20)(E)) is amended--
       (1) in the first sentence, by striking ``The'' and 
     inserting ``Except as provided in the third sentence, the''; 
     and
       (2) by adding at the end the following new sentences: 
     ``Notwithstanding the preceding sentences, any alternative 
     quality standards and accreditation requirement established 
     under subparagraph (F)(iii)(II) shall be established through 
     notice and comment rulemaking. The Secretary may implement by 
     program instruction or otherwise subparagraph (G) after 
     consultation with representatives of relevant parties. The 
     specifications developed by the Secretary in order to 
     implement subparagraph (G) shall be posted on the Internet 
     website of the Centers for Medicare & Medicaid Services.''.
       (c) Administration.--Chapter 35 of title 44, United States 
     Code, shall not apply to this section.
       (d) Rule of Construction.--Nothing in the provisions of, or 
     amendments made by, this section shall be construed as 
     affecting the application of an accreditation requirement for 
     pharmacies to qualify for bidding in a competitive 
     acquisition area under section 1847 of the Social Security 
     Act (42 U.S.C. 1395w-3).
       (e) Waiver of 1-Year Reenrollment Bar.--In the case of a 
     pharmacy described in subparagraph (G) of section 1834(a)(20) 
     of the Social Security Act, as added by subsection (a), whose 
     billing privileges were revoked prior to January 1, 2011, by 
     reason of noncompliance with subparagraph (F)(i) of such 
     section, the Secretary of Health and Human Services shall 
     waive any reenrollment bar imposed pursuant to section 
     424.535(d) of title 42, Code of Federal Regulations (as in 
     effect on the date of the enactment of this Act) for such 
     pharmacy to reapply for such privileges.

     SEC. 214. ENHANCED PAYMENT FOR MENTAL HEALTH SERVICES.

       Section 138(a)(1) of the Medicare Improvements for Patients 
     and Providers Act of 2008 (Public Law 110-275) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.

     SEC. 215. EXTENSION OF AMBULANCE ADD-ONS.

       (a) In General.--Section 1834(l)(13) of the Social Security 
     Act (42 U.S.C. 1395m(l)(13)) is amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking 
     ``before January 1, 2010'' and inserting ``before January 1, 
     2011''; and
       (B) in each of clauses (i) and (ii), by striking ``before 
     January 1, 2010'' and inserting ``before January 1, 2011''.
       (b) Air Ambulance Improvements.--Section 146(b)(1) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275) is amended by striking ``ending on 
     December 31, 2009'' and inserting ``ending on December 31, 
     2010''.
       (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
     Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended--
       (1) in the first sentence, by striking ``2010'' and 
     inserting ``2011''; and
       (2) by adding at the end the following new sentence: ``For 
     purposes of applying this subparagraph for ground ambulance 
     services furnished on or after January 1, 2010, and before 
     January 1, 2011, the Secretary shall use the percent increase 
     that was applicable under this subparagraph to ground 
     ambulance services furnished during 2009.''.

     SEC. 216. EXTENSION OF GEOGRAPHIC FLOOR FOR WORK.

       Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)(E)) is amended by striking ``before January 1, 
     2010'' and inserting ``before January 1, 2011''.

     SEC. 217. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF 
                   CERTAIN PHYSICIAN PATHOLOGY SERVICES.

       Section 542(c) of the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (as enacted 
     into law by section 1(a)(6) of Public Law 106-554), as 
     amended by section 732 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395w-4 
     note), section 104 of division B of the Tax Relief and Health 
     Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the 
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
     Law 110-173), and section 136 of the Medicare Improvements 
     for Patients and Providers Act of 2008 (Public Law 110-275), 
     is amended by striking ``and 2009'' and inserting ``2009, and 
     2010''.

     SEC. 218. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

       (a) In General.--Section 1833(t)(7)(D)(i) of the Social 
     Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) is amended--
       (1) in subclause (II)--
       (A) in the first sentence, by striking ``2010''and 
     inserting ``2011''; and
       (B) in the second sentence, by striking ``or 2009'' and 
     inserting ``, 2009, or 2010''; and
       (2) in subclause (III), by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Permitting All Sole Community Hospitals To Be Eligible 
     for Hold Harmless.--Section 1833(t)(7)(D)(i)(III) of the 
     Social Security Act (42 U.S.C. 1395l(t)(7)(D)(i)(III)) is 
     amended by adding at the end the following new sentence: ``In 
     the case of covered OPD services furnished on or after 
     January 1, 2010, and before January 1, 2011, the preceding 
     sentence shall be applied without regard to the 100-bed 
     limitation.''.

     SEC. 219. EHR CLARIFICATION.

       (a) Qualification for Clinic-Based Physicians.--
       (1) Medicare.--Section 1848(o)(1)(C)(ii) of the Social 
     Security Act (42 U.S.C. 1395w-4(o)(1)(C)(ii)) is amended by 
     striking ``setting (whether inpatient or outpatient)'' and 
     inserting ``inpatient or emergency room setting''.
       (2) Medicaid.--Section 1903(t)(3)(D) of the Social Security 
     Act (42 U.S.C. 1396b(t)(3)(D)) is amended by striking 
     ``setting (whether inpatient or outpatient)'' and inserting 
     ``inpatient or emergency room setting''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective as if included in the enactment of the 
     HITECH Act (included in the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5)).
       (c) Implementation.--Notwithstanding any other provision of 
     law, the Secretary may implement the amendments made by this 
     section by program instruction or otherwise.

     SEC. 220. EXTENSION OF REIMBURSEMENT FOR ALL MEDICARE PART B 
                   SERVICES FURNISHED BY CERTAIN INDIAN HOSPITALS 
                   AND CLINICS.

       Section 1880(e)(1)(A) of the Social Security Act (42 U.S.C. 
     1395qq(e)(1)(A)) is amended by striking ``5-year period'' and 
     inserting ``6-year period''.

     SEC. 221. EXTENSION OF CERTAIN PAYMENT RULES FOR LONG-TERM 
                   CARE HOSPITAL SERVICES AND OF MORATORIUM ON THE 
                   ESTABLISHMENT OF CERTAIN HOSPITALS AND 
                   FACILITIES.

       (a) Extension of Certain Payment Rules.--Section 114(c) of 
     the Medicare, Medicaid, and SCHIP Extension Act of 2007 (42 
     U.S.C. 1395ww note), as amended by section 4302(a) of the 
     American Recovery and Reinvestment Act (Public Law 111-5), is 
     amended by striking ``3-year period'' each place it appears 
     and inserting ``4-year period''.
       (b) Extension of Moratorium.--Section 114(d)(1) of such Act 
     (42 U.S.C. 1395ww note), as amended by section 4302(b) of the 
     American Recovery and Reinvestment Act (Public Law 111-5), in 
     the matter preceding subparagraph (A), is amended by striking 
     ``3-year period'' and inserting ``4-year period''.

     SEC. 222. EXTENSION OF THE MEDICARE RURAL HOSPITAL 
                   FLEXIBILITY PROGRAM.

       Section 1820(j) of the Social Security Act (42 U.S.C. 
     1395i-4(j)) is amended--
       (1) by striking ``2010, and for'' and inserting ``2010, 
     for''; and

[[Page 2504]]

       (2) by inserting ``and for making grants to all States 
     under subsection (g), such sums as may be necessary in fiscal 
     year 2011, to remain available until expended'' before the 
     period at the end.

     SEC. 223. EXTENSION OF SECTION 508 HOSPITAL 
                   RECLASSIFICATIONS.

       (a) In General.--Subsection (a) of section 106 of division 
     B of the Tax Relief and Health Care Act of 2006 (42 U.S.C. 
     1395 note), as amended by section 117 of the Medicare, 
     Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
     173) and section 124 of the Medicare Improvements for 
     Patients and Providers Act of 2008 (Public Law 110-275), is 
     amended by striking ``September 30, 2009'' and inserting 
     ``September 30, 2010''.
       (b) Special Rule for Fiscal Year 2010.--For purposes of 
     implementation of the amendment made by subsection (a), 
     including (notwithstanding paragraph (3) of section 117(a) of 
     the Medicare, Medicaid, and SCHIP Extension Act of 2007 
     (Public Law 110-173), as amended by section 124(b) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275)) for purposes of the implementation of 
     paragraph (2) of such section 117(a), during fiscal year 
     2010, the Secretary of Health and Human Services (in this 
     subsection referred to as the ``Secretary'') shall use the 
     hospital wage index that was promulgated by the Secretary in 
     the Federal Register on August 27, 2009 (74 Fed. Reg. 43754), 
     and any subsequent corrections.

     SEC. 224. TECHNICAL CORRECTION RELATED TO CRITICAL ACCESS 
                   HOSPITAL SERVICES.

       (a) In General.--Subsections (g)(2)(A) and (l)(8) of 
     section 1834 of the Social Security Act (42 U.S.C. 1395m) are 
     each amended by inserting ``101 percent of'' before ``the 
     reasonable costs''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of section 
     405(a) of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173; 117 Stat. 
     2266).

     SEC. 225. EXTENSION FOR SPECIALIZED MA PLANS FOR SPECIAL 
                   NEEDS INDIVIDUALS.

       (a) In General.--Section 1859(f)(1) of the Social Security 
     Act (42 U.S.C. 1395w-28(f)(1)) is amended by striking 
     ``2011'' and inserting ``2012''.
       (b) Temporary Extension of Authority To Operate but No 
     Service Area Expansion for Dual Special Needs Plans That Do 
     Not Meet Certain Requirements.--Section 164(c)(2) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275) is amended by striking ``December 31, 
     2010'' and inserting ``December 31, 2011''.

     SEC. 226. EXTENSION OF REASONABLE COST CONTRACTS.

       Section 1876(h)(5)(C)(ii) of the Social Security Act (42 
     U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter 
     preceding subclause (I), by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.

     SEC. 227. EXTENSION OF PARTICULAR WAIVER POLICY FOR EMPLOYER 
                   GROUP PLANS.

       For plan year 2011 and subsequent plan years, to the extent 
     that the Secretary of Health and Human Services is applying 
     the 2008 service area extension waiver policy (as modified in 
     the April 11, 2008, Centers for Medicare & Medicaid Services' 
     memorandum with the subject ``2009 Employer Group Waiver-
     Modification of the 2008 Service Area Extension Waiver 
     Granted to Certain MA Local Coordinated Care Plans'') to 
     Medicare Advantage coordinated care plans, the Secretary 
     shall extend the application of such waiver policy to 
     employers who contract directly with the Secretary as a 
     Medicare Advantage private fee-for-service plan under section 
     1857(i)(2) of the Social Security Act (42 U.S.C. 1395w-
     27(i)(2)) and that had enrollment as of January 1, 2010.

     SEC. 228. EXTENSION OF CONTINUING CARE RETIREMENT COMMUNITY 
                   PROGRAM.

       Notwithstanding any other provision of law, the Secretary 
     of Health and Human Services shall continue to conduct the 
     Erickson Advantage Continuing Care Retirement Community 
     (CCRC) program under part C of title XVIII of the Social 
     Security Act through December 31, 2011.

     SEC. 229. FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME 
                   PROGRAMS.

       (a) Additional Funding for State Health Insurance 
     Programs.--Subsection (a)(1)(B) of section 119 of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (42 U.S.C. 1395b-3 note) is amended by striking ``(42 U.S.C. 
     1395w-23(f))'' and all that follows through the period at the 
     end and inserting ``(42 U.S.C. 1395w-23(f)), to the Centers 
     for Medicare & Medicaid Services Program Management Account--
       ``(i) for fiscal year 2009, of $7,500,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (b) Additional Funding for Area Agencies on Aging.--
     Subsection (b)(1)(B) of such section 119 is amended by 
     striking ``(42 U.S.C. 1395w-23(f))'' and all that follows 
     through the period at the end and inserting ``(42 U.S.C. 
     1395w-23(f)), to the Administration on Aging--
       ``(i) for fiscal year 2009, of $7,500,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (c) Additional Funding for Aging and Disability Resource 
     Centers.--Subsection (c)(1)(B) of such section 119 is amended 
     by striking ``(42 U.S.C. 1395w-23(f))'' and all that follows 
     through the period at the end and inserting ``(42 U.S.C. 
     1395w-23(f)), to the Administration on Aging--
       ``(i) for fiscal year 2009, of $5,000,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (d) Additional Funding for Contract With the National 
     Center for Benefits and Outreach Enrollment.--Subsection 
     (d)(2) of such section 119 is amended by striking ``(42 
     U.S.C. 1395w-23(f))'' and all that follows through the period 
     at the end and inserting ``(42 U.S.C. 1395w-23(f)), to the 
     Administration on Aging--
       ``(i) for fiscal year 2009, of $5,000,000; and
       ``(ii) for fiscal year 2010, of $2,000,000.

     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.

     SEC. 230. FAMILY-TO-FAMILY HEALTH INFORMATION CENTERS.

       Section 501(c)(1)(A)(iii) of the Social Security Act (42 
     U.S.C. 701(c)(1)(A)(iii)) is amended by striking ``fiscal 
     year 2009'' and inserting ``each of fiscal years 2009 through 
     2011''.

     SEC. 231. IMPLEMENTATION FUNDING.

       For purposes of carrying out the provisions of, and 
     amendments made by, this title that relate to titles XVIII 
     and XIX of the Social Security Act, there are appropriated to 
     the Secretary of Health and Human Services for the Centers 
     for Medicare & Medicaid Services Program Management Account, 
     from amounts in the general fund of the Treasury not 
     otherwise appropriated, $100,000,000. Amounts appropriated 
     under the preceding sentence shall remain available until 
     expended.

     SEC. 232. EXTENSION OF ARRA INCREASE IN FMAP.

       Section 5001 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5) is amended--
       (1) in subsection (a)(3), by striking ``first calendar 
     quarter'' and inserting ``first 3 calendar quarters'';
       (2) in subsection (c)--
       (A) in paragraph (2)(B), by striking ``July 1, 2010'' and 
     inserting ``January 1, 2011'';
       (B) in paragraph (3)(B)(i), by striking ``July 1, 2010'' 
     each place it appears and inserting ``January 1, 2011''; and
       (C) in paragraph (4)(C)(ii), by striking ``the 3-
     consecutive-month period beginning with January 2010'' and 
     inserting ``any 3-consecutive-month period that begins after 
     December 2009 and ends before January 2011'';
       (3) in subsection (g)--
       (A) in paragraph (1), by striking ``September 30, 2011'' 
     and inserting ``March 31, 2012'';
       (B) in paragraph (2)--
       (i) by inserting ``of such Act'' after ``1923''; and
       (ii) by adding at the end the following new sentence: 
     ``Voluntary contributions by a political subdivision to the 
     non-Federal share of expenditures under the State Medicaid 
     plan or to the non-Federal share of payments under section 
     1923 of the Social Security Act shall not be considered to be 
     required contributions for purposes of this section.''; and
       (C) by adding at the end the following:
       ``(3) Certification by chief executive officer.--No 
     additional Federal funds shall be paid to a State as a result 
     of this section with respect to a calendar quarter occurring 
     during the period beginning on January 1, 2011, and ending on 
     June 30, 2011, unless, not later than 45 days after the date 
     of enactment of this paragraph, the chief executive officer 
     of the State certifies that the State will request and use 
     such additional Federal funds.''; and
       (4) in subsection (h)(3), by striking ``December 31, 2010'' 
     and inserting ``June 30, 2011''.

     SEC. 233. EXTENSION OF GAINSHARING DEMONSTRATION.

       (a) In General.--Subsection (d)(3) of section 5007 of the 
     Deficit Reduction Act of 2005 (Public Law 109-171) is amended 
     by inserting ``(or 21 months after the date of the enactment 
     of the American Workers, State, and Business Relief Act of 
     2010, in the case of a demonstration project in operation as 
     of October 1, 2008)'' after ``December 31, 2009''.
       (b) Funding.--
       (1) In general.--Subsection (f)(1) of such section is 
     amended by inserting ``and for fiscal year 2010, 
     $1,600,000,'' after ``$6,000,000,''.
       (2) Availability.--Subsection (f)(2) of such section is 
     amended by striking ``2010'' and inserting ``2014 or until 
     expended''.
       (c) Reports.--
       (1) Quality improvement and savings.--Subsection (e)(3) of 
     such section is amended by striking ``December 1, 2008'' and 
     inserting ``18 months after the date of the enactment of the 
     American Workers, State, and Business Relief Act of 2010''.
       (2) Final report.--Subsection (e)(4) of such section is 
     amended by striking ``May 1, 2010'' and inserting ``42 months 
     after the date

[[Page 2505]]

     of the enactment of the American Workers, State, and Business 
     Relief Act of 2010''.
                      Subtitle C--Other Provisions

     SEC. 241. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.

       Section 1012 of the Department of Defense Appropriations 
     Act, 2010 (Public Law 111-118) is amended--
       (1) by striking ``before March 1, 2010''; and
       (2) by inserting ``for 2011'' after ``until updated poverty 
     guidelines''.

     SEC. 242. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       (a) In General.--Subchapter A of chapter 65 is amended by 
     adding at the end the following new section:

     ``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, any refund (or advance payment with respect to a 
     refundable credit) made to any individual under this title 
     shall not be taken into account as income, and shall not be 
     taken into account as resources for a period of 12 months 
     from receipt, for purposes of determining the eligibility of 
     such individual (or any other individual) for benefits or 
     assistance (or the amount or extent of benefits or 
     assistance) under any Federal program or under any State or 
     local program financed in whole or in part with Federal 
     funds.
       ``(b) Termination.--Subsection (a) shall not apply to any 
     amount received after December 31, 2010.''.
       (b) Clerical Amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

       ``Sec. 6409. Refunds disregarded in the administration of 
           Federal programs and federally assisted programs.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received after December 31, 2009.

     SEC. 243. STATE COURT IMPROVEMENT PROGRAM.

       Section 438 of the Social Security Act (42 U.S.C. 629h) is 
     amended--
       (1) in subsection (c)(2)(A), by striking ``2010'' and 
     inserting ``2011''; and
       (2) in subsection (e), by striking ``2010'' and inserting 
     ``2011''.

     SEC. 244. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       Section 129 of the Continuing Appropriations Resolution, 
     2010 (Public Law 111-68), as amended by section 1005 of 
     Public Law 111-118, is further amended by striking ``by 
     substituting'' and all that follows through the period at the 
     end, and inserting ``by substituting December 31, 2010, for 
     the date specified in each such section.''.

     SEC. 245. EMERGENCY DISASTER ASSISTANCE.

       (a) Definitions.--Except as otherwise provided in this 
     section, in this section:
       (1) Disaster county.--
       (A) In general.--The term ``disaster county'' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration for the 2009 crop 
     year.
       (B) Exclusion.--The term ``disaster county'' does not 
     include a contiguous county.
       (2) Eligible aquaculture producer.--The term ``eligible 
     aquaculture producer'' means an aquaculture producer that 
     during the 2009 calendar year, as determined by the 
     Secretary--
       (A) produced an aquaculture species for which feed costs 
     represented a substantial percentage of the input costs of 
     the aquaculture operation; and
       (B) experienced a substantial price increase of feed costs 
     above the previous 5-year average.
       (3) Eligible producer.--The term ``eligible producer'' 
     means an agricultural producer in a disaster county.
       (4) Eligible specialty crop producer.--The term ``eligible 
     specialty crop producer'' means an agricultural producer 
     that, for the 2009 crop year, as determined by the 
     Secretary--
       (A) produced, or was prevented from planting, a specialty 
     crop; and
       (B) experienced crop losses in a disaster county due to 
     excessive rainfall or related condition.
       (5) Qualifying natural disaster declaration.--The term 
     ``qualifying natural disaster declaration'' means a natural 
     disaster declared by the Secretary for production losses 
     under section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a)).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (7) Specialty crop.--The term ``specialty crop'' has the 
     meaning given the term in section 3 of the Specialty Crops 
     Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 
     1621 note).
       (b) Supplemental Direct Payment.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use such sums as are 
     necessary to make supplemental payments under sections 1103 
     and 1303 of the Food, Conservation, and Energy Act of 2008 (7 
     U.S.C. 8713, 8753) to eligible producers on farms located in 
     disaster counties that had at least 1 crop of economic 
     significance (other than crops intended for grazing) suffer 
     at least a 5-percent crop loss due to a natural disaster, 
     including quality losses, as determined by the Secretary, in 
     an amount equal to 90 percent of the direct payment the 
     eligible producers received for the 2009 crop year on the 
     farm.
       (2) ACRE program.--Eligible producers that received 
     payments under section 1105 of the Food, Conservation, and 
     Energy Act of 2008 (7 U.S.C. 8715) for the 2009 crop year and 
     that otherwise meet the requirements of paragraph (1) shall 
     be eligible to receive supplemental payments under that 
     paragraph in an amount equal to 90 percent of the reduced 
     direct payment the eligible producers received for the 2009 
     crop year under section 1103 or 1303 of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753).
       (3) Insurance requirement.--As a condition of receiving 
     assistance under this subsection, eligible producers on a 
     farm that--
       (A) in the case of an insurable commodity, did not obtain a 
     policy or plan of insurance for the insurable commodity under 
     the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (other 
     than for a crop insurance pilot program under that Act) for 
     each crop of economic significance (other than crops intended 
     for grazing), shall obtain such a policy or plan for those 
     crops for the next available crop year, as determined by the 
     Secretary; or
       (B) in the case of a noninsurable commodity, did not file 
     the required paperwork, and pay the administrative fee by the 
     applicable State filing deadline, for the noninsurable 
     commodity under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333) for each 
     crop of economic significance (other than crops intended for 
     grazing), shall obtain such coverage for those crops for the 
     next available crop year, as determined by the Secretary.
       (4) Relationship to other law.--Assistance received under 
     this subsection shall be included in the calculation of farm 
     revenue for the 2009 crop year under section 531(b)(4)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
     section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
     2497(b)(4)(A)).
       (c) Specialty Crop Assistance.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $150,000,000, to remain available until September 30, 2011, 
     to carry out a program of grants to States to assist eligible 
     specialty crop producers for losses due to excessive rainfall 
     and related conditions affecting the 2009 crops.
       (2) Notification.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall notify the State 
     department of agriculture (or similar entity) in each State 
     of the availability of funds to assist eligible specialty 
     crop producers, including such terms as are determined by the 
     Secretary to be necessary for the equitable treatment of 
     eligible specialty crop producers.
       (3) Provision of grants.--
       (A) In general.--The Secretary shall make grants to States 
     for disaster counties with excessive rainfall and related 
     conditions on a pro rata basis based on the value of 
     specialty crop losses in those counties during the 2008 
     calendar year, as determined by the Secretary.
       (B) Timing.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (C) Maximum grant.--The maximum amount of a grant made to a 
     State under this subsection may not exceed $40,000,000.
       (4) Requirements.--The Secretary shall make grants under 
     this subsection only to States that demonstrate to the 
     satisfaction of the Secretary that the State will--
       (A) use grant funds to assist eligible specialty crop 
     producers;
       (B) provide assistance to eligible specialty crop producers 
     not later than 90 days after the date on which the State 
     receives grant funds; and
       (C) not later than 30 days after the date on which the 
     State provides assistance to eligible specialty crop 
     producers, submit to the Secretary a report that describes--
       (i) the manner in which the State provided assistance;
       (ii) the amounts of assistance provided by type of 
     specialty crop; and
       (iii) the process by which the State determined the levels 
     of assistance to eligible specialty crop producers.
       (5) Relation to other law.--Assistance received under this 
     subsection shall be included in the calculation of farm 
     revenue for the 2009 crop year under section 531(b)(4)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
     section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
     2497(b)(4)(A)).
       (d) Cottonseed Assistance.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $42,000,000 to provide supplemental assistance to eligible 
     producers and first-handlers of the 2009 crop of cottonseed 
     in a disaster county.
       (2) General terms.--Except as otherwise provided in this 
     subsection, the Secretary shall provide disaster assistance 
     under this subsection under the same terms and conditions as 
     assistance provided under section 3015 of the Emergency 
     Agricultural Disaster Assistance Act of 2006 (title III of 
     Public Law 109-234; 120 Stat. 477).

[[Page 2506]]

       (3) Distribution of assistance.--The Secretary shall 
     distribute assistance to first handlers for the benefit of 
     eligible producers in a disaster county in an amount equal to 
     the product obtained by multiplying--
       (A) the payment rate, as determined under paragraph (4); 
     and
       (B) the county-eligible production, as determined under 
     paragraph (5).
       (4) Payment rate.--The payment rate shall be equal to the 
     quotient obtained by dividing--
       (A) the sum of the county-eligible production, as 
     determined under paragraph (5); by
       (B) the total funds made available to carry out this 
     subsection.
       (5) County-eligible production.--The county-eligible 
     production shall be equal to the product obtained by 
     multiplying--
       (A) the number of acres planted to cotton in the disaster 
     county, as reported to the Secretary by first-handlers;
       (B) the expected cotton lint yield for the disaster county, 
     as determined by the Secretary based on the best available 
     information; and
       (C) the national average seed-to-lint ratio, as determined 
     by the Secretary based on the best available information for 
     the 5 crop years immediately preceding the 2009 crop, 
     excluding the year in which the average ratio was the highest 
     and the year in which the average ratio was the lowest in 
     such period.
       (e) Aquaculture Assistance.--
       (1) Grant program.--
       (A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $25,000,000, to remain available until September 30, 2011, to 
     carry out a program of grants to States to assist eligible 
     aquaculture producers for losses associated with high feed 
     input costs during the 2009 calendar year.
       (B) Notification.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall notify the State 
     department of agriculture (or similar entity) in each State 
     of the availability of funds to assist eligible aquaculture 
     producers, including such terms as are determined by the 
     Secretary to be necessary for the equitable treatment of 
     eligible aquaculture producers.
       (C) Provision of grants.--
       (i) In general.--The Secretary shall make grants to States 
     under this subsection on a pro rata basis based on the amount 
     of aquaculture feed used in each State during the 2008 
     calendar year, as determined by the Secretary.
       (ii) Timing.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (D) Requirements.--The Secretary shall make grants under 
     this subsection only to States that demonstrate to the 
     satisfaction of the Secretary that the State will--
       (i) use grant funds to assist eligible aquaculture 
     producers;
       (ii) provide assistance to eligible aquaculture producers 
     not later than 60 days after the date on which the State 
     receives grant funds; and
       (iii) not later than 30 days after the date on which the 
     State provides assistance to eligible aquaculture producers, 
     submit to the Secretary a report that describes--

       (I) the manner in which the State provided assistance;
       (II) the amounts of assistance provided per species of 
     aquaculture; and
       (III) the process by which the State determined the levels 
     of assistance to eligible aquaculture producers.

       (2) Reduction in payments.--An eligible aquaculture 
     producer that receives assistance under this subsection shall 
     not be eligible to receive any other assistance under the 
     supplemental agricultural disaster assistance program 
     established under section 531 of the Federal Crop Insurance 
     Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974 
     (19 U.S.C. 2497) for any losses in 2009 relating to the same 
     species of aquaculture.
       (3) Report to congress.--Not later than 240 days after the 
     date of enactment of this Act, the Secretary shall submit to 
     the appropriate committees of Congress a report that--
       (A) describes in detail the manner in which this subsection 
     has been carried out; and
       (B) includes the information reported to the Secretary 
     under paragraph (1)(D)(iii).
       (f) Hawaii Transportation Cooperative.--Notwithstanding any 
     other provision of law, the Secretary shall use $21,000,000 
     of funds of the Commodity Credit Corporation to make a 
     payment to an agricultural transportation cooperative in the 
     State of Hawaii, the members of which are eligible to 
     participate in the commodity loan program of the Farm Service 
     Agency, for assistance to maintain and develop employment.
       (g) Livestock Forage Disaster Program.--
       (1) Definition of disaster county.--In this subsection:
       (A) In general.--The term ``disaster county'' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration announced by the 
     Secretary in calendar year 2009.
       (B) Inclusion.--The term ``disaster county'' includes a 
     contiguous county.
       (2) Payments.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $50,000,000 to carry out a program to make payments to 
     eligible producers that had grazing losses in disaster 
     counties in calendar year 2009.
       (3) Criteria.--
       (A) In general.--Except as provided in subparagraph (B), 
     assistance under this subsection shall be determined under 
     the same criteria as are used to carry out the programs under 
     section 531(d) of the Federal Crop Insurance Act (7 U.S.C. 
     1531(d)) and section 901(d) of the Trade Act of 1974 (19 
     U.S.C. 2497(d)).
       (B) Drought intensity.--For purposes of this subsection, an 
     eligible producer shall not be required to meet the drought 
     intensity requirements of section 531(d)(3)(D)(ii) of the 
     Federal Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) and 
     section 901(d)(3)(D)(ii) of the Trade Act of 1974 (19 U.S.C. 
     2497(d)(3)(D)(ii)).
       (4) Amount.--Assistance under this subsection shall be in 
     an amount equal to 1 monthly payment using the monthly 
     payment rate under section 531(d)(3)(B) of the Federal Crop 
     Insurance Act (7 U.S.C. 1531(d)(3)(B)) and section 
     901(d)(3)(B) of the Trade Act of 1974 (19 U.S.C. 
     2497(d)(3)(B)).
       (5) Relation to other law.--An eligible producer that 
     receives assistance under this subsection shall be ineligible 
     to receive assistance for 2009 grazing losses under the 
     program carried out under section 531(d) of the Federal Crop 
     Insurance Act (7 U.S.C. 1531(d)) and section 901(d) of the 
     Trade Act of 1974 (19 U.S.C. 2497(d)) .
       (h) Emergency Loans for Poultry Producers.--
       (1) Definitions.--In this subsection:
       (A) Announcement date.--The term ``announcement date'' 
     means the date on which the Secretary announces the emergency 
     loan program under this subsection.
       (B) Poultry integrator.--The term ``poultry integrator'' 
     means a poultry integrator that filed proceedings under 
     chapter 11 of title 11, United States Code, in United States 
     Bankruptcy Court during the 30-day period beginning on 
     December 1, 2008.
       (2) Loan program.--
       (A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $75,000,000, to remain available until expended, for the cost 
     of making no-interest emergency loans available to poultry 
     producers that meet the requirements of this subsection.
       (B) Terms and conditions.--Except as otherwise provided in 
     this subsection, emergency loans under this subsection shall 
     be subject to such terms and conditions as are determined by 
     the Secretary.
       (3) Loans.--
       (A) In general.--An emergency loan made to a poultry 
     producer under this subsection shall be for the purpose of 
     providing financing to the poultry producer in response to 
     financial losses associated with the termination or 
     nonrenewal of any contract between the poultry producer and a 
     poultry integrator.
       (B) Eligibility.--
       (i) In general.--To be eligible for an emergency loan under 
     this subsection, not later than 90 days after the 
     announcement date, a poultry producer shall submit to the 
     Secretary evidence that--

       (I) the contract of the poultry producer described in 
     subparagraph (A) was not continued; and
       (II) no similar contract has been awarded subsequently to 
     the poultry producer.

       (ii) Requirement to offer loans.--Notwithstanding any other 
     provision of law, if a poultry producer meets the eligibility 
     requirements described in clause (i), subject to the 
     availability of funds under paragraph (2)(A), the Secretary 
     shall offer to make a loan under this subsection to the 
     poultry producer with a minimum term of 2 years.
       (4) Additional requirements.--
       (A) In general.--A poultry producer that receives an 
     emergency loan under this subsection may use the emergency 
     loan proceeds only to repay the amount that the poultry 
     producer owes to any lender.
       (B) Conversion of the loan.--A poultry producer that 
     receives an emergency loan under this subsection shall be 
     eligible to have the balance of the emergency loan converted, 
     but not refinanced, to a loan that has the same terms and 
     conditions as an operating loan under subtitle B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et 
     seq.).
       (i) Administration.--
       (1) Regulations.--
       (A) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall promulgate such 
     regulations as are necessary to implement this section.
       (B) Procedure.--The promulgation of the regulations and 
     administration of this section shall be made without regard 
     to--
       (i) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (ii) the Statement of Policy of the Secretary of 
     Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), 
     relating to notices of proposed rulemaking and public 
     participation in rulemaking; and
       (iii) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (C) Congressional review of agency rulemaking.--In carrying 
     out this paragraph, the Secretary shall use the authority

[[Page 2507]]

     provided under section 808 of title 5, United States Code.
       (2) Administrative costs.--Of the funds of the Commodity 
     Credit Corporation, the Secretary may use up to $15,000,000 
     to pay administrative costs incurred by the Secretary that 
     are directly related to carrying out this Act.
       (3) Prohibition.--None of the funds of the Agricultural 
     Disaster Relief Trust Fund established under section 902 of 
     the Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry 
     out this Act.

     SEC. 246. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT 
                   EXTENSIONS.

       (a) Appropriation.--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'', $354,000,000, to remain available through 
     December 31, 2010, for the cost of--
       (1) 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 
     section, for loans guaranteed under section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)), title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.), or 
     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 section; and
       (2) 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 section,

     Provided, That such costs, including the cost of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974.
       (b) Extension of Programs.--
       (1) Fees.--Section 501 of division A 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 it appears and inserting ``December 31, 2010''.
       (2) 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 ``February 28, 
     2010'' and inserting ``December 31, 2010''.
                   TITLE III--PENSION FUNDING RELIEF
                   Subtitle A--Single Employer Plans

     SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT 
                   PLANS TO AMORTIZE CERTAIN SHORTFALL 
                   AMORTIZATION BASES.

       (a) Amendments to ERISA.--
       (1) In general.--Paragraph (2) of section 303(c) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1083(c)) is amended by adding at the end the following 
     subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury. The Secretary 
     of the Treasury shall, before granting a revocation request, 
     provide the Pension Benefit Guaranty Corporation an 
     opportunity to comment on the conditions applicable to the 
     treatment of any portion of the election year shortfall 
     amortization base that remains unamortized as of the 
     revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required installments in certain cases.--
     Section 303(c) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end 
     the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 
     restriction period with respect to an election year under 
     paragraph (2)(D), then the shortfall amortization installment 
     otherwise determined and payable under such paragraph for 
     such plan year shall, subject to the limitation under 
     subparagraph (B), be increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary of the Treasury, 
     if a shortfall amortization installment with respect to any 
     shortfall amortization base for an election year is required 
     to be increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year in a restriction 
     period with respect to an election year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year (without regard to whether such 
     succeeding plan year is in the restriction period).
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to

[[Page 2508]]

     other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year (without regard to whether such succeeding plan year is 
     in the restriction period).
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under 
     chapter 1 of the Internal Revenue Code of 1986 for 
     remuneration during the calendar year in which such plan year 
     begins for services performed by the employee for the plan 
     sponsor (whether or not performed during such calendar year), 
     over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary of the 
     Treasury), or transferred to such a trust or other 
     arrangement, by a plan sponsor for purposes of paying 
     deferred compensation of an employee under a nonqualified 
     deferred compensation plan (as defined in section 409A of 
     such Code) of the plan sponsor, then, for purposes of clause 
     (i), the amount of such assets shall be treated as 
     remuneration of the employee includible in income for the 
     calendar year unless such amount is otherwise includible in 
     income for such year. An amount to which the preceding 
     sentence applies shall not be taken into account under this 
     paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--There shall not be taken into account 
     under clause (i)(I) any amount includible in income with 
     respect to the granting on or after February 4, 2010, of 
     service recipient stock (within the meaning of section 409A 
     of the Internal Revenue Code of 1986) that, upon such grant, 
     is subject to a substantial risk of forfeiture (as defined 
     under section 83(c)(1) of such Code) for at least 5 years 
     from the date of such grant.

       ``(II) Secretarial authority.--The Secretary of the 
     Treasury may by regulation provide for the application of 
     this clause in the case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Certain payments under existing contracts.--Any 
     remuneration consisting of nonqualified deferred 
     compensation, restricted stock, stock options, or stock 
     appreciation rights payable or granted under a written 
     binding contract that was in effect on February 4, 2010, and 
     which was not modified in any material respect before such 
     remuneration is paid.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) of such Code for the taxable year ending 
     during such calendar year, and the term `compensation' shall 
     include earned income of such individual with respect to such 
     self-employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) of such Code for the calendar year, 
     determined by substituting `calendar year 2009' for `calendar 
     year 1992' in subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the excess (if any) of--

       ``(I) the sum of the dividends declared during the plan 
     year by the plan sponsor plus the aggregate fair market value 
     of the stock of the plan sponsor redeemed during the plan 
     year, over
       ``(II) the adjusted net income (within the meaning of 
     section 4043) of the plan sponsor for the preceding plan 
     year.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i), there shall only be 
     taken into account dividends declared, and redemptions 
     occurring, after February 4, 2010.
       ``(iii) Exception for intra-group dividends.--Dividends 
     paid by one member of a controlled group (as defined in 
     section 302(d)(3)) to another member of such group shall not 
     be taken into account under clause (i).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 302(d)(3)).
       ``(ii) Restriction period.--The term `restriction period' 
     means, with respect to any election year--

       ``(I) except as provided in subclause (II), the 4-year 
     period beginning with the election year, and
       ``(II) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the election year, the 7-
     year period beginning with the election year.

       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary of the Treasury shall provide rules 
     for the application of this paragraph to such plans, 
     including rules for the ratable allocation of any installment 
     acceleration amount among such plans on the basis of each 
     plan's relative reduction in the plan's shortfall 
     amortization installment for the first plan year in the 
     amortization period described in subparagraph (A) (determined 
     without regard to this paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary of the 
     Treasury shall prescribe rules for the application of 
     paragraph (2)(D) and this paragraph in any case where there 
     is a merger or acquisition involving a plan sponsor making 
     the election under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 303 of such Act (29 
     U.S.C. 1083) is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (b) Amendments to Internal Revenue Code of 1986.--
       (1) In general.--Paragraph (2) of section 430(c) is amended 
     by adding at the end the following subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization

[[Page 2509]]

     schedule under clause (ii) or (iii) shall apply to an 
     election year, except that if a plan sponsor elects to have 
     this subparagraph apply to 2 eligible plan years, the plan 
     sponsor must elect the same schedule for both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary, and may be revoked only with the consent of 
     the Secretary. The Secretary shall, before granting a 
     revocation request, provide the Pension Benefit Guaranty 
     Corporation an opportunity to comment on the conditions 
     applicable to the treatment of any portion of the election 
     year shortfall amortization base that remains unamortized as 
     of the revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required contributions if excess 
     compensation paid.--Section 430(c) is amended by adding at 
     the end the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 
     restriction period with respect to an election year under 
     paragraph (2)(D), then the shortfall amortization installment 
     otherwise determined and payable under such paragraph for 
     such plan year shall, subject to the limitation under 
     subparagraph (B), be increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary, if a shortfall 
     amortization installment with respect to any shortfall 
     amortization base for an election year is required to be 
     increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year in a restriction 
     period with respect to an election year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year (without regard to whether such 
     succeeding plan year is in the restriction period).
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year (without regard to whether such succeeding plan year is 
     in the restriction period).
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under this 
     chapter for remuneration during the calendar year in which 
     such plan year begins for services performed by the employee 
     for the plan sponsor (whether or not performed during such 
     calendar year), over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary), or 
     transferred to such a trust or other arrangement, by a plan 
     sponsor for purposes of paying deferred compensation of an 
     employee under a nonqualified deferred compensation plan (as 
     defined in section 409A) of the plan sponsor, then, for 
     purposes of clause (i), the amount of such assets shall be 
     treated as remuneration of the employee includible in income 
     for the calendar year unless such amount is otherwise 
     includible in income for such year. An amount to which the 
     preceding sentence applies shall not be taken into account 
     under this paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--There shall not be taken into account 
     under clause (i)(I) any amount includible in income with 
     respect to the granting on or after February 4, 2010, of 
     service recipient stock (within the meaning of section 409A) 
     that, upon such grant, is subject to a substantial risk of 
     forfeiture (as defined under section 83(c)(1)) for at least 5 
     years from the date of such grant.
       ``(II) Secretarial authority.--The Secretary may by 
     regulation provide for the application of this clause in the 
     case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Certain payments under existing contracts.--Any 
     remuneration consisting of nonqualified deferred 
     compensation, restricted stock, stock options, or stock 
     appreciation rights payable or granted under a written 
     binding contract that was in effect on February 4, 2010, and 
     which was not modified in any material respect before such 
     remuneration is paid.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) for the taxable year ending during such 
     calendar year, and the term `compensation' shall include 
     earned income of such individual with respect to such self-
     employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2009' for `calendar year 1992' in 
     subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the excess (if any) of--

       ``(I) the sum of the dividends declared during the plan 
     year by the plan sponsor plus the aggregate fair market value 
     of the stock of the plan sponsor redeemed during the plan 
     year, over
       ``(II) the adjusted net income (within the meaning of 
     section 4043 of the Employee Retirement Income Security Act 
     of 1974) of the plan sponsor for the preceding plan year.

[[Page 2510]]

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i), there shall only be 
     taken into account dividends declared, and redemptions 
     occurring, after February 4, 2010.
       ``(iii) Exception for intra-group dividends.--Dividends 
     paid by one member of a controlled group (as defined in 
     section 412(d)(3)) to another member of such group shall not 
     be taken into account under clause (i).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 412(d)(3)).
       ``(ii) Restriction period.--The term `restriction period' 
     means, with respect to any election year--

       ``(I) except as provided in subclause (II), the 4-year 
     period beginning with the election year, and
       ``(II) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the election year, the 7-
     year period beginning with the election year.

       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary shall provide rules for the 
     application of this paragraph to such plans, including rules 
     for the ratable allocation of any installment acceleration 
     amount among such plans on the basis of each plan's relative 
     reduction in the plan's shortfall amortization installment 
     for the first plan year in the amortization period described 
     in subparagraph (A) (determined without regard to this 
     paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary shall 
     prescribe rules for the application of paragraph (2)(D) and 
     this paragraph in any case where there is a merger or 
     acquisition involving a plan sponsor making the election 
     under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 430 is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2007.

     SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO 
                   PLANS SUBJECT TO PRIOR LAW FUNDING RULES.

       (a) In General.--Title I of the Pension Protection Act of 
     2006 is amended by redesignating section 107 as section 108 
     and by inserting the following after section 106:

     ``SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO 
                   PLANS WITH DELAYED EFFECTIVE DATE.

       ``(a) In General.--If the plan sponsor of a plan to which 
     section 104, 105, or 106 of this Act applies elects to have 
     this section apply for any eligible plan year (in this 
     section referred to as an `election year'), section 302 of 
     the Employee Retirement Income Security Act of 1974 and 
     section 412 of the Internal Revenue Code of 1986 (as in 
     effect before the amendments made by this subtitle and 
     subtitle B) shall apply to such year in the manner described 
     in subsection (b) or (c), whichever is specified in the 
     election. All references in this section to `such Act' or 
     `such Code' shall be to such Act or such Code as in effect 
     before the amendments made by this subtitle and subtitle B.
       ``(b) Application of 2 and 7 Rule.--In the case of an 
     election year to which this subsection applies--
       ``(1) 2-year lookback for determining deficit reduction 
     contributions for certain plans.--For purposes of applying 
     section 302(d)(9) of such Act and section 412(l)(9) of such 
     Code, the funded current liability percentage (as defined in 
     subparagraph (C) thereof) for such plan for such plan year 
     shall be such funded current liability percentage of such 
     plan for the second plan year preceding the first election 
     year of such plan.
       ``(2) Calculation of deficit reduction contribution.--For 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code to a plan to which such sections apply 
     (after taking into account paragraph (1))--
       ``(A) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code shall be the third segment rate described in sections 
     104(b), 105(b), and 106(b) of this Act, and
       ``(B) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(c) Application of 15-Year Amortization.--In the case of 
     an election year to which this subsection applies, for 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code--
       ``(1) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code for any pre-effective date plan year beginning with or 
     after the first election year shall be the ratio of--
       ``(A) the annual installments payable in each year if the 
     increased unfunded new liability for such plan year were 
     amortized over 15 years, using an interest rate equal to the 
     third segment rate described in sections 104(b), 105(b), and 
     106(b) of this Act, to
       ``(B) the increased unfunded new liability for such plan 
     year, and
       ``(2) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(d) Election.--
       ``(1) In general.--The plan sponsor of a plan may elect to 
     have this section apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan to which section 106 of this Act applies, the plan 
     sponsor may only elect to have this section apply to 1 
     eligible plan year.
       ``(2) Amortization schedule.--Such election shall specify 
     whether the rules under subsection (b) or (c) shall apply to 
     an election year, except that if a plan sponsor elects to 
     have this section apply to 2 eligible plan years, the plan 
     sponsor must elect the same rule for both years.
       ``(3) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year beginning in 2008 shall only be treated as an 
     eligible plan year if the due date for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this clause.
       ``(2) Pre-effective date plan year.--The term `pre-
     effective date plan year' means, with respect to a plan, any 
     plan year prior to the first year in which the amendments 
     made by this subtitle and subtitle B apply to the plan.
       ``(3) Increased unfunded new liability.--The term 
     `increased unfunded new liability' means, with respect to a 
     year, the excess (if any) of the unfunded new liability over 
     the amount of unfunded new liability determined as if the 
     value of the plan's assets determined under subsection 
     302(c)(2) of such Act and section 412(c)(2) of such Code 
     equaled the product of the current liability of the plan for 
     the year multiplied by the funded current liability 
     percentage (as defined in section 302(d)(8)(B) of such Act 
     and 412(l)(8)(B) of such Code) of the plan for the second 
     plan year preceding the first election year of such plan.
       ``(4) Other definitions.--The terms `unfunded new 
     liability' and `current liability' shall have the meanings 
     set forth in section 302(d) of such Act and section 412(l) of 
     such Code.''.
       (b) Eligible Charity Plans.--Section 104 of the Pension 
     Protection Act of 2006 is amended--
       (1) by striking ``eligible cooperative plan'' wherever it 
     appears in subsections (a) and (b) and inserting ``eligible 
     cooperative plan or an eligible charity plan'', and
       (2) by adding at the end the following new subsection:
       ``(d) Eligible Charity Plan Defined.--For purposes of this 
     section, a plan shall be treated as an eligible charity plan 
     for a plan year if the plan is maintained by more than one 
     employer and 100 percent of the employers are described in 
     section 501(c)(3) of such Code.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect as if included in the Pension Protection Act of 
     2006.
       (2) Eligible charity plan.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2007, except that a plan sponsor may elect to 
     apply such amendments to plan years beginning after December 
     31, 2008. Any such election shall be made at such time, and 
     in such form and manner, as shall be prescribed by the 
     Secretary of the Treasury, and may be revoked only with the 
     consent of the Secretary of the Treasury.

     SEC. 303. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.

       (a) In General.--
       (1) Amendment to erisa.--Section 206(g)(9) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following:
       ``(D) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(i) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--

       ``(I) such percentage, as determined without regard to this 
     subparagraph, or

[[Page 2511]]

       ``(II) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary of the Treasury.

       ``(ii) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--

       ``(I) clause (i) shall apply to plan years beginning after 
     December 31, 2007, and before January 1, 2010, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before November 1, 2007, as determined under 
     rules prescribed by the Secretary of the Treasury.

       ``(iii) Applicable provision.--For purposes of this 
     subparagraph, the term `applicable provision' means--

       ``(I) paragraph (3), but only for purposes of applying such 
     paragraph to a payment which, as determined under rules 
     prescribed by the Secretary of the Treasury, is a payment 
     under a social security leveling option which accelerates 
     payments under the plan before, and reduces payments after, a 
     participant starts receiving social security benefits in 
     order to provide substantially similar aggregate payments 
     both before and after such benefits are received, and
       ``(II) paragraph (4).''.

       (2) Amendment to internal revenue code of 1986.--Section 
     436(j) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following:
       ``(3) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(A) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--
       ``(i) such percentage, as determined without regard to this 
     paragraph, or
       ``(ii) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary.
       ``(B) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--
       ``(i) subparagraph (A) shall apply to plan years beginning 
     after December 31, 2007, and before January 1, 2010, and
       ``(ii) subparagraph (A)(ii) shall apply based on the last 
     plan year beginning before November 1, 2007, as determined 
     under rules prescribed by the Secretary.
       ``(C) Applicable provision.--For purposes of this 
     paragraph, the term `applicable provision' means--
       ``(i) subsection (d), but only for purposes of applying 
     such paragraph to a payment which, as determined under rules 
     prescribed by the Secretary, is a payment under a social 
     security leveling option which accelerates payments under the 
     plan before, and reduces payments after, a participant starts 
     receiving social security benefits in order to provide 
     substantially similar aggregate payments both before and 
     after such benefits are received, and
       ``(ii) subsection (e).''.
       (b) Interaction With Wrera Rule.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 shall 
     apply to a plan for any plan year in lieu of the amendments 
     made by this section applying to sections 206(g)(4) of the 
     Employee Retirement Income Security Act of 1974 and 436(e) of 
     the Internal Revenue Code of 1986 only to the extent that 
     such section produces a higher adjusted funding target 
     attainment percentage for such plan for such year.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning on or after October 1, 2008.
       (2) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year, the 
     amendments made by this section shall apply to plan years 
     beginning after December 31, 2007.
                    Subtitle B--Multiemployer Plans

     SEC. 311. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.

       (a) Adjustments.--
       (1) Amendment to erisa.--Section 304(b) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years ending after August 31, 2008, as an 
     item separate from other experience losses, to be amortized 
     in equal annual installments (until fully amortized) over a 
     period of 30 plan years.
       ``(ii) Coordination with extensions.--If this subparagraph 
     applies for any plan year--

       ``(I) no extension of the amortization period under clause 
     (i) shall be allowed under subsection (d), and
       ``(II) if an extension was granted under subsection (d) for 
     any plan year before the election to have this subparagraph 
     apply to the plan year, such extension shall not result in 
     such amortization period exceeding 30 years.

       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary of the 
     Treasury on the basis of the difference between actual and 
     expected returns (including any difference attributable to 
     any criminally fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary of the Treasury for purposes of section 165 of the 
     Internal Revenue Code of 1986.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years ending 
     after August 31, 2008, over a period of not more than 10 
     years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary of the Treasury shall not treat the 
     asset valuation method of the plan as unreasonable solely 
     because of the changes in such method described in clause 
     (i), and
       ``(II) such changes shall be deemed approved by such 
     Secretary under section 302(d)(1) and section 412(d)(1) of 
     such Code.

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     at least as high as such percentage and balances would have 
     been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D of chapter 1 of 
     the Internal Revenue Code of 1986 or to comply with other 
     applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (2) Amendment to internal revenue code of 1986.--Section 
     431(b) is amended by adding at the end the following new 
     paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years ending after August 31, 2008, as an 
     item separate from other experience losses, to be amortized 
     in equal annual installments (until fully amortized) over a 
     period of 30 plan years.
       ``(ii) Coordination with extensions.--If this subparagraph 
     applies for any plan year--

       ``(I) no extension of the amortization period under clause 
     (i) shall be allowed under subsection (d), and
       ``(II) if an extension was granted under subsection (d) for 
     any plan year before the

[[Page 2512]]

     election to have this subparagraph apply to the plan year, 
     such extension shall not result in such amortization period 
     exceeding 30 years.

       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary on the 
     basis of the difference between actual and expected returns 
     (including any difference attributable to any criminally 
     fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary for purposes of section 165.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years ending 
     after August 31, 2008, over a period of not more than 10 
     years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary shall not treat the asset valuation 
     method of the plan as unreasonable solely because of the 
     changes in such method described in clause (i), and
       ``(II) such changes shall be deemed approved by the 
     Secretary under section 302(d)(1) of the Employee Retirement 
     Income Security Act of 1974 and section 412(d)(1).

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     at least as high as such percentage and balances would have 
     been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D or to comply with 
     other applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (b) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     take effect as of the first day of the first plan year ending 
     after August 31, 2008, except that any election a plan makes 
     pursuant to this section that affects the plan's funding 
     standard account for the first plan year ending after August 
     31, 2008, shall be disregarded for purposes of applying the 
     provisions of section 305 of the Employee Retirement Income 
     Security Act of 1974 and section 432 of the Internal Revenue 
     Code of 1986 to such plan year.
       (2) Restrictions on benefit increases.--Notwithstanding 
     paragraph (1), the restrictions on plan amendments increasing 
     benefits in sections 304(b)(8)(D) of such Act and 
     431(b)(8)(D) of such Code, as added by this section, shall 
     take effect on the date of enactment of this Act.
                      TITLE IV--OFFSET PROVISIONS
                        Subtitle A--Black Liquor

     SEC. 401. EXCLUSION OF UNPROCESSED FUELS FROM THE CELLULOSIC 
                   BIOFUEL PRODUCER CREDIT.

       (a) In General.--Subparagraph (E) of section 40(b)(6) is 
     amended by adding at the end the following new clause:
       ``(iii) Exclusion of unprocessed fuels.--The term 
     `cellulosic biofuel' shall not include any fuel if--

       ``(I) more than 4 percent of such fuel (determined by 
     weight) is any combination of water and sediment, or
       ``(II) the ash content of such fuel is more than 1 percent 
     (determined by weight).''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to fuels sold or used after the date of the 
     enactment of this Act.

     SEC. 402. PROHIBITION ON ALTERNATIVE FUEL CREDIT AND 
                   ALTERNATIVE FUEL MIXTURE CREDIT FOR BLACK 
                   LIQUOR.

       (a) In General.--The last sentence of section 6426(d)(2) is 
     amended by striking ``or biodiesel'' and inserting 
     ``biodiesel, or any fuel (including lignin, wood residues, or 
     spent pulping liquors) derived from the production of paper 
     or pulp''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to fuel sold or used after December 31, 2009.
                      Subtitle B--Homebuyer Credit

     SEC. 411. TECHNICAL MODIFICATIONS TO HOMEBUYER CREDIT.

       (a) Expanded Documentation Requirement.--Subsection (d) of 
     section 36, as amended by the Worker, Homeownership, and 
     Business Assistance Act of 2009, is amended--
       (1) by striking ``or'' at the end of paragraph (3),
       (2) by striking the period at the end of paragraph (4) and 
     inserting a comma, and
       (3) by adding at the end the following new paragraphs:
       ``(5) in the case of a taxpayer to whom such a credit would 
     be allowed (but for this paragraph) by reason of subsection 
     (c)(6), the taxpayer fails to attach to the return of tax for 
     such taxable year a copy of such property tax bills or other 
     documentation as are required by the Secretary to demonstrate 
     compliance with the requirements of subsection (c)(6), or
       ``(6) in the case of a taxpayer to whom such a credit would 
     be allowed (but for this paragraph) by reason of subsection 
     (h)(2), the taxpayer fails to attach to the return of tax for 
     such taxable year a copy of the binding contract which meets 
     the requirements of subsection (h)(2).''.
       (b) Modification of Effective Date of Documentation 
     Requirements.--Paragraph (2) of section 12(e) of the Worker, 
     Homeownership, and Business Assistance Act of 2009 is amended 
     by striking ``returns for taxable years ending after the date 
     of the enactment of this Act'' and inserting ``returns filed 
     after the date of the enactment of this Act''.
       (c) Effective Dates.--
       (1) Documentation requirements.--The amendments made by 
     subsection (a) shall apply to purchases on or after the date 
     of the enactment of this Act.
       (2) Effective date of worker, homeownership, and business 
     assistance act.--The amendment made by subsection (b) shall 
     apply to purchases of a principal residence on or after the 
     date of the enactment of the Worker, Homeownership, and 
     Business Assistance Act of 2009.
                     Subtitle C--Economic Substance

     SEC. 421. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE; 
                   PENALTIES.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine.--
       ``(1) Application of doctrine.--In the case of any 
     transaction to which the economic substance doctrine is 
     relevant, such transaction shall be treated as having 
     economic substance only if--
       ``(A) the transaction changes in a meaningful way (apart 
     from Federal income tax effects) the taxpayer's economic 
     position, and
       ``(B) the taxpayer has a substantial purpose (apart from 
     Federal income tax effects) for entering into such 
     transaction.
       ``(2) Special rule where taxpayer relies on profit 
     potential.--
       ``(A) In general.--The potential for profit of a 
     transaction shall be taken into account in determining 
     whether the requirements of subparagraphs (A) and (B) of 
     paragraph (1) are met with respect to the transaction only if 
     the present value of the reasonably expected pre-tax profit 
     from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected.
       ``(B) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses shall be taken into account as expenses 
     in determining pre-tax profit under subparagraph (A). The 
     Secretary may issue regulations requiring foreign taxes to be 
     treated as expenses in determining pre-tax profit in 
     appropriate cases.
       ``(3) State and local tax benefits.--For purposes of 
     paragraph (1), any State or local income tax effect which is 
     related to a Federal income tax effect shall be treated in 
     the same manner as a Federal income tax effect.
       ``(4) Financial accounting benefits.--For purposes of 
     paragraph (1)(B), achieving a financial accounting benefit 
     shall not be taken into account as a purpose for entering 
     into a transaction if the origin of such financial accounting 
     benefit is a reduction of Federal income tax.

[[Page 2513]]

       ``(5) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Exception for personal transactions of individuals.--
     In the case of an individual, paragraph (1) shall apply only 
     to transactions entered into in connection with a trade or 
     business or an activity engaged in for the production of 
     income.
       ``(C) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(D) Determination of application of doctrine not 
     affected.--The determination of whether the economic 
     substance doctrine is relevant to a transaction shall be made 
     in the same manner as if this subsection had never been 
     enacted.
       ``(E) Transaction.--The term `transaction' includes a 
     series of transactions.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection.''.
       (b) Penalty for Underpayments Attributable to Transactions 
     Lacking Economic Substance.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (5) the following new paragraph:
       ``(6) Any disallowance of claimed tax benefits by reason of 
     a transaction lacking economic substance (within the meaning 
     of section 7701(o)) or failing to meet the requirements of 
     any similar rule of law.''.
       (2) Increased penalty for nondisclosed transactions.--
     Section 6662 is amended by adding at the end the following 
     new subsection:
       ``(i) Increase in Penalty in Case of Nondisclosed 
     Noneconomic Substance Transactions.--
       ``(1) In general.--In the case of any portion of an 
     underpayment which is attributable to one or more 
     nondisclosed noneconomic substance transactions, subsection 
     (a) shall be applied with respect to such portion by 
     substituting `40 percent' for `20 percent'.
       ``(2) Nondisclosed noneconomic substance transactions.--For 
     purposes of this subsection, the term `nondisclosed 
     noneconomic substance transaction' means any portion of a 
     transaction described in subsection (b)(6) with respect to 
     which the relevant facts affecting the tax treatment are not 
     adequately disclosed in the return nor in a statement 
     attached to the return.
       ``(3) Special rule for amended returns.--Except as provided 
     in regulations, in no event shall any amendment or supplement 
     to a return of tax be taken into account for purposes of this 
     subsection if the amendment or supplement is filed after the 
     earlier of the date the taxpayer is first contacted by the 
     Secretary regarding the examination of the return or such 
     other date as is specified by the Secretary.''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6662A(e)(2) is amended--
       (A) by striking ``section 6662(h)'' and inserting 
     ``subsections (h) or (i) of section 6662''; and
       (B) by striking ``gross valuation misstatement penalty'' in 
     the heading and inserting ``certain increased underpayment 
     penalties''.
       (c) Reasonable Cause Exception Not Applicable to 
     Noneconomic Substance Transactions.--
       (1) Reasonable cause exception for underpayments.--
     Subsection (c) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by striking ``paragraph (2)'' in paragraph (4)(A), as 
     so redesignated, and inserting ``paragraph (3)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     portion of an underpayment which is attributable to one or 
     more transactions described in section 6662(b)(6).''.
       (2) Reasonable cause exception for reportable transaction 
     understatements.--Subsection (d) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by striking ``paragraph (2)(C)'' in paragraph (4), as 
     so redesignated, and inserting ``paragraph (3)(C)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     portion of a reportable transaction understatement which is 
     attributable to one or more transactions described in section 
     6662(b)(6).''.
       (d) Application of Penalty for Erroneous Claim for Refund 
     or Credit to Noneconomic Substance Transactions.--Section 
     6676 is amended by redesignating subsection (c) as subsection 
     (d) and inserting after subsection (b) the following new 
     subsection:
       ``(c) Noneconomic Substance Transactions Treated as Lacking 
     Reasonable Basis.--For purposes of this section, any 
     excessive amount which is attributable to any transaction 
     described in section 6662(b)(6) shall not be treated as 
     having a reasonable basis.''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to transactions entered into after the date of the enactment 
     of this Act.
       (2) Underpayments.--The amendments made by subsections (b) 
     and (c)(1) shall apply to underpayments attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
       (3) Understatements.--The amendments made by subsection 
     (c)(2) shall apply to understatements attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
       (4) Refunds and credits.--The amendment made by subsection 
     (d) shall apply to refunds and credits attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
                   Subtitle D--Additional Provisions

     SEC. 431. REVISION TO THE MEDICARE IMPROVEMENT FUND.

       Section 1898(b)(1)(A) of the Social Security Act (42 U.S.C. 
     1395iii(b)(1)(A)), as amended by section 1011(b) of the 
     Department of Defense Appropriations Act, 2010 (Public Law 
     111-118), is amended by striking ``$20,740,000,000'' and 
     inserting ``$12,740,000,000''.
                TITLE V--SATELLITE TELEVISION EXTENSION

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Satellite Television 
     Extension and Localism Act of 2010''.
                     Subtitle A--Statutory Licenses

     SEC. 501. REFERENCE.

       Except as otherwise provided, whenever in this subtitle an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of title 17, United States Code.

     SEC. 502. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 119 is amended by 
     striking ``superstations and network stations for private 
     home viewing'' and inserting ``distant television programming 
     by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 119 and 
     inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions of 
              distant television programming by satellite.''.

       (b) Unserved Household Defined.--
       (1) In general.--Section 119(d)(10) is amended--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) cannot receive, through the use of an antenna, an 
     over-the-air signal containing the primary stream, or, on or 
     after the qualifying date, the multicast stream, originating 
     in that household's local market and affiliated with that 
     network of--
       ``(i) if the signal originates as an analog signal, Grade B 
     intensity as defined by the Federal Communications Commission 
     in section 73.683(a) of title 47, Code of Federal 
     Regulations, as in effect on January 1, 1999; or
       ``(ii) if the signal originates as a digital signal, 
     intensity defined in the values for the digital television 
     noise-limited service contour, as defined in regulations 
     issued by the Federal Communications Commission (section 
     73.622(e) of title 47, Code of Federal Regulations), as such 
     regulations may be amended from time to time;'';
       (B) in subparagraph (B)--
       (i) by striking ``subsection (a)(14)'' and inserting 
     ``subsection (a)(13),''; and
       (ii) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (C) in subparagraph (D), by striking ``(a)(12)'' and 
     inserting ``(a)(11)''.
       (2) Qualifying date defined.--Section 119(d) is amended by 
     adding at the end the following:
       ``(14) Qualifying date.--The term `qualifying date', for 
     purposes of paragraph (10)(A), means--
       ``(A) July 1, 2010, for multicast streams that exist on 
     December 31, 2009; and
       ``(B) January 1, 2011, for all other multicast streams.''.
       (c) Filing Fee.--Section 119(b)(1) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) a filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).''.

[[Page 2514]]

       (d) Deposit of Statements and Fees; Verification 
     Procedures.--Section 119(b) is amended--
       (1) by amending the subsection heading to read as follows: 
     ``(b) Deposit of Statements and Fees; Verification 
     Procedures.--'';
       (2) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) a royalty fee payable to copyright owners pursuant to 
     paragraph (4) for that 6-month period, computed by 
     multiplying the total number of subscribers receiving each 
     secondary transmission of a primary stream or multicast 
     stream of each non-network station or network station during 
     each calendar year month by the appropriate rate in effect 
     under this subsection; and'';
       (3) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to permit 
     interested parties to verify and audit the statements of 
     account and royalty fees submitted by satellite carriers 
     under this subsection.'';
       (5) in paragraph (3), as redesignated, in the first 
     sentence--
       (A) by inserting ``(including the filing fee specified in 
     paragraph (1)(C))'' after ``shall receive all fees''; and
       (B) by striking ``paragraph (4)'' and inserting ``paragraph 
     (5)'';
       (6) in paragraph (4), as redesignated--
       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (B) by striking ``paragraph (4)'' each place it appears and 
     inserting ``paragraph (5)''; and
       (7) in paragraph (5), as redesignated, by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)''.
       (e) Adjustment of Royalty Fees.--Section 119(c) is amended 
     as follows:
       (1) Paragraph (1) is amended--
       (A) in the heading for such paragraph, by striking 
     ``analog'';
       (B) in subparagraph (A)--
       (i) by striking ``primary analog transmissions'' and 
     inserting ``primary transmissions''; and
       (ii) by striking ``July 1, 2004'' and inserting ``July 1, 
     2009'';
       (C) in subparagraph (B)--
       (i) by striking ``January 2, 2005, the Librarian of 
     Congress'' and inserting ``March 1, 2010, the Copyright 
     Royalty Judges''; and
       (ii) by striking ``primary analog transmission'' and 
     inserting ``primary transmissions'';
       (D) in subparagraph (C), by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Judges'';
       (E) in subparagraph (D)--
       (i) in clause (i)--

       (I) by striking ``(i) Voluntary agreements'' and inserting 
     the following:

       ``(i) Voluntary agreements; filing.--Voluntary 
     agreements''; and

       (II) by striking ``that a parties'' and inserting ``that 
     are parties''; and

       (ii) in clause (ii)--

       (I) by striking ``(ii)(I) Within'' and inserting the 
     following:

       ``(ii) Procedure for adoption of fees.--

       ``(I) Publication of notice.--Within'';
       (II) in subclause (I), by striking ``an arbitration 
     proceeding pursuant to subparagraph (E)'' and inserting ``a 
     proceeding under subparagraph (F)'';
       (III) in subclause (II), by striking ``(II) Upon receiving 
     a request under subclause (I), the Librarian of Congress'' 
     and inserting the following:
       ``(II) Public notice of fees.--Upon receiving a request 
     under subclause (I), the Copyright Royalty Judges''; and
       (IV) in subclause (III)--

       (aa) by striking ``(III) The Librarian'' and inserting the 
     following:

       ``(III) Adoption of fees.--The Copyright Royalty Judges'';

       (bb) by striking ``an arbitration proceeding'' and 
     inserting ``the proceeding under subparagraph (F)''; and
       (cc) by striking ``the arbitration proceeding'' and 
     inserting ``that proceeding'';
       (F) in subparagraph (E)--
       (i) by striking ``Copyright Office'' and inserting 
     ``Copyright Royalty Judges''; and
       (ii) by striking ``February 28, 2010'' and inserting 
     ``December 31, 2014''; and
       (G) in subparagraph (F)--
       (i) in the heading, by striking ``compulsory arbitration'' 
     and inserting `` copyright royalty judges proceeding'';
       (ii) in clause (i)--

       (I) in the heading, by striking ``proceedings'' and 
     inserting ``the proceeding'';
       (II) in the matter preceding subclause (I)--

       (aa) by striking ``May 1, 2005, the Librarian of Congress'' 
     and inserting ``May 3, 2010, the Copyright Royalty Judges'';
       (bb) by striking ``arbitration proceedings'' and inserting 
     ``a proceeding'';
       (cc) by striking ``fee to be paid'' and inserting ``fees to 
     be paid'';
       (dd) by striking ``primary analog transmission'' and 
     inserting ``the primary transmissions''; and
       (ee) by striking ``distributors'' and inserting 
     ``distributors--'';

       (III) in subclause (II)--

       (aa) by striking ``Librarian of Congress'' and inserting 
     ``Copyright Royalty Judges''; and
       (bb) by striking ``arbitration''; and

       (IV) by amending the last sentence to read as follows: 
     ``Such proceeding shall be conducted under chapter 8.'';

       (iii) in clause (ii), by amending the matter preceding 
     subclause (I) to read as follows:
       ``(ii) Establishment of royalty fees.--In determining 
     royalty fees under this subparagraph, the Copyright Royalty 
     Judges shall establish fees for the secondary transmissions 
     of the primary transmissions of network stations and non-
     network stations that most clearly represent the fair market 
     value of secondary transmissions, except that the Copyright 
     Royalty Judges shall adjust royalty fees to account for the 
     obligations of the parties under any applicable voluntary 
     agreement filed with the Copyright Royalty Judges in 
     accordance with subparagraph (D). In determining the fair 
     market value, the Judges shall base their decision on 
     economic, competitive, and programming information presented 
     by the parties, including--'';
       (iv) by amending clause (iii) to read as follows:
       ``(iii) Effective date for decision of copyright royalty 
     judges.--The obligation to pay the royalty fees established 
     under a determination that is made by the Copyright Royalty 
     Judges in a proceeding under this paragraph shall be 
     effective as of January 1, 2010.''; and
       (v) in clause (iv)--

       (I) in the heading, by striking ``fee'' and inserting 
     ``fees''; and
       (II) by striking ``fee referred to in (iii)'' and inserting 
     ``fees referred to in clause (iii)''.

       (2) Paragraph (2) is amended to read as follows:
       ``(2) Annual royalty fee adjustment.--Effective January 1 
     of each year, the royalty fee payable under subsection 
     (b)(1)(B) for the secondary transmission of the primary 
     transmissions of network stations and non-network stations 
     shall be adjusted by the Copyright Royalty Judges to reflect 
     any changes occurring in the cost of living as determined by 
     the most recent Consumer Price Index (for all consumers and 
     for all items) published by the Secretary of Labor before 
     December 1 of the preceding year. Notification of the 
     adjusted fees shall be published in the Federal Register at 
     least 25 days before January 1.''.
       (f) Definitions.--
       (1) Subscriber.--Section 119(d)(8) is amended to read as 
     follows:
       ``(8) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (2) Local market.--Section 119(d)(11) is amended to read as 
     follows:
       ``(11) Local market.--The term `local market' has the 
     meaning given such term under section 122(j).''.
       (3) Low power television station.--Section 119(d) is 
     amended by striking paragraph (12) and redesignating 
     paragraphs (13) and (14) as paragraphs (12) and (13), 
     respectively.
       (4) Multicast stream.--Section 119(d), as amended by 
     paragraph (3), is further amended by adding at the end the 
     following new paragraph:
       ``(14) Multicast stream.--The term `multicast stream' means 
     a digital stream containing programming and program-related 
     material affiliated with a television network, other than the 
     primary stream.''.
       (5) Primary stream.--Section 119(d), as amended by 
     paragraph (4), is further amended by adding at the end the 
     following new paragraph:
       ``(15) Primary stream.--The term `primary stream' means--
       ``(A) the single digital stream of programming as to which 
     a television broadcast station has the right to mandatory 
     carriage with a satellite carrier under the rules of the 
     Federal Communications Commission in effect on July 1, 2009; 
     or
       ``(B) if there is no stream described in subparagraph (A), 
     then either--
       ``(i) the single digital stream of programming associated 
     with the network last transmitted by the station as an analog 
     signal; or
       ``(ii) if there is no stream described in clause (i), then 
     the single digital stream of programming affiliated with the 
     network that, as of July 1, 2009, had been offered by the 
     television broadcast station for the longest period of 
     time.''.
       (6) Clerical amendment.--Section 119(d) is amended in 
     paragraphs (1), (2), and (5) by striking ``which'' each place 
     it appears and inserting ``that''.
       (g) Superstation Redesignated as Non-Network Station.--
     Section 119 is amended--
       (1) by striking ``superstation'' each place it appears in a 
     heading and each place it appears in text and inserting 
     ``non-network station''; and
       (2) by striking ``superstations'' each place it appears in 
     a heading and each place it appears in text and inserting 
     ``non-network stations''.
       (h) Removal of Certain Provisions.--
       (1) Removal of provisions.--Section 119(a) is amended--

[[Page 2515]]

       (A) in paragraph (2), by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C);
       (B) by striking paragraph (3) and redesignating paragraphs 
     (4) through (14) as paragraphs (3) through (13), 
     respectively; and
       (C) by striking paragraph (15) and redesignating paragraph 
     (16) as paragraph (14).
       (2) Conforming amendments.--Section 119 is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``(5), (6), and (8)'' and 
     inserting ``(4), (5), and (7)'';
       (ii) in paragraph (2)--

       (I) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C) of this paragraph and paragraphs (5), (6), (7), and 
     (8)'' and inserting ``subparagraph (B) of this paragraph and 
     paragraphs (4), (5), (6), and (7)'';
       (II) in subparagraph (B)(i), by striking the second 
     sentence; and
       (III) in subparagraph (C) (as redesignated), by striking 
     clauses (i) and (ii) and inserting the following:

       ``(i) Initial lists.--A satellite carrier that makes 
     secondary transmissions of a primary transmission made by a 
     network station pursuant to subparagraph (A) shall, not later 
     than 90 days after commencing such secondary transmissions, 
     submit to the network that owns or is affiliated with the 
     network station a list identifying (by name and address, 
     including street or rural route number, city, State, and 9-
     digit zip code) all subscribers to which the satellite 
     carrier makes secondary transmissions of that primary 
     transmission to subscribers in unserved households.
       ``(ii) Monthly lists.--After the submission of the initial 
     lists under clause (i), the satellite carrier shall, not 
     later than the 15th of each month, submit to the network a 
     list, aggregated by designated market area, identifying (by 
     name and address, including street or rural route number, 
     city, State, and 9-digit zip code) any persons who have been 
     added or dropped as subscribers under clause (i) since the 
     last submission under this subparagraph.''; and
       (iii) in subparagraph (E) of paragraph (3) (as 
     redesignated)--

       (I) by striking ``under paragraph (3) or''; and
       (II) by striking ``paragraph (12)'' and inserting 
     ``paragraph (11)''; and

       (B) in subsection (b)(1), by striking the final sentence.
       (i) Modifications to Provisions for Secondary Transmissions 
     by Satellite Carriers.--
       (1) Predictive model.--Section 119(a)(2)(B)(ii) is amended 
     by adding at the end the following:

       ``(III) Accurate predictive model with respect to digital 
     signals.--Notwithstanding subclause (I), in determining 
     presumptively whether a person resides in an unserved 
     household under subsection (d)(10)(A) with respect to digital 
     signals, a court shall rely on a predictive model set forth 
     by the Federal Communications Commission pursuant to a 
     rulemaking as provided in section 339(c)(3) of the 
     Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that 
     model may be amended by the Commission over time under such 
     section to increase the accuracy of that model. Until such 
     time as the Commission sets forth such model, a court shall 
     rely on the predictive model as recommended by the Commission 
     with respect to digital signals in its Report to Congress in 
     ET Docket No. 05-182, FCC 05-199 (released December 9, 
     2005).''.

       (2) Modifications to statutory license where 
     retransmissions into local market available.--Section 
     119(a)(3) (as redesignated) is amended--
       (A) by striking ``analog'' each place it appears in a 
     heading and text;
       (B) by striking subparagraphs (B), (C), and (D), and 
     inserting the following:
       ``(B) Rules for lawful subscribers as of date of enactment 
     of 2010 act.--In the case of a subscriber of a satellite 
     carrier who, on the day before the date of the enactment of 
     the Satellite Television Extension and Localism Act of 2010, 
     was lawfully receiving the secondary transmission of the 
     primary transmission of a network station under the statutory 
     license under paragraph (2) (in this subparagraph referred to 
     as the `distant signal'), other than subscribers to whom 
     subparagraph (A) applies, the statutory license under 
     paragraph (2) shall apply to secondary transmissions by that 
     satellite carrier to that subscriber of the distant signal of 
     a station affiliated with the same television network, and 
     the subscriber's household shall continue to be considered to 
     be an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, whether or not the subscriber elects 
     to subscribe to receive the secondary transmission of the 
     primary transmission of a local network station affiliated 
     with the same network pursuant to the statutory license under 
     section 122.
       ``(C) Future applicability.--
       ``(i) When local signal available at time of 
     subscription.--The statutory license under paragraph (2) 
     shall not apply to the secondary transmission by a satellite 
     carrier of the primary transmission of a network station to a 
     person who is not a subscriber lawfully receiving such 
     secondary transmission as of the date of the enactment of the 
     Satellite Television Extension and Localism Act of 2010 and, 
     at the time such person seeks to subscribe to receive such 
     secondary transmission, resides in a local market where the 
     satellite carrier makes available to that person the 
     secondary transmission of the primary transmission of a local 
     network station affiliated with the same network pursuant to 
     the statutory license under section 122.
       ``(ii) When local signal available after subscription.--In 
     the case of a subscriber who lawfully subscribes to and 
     receives the secondary transmission by a satellite carrier of 
     the primary transmission of a network station under the 
     statutory license under paragraph (2) (in this clause 
     referred to as the `distant signal') on or after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the statutory license under paragraph 
     (2) shall apply to secondary transmissions by that satellite 
     carrier to that subscriber of the distant signal of a station 
     affiliated with the same television network, and the 
     subscriber's household shall continue to be considered to be 
     an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, but only if such subscriber 
     subscribes to the secondary transmission of the primary 
     transmission of a local network station affiliated with the 
     same network within 60 days after the satellite carrier makes 
     available to the subscriber such secondary transmission of 
     the primary transmission of such local network station.'';
       (C) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (D), (E), and (F), respectively;
       (D) in subparagraph (E) (as redesignated), by striking 
     ``(C) or (D)'' and inserting ``(B) or (C)''; and
       (E) in subparagraph (F) (as redesignated), by inserting 
     ``9-digit'' before ``zip code''.
       (3) Statutory damages for territorial restrictions.--
     Section 119(a)(6) (as redesignated) is amended--
       (A) in subparagraph (A)(ii), by striking ``$5'' and 
     inserting ``$250'';
       (B) in subparagraph (B)----
       (i) in clause (i), by striking ``$250,000 for each 6-month 
     period'' and inserting ``$2,500,000 for each 3-month 
     period''; and
       (ii) in clause (ii), by striking ``$250,000'' and inserting 
     ``$2,500,000''; and
       (C) by adding at the end the following flush sentences:

     ``The court shall direct one half of any statutory damages 
     ordered under clause (i) to be deposited with the Register of 
     Copyrights for distribution to copyright owners pursuant to 
     subsection (b). The Copyright Royalty Judges shall issue 
     regulations establishing procedures for distributing such 
     funds, on a proportional basis, to copyright owners whose 
     works were included in the secondary transmissions that were 
     the subject of the statutory damages.''.
       (4) Technical amendment.--Section 119(a)(4) (as 
     redesignated) is amended by striking ``and 509''.
       (5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is 
     amended by striking ``In this clause'' and inserting ``In 
     this clause,''.
       (j) Moratorium Extension.--Section 119(e) is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2014''.
       (k) Clerical Amendments.--Section 119 is amended--
       (1) by striking ``of the Code of Federal Regulations'' each 
     place it appears and inserting ``, Code of Federal 
     Regulations''; and
       (2) in subsection (d)(6), by striking ``or the Direct'' and 
     inserting ``, or the Direct''.

     SEC. 503. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS IN LOCAL MARKETS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 122 is amended by 
     striking ``by satellite carriers within local markets'' and 
     inserting ``of local television programming by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 122 and 
     inserting the following:

``122. Limitations on exclusive rights: Secondary transmissions of 
              local television programming by satellite.''.

       (b) Statutory License.--Section 122(a) is amended to read 
     as follows:
       ``(a) Secondary Transmissions Into Local Markets.--
       ``(1) Secondary transmissions of television broadcast 
     stations within a local market.--A secondary transmission of 
     a performance or display of a work embodied in a primary 
     transmission of a television broadcast station into the 
     station's local market shall be subject to statutory 
     licensing under this section if--
       ``(A) the secondary transmission is made by a satellite 
     carrier to the public;
       ``(B) with regard to secondary transmissions, the satellite 
     carrier is in compliance with the rules, regulations, or 
     authorizations of the Federal Communications Commission 
     governing the carriage of television broadcast station 
     signals; and
       ``(C) the satellite carrier makes a direct or indirect 
     charge for the secondary transmission to--
       ``(i) each subscriber receiving the secondary transmission; 
     or

[[Page 2516]]

       ``(ii) a distributor that has contracted with the satellite 
     carrier for direct or indirect delivery of the secondary 
     transmission to the public.
       ``(2) Significantly viewed stations.--
       ``(A) In general.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall be subject to statutory licensing 
     under this paragraph if the secondary transmission is of the 
     primary transmission of a network station or a non-network 
     station to a subscriber who resides outside the station's 
     local market but within a community in which the signal has 
     been determined by the Federal Communications Commission to 
     be significantly viewed in such community, pursuant to the 
     rules, regulations, and authorizations of the Federal 
     Communications Commission in effect on April 15, 1976, 
     applicable to determining with respect to a cable system 
     whether signals are significantly viewed in a community.
       ``(B) Waiver.--A subscriber who is denied the secondary 
     transmission of the primary transmission of a network station 
     or a non-network station under subparagraph (A) may request a 
     waiver from such denial by submitting a request, through the 
     subscriber's satellite carrier, to the network station or 
     non-network station in the local market affiliated with the 
     same network or non-network where the subscriber is located. 
     The network station or non-network station shall accept or 
     reject the subscriber's request for a waiver within 30 days 
     after receipt of the request. If the network station or non-
     network station fails to accept or reject the subscriber's 
     request for a waiver within that 30-day period, that network 
     station or non-network station shall be deemed to agree to 
     the waiver request.
       ``(3) Secondary transmission of low power programming.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), a 
     secondary transmission of a performance or display of a work 
     embodied in a primary transmission of a television broadcast 
     station to subscribers who receive secondary transmissions of 
     primary transmissions under paragraph (1) shall be subject to 
     statutory licensing under this paragraph if the secondary 
     transmission is of the primary transmission of a television 
     broadcast station that is licensed as a low power television 
     station, to a subscriber who resides within the same 
     designated market area as the station that originates the 
     transmission.
       ``(B) No applicability to repeaters and translators.--
     Secondary transmissions provided for in subparagraph (A) 
     shall not apply to any low power television station that 
     retransmits the programs and signals of another television 
     station for more than 2 hours each day.
       ``(C) No impact on other secondary transmissions 
     obligations.--A satellite carrier that makes secondary 
     transmissions of a primary transmission of a low power 
     television station under a statutory license provided under 
     this section is not required, by reason of such secondary 
     transmissions, to make any other secondary transmissions.
       ``(4) Special exceptions.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall, if the secondary transmission is 
     made by a satellite carrier that complies with the 
     requirements of paragraph (1), be subject to statutory 
     licensing under this paragraph as follows:
       ``(A) States with single full-power network station.--In a 
     State in which there is licensed by the Federal 
     Communications Commission a single full-power station that 
     was a network station on January 1, 1995, the statutory 
     license provided for in this paragraph shall apply to the 
     secondary transmission by a satellite carrier of the primary 
     transmission of that station to any subscriber in a community 
     that is located within that State and that is not within the 
     first 50 television markets as listed in the regulations of 
     the Commission as in effect on such date (47 C.F.R. 76.51).
       ``(B) States with all network stations and non-network 
     stations in same local market.--In a State in which all 
     network stations and non-network stations licensed by the 
     Federal Communications Commission within that State as of 
     January 1, 1995, are assigned to the same local market and 
     that local market does not encompass all counties of that 
     State, the statutory license provided under this paragraph 
     shall apply to the secondary transmission by a satellite 
     carrier of the primary transmissions of such station to all 
     subscribers in the State who reside in a local market that is 
     within the first 50 major television markets as listed in the 
     regulations of the Commission as in effect on such date 
     (section 76.51 of title 47, Code of Federal Regulations).
       ``(C) Additional stations.--In the case of that State in 
     which are located 4 counties that--
       ``(i) on January 1, 2004, were in local markets principally 
     comprised of counties in another State, and
       ``(ii) had a combined total of 41,340 television 
     households, according to the U.S. Television Household 
     Estimates by Nielsen Media Research for 2004,

     the statutory license provided under this paragraph shall 
     apply to secondary transmissions by a satellite carrier to 
     subscribers in any such county of the primary transmissions 
     of any network station located in that State, if the 
     satellite carrier was making such secondary transmissions to 
     any subscribers in that county on January 1, 2004.
       ``(D) Certain additional stations.--If 2 adjacent counties 
     in a single State are in a local market comprised principally 
     of counties located in another State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission by a satellite carrier to subscribers in those 2 
     counties of the primary transmissions of any network station 
     located in the capital of the State in which such 2 counties 
     are located, if--
       ``(i) the 2 counties are located in a local market that is 
     in the top 100 markets for the year 2003 according to Nielsen 
     Media Research; and
       ``(ii) the total number of television households in the 2 
     counties combined did not exceed 10,000 for the year 2003 
     according to Nielsen Media Research.
       ``(E) Networks of noncommercial educational broadcast 
     stations.--In the case of a system of three or more 
     noncommercial educational broadcast stations licensed to a 
     single State, public agency, or political, educational, or 
     special purpose subdivision of a State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission of the primary transmission of such system to 
     any subscriber in any county or county equivalent within such 
     State, if such subscriber is located in a designated market 
     area that is not otherwise eligible to receive the secondary 
     transmission of the primary transmission of a noncommercial 
     educational broadcast station located within the State 
     pursuant to paragraph (1).
       ``(5) Applicability of royalty rates and procedures.--The 
     royalty rates and procedures under section 119(b) shall apply 
     to the secondary transmissions to which the statutory license 
     under paragraph (4) applies.''.
       (c) Reporting Requirements.--Section 122(b) is amended--
       (1) in paragraph (1), by striking ``station a list'' and 
     all that follows through the end and inserting the following: 
     ``station--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) all 
     subscribers to which the satellite carrier makes secondary 
     transmissions of that primary transmission under subsection 
     (a); and
       ``(B) a separate list, aggregated by designated market area 
     (by name and address, including street or rural route number, 
     city, State, and 9-digit zip code), which shall indicate 
     those subscribers being served pursuant to paragraph (2) of 
     subsection (a).''; and
       (2) in paragraph (2), by striking ``network a list'' and 
     all that follows through the end and inserting the following: 
     ``network--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) any 
     subscribers who have been added or dropped as subscribers 
     since the last submission under this subsection; and
       ``(B) a separate list, aggregated by designated market area 
     (by name and street address, including street or rural route 
     number, city, State, and 9-digit zip code), identifying those 
     subscribers whose service pursuant to paragraph (2) of 
     subsection (a) has been added or dropped since the last 
     submission under this subsection.''.
       (d) No Royalty Fee for Certain Secondary Transmissions.--
     Section 122(c) is amended--
       (1) in the heading, by inserting ``for Certain Secondary 
     Transmissions'' after ``Required''; and
       (2) by striking ``subsection (a)'' and inserting 
     ``paragraphs (1), (2), and (3) of subsection (a)''.
       (e)  Violations for Territorial Restrictions.--
       (1) Modification to statutory damages.--Section 122(f) is 
     amended--
       (A) in paragraph (1)(B), by striking ``$5'' and inserting 
     ``$250''; and
       (B) in paragraph (2), by striking ``$250,000'' each place 
     it appears and inserting ``$2,500,000''.
       (2) Conforming amendments for additional stations.--Section 
     122 is amended--
       (A) in subsection (f), by striking ``section 119 or'' each 
     place it appears and inserting the following: ``section 119, 
     subject to statutory licensing by reason of paragraph (2)(A), 
     (3), or (4) of subsection (a), or subject to''; and
       (B) in subsection (g), by striking ``section 119 or'' and 
     inserting the following: ``section 119, paragraph (2)(A), 
     (3), or (4) of subsection (a), or''.
       (f) Definitions.--Section 122(j) is amended--
       (1) in paragraph (1), by striking ``which contracts'' and 
     inserting ``that contracts'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (6) and (7), respectively;
       (3) in paragraph (3)--
       (A) by redesignating such paragraph as paragraph (4);

[[Page 2517]]

       (B) in the heading of such paragraph, by inserting ``non-
     network station;'' after ``Network station;''; and
       (C) by inserting ```non-network station','' after 
     ```network station','';
       (4) by inserting after paragraph (2) the following:
       ``(3) Low power television station.--The term `low power 
     television station' means a low power TV station as defined 
     in section 74.701(f) of title 47, Code of Federal 
     Regulations, as in effect on June 1, 2004. For purposes of 
     this paragraph, the term `low power television station' 
     includes a low power television station that has been 
     accorded primary status as a Class A television licensee 
     under section 73.6001(a) of title 47, Code of Federal 
     Regulations.'';
       (5) by inserting after paragraph (4) (as redesignated) the 
     following:
       ``(5) Noncommercial educational broadcast station.--The 
     term `noncommercial educational broadcast station' means a 
     television broadcast station that is a noncommercial 
     educational broadcast station as defined in section 397 of 
     the Communications Act of 1934, as in effect on the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010.''; and
       (6) by amending paragraph (6) (as redesignated) to read as 
     follows:
       ``(6) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.''.

     SEC. 504. MODIFICATIONS TO CABLE SYSTEM SECONDARY 
                   TRANSMISSION RIGHTS UNDER SECTION 111.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 111 is amended by 
     inserting at the end the following: ``of broadcast 
     programming by cable''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 111 and 
     inserting the following:

``111. Limitations on exclusive rights: Secondary transmissions of 
              broadcast programming by cable.''.

       (b) Technical Amendment.--Section 111(a)(4) is amended by 
     striking ``; or'' and inserting ``or section 122;''.
       (c) Statutory License for Secondary Transmissions by Cable 
     Systems.--Section 111(d) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``A cable system whose secondary'' and 
     inserting the following: ``Statement of account and royalty 
     fees.--Subject to paragraph (5), a cable system whose 
     secondary''; and
       (ii) by striking ``by regulation--'' and inserting ``by 
     regulation the following:'';
       (B) in subparagraph (A)--
       (i) by striking ``a statement of account'' and inserting 
     ``A statement of account''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking subparagraphs (B), (C), and (D) and 
     inserting the following:
       ``(B) Except in the case of a cable system whose royalty 
     fee is specified in subparagraph (E) or (F), a total royalty 
     fee payable to copyright owners pursuant to paragraph (3) for 
     the period covered by the statement, computed on the basis of 
     specified percentages of the gross receipts from subscribers 
     to the cable service during such period for the basic service 
     of providing secondary transmissions of primary broadcast 
     transmitters, as follows:
       ``(i) 1.064 percent of such gross receipts for the 
     privilege of further transmitting, beyond the local service 
     area of such primary transmitter, any non-network programming 
     of a primary transmitter in whole or in part, such amount to 
     be applied against the fee, if any, payable pursuant to 
     clauses (ii) through (iv);
       ``(ii) 1.064 percent of such gross receipts for the first 
     distant signal equivalent;
       ``(iii) 0.701 percent of such gross receipts for each of 
     the second, third, and fourth distant signal equivalents; and
       ``(iv) 0.330 percent of such gross receipts for the fifth 
     distant signal equivalent and each distant signal equivalent 
     thereafter.
       ``(C) In computing amounts under clauses (ii) through (iv) 
     of subparagraph (B)--
       ``(i) any fraction of a distant signal equivalent shall be 
     computed at its fractional value;
       ``(ii) in the case of any cable system located partly 
     within and partly outside of the local service area of a 
     primary transmitter, gross receipts shall be limited to those 
     gross receipts derived from subscribers located outside of 
     the local service area of such primary transmitter; and
       ``(iii) if a cable system provides a secondary transmission 
     of a primary transmitter to some but not all communities 
     served by that cable system--

       ``(I) the gross receipts and the distant signal equivalent 
     values for such secondary transmission shall be derived 
     solely on the basis of the subscribers in those communities 
     where the cable system provides such secondary transmission; 
     and
       ``(II) the total royalty fee for the period paid by such 
     system shall not be less than the royalty fee calculated 
     under subparagraph (B)(i) multiplied by the gross receipts 
     from all subscribers to the system.

       ``(D) A cable system that, on a statement submitted before 
     the date of the enactment of the Satellite Television 
     Extension and Localism Act of 2010, computed its royalty fee 
     consistent with the methodology under subparagraph (C)(iii), 
     or that amends a statement filed before such date of 
     enactment to compute the royalty fee due using such 
     methodology, shall not be subject to an action for 
     infringement, or eligible for any royalty refund or offset, 
     arising out of its use of such methodology on such statement.
       ``(E) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are $263,800 or less--
       ``(i) gross receipts of the cable system for the purpose of 
     this paragraph shall be computed by subtracting from such 
     actual gross receipts the amount by which $263,800 exceeds 
     such actual gross receipts, except that in no case shall a 
     cable system's gross receipts be reduced to less than 
     $10,400; and
       ``(ii) the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be 0.5 
     percent, regardless of the number of distant signal 
     equivalents, if any.
       ``(F) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are more than $263,800 but less than 
     $527,600, the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be--
       ``(i) 0.5 percent of any gross receipts up to $263,800, 
     regardless of the number of distant signal equivalents, if 
     any; and
       ``(ii) 1 percent of any gross receipts in excess of 
     $263,800, but less than $527,600, regardless of the number of 
     distant signal equivalents, if any.
       ``(G) A filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).'';
       (2) in paragraph (2), in the first sentence--
       (A) by striking ``The Register of Copyrights'' and 
     inserting the following ``Handling of fees.--The Register of 
     Copyrights''; and
       (B) by inserting ``(including the filing fee specified in 
     paragraph (1)(G))'' after ``shall receive all fees'';
       (3) in paragraph (3)--
       (A) by striking ``The royalty fees'' and inserting the 
     following: ``Distribution of royalty fees to copyright 
     owners.--The royalty fees'';
       (B) in subparagraph (A)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking ``; and'' and inserting a period;
       (C) in subparagraph (B)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking the semicolon and inserting a period; and
       (D) in subparagraph (C), by striking ``any such'' and 
     inserting ``Any such'';
       (4) in paragraph (4), by striking ``The royalty fees'' and 
     inserting the following: ``Procedures for royalty fee 
     distribution.--The royalty fees''; and
       (5) by adding at the end the following new paragraphs:
       ``(5) 3.75 percent rate and syndicated exclusivity 
     surcharge not applicable to multicast streams.--The royalty 
     rates specified in sections 256.2(c) and 256.2(d) of title 
     37, Code of Federal Regulations (commonly referred to as the 
     `3.75 percent rate' and the `syndicated exclusivity 
     surcharge', respectively), as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010, as such rates may be adjusted, or such sections 
     redesignated, thereafter by the Copyright Royalty Judges, 
     shall not apply to the secondary transmission of a multicast 
     stream.
       ``(6) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to provide for 
     the confidential verification by copyright owners whose works 
     were embodied in the secondary transmissions of primary 
     transmissions pursuant to this section of the information 
     reported on the semiannual statements of account filed under 
     this subsection on or after January 1, 2010, in order that 
     the auditor designated under subparagraph (A) is able to 
     confirm the correctness of the calculations and royalty 
     payments reported therein. The regulations shall--
       ``(A) establish procedures for the designation of a 
     qualified independent auditor--
       ``(i) with exclusive authority to request verification of 
     such a statement of account on behalf of all copyright owners 
     whose works were the subject of secondary transmissions of 
     primary transmissions by the cable system (that deposited the 
     statement) during the accounting period covered by the 
     statement; and
       ``(ii) who is not an officer, employee, or agent of any 
     such copyright owner for any purpose other than such audit;
       ``(B) establish procedures for safeguarding all non-public 
     financial and business information provided under this 
     paragraph;

[[Page 2518]]

       ``(C)(i) require a consultation period for the independent 
     auditor to review its conclusions with a designee of the 
     cable system;
       ``(ii) establish a mechanism for the cable system to remedy 
     any errors identified in the auditor's report and to cure any 
     underpayment identified; and
       ``(iii) provide an opportunity to remedy any disputed facts 
     or conclusions;
       ``(D) limit the frequency of requests for verification for 
     a particular cable system and the number of audits that a 
     multiple system operator can be required to undergo in a 
     single year; and
       ``(E) permit requests for verification of a statement of 
     account to be made only within 3 years after the last day of 
     the year in which the statement of account is filed.
       ``(7) Acceptance of additional deposits.--Any royalty fee 
     payments received by the Copyright Office from cable systems 
     for the secondary transmission of primary transmissions that 
     are in addition to the payments calculated and deposited in 
     accordance with this subsection shall be deemed to have been 
     deposited for the particular accounting period for which they 
     are received and shall be distributed as specified under this 
     subsection.''.
       (d) Effective Date of New Royalty Fee Rates.--The royalty 
     fee rates established in section 111(d)(1)(B) of title 17, 
     United States Code, as amended by subsection (c)(1)(C) of 
     this section, shall take effect commencing with the first 
     accounting period occurring in 2010.
       (e) Definitions.--Section 111(f) is amended--
       (1) by striking the first undesignated paragraph and 
     inserting the following:
       ``(1) Primary transmission.--A `primary transmission' is a 
     transmission made to the public by a transmitting facility 
     whose signals are being received and further transmitted by a 
     secondary transmission service, regardless of where or when 
     the performance or display was first transmitted. In the case 
     of a television broadcast station, the primary stream and any 
     multicast streams transmitted by the station constitute 
     primary transmissions.'';
       (2) in the second undesignated paragraph--
       (A) by striking ``A `secondary transmission''' and 
     inserting the following:
       ``(2) Secondary transmission.--A `secondary 
     transmission'''; and
       (B) by striking ```cable system''' and inserting ``cable 
     system'';
       (3) in the third undesignated paragraph--
       (A) by striking ``A `cable system''' and inserting the 
     following:
       ``(3) Cable system.--A `cable system'''; and
       (B) by striking ``Territory, Trust Territory, or 
     Possession'' and inserting ``territory, trust territory, or 
     possession of the United States'';
       (4) in the fourth undesignated paragraph, in the first 
     sentence--
       (A) by striking ``The `local service area of a primary 
     transmitter', in the case of a television broadcast station, 
     comprises the area in which such station is entitled to 
     insist'' and inserting the following:
       ``(4) Local service area of a primary transmitter.--The 
     `local service area of a primary transmitter', in the case of 
     both the primary stream and any multicast streams transmitted 
     by a primary transmitter that is a television broadcast 
     station, comprises the area where such primary transmitter 
     could have insisted'';
       (B) by striking ``76.59 of title 47 of the Code of Federal 
     Regulations'' and inserting the following: ``76.59 of title 
     47, Code of Federal Regulations, or within the noise-limited 
     contour as defined in 73.622(e)(1) of title 47, Code of 
     Federal Regulations''; and
       (C) by striking ``as defined by the rules and regulations 
     of the Federal Communications Commission,'';
       (5) by amending the fifth undesignated paragraph to read as 
     follows:
       ``(5) Distant signal equivalent.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), a `distant signal equivalent'--
       ``(i) is the value assigned to the secondary transmission 
     of any non-network television programming carried by a cable 
     system in whole or in part beyond the local service area of 
     the primary transmitter of such programming; and
       ``(ii) is computed by assigning a value of one to each 
     primary stream and to each multicast stream (other than a 
     simulcast) that is an independent station, and by assigning a 
     value of one-quarter to each primary stream and to each 
     multicast stream (other than a simulcast) that is a network 
     station or a noncommercial educational station.
       ``(B) Exceptions.--The values for independent, network, and 
     noncommercial educational stations specified in subparagraph 
     (A) are subject to the following:
       ``(i) Where the rules and regulations of the Federal 
     Communications Commission require a cable system to omit the 
     further transmission of a particular program and such rules 
     and regulations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, or where such rules and 
     regulations in effect on the date of the enactment of the 
     Copyright Act of 1976 permit a cable system, at its election, 
     to effect such omission and substitution of a nonlive program 
     or to carry additional programs not transmitted by primary 
     transmitters within whose local service area the cable system 
     is located, no value shall be assigned for the substituted or 
     additional program.
       ``(ii) Where the rules, regulations, or authorizations of 
     the Federal Communications Commission in effect on the date 
     of the enactment of the Copyright Act of 1976 permit a cable 
     system, at its election, to omit the further transmission of 
     a particular program and such rules, regulations, or 
     authorizations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, the value assigned for the 
     substituted or additional program shall be, in the case of a 
     live program, the value of one full distant signal equivalent 
     multiplied by a fraction that has as its numerator the number 
     of days in the year in which such substitution occurs and as 
     its denominator the number of days in the year.
       ``(iii) In the case of the secondary transmission of a 
     primary transmitter that is a television broadcast station 
     pursuant to the late-night or specialty programming rules of 
     the Federal Communications Commission, or the secondary 
     transmission of a primary transmitter that is a television 
     broadcast station on a part-time basis where full-time 
     carriage is not possible because the cable system lacks the 
     activated channel capacity to retransmit on a full-time basis 
     all signals that it is authorized to carry, the values for 
     independent, network, and noncommercial educational stations 
     set forth in subparagraph (A), as the case may be, shall be 
     multiplied by a fraction that is equal to the ratio of the 
     broadcast hours of such primary transmitter retransmitted by 
     the cable system to the total broadcast hours of the primary 
     transmitter.
       ``(iv) No value shall be assigned for the secondary 
     transmission of the primary stream or any multicast streams 
     of a primary transmitter that is a television broadcast 
     station in any community that is within the local service 
     area of the primary transmitter.'';
       (6) by striking the sixth undesignated paragraph and 
     inserting the following:
       ``(6) Network station.--
       ``(A) Treatment of primary stream.--The term `network 
     station' shall be applied to a primary stream of a television 
     broadcast station that is owned or operated by, or affiliated 
     with, one or more of the television networks in the United 
     States providing nationwide transmissions, and that transmits 
     a substantial part of the programming supplied by such 
     networks for a substantial part of the primary stream's 
     typical broadcast day.
       ``(B) Treatment of multicast streams.--The term `network 
     station' shall be applied to a multicast stream on which a 
     television broadcast station transmits all or substantially 
     all of the programming of an interconnected program service 
     that--
       ``(i) is owned or operated by, or affiliated with, one or 
     more of the television networks described in subparagraph 
     (A); and
       ``(ii) offers programming on a regular basis for 15 or more 
     hours per week to at least 25 of the affiliated television 
     licensees of the interconnected program service in 10 or more 
     States.'';
       (7) by striking the seventh undesignated paragraph and 
     inserting the following:
       ``(7) Independent station.--The term `independent station' 
     shall be applied to the primary stream or a multicast stream 
     of a television broadcast station that is not a network 
     station or a noncommercial educational station.'';
       (8) by striking the eighth undesignated paragraph and 
     inserting the following:
       ``(8) Noncommercial educational station.--The term 
     `noncommercial educational station' shall be applied to the 
     primary stream or a multicast stream of a television 
     broadcast station that is a noncommercial educational 
     broadcast station as defined in section 397 of the 
     Communications Act of 1934, as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.''; and
       (9) by adding at the end the following:
       ``(9) Primary stream.--A `primary stream' is--
       ``(A) the single digital stream of programming that, before 
     June 12, 2009, was substantially duplicating the programming 
     transmitted by the television broadcast station as an analog 
     signal; or
       ``(B) if there is no stream described in subparagraph (A), 
     then the single digital stream of programming transmitted by 
     the television broadcast station for the longest period of 
     time.
       ``(10) Primary transmitter.--A `primary transmitter' is a 
     television or radio broadcast station licensed by the Federal 
     Communications Commission, or by an appropriate governmental 
     authority of Canada or Mexico, that makes primary 
     transmissions to the public.
       ``(11) Multicast stream.--A `multicast stream' is a digital 
     stream of programming that is transmitted by a television 
     broadcast station and is not the station's primary stream.
       ``(12) Simulcast.--A `simulcast' is a multicast stream of a 
     television broadcast

[[Page 2519]]

     station that duplicates the programming transmitted by the 
     primary stream or another multicast stream of such station.
       ``(13) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     cable system and pays a fee for the service, directly or 
     indirectly, to the cable system.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (f) Timing of Section 111 Proceedings.--Section 804(b)(1) 
     is amended by striking ``2005'' each place it appears and 
     inserting ``2015''.
       (g) Technical and Conforming Amendments.--
       (1) Corrections to fix level designations.--Section 111 is 
     amended--
       (A) in subsections (a), (c), and (e), by striking 
     ``clause'' each place it appears and inserting ``paragraph'';
       (B) in subsection (c)(1), by striking ``clauses'' and 
     inserting ``paragraphs''; and
       (C) in subsection (e)(1)(F), by striking ``subclause'' and 
     inserting ``subparagraph''.
       (2) Conforming amendment to hyphenate nonnetwork.--Section 
     111 is amended by striking ``nonnetwork'' each place it 
     appears and inserting ``non-network''.
       (3) Previously undesignated paragraph.--Section 111(e)(1) 
     is amended by striking ``second paragraph of subsection (f)'' 
     and inserting ``subsection (f)(2)''.
       (4) Removal of superfluous ands.--Section 111(e) is 
     amended--
       (A) in paragraph (1)(A), by striking ``and'' at the end;
       (B) in paragraph (1)(B), by striking ``and'' at the end;
       (C) in paragraph (1)(C), by striking ``and'' at the end;
       (D) in paragraph (1)(D), by striking ``and'' at the end; 
     and
       (E) in paragraph (2)(A), by striking ``and'' at the end.
       (5) Removal of variant forms references.--Section 111 is 
     amended--
       (A) in subsection (e)(4), by striking ``, and each of its 
     variant forms,''; and
       (B) in subsection (f), by striking ``and their variant 
     forms''.
       (6) Correction to territory reference.--Section 111(e)(2) 
     is amended in the matter preceding subparagraph (A) by 
     striking ``three territories'' and inserting ``five 
     entities''.
       (h) Effective Date With Respect to Multicast Streams.--
       (1) In general.--Subject to paragraphs (2) and (3), the 
     amendments made by this section, to the extent such 
     amendments assign a distant signal equivalent value to the 
     secondary transmission of the multicast stream of a primary 
     transmitter, shall take effect on the date of the enactment 
     of this Act.
       (2) Delayed applicability.--
       (A) Secondary transmissions of a multicast stream beyond 
     the local service area of its primary transmitter before 2010 
     act.--In any case in which a cable system was making 
     secondary transmissions of a multicast stream beyond the 
     local service area of its primary transmitter before the date 
     of the enactment of this Act, a distant signal equivalent 
     value (referred to in paragraph (1)) shall not be assigned to 
     secondary transmissions of such multicast stream that are 
     made on or before June 30, 2010.
       (B) Multicast streams subject to preexisting written 
     agreements for the secondary transmission of such streams.--
     In any case in which the secondary transmission of a 
     multicast stream of a primary transmitter is the subject of a 
     written agreement entered into on or before June 30, 2009, 
     between a cable system or an association representing the 
     cable system and a primary transmitter or an association 
     representing the primary transmitter, a distant signal 
     equivalent value (referred to in paragraph (1)) shall not be 
     assigned to secondary transmissions of such multicast stream 
     beyond the local service area of its primary transmitter that 
     are made on or before the date on which such written 
     agreement expires.
       (C) No refunds or offsets for prior statements of 
     account.--A cable system that has reported secondary 
     transmissions of a multicast stream beyond the local service 
     area of its primary transmitter on a statement of account 
     deposited under section 111 of title 17, United States Code, 
     before the date of the enactment of this Act shall not be 
     entitled to any refund, or offset, of royalty fees paid on 
     account of such secondary transmissions of such multicast 
     stream.
       (3) Definitions.--In this subsection, the terms ``cable 
     system'', ``secondary transmission'', ``multicast stream'', 
     and ``local service area of a primary transmitter'' have the 
     meanings given those terms in section 111(f) of title 17, 
     United States Code, as amended by this section.

     SEC. 505. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-
                   LOCAL SERVICE FOR ALL DMAS.

       Section 119 is amended by adding at the end the following 
     new subsection:
       ``(g) Certain Waivers Granted to Providers of Local-Into-
     Local Service to All DMAs.--
       ``(1) Injunction waiver.--A court that issued an injunction 
     pursuant to subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction if 
     the court recognizes the entity against which the injunction 
     was issued as a qualified carrier.
       ``(2) Limited temporary waiver.--
       ``(A) In general.--Upon a request made by a satellite 
     carrier, a court that issued an injunction against such 
     carrier under subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction with 
     respect to the statutory license provided under subsection 
     (a)(2) to the extent necessary to allow such carrier to make 
     secondary transmissions of primary transmissions made by a 
     network station to unserved households located in short 
     markets in which such carrier was not providing local service 
     pursuant to the license under section 122 as of December 31, 
     2009.
       ``(B) Expiration of temporary waiver.--A temporary waiver 
     of an injunction under subparagraph (A) shall expire after 
     the end of the 120-day period beginning on the date such 
     temporary waiver is issued unless extended for good cause by 
     the court making the temporary waiver.
       ``(C) Failure to provide local-into-local service to all 
     dmas.--
       ``(i) Failure to act reasonably and in good faith.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to act reasonably or has failed to 
     make a good faith effort to provide local-into-local service 
     to all DMAs, such failure--

       ``(I) is actionable as an act of infringement under section 
     501 and the court may in its discretion impose the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(II) shall result in the termination of the waiver issued 
     under subparagraph (A).

       ``(ii) Failure to provide local-into-local service.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to provide local-into-local 
     service to all DMAs, but determines that the carrier acted 
     reasonably and in good faith, the court may in its discretion 
     impose financial penalties that reflect--

       ``(I) the degree of control the carrier had over the 
     circumstances that resulted in the failure;
       ``(II) the quality of the carrier's efforts to remedy the 
     failure; and
       ``(III) the severity and duration of any service 
     interruption.

       ``(D) Single temporary waiver available.--An entity may 
     only receive one temporary waiver under this paragraph.
       ``(E) Short market defined.--For purposes of this 
     paragraph, the term `short market' means a local market in 
     which programming of one or more of the four most widely 
     viewed television networks nationwide as measured on the date 
     of the enactment of this subsection is not offered on the 
     primary stream transmitted by any local television broadcast 
     station.
       ``(3) Establishment of qualified carrier recognition.--
       ``(A) Statement of eligibility.--An entity seeking to be 
     recognized as a qualified carrier under this subsection shall 
     file a statement of eligibility with the court that imposed 
     the injunction. A statement of eligibility must include--
       ``(i) an affidavit that the entity is providing local-into-
     local service to all DMAs;
       ``(ii) a request for a waiver of the injunction; and
       ``(iii) a certification issued pursuant to section 342(a) 
     of Communications Act of 1934.
       ``(B) Grant of recognition as a qualified carrier.--Upon 
     receipt of a statement of eligibility, the court shall 
     recognize the entity as a qualified carrier and issue the 
     waiver under paragraph (1).
       ``(C) Voluntary termination.--At any time, an entity 
     recognized as a qualified carrier may file a statement of 
     voluntary termination with the court certifying that it no 
     longer wishes to be recognized as a qualified carrier. Upon 
     receipt of such statement, the court shall reinstate the 
     injunction waived under paragraph (1).
       ``(D) Loss of recognition prevents future recognition.--No 
     entity may be recognized as a qualified carrier if such 
     entity had previously been recognized as a qualified carrier 
     and subsequently lost such recognition or voluntarily 
     terminated such recognition under subparagraph (C).
       ``(4) Qualified carrier obligations and compliance.--
       ``(A) Continuing obligations.--
       ``(i) In general.--An entity recognized as a qualified 
     carrier shall continue to provide local-into-local service to 
     all DMAs.
       ``(ii) Cooperation with gao examination.--An entity 
     recognized as a qualified carrier shall fully cooperate with 
     the Comptroller General in the examination required by 
     subparagraph (B).
       ``(B) Qualified carrier compliance examination.--
       ``(i) Examination and report.--The Comptroller General 
     shall conduct an examination and publish a report concerning 
     the qualified carrier's compliance with the royalty payment 
     and household eligibility requirements of the license under 
     this section. The report shall address the qualified 
     carrier's conduct during the period beginning on the date on

[[Page 2520]]

     which the qualified carrier is recognized as such under 
     paragraph (3)(B) and ending on December 31, 2011.
       ``(ii) Records of qualified carrier.--Beginning on the date 
     that is one year after the date on which the qualified 
     carrier is recognized as such under paragraph (3)(B), but not 
     later than October 1, 2011, the qualified carrier shall 
     provide the Comptroller General with all records that the 
     Comptroller General, in consultation with the Register of 
     Copyrights, considers to be directly pertinent to the 
     following requirements under this section:

       ``(I) Proper calculation and payment of royalties under the 
     statutory license under this section.
       ``(II) Provision of service under this license to eligible 
     subscribers only.

       ``(iii) Submission of report.--The Comptroller General 
     shall file the report required by clause (i) not later than 
     March 1, 2012, with the court referred to in paragraph (1) 
     that issued the injunction, the Register of Copyrights, the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives, and the Committees on the Judiciary 
     and on Commerce, Science, and Transportation of the Senate.
       ``(iv) Evidence of infringement.--The Comptroller General 
     shall include in the report a statement of whether the 
     examination by the Comptroller General indicated that there 
     is substantial evidence that a copyright holder could bring a 
     successful action under this section against the qualified 
     carrier for infringement. The Comptroller General shall 
     consult with the Register of Copyrights in preparing such 
     statement.
       ``(v) Subsequent examination.--If the report includes the 
     Comptroller General's statement that there is substantial 
     evidence that a copyright holder could bring a successful 
     action under this section against the qualified carrier for 
     infringement, the Comptroller General shall, not later than 6 
     months after the report under clause (i) is published, 
     initiate another examination of the qualified carrier's 
     compliance with the royalty payment and household eligibility 
     requirements of the license under this section since the last 
     report was filed under clause (iii). The Comptroller General 
     shall file a report on such examination with the court 
     referred to in paragraph (1) that issued the injunction, the 
     Register of Copyrights, the Committees on the Judiciary and 
     on Energy and Commerce of the House of Representatives, and 
     the Committees on the Judiciary and on Commerce, Science, and 
     Transportation of the Senate. The report shall include a 
     statement described in clause (iv), prepared in consultation 
     with the Register of Copyrights.
       ``(vi) Compliance.--Upon motion filed by an aggrieved 
     copyright owner, the court recognizing an entity as a 
     qualified carrier shall terminate such designation upon 
     finding that the entity has failed to cooperate with the 
     examinations required by this subparagraph.
       ``(C) Affirmation.--A qualified carrier shall file an 
     affidavit with the district court and the Register of 
     Copyrights 30 months after such status was granted stating 
     that, to the best of the affiant's knowledge, it is in 
     compliance with the requirements for a qualified carrier.
       ``(D) Compliance determination.--Upon the motion of an 
     aggrieved television broadcast station, the court recognizing 
     an entity as a qualified carrier may make a determination of 
     whether the entity is providing local-into-local service to 
     all DMAs.
       ``(E) Pleading requirement.--In any motion brought under 
     subparagraph (D), the party making such motion shall specify 
     one or more designated market areas (as such term is defined 
     in section 122(j)(2)(C)) for which the failure to provide 
     service is being alleged, and, for each such designated 
     market area, shall plead with particularity the circumstances 
     of the alleged failure.
       ``(F) Burden of proof.--In any proceeding to make a 
     determination under subparagraph (D), and with respect to a 
     designated market area for which failure to provide service 
     is alleged, the entity recognized as a qualified carrier 
     shall have the burden of proving that the entity provided 
     local-into-local service with a good quality satellite signal 
     to at least 90 percent of the households in such designated 
     market area (based on the most recent census data released by 
     the United States Census Bureau) at the time and place 
     alleged.
       ``(5) Failure to provide service.--
       ``(A) Penalties.--If the court recognizing an entity as a 
     qualified carrier finds that such entity has willfully failed 
     to provide local-into-local service to all DMAs, such finding 
     shall result in the loss of recognition of the entity as a 
     qualified carrier and the termination of the waiver provided 
     under paragraph (1), and the court may, in its discretion--
       ``(i) treat such failure as an act of infringement under 
     section 501, and subject such infringement to the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(ii) impose a fine of not less than $250,000 and not more 
     than $5,000,000.
       ``(B) Exception for nonwillful violation.--If the court 
     determines that the failure to provide local-into-local 
     service to all DMAs is nonwillful, the court may in its 
     discretion impose financial penalties for noncompliance that 
     reflect--
       ``(i) the degree of control the entity had over the 
     circumstances that resulted in the failure;
       ``(ii) the quality of the entity's efforts to remedy the 
     failure and restore service; and
       ``(iii) the severity and duration of any service 
     interruption.
       ``(6) Penalties for violations of license.--A court that 
     finds, under subsection (a)(6)(A), that an entity recognized 
     as a qualified carrier has willfully made a secondary 
     transmission of a primary transmission made by a network 
     station and embodying a performance or display of a work to a 
     subscriber who is not eligible to receive the transmission 
     under this section shall reinstate the injunction waived 
     under paragraph (1), and the court may order statutory 
     damages of not more than $2,500,000.
       ``(7) Local-into-local service to all dmas defined.--For 
     purposes of this subsection:
       ``(A) In general.--An entity provides `local-into-local 
     service to all DMAs' if the entity provides local service in 
     all designated market areas (as such term is defined in 
     section 122(j)(2)(C)) pursuant to the license under section 
     122.
       ``(B) Household coverage.--For purposes of subparagraph 
     (A), an entity that makes available local-into-local service 
     with a good quality satellite signal to at least 90 percent 
     of the households in a designated market area based on the 
     most recent census data released by the United States Census 
     Bureau shall be considered to be providing local service to 
     such designated market area.
       ``(C) Good quality satellite signal defined.--The term 
     `good quality signal' has the meaning given such term under 
     section 342(e)(2) of Communications Act of 1934.''.

     SEC. 506. COPYRIGHT OFFICE FEES.

       Section 708(a) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon;
       (3) by inserting after paragraph (9) the following:
       ``(10) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     119 or 122; and
       ``(11) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     111.''; and
       (4) by adding at the end the following new sentence: ``Fees 
     established under paragraphs (10) and (11) shall be 
     reasonable and may not exceed one-half of the cost necessary 
     to cover reasonable expenses incurred by the Copyright Office 
     for the collection and administration of the statements of 
     account and any royalty fees deposited with such 
     statements.''.

     SEC. 507. TERMINATION OF LICENSE.

       Section 1003(a)(2)(A) of Public Law 111-118 is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2014''.

     SEC. 508. CONSTRUCTION.

       Nothing in section 111, 119, or 122 of title 17, United 
     States Code, including the amendments made to such sections 
     by this subtitle, shall be construed to affect the meaning of 
     any terms under the Communications Act of 1934, except to the 
     extent that such sections are specifically cross-referenced 
     in such Act or the regulations issued thereunder.
                 Subtitle B--Communications Provisions

     SEC. 521. REFERENCE.

       Except as otherwise provided, whenever in this subtitle an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of the Communications Act of 1934 (47 U.S.C. 151 et 
     seq.).

     SEC. 522. EXTENSION OF AUTHORITY.

       Section 325(b) is amended--
       (1) in paragraph (2)(C), by striking ``February 28, 2010'' 
     and inserting ``December 31, 2014''; and
       (2) in paragraph (3)(C), by striking ``March 1, 2010'' each 
     place it appears in clauses (ii) and (iii) and inserting 
     ``January 1, 2015''.

     SEC. 523. SIGNIFICANTLY VIEWED STATIONS.

       (a) In General.--Paragraphs (1) and (2) of section 340(b) 
     are amended to read as follows:
       ``(1) Service limited to subscribers taking local-into-
     local service.--This section shall apply only to 
     retransmissions to subscribers of a satellite carrier who 
     receive retransmissions of a signal from that satellite 
     carrier pursuant to section 338.
       ``(2) Service limitations.--A satellite carrier may 
     retransmit to a subscriber in high definition format the 
     signal of a station determined by the Commission to be 
     significantly viewed under subsection (a) only if such 
     carrier also retransmits in high definition format the signal 
     of a station located in the local market of such subscriber 
     and affiliated with the same network whenever such format is 
     available from such station.''.
       (b) Rulemaking Required.--Within 180 days after the date of 
     the enactment of this Act, the Federal Communications 
     Commission shall take all actions necessary to promulgate a 
     rule to implement the amendments made by subsection (a).

     SEC. 524. DIGITAL TELEVISION TRANSITION CONFORMING 
                   AMENDMENTS.

       (a) Section 338.--Section 338 is amended--

[[Page 2521]]

       (1) in subsection (a), by striking ``(3)  effective date.--
     No satellite'' and all that follows through ``until January 
     1, 2002.''; and
       (2) by amending subsection (g) to read as follows:
       ``(g) Carriage of Local Stations on a Single Reception 
     Antenna.--
       ``(1) Single reception antenna.--Each satellite carrier 
     that retransmits the signals of local television broadcast 
     stations in a local market shall retransmit such stations in 
     such market so that a subscriber may receive such stations by 
     means of a single reception antenna and associated equipment.
       ``(2) Additional reception antenna.--If the carrier 
     retransmits the signals of local television broadcast 
     stations in a local market in high definition format, the 
     carrier shall retransmit such signals in such market so that 
     a subscriber may receive such signals by means of a single 
     reception antenna and associated equipment, but such antenna 
     and associated equipment may be separate from the single 
     reception antenna and associated equipment used to comply 
     with paragraph (1).''.
       (b) Section 339.--Section 339 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(B), by striking ``Such two network 
     stations'' and all that follows through ``more than two 
     network stations.''; and
       (B) in paragraph (2)--
       (i) in the heading for subparagraph (A), by striking ``to 
     analog signals'';
       (ii) in subparagraph (A)--

       (I) in the heading for clause (i), by striking ``analog'';
       (II) in clause (i)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``October 1, 2004'' and inserting 
     ``October 1, 2009'';

       (III) in the heading for clause (ii), by striking 
     ``analog''; and
       (IV) in clause (ii)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``2004'' and inserting ``2009'';
       (iii) by amending subparagraph (B) to read as follows:
       ``(B) Rules for other subscribers.--
       ``(i) In general.--In the case of a subscriber of a 
     satellite carrier who is eligible to receive the signal of a 
     network station under this section (in this subparagraph 
     referred to as a `distant signal'), other than subscribers to 
     whom subparagraph (A) applies, the following shall apply:

       ``(I) In a case in which the satellite carrier makes 
     available to that subscriber, on January 1, 2005, the signal 
     of a local network station affiliated with the same 
     television network pursuant to section 338, the carrier may 
     only provide the secondary transmissions of the distant 
     signal of a station affiliated with the same network to that 
     subscriber if the subscriber's satellite carrier, not later 
     than March 1, 2005, submits to that television network the 
     list and statement required by subparagraph (F)(i).
       ``(II) In a case in which the satellite carrier does not 
     make available to that subscriber, on January 1, 2005, the 
     signal of a local network station pursuant to section 338, 
     the carrier may only provide the secondary transmissions of 
     the distant signal of a station affiliated with the same 
     network to that subscriber if--

       ``(aa) that subscriber seeks to subscribe to such distant 
     signal before the date on which such carrier commences to 
     carry pursuant to section 338 the signals of stations from 
     the local market of such local network station; and
       ``(bb) the satellite carrier, within 60 days after such 
     date, submits to each television network the list and 
     statement required by subparagraph (F)(ii).
       ``(ii) Special circumstances.--A subscriber of a satellite 
     carrier who was lawfully receiving the distant signal of a 
     network station on the day before the date of enactment of 
     the Satellite Television Extension and Localism Act of 2010 
     may receive both such distant signal and the local signal of 
     a network station affiliated with the same network until such 
     subscriber chooses to no longer receive such distant signal 
     from such carrier, whether or not such subscriber elects to 
     subscribe to such local signal.'';
       (iv) in subparagraph (C)--

       (I) by striking ``analog'';
       (II) in clause (i), by striking ``the Satellite Home Viewer 
     Extension and Reauthorization Act of 2004; and'' and 
     inserting the following:

     ``the Satellite Television Extension and Localism Act of 2010 
     and, at the time such person seeks to subscribe to receive 
     such secondary transmission, resides in a local market where 
     the satellite carrier makes available to that person the 
     signal of a local network station affiliated with the same 
     television network pursuant to section 338 (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber); or''; and

       (III) by amending clause (ii) to read as follows:

       ``(ii) lawfully subscribes to and receives a distant signal 
     on or after the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, and, subsequent to such 
     subscription, the satellite carrier makes available to that 
     subscriber the signal of a local network station affiliated 
     with the same network as the distant signal (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber), unless such person subscribes to the signal of 
     the local network station within 60 days after such signal is 
     made available.'';
       (v) in subparagraph (D)--

       (I) in the heading, by striking ``digital'';
       (II) by striking clauses (i), (iii) through (v), (vii) 
     through (ix), and (xi);
       (III) by redesignating clause (vi) as clause (i) and 
     transferring such clause to appear before clause (ii);
       (IV) by amending such clause (i) (as so redesignated) to 
     read as follows:

       ``(i) Eligibility and signal testing.--A subscriber of a 
     satellite carrier shall be eligible to receive a distant 
     signal of a network station affiliated with the same network 
     under this section if, with respect to a local network 
     station, such subscriber--

       ``(I) is a subscriber whose household is not predicted by 
     the model specified in subsection (c)(3) to receive the 
     signal intensity required under section 73.622(e)(1) or, in 
     the case of a low-power station or translator station 
     transmitting an analog signal, section 73.683(a) of title 47, 
     Code of Federal Regulations, or a successor regulation;
       ``(II) is determined, based on a test conducted in 
     accordance with section 73.686(d) of title 47, Code of 
     Federal Regulations, or any successor regulation, not to be 
     able to receive a signal that exceeds the signal intensity 
     standard in section 73.622(e)(1) or, in the case of a low-
     power station or translator station transmitting an analog 
     signal, section 73.683(a) of such title, or a successor 
     regulation; or
       ``(III) is in an unserved household, as determined under 
     section 119(d)(10)(A) of title 17, United States Code.'';
       (V) in clause (ii)--

       (aa) by striking ``digital'' in the heading;
       (bb) by striking ``digital'' the first two places such term 
     appears;
       (cc) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (dd) by striking ``, whether or not such subscriber elects 
     to subscribe to local digital signals'';

       (VI) by inserting after clause (ii) the following new 
     clause:

       ``(iii) Time-shifting prohibited.--In a case in which the 
     satellite carrier makes available to an eligible subscriber 
     under this subparagraph the signal of a local network station 
     pursuant to section 338, the carrier may only provide the 
     distant signal of a station affiliated with the same network 
     to that subscriber if, in the case of any local market in the 
     48 contiguous States of the United States, the distant signal 
     is the secondary transmission of a station whose prime time 
     network programming is generally broadcast simultaneously 
     with, or later than, the prime time network programming of 
     the affiliate of the same network in the local market.''; and

       (VII) by redesignating clause (x) as clause (iv); and

       (vi) in subparagraph (E), by striking ``distant analog 
     signal or'' and all that follows through ``(B), or (D))'' and 
     inserting ``distant signal'';
       (2) in subsection (c)--
       (A) by amending paragraph (3) to read as follows:
       ``(3) Establishment of improved predictive model and on-
     location testing required.--
       ``(A) Predictive model.--Within 180 days after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the Commission shall develop and 
     prescribe by rule a point-to-point predictive model for 
     reliably and presumptively determining the ability of 
     individual locations, through the use of an antenna, to 
     receive signals in accordance with the signal intensity 
     standard in section 73.622(e)(1) of title 47, Code of Federal 
     Regulations, or a successor regulation, including to account 
     for the continuing operation of translator stations and low 
     power television stations. In prescribing such model, the 
     Commission shall rely on the Individual Location Longley-Rice 
     model set forth by the Commission in CS Docket No. 98-201, as 
     previously revised with respect to analog signals, and as 
     recommended by the Commission with respect to digital signals 
     in its Report to Congress in ET Docket No. 05-182, FCC 05-199 
     (released December 9, 2005). The Commission shall establish 
     procedures for the continued refinement in the application of 
     the model by the use of additional data as it becomes 
     available.
       ``(B) On-location testing.--The Commission shall issue an 
     order completing its rulemaking proceeding in ET Docket No. 
     06-94 within 180 days after the date of enactment of the 
     Satellite Television Extension and Localism Act of 2010. In 
     conducting such rulemaking, the Commission shall seek ways to 
     minimize consumer burdens associated with on-location 
     testing.'';
       (B) by amending paragraph (4)(A) to read as follows:
       ``(A) In general.--If a subscriber's request for a waiver 
     under paragraph (2) is rejected and the subscriber submits to 
     the subscriber's satellite carrier a request for a test 
     verifying the subscriber's inability to receive

[[Page 2522]]

      a signal of the signal intensity referenced in clause (i) of 
     subsection (a)(2)(D), the satellite carrier and the network 
     station or stations asserting that the retransmission is 
     prohibited with respect to that subscriber shall select a 
     qualified and independent person to conduct the test 
     referenced in such clause. Such test shall be conducted 
     within 30 days after the date the subscriber submits a 
     request for the test. If the written findings and conclusions 
     of a test conducted in accordance with such clause 
     demonstrate that the subscriber does not receive a signal 
     that meets or exceeds the requisite signal intensity standard 
     in such clause, the subscriber shall not be denied the 
     retransmission of a signal of a network station under section 
     119(d)(10)(A) of title 17, United States Code.'';
       (C) in paragraph (4)(B), by striking ``the signal 
     intensity'' and all that follows through ``United States 
     Code'' and inserting ``such requisite signal intensity 
     standard''; and
       (D) in paragraph (4)(E), by striking ``Grade B intensity''.
       (c) Section 340.--Section 340(i) is amended by striking 
     paragraph (4).

     SEC. 525. APPLICATION PENDING COMPLETION OF RULEMAKINGS.

       (a) In General.--During the period beginning on the date of 
     the enactment of this Act and ending on the date on which the 
     Federal Communications Commission adopts rules pursuant to 
     the amendments to the Communications Act of 1934 made by 
     section 523 and section 524 of this title, the Federal 
     Communications Commission shall follow its rules and 
     regulations promulgated pursuant to sections 338, 339, and 
     340 of the Communications Act of 1934 as in effect on the day 
     before the date of the enactment of this Act.
       (b) Translator Stations and Low Power Television 
     Stations.--Notwithstanding subsection (a), for purposes of 
     determining whether a subscriber within the local market 
     served by a translator station or a low power television 
     station affiliated with a television network is eligible to 
     receive distant signals under section 339 of the 
     Communications Act of 1934, the rules and regulations of the 
     Federal Communications Commission for determining such 
     subscriber's eligibility as in effect on the day before the 
     date of the enactment of this Act shall apply until the date 
     on which the translator station or low power television 
     station is licensed to broadcast a digital signal.
       (c) Definitions.--As used in this subtitle:
       (1) Local market; low power television station; satellite 
     carrier; subscriber; television broadcast station.--The terms 
     ``local market'', ``low power television station'', 
     ``satellite carrier'', ``subscriber'', and ``television 
     broadcast station'' have the meanings given such terms in 
     section 338(k) of the Communications Act of 1934.
       (2) Network station; television network.--The terms 
     ``network station'' and ``television network'' have the 
     meanings given such terms in section 339(d) of such Act.

     SEC. 526. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       Part I of title III is amended by adding at the end the 
     following new section:

     ``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       ``(a) Certification.--The Commission shall issue a 
     certification for the purposes of section 119(g)(3)(A)(iii) 
     of title 17, United States Code, if the Commission determines 
     that--
       ``(1) a satellite carrier is providing local service 
     pursuant to the statutory license under section 122 of such 
     title in each designated market area; and
       ``(2) with respect to each designated market area in which 
     such satellite carrier was not providing such local service 
     as of the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010--
       ``(A) the satellite carrier's satellite beams are designed, 
     and predicted by the satellite manufacturer's pre-launch test 
     data, to provide a good quality satellite signal to at least 
     90 percent of the households in each such designated market 
     area based on the most recent census data released by the 
     United States Census Bureau; and
       ``(B) there is no material evidence that there has been a 
     satellite or sub-system failure subsequent to the satellite's 
     launch that precludes the ability of the satellite carrier to 
     satisfy the requirements of subparagraph (A).
       ``(b) Information Required.--Any entity seeking the 
     certification provided for in subsection (a) shall submit to 
     the Commission the following information:
       ``(1) An affidavit stating that, to the best of the 
     affiant's knowledge, the satellite carrier provides local 
     service in all designated market areas pursuant to the 
     statutory license provided for in section 122 of title 17, 
     United States Code, and listing those designated market areas 
     in which local service was provided as of the date of 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.
       ``(2) For each designated market area not listed in 
     paragraph (1):
       ``(A) Identification of each such designated market area 
     and the location of its local receive facility.
       ``(B) Data showing the number of households, and maps 
     showing the geographic distribution thereof, in each such 
     designated market area based on the most recent census data 
     released by the United States Census Bureau.
       ``(C) Maps, with superimposed effective isotropically 
     radiated power predictions obtained in the satellite 
     manufacturer's pre-launch tests, showing that the contours of 
     the carrier's satellite beams as designed and the geographic 
     area that the carrier's satellite beams are designed to cover 
     are predicted to provide a good quality satellite signal to 
     at least 90 percent of the households in such designated 
     market area based on the most recent census data released by 
     the United States Census Bureau.
       ``(D) For any satellite relied upon for certification under 
     this section, an affidavit stating that, to the best of the 
     affiant's knowledge, there have been no satellite or sub-
     system failures subsequent to the satellite's launch that 
     would degrade the design performance to such a degree that a 
     satellite transponder used to provide local service to any 
     such designated market area is precluded from delivering a 
     good quality satellite signal to at least 90 percent of the 
     households in such designated market area based on the most 
     recent census data released by the United States Census 
     Bureau.
       ``(E) Any additional engineering, designated market area, 
     or other information the Commission considers necessary to 
     determine whether the Commission shall grant a certification 
     under this section.
       ``(c) Certification Issuance.--
       ``(1) Public comment.--The Commission shall provide 30 days 
     for public comment on a request for certification under this 
     section.
       ``(2) Deadline for decision.--The Commission shall grant or 
     deny a request for certification within 90 days after the 
     date on which such request is filed.
       ``(d) Subsequent Affirmation.--An entity granted qualified 
     carrier status pursuant to section 119(g) of title 17, United 
     States Code, shall file an affidavit with the Commission 30 
     months after such status was granted stating that, to the 
     best of the affiant's knowledge, it is in compliance with the 
     requirements for a qualified carrier.
       ``(e) Definitions.--For the purposes of this section:
       ``(1) Designated market area.--The term `designated market 
     area' has the meaning given such term in section 122(j)(2)(C) 
     of title 17, United States Code.
       ``(2) Good quality satellite signal.--
       ``(A) In general.--The term ``good quality satellite 
     signal'' means--
       ``(i) a satellite signal whose power level as designed 
     shall achieve reception and demodulation of the signal at an 
     availability level of at least 99.7 percent using--

       ``(I) models of satellite antennas normally used by the 
     satellite carrier's subscribers; and
       ``(II) the same calculation methodology used by the 
     satellite carrier to determine predicted signal availability 
     in the top 100 designated market areas; and

       ``(ii) taking into account whether a signal is in standard 
     definition format or high definition format, compression 
     methodology, modulation, error correction, power level, and 
     utilization of advances in technology that do not circumvent 
     the intent of this section to provide for non-discriminatory 
     treatment with respect to any comparable television broadcast 
     station signal, a video signal transmitted by a satellite 
     carrier such that--

       ``(I) the satellite carrier treats all television broadcast 
     stations' signals the same with respect to statistical 
     multiplexer prioritization; and
       ``(II) the number of video signals in the relevant 
     satellite transponder is not more than the then current 
     greatest number of video signals carried on any equivalent 
     transponder serving the top 100 designated market areas.

       ``(B) Determination.--For the purposes of subparagraph (A), 
     the top 100 designated market areas shall be as determined by 
     Nielsen Media Research and published in the Nielsen Station 
     Index Directory and Nielsen Station Index United States 
     Television Household Estimates or any successor publication 
     as of the date of a satellite carrier's application for 
     certification under this section.''.

     SEC. 527. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION 
                   DIGITAL SIGNALS OF NONCOMMERCIAL EDUCATIONAL 
                   TELEVISION STATIONS.

       (a) In General.--Section 338(a) is amended by adding at the 
     end the following new paragraph:
       ``(5) Nondiscrimination in carriage of high definition 
     signals of noncommercial educational television stations.--
       ``(A) Existing carriage of high definition signals.--If, 
     before the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, an eligible satellite 
     carrier is providing, under section 122 of title 17, United 
     States Code, any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of qualified noncommercial 
     educational television stations located within that local 
     market in accordance with the following schedule:
       ``(i) By December 31, 2010, in at least 50 percent of the 
     markets in which such satellite

[[Page 2523]]

     carrier provides such secondary transmissions in high 
     definition format.
       ``(ii) By December 31, 2011, in every market in which such 
     satellite carrier provides such secondary transmissions in 
     high definition format.
       ``(B) New initiation of service.--If, on or after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010, an eligible satellite carrier initiates 
     the provision, under section 122 of title 17, United States 
     Code, of any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of all qualified 
     noncommercial educational television stations located within 
     that local market.''.
       (b) Definitions.--Section 338(k) is amended--
       (1) by redesignating paragraphs (2) through (8) as 
     paragraphs (3) through (9), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Eligible satellite carrier.--The term `eligible 
     satellite carrier' means any satellite carrier that is not a 
     party to a carriage contract that--
       ``(A) governs carriage of at least 30 qualified 
     noncommercial educational television stations; and
       ``(B) is in force and effect within 60 days after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010.'';
       (3) by redesignating paragraphs (6) through (9) (as 
     previously redesignated) as paragraphs (7) through (10), 
     respectively; and
       (4) by inserting after paragraph (5) (as so redesignated) 
     the following new paragraph:
       ``(6) Qualified noncommercial educational television 
     station.--The term `qualified noncommercial educational 
     television station' means any full-power television broadcast 
     station that--
       ``(A) under the rules and regulations of the Commission in 
     effect on March 29, 1990, is licensed by the Commission as a 
     noncommercial educational broadcast station and is owned and 
     operated by a public agency, nonprofit foundation, nonprofit 
     corporation, or nonprofit association; and
       ``(B) has as its licensee an entity that is eligible to 
     receive a community service grant, or any successor grant 
     thereto, from the Corporation for Public Broadcasting, or any 
     successor organization thereto, on the basis of the formula 
     set forth in section 396(k)(6)(B) of this title.''.

     SEC. 528. SAVINGS CLAUSE REGARDING DEFINITIONS.

       Nothing in this subtitle or the amendments made by this 
     subtitle shall be construed to affect--
       (1) the meaning of the terms ``program related'' and 
     ``primary video'' under the Communications Act of 1934; or
       (2) the meaning of the term ``multicast'' in any 
     regulations issued by the Federal Communications Commission.

     SEC. 529. STATE PUBLIC AFFAIRS BROADCASTS.

       Section 335(b) is amended--
       (1) by inserting ``STATE PUBLIC AFFAIRS,'' after 
     ``EDUCATIONAL,'' in the heading;
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Channel capacity required.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Commission shall require, as a condition of any 
     provision, initial authorization, or authorization renewal 
     for a provider of direct broadcast satellite service 
     providing video programming, that the provider of such 
     service reserve a portion of its channel capacity, equal to 
     not less than 4 percent nor more than 7 percent, exclusively 
     for noncommercial programming of an educational or 
     informational nature.
       ``(B) Requirement for qualified satellite provider.--The 
     Commission shall require, as a condition of any provision, 
     initial authorization, or authorization renewal for a 
     qualified satellite provider of direct broadcast satellite 
     service providing video programming, that such provider 
     reserve a portion of its channel capacity, equal to not less 
     than 3.5 percent nor more than 7 percent, exclusively for 
     noncommercial programming of an educational or informational 
     nature.'';
       (3) in paragraph (5), by striking ``For purposes of the 
     subsection--'' and inserting ``For purposes of this 
     subsection:''; and
       (4) by adding at the end of paragraph (5) the following:
       ``(C) The term `qualified satellite provider' means any 
     provider of direct broadcast satellite service that--
       ``(i) provides the retransmission of the State public 
     affairs networks of at least 15 different States;
       ``(ii) offers the programming of State public affairs 
     networks upon reasonable prices, terms, and conditions as 
     determined by the Commission under paragraph (4); and
       ``(iii) does not delete any noncommercial programming of an 
     educational or informational nature in connection with the 
     carriage of a State public affairs network.
       ``(D) The term `State public affairs network' means a non-
     commercial non-broadcast network or a noncommercial 
     educational television station--
       ``(i) whose programming consists of information about State 
     government deliberations and public policy events; and
       ``(ii) that is operated by--

       ``(I) a State government or subdivision thereof;
       ``(II) an organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986 that is exempt from 
     taxation under section 501(a) of such Code and that is 
     governed by an independent board of directors; or
       ``(III) a cable system.''.

               Subtitle C--Reports and Savings Provision

     SEC. 531. DEFINITION.

       In this subtitle, the term ``appropriate Congressional 
     committees'' means the Committees on the Judiciary and on 
     Commerce, Science, and Transportation of the Senate and the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives.

     SEC. 532. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY 
                   LICENSING.

       Not later than 1 year after the date of the enactment of 
     this Act, and after consultation with the Federal 
     Communications Commission, the Register of Copyrights shall 
     submit to the appropriate Congressional committees a report 
     containing--
       (1) proposed mechanisms, methods, and recommendations on 
     how to implement a phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code, by making such sections inapplicable 
     to the secondary transmission of a performance or display of 
     a work embodied in a primary transmission of a broadcast 
     station that is authorized to license the same secondary 
     transmission directly with respect to all of the performances 
     and displays embodied in such primary transmission;
       (2) any recommendations for alternative means to implement 
     a timely and effective phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code; and
       (3) any recommendations for legislative or administrative 
     actions as may be appropriate to achieve such a phase-out.

     SEC. 533. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY 
                   LICENSING MODIFICATIONS.

       (a) Study.--The Comptroller General shall conduct a study 
     that analyzes and evaluates the changes to the carriage 
     requirements currently imposed on multichannel video 
     programming distributors under the Communications Act of 1934 
     (47 U.S.C. 151 et seq.) and the regulations promulgated by 
     the Federal Communications Commission that would be required 
     or beneficial to consumers, and such other matters as the 
     Comptroller General deems appropriate, if Congress 
     implemented a phase-out of the current statutory licensing 
     requirements set forth under sections 111, 119, and 122 of 
     title 17, United States Code. Among other things, the study 
     shall consider the impact such a phase-out and related 
     changes to carriage requirements would have on consumer 
     prices and access to programming.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall report 
     to the appropriate Congressional committees the results of 
     the study, including any recommendations for legislative or 
     administrative actions.

     SEC. 534. REPORT ON IN-STATE BROADCAST PROGRAMMING.

       Not later than 1 year after the date of the enactment of 
     this Act, the Federal Communications Commission shall submit 
     to the appropriate Congressional committees a report 
     containing an analysis of--
       (1) the number of households in a State that receive the 
     signals of local broadcast stations assigned to a community 
     of license that is located in a different State;
       (2) the extent to which consumers in each local market have 
     access to in-state broadcast programming over the air or from 
     a multichannel video programming distributor; and
       (3) whether there are alternatives to the use of designated 
     market areas, as defined in section 122 of title 17, United 
     States Code, to define local markets that would provide more 
     consumers with in-state broadcast programming.

     SEC. 535. LOCAL NETWORK CHANNEL BROADCAST REPORTS.

       (a) Requirement.--
       (1) In general.--On the 180th day after the date of the 
     enactment of this Act, and on each succeeding anniversary of 
     such 180th day, each satellite carrier shall submit an annual 
     report to the Federal Communications Commission setting 
     forth--
       (A) each local market in which it--
       (i) retransmits signals of 1 or more television broadcast 
     stations with a community of license in that market;
       (ii) has commenced providing such signals in the preceding 
     1-year period; and
       (iii) has ceased to provide such signals in the preceding 
     1-year period; and
       (B) detailed information regarding the use and potential 
     use of satellite capacity for the retransmission of local 
     signals in each local market.
       (2) Termination.--The requirement under paragraph (1) shall 
     cease after each satellite carrier has submitted 5 reports 
     under such paragraph.

[[Page 2524]]

       (b) FCC Study; Report.--
       (1) Study.--If no satellite carrier files a request for a 
     certification under section 342 of the Communications Act of 
     1934 (as added by section 526 of this title) within 180 days 
     after the date of the enactment of this Act, the Federal 
     Communications Commission shall initiate a study of--
       (A) incentives that would induce a satellite carrier to 
     provide the signals of 1 or more television broadcast 
     stations licensed to provide signals in local markets in 
     which the satellite carrier does not provide such signals; 
     and
       (B) the economic and satellite capacity conditions 
     affecting delivery of local signals by satellite carriers to 
     these markets.
       (2) Report.--Within 1 year after the date of the initiation 
     of the study under paragraph (1), the Federal Communications 
     Commission shall submit a report to the appropriate 
     Congressional committees containing its findings, 
     conclusions, and recommendations.
       (c) Definitions.--In this section--
       (1) the terms ``local market'' and ``satellite carrier'' 
     have the meaning given such terms in section 339(d) of the 
     Communications Act of 1934 (47 U.S.C. 339(d)); and
       (2) the term ``television broadcast station'' has the 
     meaning given such term in section 325(b)(7) of such Act (47 
     U.S.C. 325(b)(7)).

     SEC. 536. SAVINGS PROVISION REGARDING USE OF NEGOTIATED 
                   LICENSES.

       (a) In General.--Nothing in this title, title 17, United 
     States Code, the Communications Act of 1934, regulations 
     promulgated by the Register of Copyrights under this title or 
     title 17, United States Code, or regulations promulgated by 
     the Federal Communications Commission under this title or the 
     Communications Act of 1934 shall be construed to prevent a 
     multichannel video programming distributor from 
     retransmitting a performance or display of a work pursuant to 
     an authorization granted by the copyright owner or, if within 
     the scope of its authorization, its licensee.
       (b) Limitation.--Nothing in subsection (a) shall be 
     construed to affect any obligation of a multichannel video 
     programming distributor under section 325(b) of the 
     Communications Act of 1934 to obtain the authority of a 
     television broadcast station before retransmitting that 
     station's signal.

     SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.

       Unless specifically provided otherwise, this title, and the 
     amendments made by this title, shall take effect on February 
     27, 2010, and all references to enactment of this Act shall 
     be deemed to refer to such date unless otherwise specified. 
     The secondary transmission of a performance or display of a 
     work embodied in a primary transmission is not an 
     infringement of copyright if it was made by a satellite 
     carrier on or after February 27, 2010 and prior to enactment 
     of this Act, and was in compliance with the law as in 
     existence on February 27, 2010.
                        Subtitle D--Severability

     SEC. 541. SEVERABILITY.

       If any provision of this title, an amendment made by this 
     title, or the application of such provision or amendment to 
     any person or circumstance is held to be unconstitutional, 
     the remainder of this title, the amendments made by this 
     title, and the application of such provision or amendment to 
     any person or circumstance shall not be affected thereby.
                       TITLE VI--OTHER PROVISIONS

     SEC. 601. INCREASE IN THE MEDICARE PHYSICIAN PAYMENT UPDATE.

       Paragraph (10) of section 1848(d) of the Social Security 
     Act, as added by section 1011(a) of the Department of Defense 
     Appropriations Act, 2010 (Public Law 111-118), is amended--
       (1) in subparagraph (A), by striking ``February 28, 2010'' 
     and inserting ``September 30, 2010''; and
       (2) in subparagraph (B), by striking ``March 1, 2010'' and 
     inserting ``October 1, 2010''.
             TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

     SEC. 701. DETERMINATION OF BUDGETARY EFFECTS.

       (a) In General.--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.
       (b) Emergency Designation.--Sections 201, 211, and 232 of 
     this Act are designated as an emergency requirement pursuant 
     to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 
     (Public Law 111-139; 2 U.S.C. 933(g)) and section 403(a) of 
     S. Con. Res. 13 (111th Congress), the concurrent resolution 
     on the budget for fiscal year 2010. In the House of 
     Representatives, sections 201, 211, and 232 of this Act are 
     designated as an emergency for purposes of pay-as-you-go 
     principles.  
                     TITLE VIII--ADDITIONAL OFFSETS

     SEC. 801. REPEAL OF INCREASE OF THE OFFICE BUDGETS OF MEMBERS 
                   OF CONGRESS.

       Of the funds made available under Public Law 111-68 for the 
     legislative branch, $245,000,000 in unobligated balances are 
     permanently rescinded: Provided, That none of the funding 
     available for the Legislative Branch be available for any 
     pilot program for mailings of postal patron postcards by 
     Senators for the purpose of providing notice of a town 
     meeting by a Senator in a county (or equivalent unit of local 
     government) at which the Senator will personally attend.

     SEC. 802. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   AGRICULTURE.

       Of the funds made available under Public Law 111-80 for the 
     Department of Agriculture, $1,342,800,000 in unobligated 
     balances are permanently rescinded: Provided, That as 
     proposed by the President's FY 2010 budget, no funding may be 
     available for the Economic Action Program, which is 
     duplicative of USDA's Urban and Community Forestry program, 
     has been poorly managed, and has funded questionable 
     initiatives such as music festivals:  Provided further, That 
     no funding may be available for the High Energy Cost grant 
     program, which is duplicative of the $6,000,000,000 in low 
     interest loan programs offered by the UDSA's Rural Utilities 
     Service: Provided further, That as included in the 
     Congressional Budget Office's August 2009 Budget Options 
     document, which states that the program ``merely replaces 
     private spending with public spending'', no funding may be 
     available for the Foreign Market Development Program, which 
     also duplicates the Foreign Agricultures Service's Market 
     Access Program: Provided further, That the Secretary shall 
     consolidate and reduce the cost of administering the numerous 
     programs administered by the Department relating to 
     encouraging conservation, including the Conservation 
     Stewardship Program, which the Government Accountability 
     Office revealed in 2006 is duplicative of other USDA 
     conservations efforts, including the Conservation Reserve 
     Program, the Wetlands Reserve Program, the Farmland 
     Protection Program, the Wildlife Habitat Program, and the 
     Grassland Reserve Program: Provided further, That the 
     Secretary shall work with the Secretary of Energy to 
     consolidate and reduce the cost of administering the numerous 
     programs administered by both Departments relating to 
     bioenergy promotion, including the Department of Energy's 
     Biomass Program, the Department of Agriculture's Biomass Crop 
     Assistance Program, the Biorefinery Program for Advanced 
     Fuels Program, and the Biobased Products and Bioenergy 
     Program, the Biorefinery Repowering Assistance Program, the 
     New Era Rural Technology Competitive Grants Program, and the 
     Feedstock Flexibility Program: Provided further, That the 
     Secretary shall work with the Secretary of Energy to 
     consolidate and reduce the cost of administering the numerous 
     programs administered by both Departments relating to 
     alternative energy, including the Department of Energy's 
     Geothermal Technology Program, Wind Energy Program, and the 
     Solar Energy Technologies Program, and the Department of 
     Agriculture's Rural Energy for America Program: the Secretary 
     shall consolidate and reduce the cost of administering the 
     numerous programs administered by the Department that provide 
     food assistance to foreign countries, including the USAD 
     Foreign Agricultural Service, the food for Progress Program, 
     the McGovern-Dole International Food for Education and Child 
     Nutrition Program, the food for Peace programs, the Bill 
     Emerson Humanitarian Trust, and the Local and Regional 
     Procurement Projects; Provided further, That for any program 
     for which funding is prohibited in this section, any 
     activities under that program that are deemed by the 
     Secretary to be necessary or essential, the Secretary shall 
     assign to an existing program for which funding is not 
     prohibited in this section.

     SEC. 803. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   COMMERCE.

       Of the funds made available under Public Law 111-117 for 
     the Department of Commerce, $697,850,000 in unobligated 
     balances are permanently rescinded: Provided, That the 
     Secretary shall work with the Secretary of Agriculture to 
     consolidate and reduce the cost of administering the programs 
     administered by both Departments that provide rural public 
     telecom grants, including eliminating USDA's grants to rural 
     public broadcasting stations, as proposed by the President's 
     FY 2010 budget, which duplicates the Department of Commerce's 
     Public Telecommunications Facilities Program, and the 
     Corporation for Public Broadcasting, which also receives 
     Federal funding: Provided further, That no funding may be 
     made available for the Hollings Manufacturing Extension 
     Partnership Program, which duplicates the Small Business 
     Administration's Small Business Development Centers and which 
     has been found by the Office of Management and Budget to 
     ``only serve a small percentage of small manufactures each 
     year'': Provided further, That the Secretary shall work with 
     the Secretaries of Housing and Rural Development and 
     Agriculture to consolidate and reduce the cost of 
     administering the programs administered by these Departments 
     relating to Economic Development, including the following 
     programs, the Economic Development Administration, the 
     Community Development Block Grants, Rural Development 
     Administration grants, the National Community Development 
     Initiative, the

[[Page 2525]]

     Brownfields Economic Development Initiative, the Rural 
     Housing and Economic Development grants, the Community 
     Service Block Grants, the Delta Regional Authority, the 
     Community Economic Development grants, and the Historically 
     Underutilized Business Zone program: Provided further, That 
     for any program for which funding is prohibited in this 
     section, any activities under that program that are deemed by 
     the Secretary to be necessary or essential, the Secretary 
     shall assign to an existing program for which funding is not 
     prohibited in this section.

     SEC. 804. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   EDUCATION.

       Of the funds made available under Public Law 111-117 for 
     the Department of Education, $3,213,800,000 in unobligated 
     balances are permanently rescinded: Provided, That the 
     Secretary shall work with Secretaries from other Federal 
     Departments to consolidate and reduce the cost of 
     administering the at least 30 Federal programs that provide 
     financial assistance to students to support postsecondary 
     education in the forms of grants, scholarships, fellowships, 
     and other types of stipends, including the 15 such programs 
     at the Department of Education, such as the Academic 
     Competitiveness Grants, the TEACH grants, the Federal 
     Supplemental Education Opportunity Grants, the Leveraging 
     Educational Assistance Program, the Javits Fellowships 
     Program, Graduate Assistance in Areas of National Need 
     program, as well as the three similar programs administered 
     by the National Science Foundation, such as the Robert Noyce 
     Teacher Scholarship program, as well as a program at the 
     Department of Justice and one at the Health Resources 
     Administration: Provided further, That the Secretary shall 
     work with Secretaries from other Federal Departments to 
     consolidate and reduce the cost of administering the at least 
     69 Federal programs dedicated in full or in part to 
     supporting early childhood education and child care, as 
     outlined by the Government Accountability Office, which found 
     that these 69 education programs are spread across 10 
     different agencies: Provided further, That the Secretary 
     shall work with Secretaries from other Federal Departments to 
     consolidate and reduce the cost of administering the at least 
     105 Federal science, technology, math, and engineering 
     education programs, as outlined by the Academic 
     Competitiveness Council, which found that these 105 education 
     programs are spread across numerous Federal agencies: 
     Provided further, That the Secretary shall work with 
     Secretaries from other Federal Departments to consolidate and 
     reduce the cost of administering the numerous student foreign 
     exchange and international education programs, including the 
     at least 14 programs at the Department, including the 
     American Overseas Research Centers, Business and 
     International Education, Centers for International Business 
     Education, the Foreign Language and Area Studies Fellowships, 
     the Institute for International Public Policy, the 
     International Research and Studies, the Language Resource 
     Centers, the National Resource Centers, the Technological 
     Innovation and Cooperation for Foreign Information Access, 
     and the Undergraduate International Studies and Foreign 
     Language Program, the State Department's Benjamin A. Gilman 
     International Scholarship Program, the Boren National 
     Security Education Trust Fund, and exchange programs 
     administered by the National Science Foundation's Office of 
     International Science and Engineering.

     SEC. 805. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   ENERGY.

       Of the funds made available under Public Law 111-85 for the 
     Department of Energy, $1,321,800,000 in unobligated balances 
     are permanently rescinded: Provided, That the Secretary shall 
     work with Secretaries from other Federal Departments to 
     consolidate and reduce the cost of administering the various 
     Federal weatherization efforts, including Federal funding for 
     State-run weatherization projects, the Department of Energy's 
     Energy Conservation and Weatherization grants, as well as the 
     Department of Energy's building Technologies Program, the 
     LIHEAP weatherization efforts, the National Park Service's 
     Weatherization and Improving the Energy Efficiency of 
     Historic Buildings program, and the Department of Housing and 
     Urban Development's Energy Innovation Fund: Provided further, 
     That the Secretary shall consolidate and reduce the cost of 
     administering the various energy grant programs, including 
     the Tribal Energy grant program, which overlaps with the 
     Department's Energy Efficiency and Conservation Block Grants, 
     and the Energy Start Energy Efficient appliance Rebate 
     Program: Provided further, That the Secretary shall 
     consolidate and reduce the cost of administering the various 
     vehicle technology programs at the Department, including the 
     Vehicle Technologies program, the Advanced Battery 
     Manufacturing grants, the Advanced Technology Vehicles 
     Manufacturing Loans Program, and the Innovative Technology 
     Loan Guarantee Program.

     SEC. 806. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   HEALTH AND HUMAN SERVICES.

       Of the funds made available under Public Law 111-117 for 
     the Department of Health and Human Services, $4,116,950,000 
     in unobligated balances are permanently rescinded: Provided, 
     That the Secretary, in coordination with the heads of other 
     Departments and agencies, shall consolidate the programs that 
     support nonresidential buildings and facilities construction, 
     including the 29 programs across 8 Federal agencies 
     identified by the Government Accountability Office. The 
     Secretary, in coordination with the Secretary of HUD and USDA 
     and other appropriate departments and agencies, shall 
     consolidate duplicative programs intended to reduce poverty 
     and revitalize low-income communities, including the HHS 
     Community Services Block Grant, the HUD Community Development 
     Block Grant, and USDA Rural Development program: Provided 
     further, That the Secretary shall work with Secretaries from 
     other Federal Departments to consolidate and reduce the cost 
     of administering the dozens of Federal programs, across 
     multiple agencies, that funded childhood obesity programs, 
     either as the main focus or as one component of the Federal 
     program.

     SEC. 807. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   HOMELAND SECURITY.

       Of the funds made available under Public Law 111-83 for the 
     Department of Homeland Security, $2,205,000,000 in 
     unobligated balances are permanently rescinded: Provided, 
     That the Secretary shall work with Secretaries from other 
     Federal Departments to consolidate and reduce the cost of 
     administering the dozens of Federal homeland security 
     programs, as identified by the Office of Management and 
     Budget, which states that ``a total of 31 agency budgets 
     include Federal homeland security funding in 2010''.

     SEC. 808. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   HOUSING AND URBAN DEVELOPMENT.

       Of the funds made available under Public Law 111-117 for 
     the Department of Housing and Urban Development, 
     $2,302,450,000 in unobligated balances are permanently 
     rescinded: Provided, That the Secretary shall work with 
     Secretaries from other Federal Departments to consolidate and 
     reduce the cost of administering the various Federal programs 
     aimed at addressing homelessness, including the Supportive 
     Housing Program, the Shelter Plus Care Program, the Single 
     Room Occupancy Program, the Emergency Shelter Grant Program, 
     programs at Health and Human Services such as the Basic 
     Center Program, Projects for Assistance in Transition from 
     Homelessness, and the Street Outreach Program, and also 
     including the more than 23 housing programs identified by the 
     Government Accounting Office that target or have special 
     features for the elderly.

     SEC. 809. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   INTERIOR.

       Of the funds made available under Public Law 111-88 for the 
     Department of Interior, $606,200,000 in unobligated balances 
     are permanently rescinded: Provided, That the Secretary shall 
     consolidate and reduce the cost of administering the at least 
     11 historic preservation programs at the Department, 
     including the 9 preservation programs at the Heritage 
     Preservation Services, such as the Federal Agency 
     Preservation Assistance Program, the Historic Preservation 
     Planning Program, the Technical Preservation Services for 
     Historic Buildings, as well as the Save America's Treasures 
     Grant Program, the Advisory Council on Historic Preservation, 
     and the Preserve America program: Provided further, That the 
     Secretary shall consolidate and reduce the cost of 
     administering the various climate change impact programs at 
     the Department, including the Bureau of Indian Affairs office 
     Tackling Climate Impacts Initiative, the U.S. Geological 
     Survey's National Climate Change and Wildlife Science Center, 
     the U.S. Fish and Wildlife Service climate change 
     initiatives, and the state and tribal wildlife conservation 
     grants which are being provided to entities to adapt and 
     mitigate the impacts of climate change on wildlife: Provided 
     further, That the Secretary shall consolidate and reduce the 
     cost of administering the dozens of invasive species 
     research, monitoring, and eradication programs at the 
     Department, including the eight programs administered by the 
     U.S. Fish and Wildlife Services, the similar programs 
     administered by the Bureau of Land Management, the National 
     Park Service, and the 4 Federal councils created to 
     coordinate Federal invasive species efforts, the National 
     Invasive Species Council, the National Invasive Species 
     Information Center, the Federal Interagency Committee for the 
     Management of Noxious and Exotic Weeds, and the Aquatic 
     Nuisance Species Task Force.

[[Page 2526]]



     SEC. 810. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   JUSTICE.

       Of the funds made available under Public Law 111-117 for 
     the Department of Justice, $1,385,100,000 in unobligated 
     balances are permanently rescinded: Provided, That the 
     Attorney General in coordination with the heads of other 
     Departments and agencies, shall consolidate Federal offender 
     reentry programs, including those authorized by the Second 
     Chance Act, the DOJ Office of Justice Programs Bureau of 
     Justice Assistance Prisoner Reentry Initiative, the 
     Department of Labor Reintegration of Ex-Offenders program, 
     the Department of Education Lifeskills for State and Local 
     Inmates Programs, and the HHS Young Offender Reentry Program: 
     Provided further, That the Attorney General shall consolidate 
     the four duplicative grant programs, including the State 
     Formula Grant program, the Juvenile Delinquency Prevention 
     Block Grant program, the Challenge/Demonstration Grant 
     program, and the Title V grant program, administered under 
     the Juvenile Justice and Delinquency Prevention Act and 
     reduce the cost of administering such programs: Provided 
     further, That the Attorney General, in coordination with the 
     Secretary of Health and Human Services (HHS) and the Office 
     of National Drug Control Policy (ONDCP), shall consolidate 
     Federal programs that assist state drug courts, including 
     substance abuse treatment services for offenders, such as the 
     HHS Adult, Juvenile, and Family Drug Court program, the 
     Substance Abuse and Mental Health Services Administration 
     Drug Court Treatment Program, the DOJ Drug Court Program, the 
     ONDCP National Drug Court Institute: Provided further, That 
     the Attorney General shall eliminate the National Drug 
     Intelligence Center (NDIC) which duplicates the activities of 
     19 other drug intelligence centers and reassign any essential 
     duties performed by NDIC.

     SEC. 811. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   LABOR.

       Of the funds made available under Public Law 111-117 for 
     the Department of Labor, $679,100,000 in unobligated balances 
     are permanently rescinded: Provided, That the Secretary, in 
     coordination with the heads of other Departments and 
     agencies, shall consolidate the 18 programs administered by 
     the Department and ten programs administered by other 
     agencies that support job training and employment, such as 
     the Adult Employment and Training Activities program, 
     Dislocated Worked Employment and Training Activities, Youth 
     Activities, YouthBuild, and the Migrant and Seasonal Farmers 
     program and reduce the cost of administering such programs.

     SEC. 812. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   STATE.

       Of the funds made available under Public Law 111-117 for 
     the Department of State, $1,318,550,000 in unobligated 
     balances are permanently rescinded: Provided, That in 
     accordance with the President's FY 2010 budget, no funding 
     may be made available for the Center for Cultural and 
     Technical Interchange Between East and West, which duplicates 
     the State Departments cultural exchanges: Provided further, 
     That no funding may be made available for the Asia 
     Foundation, which duplicates efforts at USAID and the 
     National Endowment for Democracy: Provided further, That for 
     any program for which funding is prohibited in this section, 
     any activities under that program that are deemed by the 
     Secretary to be necessary or essential, the Secretary shall 
     assign to an existing program for which funding is not 
     prohibited in this section.

     SEC. 813. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   TRANSPORTATION.

       Of the funds made available under Public Law 111-117 for 
     the Department of Transportation, $1,090,500,000 in 
     unobligated balances are permanently rescinded: Provided, 
     That the Secretary shall consolidate and reduce the costs of 
     various duplicative highway programs, including the 
     regionally specific development programs, the Federal-Aid 
     Highway Programs under chapter I of title 23, United States 
     Code, the Research programs authorized under title V of 
     Public Law 109-59: Provided further, That the Secretary shall 
     consolidate and reduce the costs of various rail-line 
     relocation grant programs, including the Rail-Line Relocation 
     and Improvement Capital Program, and the Highway-Rail 
     Crossings Program, the Railroad Rehabilitation and 
     Improvement Financing program.

     SEC. 814. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   TREASURY.

       Of the funds made available under Public Law 111-117 for 
     the Department of Treasury, $677,650,000 in unobligated 
     balances are permanently rescinded.

     SEC. 815. RESCISSION OF UNSPENT AND UNCOMMITTED FUNDS FEDERAL 
                   FUNDS.

       Notwithstanding any other provision of law, of the 
     $657,000,000,000 in Federal funds unobligated at the end of 
     fiscal year 2009, the discretionary, unexpired funds 
     available for more than 2 consecutive fiscal years, as of the 
     date of enactment of this Act, are permanently rescinded.

     SEC. 816. IMPLEMENTATION OF RESCISSIONS.

       All rescissions required by this title--
       (1) shall come from discretionary amounts appropriated; and
       (2) should be rescinded not later 14 days after the date of 
     enactment of this title.
                                 ______
                                 
  SA 3362. Mr. WARNER submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       After section 131, insert the following:

     SEC. 131A. INCREASE IN ALTERNATIVE SIMPLIFIED RESEARCH 
                   CREDIT.

       (a) Increased Credit.--Paragraph (5) of section 41(c) 
     (relating to election of alternative simplified credit) is 
     amended--
       (1) by striking ``14 percent (12 percent in the case of 
     taxable years ending before January 1, 2009)'' in 
     subparagraph (A) and inserting ``17 percent'', and
       (2) by striking ``6 percent'' in subparagraph (B)(ii) and 
     inserting ``8.5 percent''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.
                                 ______
                                 
  SA 3363. Mr. KERRY (for himself, Ms. Snowe, Ms. Landrieu, and Ms. 
Stabenow) submitted an amendment intended to be proposed to amendment 
SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to amend the 
Internal Revenue Code of 1986 to extend certain expiring provisions, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. ___. TREATMENT OF CERTAIN SMALL BUSINESS STOCK.

       (a) Increase in Exclusion for Gain From Certain Small 
     Business Stock.--
       (1) In general.--Paragraph (3) of section 1202(a) is 
     amended to read as follows:
       ``(C) Special rules for 2009 and 2010.--
       ``(i) 75 percent exclusion.--In the case of qualified small 
     business stock acquired after February 17, 2009, and before 
     the date of the enactment of the American Workers, State, and 
     Business Relief Act of 2010--

       ``(I) paragraph (1) shall be applied by substituting `75 
     percent' for `50 percent', and
       ``(II) paragraph (2) shall not apply.

       ``(ii) 100 percent exclusion.--In the case of qualified 
     small business stock acquired on or after the date of the 
     enactment of the American Workers, State, and Business Relief 
     Act of 2010 and before January 1, 2011--

       ``(I) paragraph (1) shall be applied by substituting `100 
     percent' for `50 percent', and
       ``(II) paragraph (2) shall not apply.''.

       (2) Effective date.--The amendment made by this subsection 
     shall apply to stock acquired after the date of the enactment 
     of this Act.
       (b) Repeal of Minimum Tax Preference.--
       (1) In general.--Subsection (a) of section 57 is amended by 
     striking paragraph (7).
       (2) Technical amendment.--Subclause (II) of section 
     53(d)(1)(B)(ii) of such Code is amended by striking ``, (5), 
     and (7)'' and inserting ``and (5)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to stock issued after December 31, 2009.
       (c) Treatment of Stock Owned by Small Business Investment 
     Companies.--
       (1) In general.--Section 1202(c) is amended by adding at 
     the end the following new paragraph:
       ``(4) Treatment of stock owned by small business investment 
     companies.--Notwithstanding any other provision of this 
     subsection or subsection (e), the term `qualified small 
     business stock' shall include stock of a corporation--
       ``(A) held by a small business investment company licensed 
     and operating under the Small Business Investment Act of 1958 
     (15 U.S.C. 661 et seq.) or held by a company engaged in the 
     licensing process under such Act where the investment has 
     been approved by the Small Business Administration, and
       ``(B) issued after December 31, 2009, and before January 1, 
     2011.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to stock issued after December 31, 2009.
                                 ______
                                 
  SA 3364. Mr. KERRY (for himself and Mr. Ensign) submitted an 
amendment intended to be proposed to amendment SA 3336 proposed by Mr. 
Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 268, between lines 11 and 12, insert the following:

[[Page 2527]]



     SEC. ___. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR 
                   TELECOMMUNICATIONS EQUIPMENT) FROM LISTED 
                   PROPERTY.

       (a) In General.--Subparagraph (A) of section 280F(d)(4) 
     (defining listed property) is amended by inserting ``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 subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2009.
                                 ______
                                 
  SA 3365. Mr. WHITEHOUSE (for himself, Mr. Kerry, Mr. Lieberman, Mr. 
Dodd, Mrs. Shaheen, and Mr. Brown of Massachusetts) submitted an 
amendment intended to be proposed by him to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. GAO STUDY.

       Not later than 180 days after the date of enactment of this 
     Act, the Comptroller General shall report to Congress 
     detailing--
       (1) the pattern of job loss in the New England States over 
     the past 20 years;
       (2) the role of the off-shoring of manufacturing jobs in 
     overall job loss in the region; and
       (3) recommendations to attract industries and bring jobs to 
     the region.
                                 ______
                                 
  SA 3366. Mr. LeMIEUX submitted an amendment intended to be proposed 
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place in title VI, insert the following:

     SEC. 6__. WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS.

       (a) Pre-Disaster Hazard Mitigation Home Improvements.--
     Section 412(9) of the Energy Conservation and Production Act 
     (42 U.S.C. 6862(9)) is amended--
       (1) in subparagraph (I), by striking ``and'' after the 
     semicolon at the end;
       (2) by redesignating subparagraph (J) as subparagraph (K); 
     and
       (3) by inserting after subparagraph (I) the following:
       ``(J) pre-disaster hazard mitigation home improvements 
     designed to decrease the loss of life or property resulting 
     from a natural disaster (as defined in section 602 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5195a)) if the home improvements result in 
     increased energy efficiency or weatherization, including wind 
     resistant and energy efficient windows, window coverings, 
     doors, and roofing (including secondary roof water barriers); 
     and''.
       (b) Limitation on Expenditures.--Section 415(c)(1) of the 
     Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) 
     is amended in the first sentence by striking ``$6,500'' and 
     inserting ``$8,500''.
                                 ______
                                 
  SA 3367. Mr. THUNE (for himself, Mr. Enzi, and Mr. Vitter) submitted 
an amendment intended to be proposed to amendment SA 3345 proposed by 
Ms. Landrieu and intended to be proposed to the amendment SA 3336 
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal 
Revenue Code of 1986 to extend certain expiring provisions, 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:

                    TITLE VIII--SMALL BUSINESS LOANS

     SEC. 801. SHORT TITLE.

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

     SEC. 802. 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. 803. 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. 804. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

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

     SEC. 805. 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. 806. 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. 807. 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. 808. 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. 809. 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;

[[Page 2528]]

       ``(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 80 
     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 $4,000,000,000 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)''.

     SEC. 810. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

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

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

       ``(ii) includes--

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

       ``(B) the term `Program' means the small business 
     intermediary lending pilot program established under 
     paragraph (2).
       ``(2) Establishment.--There is established a 3-year small 
     business intermediary lending pilot program, under which the 
     Administrator may make direct loans to eligible 
     intermediaries, for the purpose of making loans to startup, 
     newly established, and growing small business concerns.
       ``(3) Purposes.--The purposes of the Program are--
       ``(A) to assist small business concerns in areas suffering 
     from a lack of credit due to poor economic conditions or 
     changes in the financial market; and
       ``(B) to establish a loan program under which the 
     Administrator may provide loans to eligible intermediaries to 
     enable the eligible intermediaries to provide loans to 
     startup, newly established, and growing small business 
     concerns for working capital, real estate, or the acquisition 
     of materials, supplies, or equipment.
       ``(4) Loans to eligible intermediaries.--
       ``(A) Application.--Each eligible intermediary desiring a 
     loan under this subsection shall submit an application to the 
     Administrator that describes--
       ``(i) the type of small business concerns to be assisted;
       ``(ii) the size and range of loans to be made;
       ``(iii) the interest rate and terms of loans to be made;
       ``(iv) the geographic area to be served and the economic, 
     poverty, and unemployment characteristics of the area;
       ``(v) the status of small business concerns in the area to 
     be served and an analysis of the availability of credit; and
       ``(vi) the qualifications of the applicant to carry out 
     this subsection.
       ``(B) Loan limits.--No loan may be made to an eligible 
     intermediary under this subsection if the total amount 
     outstanding and committed to the eligible intermediary by the 
     Administrator would, as a result of such loan, exceed 
     $1,000,000 during the participation of the eligible 
     intermediary in the Program.
       ``(C) Loan duration.--Loans made by the Administrator under 
     this subsection shall be for a term of 20 years.
       ``(D) Applicable interest rates.--Loans made by the 
     Administrator to an eligible intermediary under the Program 
     shall bear an annual interest rate equal to 1.00 percent.
       ``(E) Fees; collateral.--The Administrator may not charge 
     any fees or require collateral with respect to any loan made 
     to an eligible intermediary under this subsection.
       ``(F) Delayed payments.--The Administrator shall not 
     require the repayment of principal or interest on a loan made 
     to an eligible intermediary under the Program during the 2-
     year period beginning on the date of the initial disbursement 
     of funds under that loan.
       ``(G) Maximum participants and amounts.--During each of 
     fiscal years 2010, 2011, and 2012, 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).

[[Page 2529]]

       (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. 811. PROHIBITION ON USING TARP FUNDS OR TAX INCREASES.

       (a) In General.--Except as provided in subsection (b), 
     nothing in this title or the amendments made by this title 
     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 this title or an amendment made by this title.
       (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 (12 U.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.
                                 ______
                                 
  SA 3368. Mr. FEINGOLD (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed to amendment SA 3336 proposed by Mr. 
Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; as 
follows:

       At the appropriate place, insert the following:

     TITLE ___--RESCISSION OF UNUSED TRANSPORTATION EARMARKS AND 
                   GENERAL REPORTING REQUIREMENT

     SEC. _01. DEFINITION.

       In this title, the term ``earmark'' means the following:
       (1) A congressionally directed spending item, as defined in 
     Rule XLIV of the Standing Rules of the Senate.
       (2) A congressional earmark, as defined for purposes of 
     Rule XXI of the Rules of the House of Representatives.

     SEC. _02. RESCISSION.

       Any appropriated earmark provided for the Department of 
     Transportation with more than 90 percent of the appropriated 
     amount remaining available for obligation at the end of the 
     9th fiscal year following the fiscal year in which the 
     earmark was made available is rescinded effective at the end 
     of that 9th fiscal year.

     SEC. _03. AGENCY WIDE IDENTIFICATION AND REPORTS.

       (a) Agency Identification.--Each Federal agency shall 
     identify and report every project that is an earmark with an 
     unobligated balance at the end of each fiscal year to the 
     Director of OMB.
       (b) Annual Report.--The Director of OMB shall submit to 
     Congress and publically post on the website of OMB an annual 
     report that includes--
       (1) a listing and accounting for earmarks with unobligated 
     balances summarized by agency including the amount of the 
     original earmark, amount of the unobligated balance, the year 
     when the funding expires, if applicable, and recommendations 
     and justifications for whether each earmark should be 
     rescinded or retained in the next fiscal year;
       (2) the number of rescissions resulting from this title and 
     the annual savings resulting from this title for the previous 
     fiscal year; and
       (3) a listing and accounting for earmarks provided for the 
     Department of Transportation scheduled to be rescinded at the 
     end of the current fiscal year.
                                 ______
                                 
  SA 3369. Mr. ROCKEFELLER submitted an amendment intended to be 
proposed to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 
4213, to amend the Internal Revenue Code of 1986 to extend certain 
expiring provisions, and for other purposes; which was ordered to lie 
on the table; as follows:

         On page 70, strike lines 3 through 13.
                                 ______
                                 
  SA 3370. Mr. ROCKEFELLER (for himself and Mr. Ensign) submitted an 
amendment intended to be proposed to amendment SA 3336 proposed by Mr. 
Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of subtitle C of title I, insert the following:

     SEC. ___. MODIFICATIONS TO MINE RESCUE TEAM TRAINING CREDIT 
                   AND ELECTION TO EXPENSE ADVANCED MINE SAFETY 
                   EQUIPMENT.

       (a) Mine Rescue Team Training Credit Allowable Against 
     AMT.--Subparagraph (B) of section 38(c)(4) is amended--
       (1) by redesignating clauses (vi), (vii), and (viii) as 
     clauses (vii), (viii), and (ix), respectively, and
       (2) by inserting after clause (v) the following new clause:
       ``(vi) the credit determined under section 45N,''.
       (b) Election to Expense Advanced Mine Safety Equipment 
     Allowable Against AMT.--Subparagraph (C) of section 56(g)(4) 
     is amended by adding at the end the following new clause:
       ``(vii) Special rule for election to expense advanced mine 
     safety equipment.--Clause (i) shall not apply to amounts 
     deductible under section 179E.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
                                 ______
                                 
  SA 3371. Mr. ROCKEFELLER (for himself, Mr. Specter, and Mr. Hatch) 
submitted an amendment intended to be proposed to amendment SA 3336 
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal 
Revenue Code of 1986 to extend certain expiring provisions, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle A of title I, insert the following:

     SEC. ___. EXTENSION AND MODIFICATION OF SECTION 45 CREDIT FOR 
                   REFINED COAL FROM STEEL INDUSTRY FUEL.

       (a) Credit Period.--
       (1) In general.--Subclause (II) of section 45(e)(8)(D)(ii) 
     is amended to read as follows:

       ``(II) Credit period.--In lieu of the 10-year period 
     referred to in clauses (i) and (ii)(II) of subparagraph (A), 
     the credit period shall be the period beginning on the date 
     that the facility first produces steel industry fuel that is 
     sold to an unrelated person after September 30, 2008, and 
     ending 2 years after such date.''.

       (2) Conforming amendment.--Section 45(e)(8)(D) is amended 
     by striking clause (iii) and by redesignating clause (iv) as 
     clause (iii).
       (b) Extension of Placed-in-Service Date.--Subparagraph (A) 
     of section 45(d)(8) is amended--
       (1) by striking ``(or any modification to a facility)'', 
     and
       (2) by striking ``2010'' and inserting ``2011''.
       (c) Clarifications.--
       (1) Steel industry fuel.--Subclause (I) of section 
     45(c)(7)(C)(i) is amended by inserting ``, a blend of coal 
     and petroleum coke, or other coke feedstock'' after ``on 
     coal''.
       (2) Ownership interest.--Section 45(d)(8) is amended by 
     adding at the end the following new flush sentence:
     ``With respect to a facility producing steel industry fuel, 
     no person (including a ground lessor, customer, supplier, or 
     technology licensor) shall be treated as having an ownership 
     interest in the facility or as otherwise entitled to the 
     credit allowable under subsection (a) with respect to such 
     facility if such person's rent, license fee, or other 
     entitlement to net payments from the owner of such facility 
     is measured by a fixed dollar amount or a fixed amount per 
     ton, or otherwise determined without regard to the profit or 
     loss of such facility.''.
       (3) Production and sale.--Subparagraph (D) of section 
     45(e)(8), as amended by subsection (a)(2), is amended by 
     redesignating clause (iii) as clause (iv) and by inserting 
     after clause (ii) the following new clause:
       ``(iii) Production and sale.--The owner of a facility 
     producing steel industry fuel shall be treated as producing 
     and selling steel industry fuel where that owner manufactures 
     such steel industry fuel from coal, a blend of coal and 
     petroleum coke, or other coke feedstock to which it has 
     title. The sale of such steel industry fuel by the owner of 
     the facility to a person who is not the owner of the facility 
     shall not fail to qualify as a sale to an unrelated person 
     solely because such purchaser may also be a ground lessor, 
     supplier, or customer.''.
       (d) Specified Credit for Purposes of Alternative Minimum 
     Tax Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is 
     amended by inserting ``(in the case of a refined coal 
     production facility producing steel industry fuel, during the 
     credit period set forth in section 45(e)(8)(D)(ii)(II))'' 
     after ``service''.
       (e) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (d) shall take effect on the date of the enactment 
     of this Act.
       (2) Clarifications.--The amendments made by subsection (c) 
     shall take effect as if included in the amendments made by 
     the Energy Improvement and Extension Act of 2008.
                                 ______
                                 
  SA 3372. Mr. MERKLEY (for himself and Mr. Wyden) submitted an 
amendment intended to be proposed by him to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of title VI, add the following:

     SEC. 6__. QUALIFYING TIMBER CONTRACT OPTIONS.

       (a) Definitions.--In this section:
       (1) Qualifying contract.--The term ``qualifying contract'' 
     means a contract that has not been terminated by the Bureau 
     of Land Management for the sale of timber on lands 
     administered by the Bureau of Land Management that meets all 
     of the following criteria:

[[Page 2530]]

       (A) The contract was awarded during the period beginning on 
     January 1, 2005, and ending on December 31, 2008.
       (B) There is unharvested volume remaining for the contract.
       (C) The contract is not a salvage sale.
       (D) The Secretary determined there is not an urgent need to 
     harvest under the contract due to deteriorating timber 
     conditions that developed after the award of the contract.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of Bureau of 
     Land Management.
       (3) Timber purchaser.--The term ``timber purchaser'' means 
     the party to the qualifying contract for the sale of timber 
     from lands administered by the Bureau of Land Management.
       (b) Market-Related Contract Extension Option.--Upon a 
     timber purchaser's written request, the Secretary may make a 
     one-time modification to the qualifying contract to add 3 
     years to the contract expiration date if the written 
     request--
       (1) is received by the Secretary not later than 90 days 
     after the date of enactment of this Act; and
       (2) contains a provision releasing the United States from 
     all liability, including further consideration or 
     compensation, resulting from the modification under this 
     subsection of the term of a qualifying contract.
       (c) Reporting.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary shall submit to 
     Congress a report detailing a plan and timeline to promulgate 
     new regulations authorizing the Bureau of Land Management to 
     extend and renegotiate timber contracts due to changes in 
     market conditions.
       (d) Regulations.--Not later than 2 years after the date of 
     the enactment of this Act, the Secretary shall promulgate new 
     regulations authorizing the Bureau of Land Management to 
     extend and renegotiate timber contracts due to changes in 
     market conditions.
       (e) No Surrender of Claims.--This section shall not have 
     the effect of surrendering any claim by the United States 
     against any timber purchaser that arose under a timber sale 
     contract, including a qualifying contract, before the date on 
     which the Secretary adjusts the contract term under 
     subsection (b).
                                 ______
                                 
  SA 3373. Mr. BENNETT submitted an amendment intended to be proposed 
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. 01. 10-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL 
                   BUSINESSES.

       (a) In General.--Section 172(b)(1) is amended by adding at 
     the end the following new subparagraph:
       ``(I) Carryback for 2010 and 2011 net operating losses of 
     small businesses.--
       ``(i) In general.--If a small business (as defined in 
     subparagraph (F)(iii) determined by applying such 
     subparagraph for a 10-taxable year period) elects the 
     application of this subparagraph with respect to an 
     applicable 2010 or 2011 net operating loss--

       ``(I) subparagraph (A)(i) shall be applied by substituting 
     any whole number elected by the taxpayer which is more than 2 
     and less than 11 for `2',
       ``(II) subparagraph (E)(ii) shall be applied by 
     substituting the whole number which is one less than the 
     whole number substituted under subclause (I) for `2', and
       ``(III) subparagraph (F) shall not apply.

       ``(ii) Applicable 2010 or 2011 net operating loss.--For 
     purposes of this subparagraph, the term `applicable 2010 or 
     2011 net operating loss' means--

       ``(I) the taxpayer's net operating loss for any taxable 
     year ending in 2010 or 2011, or
       ``(II) if the taxpayer elects to have this subclause apply 
     in lieu of subclause (I), the taxpayer's net operating loss 
     for any taxable year beginning in 2010 or 2011.

       ``(iii) Election.--Any election under this subparagraph 
     shall be made in such manner as may be prescribed by the 
     Secretary, and shall be made by the due date (including 
     extension of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Any such election, 
     once made, shall be irrevocable. Any election under this 
     subparagraph may be made only with respect to 2 taxable 
     years.''.
       (b) Anti-Abuse Rules.--The Secretary of Treasury or the 
     Secretary's designee shall prescribe such rules as are 
     necessary to prevent the abuse of the purposes of the 
     amendments made by this section, including anti-stuffing 
     rules, anti-churning rules (including rules relating to sale-
     leasebacks), and rules similar to the rules under section 
     1091 of the Internal Revenue Code of 1986 relating to losses 
     from wash sales.
       (c) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to net operating losses arising in taxable years ending after 
     December 31, 2009.
       (2) Transitional rule.--In the case of a net operating loss 
     for a taxable year ending before the date of the enactment of 
     this Act--
       (A) any election made under section 172(b)(3) of the 
     Internal Revenue Code of 1986 with respect to such loss may 
     (notwithstanding such section) be revoked before the 
     applicable date, and
       (B) any application under section 6411(a) of such Code with 
     respect to such loss shall be treated as timely filed if 
     filed before the applicable date.

     For purposes of this paragraph, the term ``applicable date'' 
     means the date which is 60 days after the date of the 
     enactment of this Act.

     SEC. 02. TRANSFER OF STIMULUS FUNDS.

       Notwithstanding section 5 of the American Recovery and 
     Reinvestment Act of 2009 (Pub. Law 111-5), from the amounts 
     appropriated or made available and remaining unobligated 
     under such Act, the Director of the Office of Management and 
     Budget shall transfer from time to time to the general fund 
     of the Treasury an amount equal to the sum of the amount of 
     any net reduction in revenues and the amount of any net 
     increase in spending resulting from the enactment of this 
     Act.
                                 ______
                                 
  SA 3374. Mr. BAYH (for himself, Mrs. Lincoln, Mr. Wicker, Mr. Vitter, 
and Mr. Bond) submitted an amendment intended to be proposed to 
amendment SA 3338 submitted by Mr. Thune to the amendment SA 3336 
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal 
Revenue Code of 1986 to extend certain expiring provisions, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike section 121 and insert the following:

     SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT 
                   FOR 2010.

       (a) In General.--Section 42 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Election for Refundable Credits.--
       ``(1) In general.--The housing credit agency of each State 
     shall be allowed a credit in an amount equal to such State's 
     2010 low-income housing refundable credit election amount, 
     which shall be payable by the Secretary as provided in 
     paragraph (5).
       ``(2) 2010 low-income housing refundable credit election 
     amount.--For purposes of this subsection, the term `2010 low-
     income housing refundable credit election amount' means, with 
     respect to any State, such amount as the State may elect 
     which does not exceed 85 percent of the product of--
       ``(A) the sum of--
       ``(i) 100 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (i) and (iii) of subsection (h)(3)(C), plus any increase in 
     the State housing credit ceiling for 2010 made by reason of 
     section 1400N(c) (including as such section is applied by 
     reason of sections 702(d)(2) and 704(b) of the Tax Extenders 
     and Alternative Minimum Tax Relief Act of 2008), and
       ``(ii) 40 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (ii) and (iv) of such subsection, plus any increase in the 
     State housing credit ceiling for 2010 made by reason of the 
     application of such section 702(d)(2) and 704(b), multiplied 
     by
       ``(B) 10.
     For purposes of subparagraph (A)(ii), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) shall be applied without regard to clause (i)
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1, 2012' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36A,''.

     SEC. 122. LOW-INCOME HOUSING GRANT ELECTION.

       (a) Clarification of Eligibility of Low-Income Housing 
     Credits for Low-Income Housing Grant Election.--Paragraph (1) 
     of section 1602(b) of the American Recovery and Reinvestment 
     Tax Act of 2009 is amended--
       (1) by inserting ``, plus any increase in the State housing 
     credit ceiling for 2009 attributable to any State housing 
     credit ceiling returned in 2009 to the State by reason of 
     section 1400N(c) of such Code (including as such

[[Page 2531]]

     section is applied by reason of sections 702(d)(2) and 704(b) 
     of the Tax Extenders and Alternative Minimum Tax Relief Act 
     of 2008)'' after ``1986'' in subparagraph (A), and
       (2) by inserting ``, plus any increase in the State housing 
     credit ceiling for 2009 attributable to any additional State 
     housing credit ceiling made by reason of the application of 
     such section 702(d)(2) and 704(b)'' after ``such section'' in 
     subparagraph (B).
       (b) Application of Additional Housing Credit Amount for 
     Purposes of 2009 Grant Election.--Subsection (b) of section 
     1602 of the American Recovery and Reinvestment Tax Act of 
     2009, as amended by subsection (a), is amended by adding at 
     the end the following flush sentence:

     ``For purposes of paragraph (1)(B), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) of such Code shall be applied without regard 
     to clause (i).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply as if included in the enactment of section 1602 
     of the American Recovery and Reinvestment Tax Act of 2009.
                                 ______
                                 
  SA 3375. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 161, between lines 10 and 11, insert the following:

     SEC. ___. TAXATION OF INCOME OF CONTROLLED FOREIGN 
                   CORPORATIONS ATTRIBUTABLE TO IMPORTED PROPERTY.

       (a) General Rule.--Subsection (a) of section 954 (defining 
     foreign base company income) is amended by striking the 
     period at the end of paragraph (5) and inserting ``, and'', 
     by redesignating paragraph (5) as paragraph (4), and by 
     adding at the end the following new paragraph:
       ``(5) imported property income for the taxable year 
     (determined under subsection (j) and reduced as provided in 
     subsection (b)(5)).''.
       (b) Definition of Imported Property Income.--Section 954 is 
     amended by adding at the end the following new subsection:
       ``(j) Imported Property Income.--
       ``(1) In general.--For purposes of subsection (a)(5), the 
     term `imported property income' means income (whether in the 
     form of profits, commissions, fees, or otherwise) derived in 
     connection with--
       ``(A) manufacturing, producing, growing, or extracting 
     imported property;
       ``(B) the sale, exchange, or other disposition of imported 
     property; or
       ``(C) the lease, rental, or licensing of imported property.
     Such term shall not include any foreign oil and gas 
     extraction income (within the meaning of section 907(c)) or 
     any foreign oil related income (within the meaning of section 
     907(c)).
       ``(2) Imported property.--For purposes of this subsection--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `imported property' means property which 
     is imported into the United States by the controlled foreign 
     corporation or a related person.
       ``(B) Imported property includes certain property imported 
     by unrelated persons.--The term `imported property' includes 
     any property imported into the United States by an unrelated 
     person if, when such property was sold to the unrelated 
     person by the controlled foreign corporation (or a related 
     person), it was reasonable to expect that--
       ``(i) such property would be imported into the United 
     States; or
       ``(ii) such property would be used as a component in other 
     property which would be imported into the United States.
       ``(C) Exception for property subsequently exported.--The 
     term `imported property' does not include any property which 
     is imported into the United States and which--
       ``(i) before substantial use in the United States, is sold, 
     leased, or rented by the controlled foreign corporation or a 
     related person for direct use, consumption, or disposition 
     outside the United States; or
       ``(ii) is used by the controlled foreign corporation or a 
     related person as a component in other property which is so 
     sold, leased, or rented.
       ``(D) Exception for certain agricultural commodities.--The 
     term `imported property' does not include any agricultural 
     commodity which is not grown in the United States in 
     commercially marketable quantities.
       ``(3) Definitions and special rules.--
       ``(A) Import.--For purposes of this subsection, the term 
     `import' means entering, or withdrawal from warehouse, for 
     consumption or use. Such term includes any grant of the right 
     to use intangible property (as defined in section 
     936(h)(3)(B)) in the United States.
       ``(B) United states.--For purposes of this subsection, the 
     term `United States' includes the Commonwealth of Puerto 
     Rico, the Virgin Islands of the United States, Guam, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands.
       ``(C) Unrelated person.--For purposes of this subsection, 
     the term `unrelated person' means any person who is not a 
     related person with respect to the controlled foreign 
     corporation.
       ``(D) Coordination with foreign base company sales 
     income.--For purposes of this section, the term `foreign base 
     company sales income' shall not include any imported property 
     income.''.
       (c) Separate Application of Limitations on Foreign Tax 
     Credit for Imported Property Income.--
       (1) In general.--Paragraph (1) of section 904(d) (relating 
     to separate application of section with respect to certain 
     categories of income) is amended by striking ``and'' at the 
     end of subparagraph (A), by redesignating subparagraph (B) as 
     subparagraph (C), and by inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) imported property income, and''.
       (2) Imported property income defined.--Paragraph (2) of 
     section 904(d) is amended by redesignating subparagraphs (I), 
     (J), and (K) as subparagraphs (J), (K), and (L), 
     respectively, and by inserting after subparagraph (H) the 
     following new subparagraph:
       ``(I) Imported property income.--The term `imported 
     property income' means any income received or accrued by any 
     person which is of a kind which would be imported property 
     income (as defined in section 954(j)).''.
       (3) Conforming amendment.--Clause (ii) of section 
     904(d)(2)(A) is amended by inserting ``or imported property 
     income'' after ``passive category income''.
       (d) Technical Amendments.--
       (1) Clause (iii) of section 952(c)(1)(B) (relating to 
     certain prior year deficits may be taken into account) is 
     amended--
       (A) by redesignating subclauses (II), (III), (IV), and (V) 
     as subclauses (III), (IV), (V), and (VI), and
       (B) by inserting after subclause (I) the following new 
     subclause:

       ``(II) imported property income,''.

       (2) The last sentence of paragraph (4) of section 954(b) 
     (relating to exception for certain income subject to high 
     foreign taxes) is amended by striking ``subsection (a)(5)'' 
     and inserting ``subsection (a)(4)''.
       (3) Paragraph (5) of section 954(b) (relating to deductions 
     to be taken into account) is amended by striking ``and the 
     foreign base company oil related income'' and inserting ``the 
     foreign base company oil related income, and the imported 
     property income''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after the date of the enactment of this Act, and to 
     taxable years of United States shareholders within which or 
     with which such taxable years of such foreign corporations 
     end.
                                 ______
                                 
  SA 3376. Mr. BEGICH submitted an amendment intended to be proposed by 
him to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 
to extend certain expiring provisions, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. EXTENSION OF THE RURAL COMMUNITY HOSPITAL 
                   DEMONSTRATION PROGRAM.

       (a) In General.--Section 410A of the Medicare Prescription 
     Drug, Improvement, and Modernization Act of 2003 (Public Law 
     108-173; 117 Stat. 2272) is amended by adding at the end the 
     following new subsection:
       ``(g) Five-Year Extension of Demonstration Program.--
       ``(1) In general.--Subject to the succeeding provisions of 
     this subsection, the Secretary shall conduct the 
     demonstration program under this section for an additional 5-
     year period (in this section referred to as the `5-year 
     extension period') that begins on the date immediately 
     following the last day of the initial 5-year period under 
     subsection (a)(5).
       ``(2) Expansion of demonstration states.--Notwithstanding 
     subsection (a)(2), during the 5-year extension period, the 
     Secretary shall expand the number of States with low 
     population densities determined by the Secretary under such 
     subsection to 20. In determining which States to include in 
     such expansion, the Secretary shall use the same criteria and 
     data that the Secretary used to determine the States under 
     such subsection for purposes of the initial 5-year period.
       ``(3) Increase in maximum number of hospitals participating 
     in the demonstration program.--Notwithstanding subsection 
     (a)(4), during the 5-year extension period, not more than 30 
     rural community hospitals may participate in the 
     demonstration program under this section.
       ``(4) Hospitals in demonstration program on date of 
     enactment.--In the case of a rural community hospital that is 
     participating in the demonstration program under this section 
     as of the last day of the initial 5-year period, the 
     Secretary--
       ``(A) shall provide for the continued participation of such 
     rural community hospital in the demonstration program during 
     the 5-

[[Page 2532]]

     year extension period unless the rural community hospital 
     makes an election, in such form and manner as the Secretary 
     may specify, to discontinue such participation; and
       ``(B) in calculating the amount of payment under subsection 
     (b) to the rural community hospital for covered inpatient 
     hospital services furnished by the hospital during such 5-
     year extension period, shall substitute, under paragraph 
     (1)(A) of such subsection--
       ``(i) the reasonable costs of providing such services for 
     discharges occurring in the first cost reporting period 
     beginning on or after the first day of the 5-year extension 
     period, for
       ``(ii) the reasonable costs of providing such services for 
     discharges occurring in the first cost reporting period 
     beginning on or after the implementation of the demonstration 
     program.''.
       (b) Conforming Amendment.--Subsection (a)(5) of section 
     410A of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173; 117 Stat. 
     2272) is amended by inserting ``(in this section referred to 
     as the `initial 5-year period') and, as provided in 
     subsection (g), for the 5-year extension period'' after ``5-
     year period''.
                                 ______
                                 
  SA 3377. Mr. BEGICH submitted an amendment intended to be proposed by 
him to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 
to extend certain expiring provisions, and for other purposes; which 
was ordered to lie on the table; as follows:

       After section 601, insert the following:

     SEC. 602. NON-PROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN 
                   REMOTE NATIVE VILLAGES.

       For purposes of subchapter F of chapter 1 of the Internal 
     Revenue Code of 1986, any trade or business substantially 
     related to the participation and investment in fisheries in 
     the Bering Sea and Aleutian Islands Management Area carried 
     on by a Community Development Quota entity identified in 
     section 305(i)(1)(D) of the Magnuson-Stevens Fishery 
     Conservation and Management Act (16 U.S.C. 1855(i)(1)(D) (as 
     in effect on the date of the enactment of this Act) shall be 
     considered substantially related to the exercise or 
     performance of the purpose constituting the basis of such 
     entity's exemption under section 501(a) of such Code if the 
     conduct of such trade or business is in furtherance of one or 
     more of the purposes specified in section 305(i)(1)(A) of 
     such Act. For purposes of this section, trades or businesses 
     substantially related to participation or investment in 
     fisheries include harvesting, processing, transportation, 
     sales, and marketing of fish and fish product.
                                 ______
                                 
  SA 3378. Mr. NELSON of Florida submitted an amendment intended to be 
proposed to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of subtitle D of title IV, insert the following:

     SEC. 4__. EXECUTIVE COMPENSATION PAID BY SYSTEMICALLY 
                   SIGNIFICANT FINANCIAL INSTITUTIONS.

       (a) Short Title.--This section may be cited as the ``Wall 
     Street Compensation Reform Act of 2010''.
       (b) Executive Compensation Paid by Systemically Significant 
     Financial Institutions.--
       (1) In general.--Subsection (m) of section 162 is amended 
     by adding at the end the following new paragraph:
       ``(6) Special rule for application to systemically 
     significant financial institutions.--
       ``(A) In general.--In the case of an employer which is a 
     systemically significant financial institution, this 
     subsection shall apply with the following modifications:
       ``(i) Non-public entities.--Paragraph (1) shall be applied 
     by substituting `employer' for `publicly held corporation'.
       ``(ii) Covered employees.--Paragraph (3) shall be applied--

       ``(I) by substituting `such employee is among the 25 
     highest compensated employees' for so much of subparagraph 
     (B) as precedes `for the taxable year (other than the chief 
     executive officer).', and
       ``(II) in addition to the individuals described in such 
     paragraph (including the individuals described in subclause 
     (I) of this clause), by treating any employee whose actions 
     have a material impact on the risk exposure of the taxpayer 
     as a covered employee.

     Any employee whose applicable employee remuneration for the 
     taxable year exceeds $1,000,000 is presumed to engage in 
     actions which have a material impact on the risk exposure of 
     the taxpayer unless the taxpayer submits an information 
     return to the Secretary which describes the role and 
     responsibilities of such employee and the reason such 
     employee should not be considered to have a material impact 
     on the risk exposure of the taxpayer. Such return shall be 
     deemed to have been approved unless the Secretary notifies 
     the taxpayer in writing within 90 days of the submission of 
     such return. For purposes of this clause, the term `employee' 
     includes employees within the meaning of section 401(c)(1).
       ``(iii) Remuneration payable on commission basis.--
     Subparagraph (B) of paragraph (4) shall not apply.
       ``(iv) Deferred deduction executive remuneration.--In the 
     case of any deferred deduction executive remuneration (as 
     determined under rules similar to the rules of paragraph 
     (5)(F), if executive remuneration for purposes of such 
     paragraph included remuneration of covered employees as 
     defined in clause (ii) of this paragraph, and if the year in 
     which the applicable services were performed were treated as 
     an applicable taxable year), rules similar to the rules of 
     paragraph (5)(A)(ii) shall apply by substituting `$1,000,000' 
     for `$500,000'.
       ``(B) Systemically significant financial institution.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `systemically significant financial institution' means an 
     entity which engages primarily in activities which are 
     financial in nature (as determined under section 4(k) of the 
     Bank Holding Company Act of 1956), and which--

       ``(I) owns or controls assets greater than $25,000,000,000, 
     or
       ``(II) owns or controls assets greater than $10,000,000,000 
     and maintains a ratio of debt to equity which is greater than 
     20 to 1.

       ``(ii) Classification.--A taxpayer which is a systemically 
     significant financial institution for any taxable year shall 
     be a systemically significant financial institution for 
     purposes of all subsequent taxable years.
       ``(C) Special rules for performance-based compensation.--
     Remuneration payable solely on account of the attainment of 
     one or more performance goals (hereinafter `performance-based 
     remuneration') which is paid by any systemically significant 
     financial institution to any covered employee (as determined 
     under subparagraph (A)(ii)) shall not be excluded under 
     subparagraph (C) of paragraph (4) from treatment as 
     applicable employee remuneration unless the following 
     requirements are met:
       ``(i) Performance-based compensation pool.--The amount and 
     allocation of the taxpayer's performance-based remuneration 
     for covered employees are determined by the compensation 
     committee required under paragraph (4)(C)(i) by taking into 
     account--

       ``(I) the cost and quantity of capital required to support 
     the risks taken by the taxpayer in the conduct of the 
     financial activities of the taxpayer,
       ``(II) the cost and quantity of the liquidity risk assumed 
     by the taxpayer in the conduct of such activities, and
       ``(III) the timing and likelihood of potential future 
     revenues from such activities.

       ``(ii) Material terms.--The material terms of performance-
     based remuneration paid to covered employees specify that--

       ``(I) not less than 50 percent of such remuneration must 
     vest no earlier than 5 years after the date of payment,
       ``(II) the proportion of such remuneration payable under 
     vesting arrangements must increase based on the level of 
     seniority or responsibility of the employee,
       ``(III) such remuneration payable under vesting 
     arrangements must vest on a basis no faster than pro rata 
     over the specified number of years of such arrangement (not 
     to be less than 5),
       ``(IV) such remuneration is contingent on a formal 
     agreement between the taxpayer and the employee which forbids 
     the use of personal hedging strategies, remuneration-related 
     insurance, or liability-related insurance which undermines 
     the risk alignment effects of this paragraph,
       ``(V) in the case of an employer which is a publicly held 
     corporation, not less than 50 percent of such remuneration 
     must be in the form of stock in the employer, and
       ``(VI) in the case of remuneration paid to a chief 
     executive officer or chief financial officer (if such chief 
     financial officer is a covered employee) of a publicly held 
     corporation, such remuneration must be subject to substantial 
     forfeiture requirements in the event the taxpayer is required 
     to prepare an accounting restatement due to material 
     noncompliance, as a result of misconduct, with any financial 
     reporting requirement under Federal securities laws.

     For purposes of this clause, the date on which remuneration 
     is deemed to have vested is the first date on which such 
     remuneration is not subject to a substantial risk of 
     forfeiture (within the meaning of section 409A(d)(4)).
       ``(D) Special rule for performance-based compensation paid 
     by non-public entities.--In the case of a systemically 
     significant financial institution which is not a publicly 
     held corporation, in addition to the requirements of 
     subparagraph (C), paragraph (4)(C) shall be applied by 
     substituting the following for clauses (i) through (iii) 
     thereof:
       ``(i) the taxpayer commissions an annual, external review 
     of its compensation policies and practices, including an 
     examination and analysis of the taxpayer's compliance with 
     the requirements of this subsection, and
       ``(ii) the taxpayer obtains certification from an unrelated 
     third party commissioned to evaluated compensation practices 
     that performance goals and other material terms under which 
     the remuneration is to be paid

[[Page 2533]]

     are satisfied before any payment of such remuneration is 
     made.'.

     For purposes of the preceding sentence, all persons treated 
     as a single employer under subsection (a) or (b) of section 
     52 or subsection (b) or (c) of section 414 shall be treated 
     as related taxpayers.
       ``(E) Coordination with rules for employers participating 
     in the troubled assets relief program.--In the case of any 
     systemically significant financial institution to which 
     paragraph (5) applies for any taxable year, this paragraph 
     shall not apply to any payment of remuneration to which such 
     paragraph applies.
       ``(F) Regulatory authority.--Not later than 180 days after 
     the date of the enactment of this paragraph, the Secretary 
     shall prescribe such guidance, rules, or regulations of 
     general applicability as are necessary to carry out the 
     purposes of this paragraph, including--
       ``(i) the method for valuing assets for purposes of 
     subparagraph (B)(i),
       ``(ii) the method for calculating the ratio described in 
     subparagraph (B)(i)(II),
       ``(iii) criteria for use in determining whether the actions 
     of an employee have a material impact on the risk exposure of 
     the taxpayer, and for determining what constitutes a 
     substantial forfeiture requirement with respect to executive 
     remuneration,
       ``(iv) criteria for determining whether a remuneration 
     agreement constitutes a hedging strategy, and
       ``(v) anti-abuse rules to prevent the avoidance of the 
     purposes of this paragraph, including by use of independent 
     contractors.
       ``(G) Application of paragraph.--This paragraph shall 
     apply--
       ``(i) in the case of an entity which is a systemically 
     significant financial institution in calendar 2010, to 
     remuneration for services performed in calendar years 
     beginning after 2010, and
       ``(ii) in the case of an entity which becomes a 
     systemically significant financial institution in a calender 
     year after 2010, to remuneration for services performed in 
     calendar years beginning with the second calendar year after 
     the year in which such entity first becomes a systemically 
     significant financial institution.''.
       (2) Conforming amendment.--Subparagraph (G) of section 
     162(m)(5) is amended by adding at the end the following: 
     ``Paragraph (6) shall not apply to any payment of 
     remuneration to which this paragraph applies.''.
       (c) Report on Performance-Based Compensation Paid by 
     Publicly Held Corporations.--
       (1) In general.--Each systemically significant financial 
     institution which is a publicly held corporation shall submit 
     to the Chairman of the Securities and Exchange Commission, 
     and shall make publicly available, an annual report on 
     compensation policies and practices which describes--
       (A) the process used to develop and modify such 
     institution's compensation policies, including the 
     composition and the mandate of such institution's 
     compensation committee,
       (B) the actions taken by such institution to comply with 
     section 162(m)(6) of the Internal Revenue Code of 1986,
       (C) any additional actions taken to implement the 
     Principles for Sound Compensation Practices adopted by the 
     Financial Stability Board established by the G-20 Finance 
     Ministers and Central Bank Governors,
       (D) the most important design characteristics of such 
     institution's compensation policies, including criteria used 
     for performance measurement and risk adjustment, the linkage 
     between pay and performance, vesting policy and criteria, and 
     the parameters used for allocating cash versus other forms of 
     remuneration,
       (E) aggregate quantitative information on remuneration paid 
     by such institution, differentiating between remuneration 
     paid to senior executive officers and to employees whose 
     actions have a material impact on the risk exposure of such 
     institution, which indicates the amounts of remuneration for 
     the financial year (divided into fixed and variable 
     remuneration) and the number of employees to which such 
     remuneration was paid, and
       (F) the amount of remuneration paid by such institution 
     during the financial year preceding the year of the report 
     which was nondeductible by reason of section 162(m) of such 
     Code.
       (2) Timing of report.--The report required under paragraph 
     (1) shall be submitted beginning in calendar year 2011 (or, 
     if later, the calendar year after the year in which an entity 
     first becomes a systemically significant financial 
     institution which is a publicly held corporation), at such 
     time during such year and each subsequent year as the 
     Chairman of the Securities and Exchange Commission shall 
     specify.
       (3) Definitions.--Any term used in this subsection which is 
     also used in section 162(m)(6) of the Internal Revenue Code 
     of 1986 shall have the same meaning as when used in such 
     section.
       (d) Effective Date.--The amendments made by subsection (b) 
     shall apply to remuneration for services performed after 
     December 31, 2010.
                                 ______
                                 
  SA 3379. Mr. NELSON of Florida (for himself and Mr. Ensign) submitted 
an amendment intended to be proposed to amendment SA 3336 proposed by 
Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. ___. CLEAN RENEWABLE WATER SUPPLY BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 54G. CLEAN RENEWABLE WATER SUPPLY BONDS.

       ``(a) Clean Renewable Water Supply Bonds.--For purposes of 
     this subpart, the term `clean renewable water supply bond' 
     means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for capital expenditures incurred by 
     qualified borrowers for 1 or more qualified projects,
       ``(2) the bond is issued by a qualified issuer,
       ``(3) the issuer designates such bond for purposes of this 
     section, and
       ``(4) in the case of a bond issued by a qualified issuer 
     before 2019, the bond is issued--
       ``(A) pursuant to an allocation by the Secretary to such 
     issuer of a portion of the national clean renewable water 
     supply bond limitation under subsection (b), and
       ``(B) not later than 6 months after the date that such 
     qualified issuer receives an allocation under subsection (b).

     ``Any allocation under subsection (b) not used within the 6-
     month period described in paragraph (4)(B) shall be applied 
     to increase the national clean renewable water supply bond 
     limitation for the next succeeding application period under 
     subsection (b)(2)(B).
       ``(b) National Limitation on Amount of Bonds Designated.--
       ``(1) In general.--There is a national clean renewable 
     water supply bond limitation for each calendar year before 
     2019. Such limitation is--
       ``(A) $0 for 2009,
       ``(B) $100,000,000 for 2010,
       ``(C) $150,000,000 for 2011,
       ``(D) $200,000,000 for 2012,
       ``(E) $250,000,000 for 2013,
       ``(F) $500,000,000 for 2014,
       ``(G) $750,000,000 for 2015,
       ``(H) $1,000,000,000 for 2016,
       ``(I) $1,500,000,000 for 2017, and
       ``(J) $1,750,000,000 for 2018.
       ``(2) Allocation of limitation.--
       ``(A) In general.--The limitation under paragraph (1) shall 
     be allocated by the Secretary among qualified projects as 
     provided in this paragraph.
       ``(B) Method of allocation.--For each calendar year after 
     2009 for which there is a national clean renewable water 
     supply bond limitation, the Secretary shall publish a notice 
     soliciting applications by qualified issuers for allocations 
     of such limitation to qualified projects. Such notice shall 
     specify a 3-month application period in the calendar year 
     during which the Secretary will accept such applications. 
     Within 30 days after the end of such application period, and 
     subject to the requirements of subparagraph (C), the 
     Secretary shall allocate such limitation to qualified 
     projects on a first-come, first-served basis, based on the 
     order in which such applications are received from qualified 
     issuers.
       ``(C) Allocation requirements.--
       ``(i) Certifications regarding regulatory approvals.--No 
     portion of the national clean renewable water supply bond 
     limitation shall be allocated to a qualified project unless 
     the qualified issuer has certified in its application for 
     such allocation that as of the date of such application the 
     qualified issuer or qualified borrower has received all 
     Federal and State regulatory approvals necessary to construct 
     the qualified project.
       ``(ii) Restriction on allocations to large projects or to 
     individual projects.--

       ``(I) In general.--Except as provided in subclause (III), 
     for any calendar year the Secretary shall not allocate more 
     than 60 percent of the national clean renewable water supply 
     bond limitation to 1 or more large projects, more than 18 
     percent of such limitation to any single project that is a 
     large project, or more than 12 percent of such limitation to 
     any single project that is not a large project.
       ``(II) Definition of large project.--For purposes of 
     subclause (I), the term `large project' means a qualified 
     project that is designed to deliver more than 10,000,000 
     gallons of water per day.
       ``(III) Exception to restriction.--Subclause (I) shall not 
     apply to the extent its application would cause any portion 
     of the national clean renewable water supply bond limitation 
     for the calendar year to remain unallocated, based on 
     applications for allocations of such limitation received by 
     the Secretary during the application period referred to in 
     subparagraph (B).

       ``(3) Carryover of unused limitation.--If the clean 
     renewable water supply bond limitation for any calendar year 
     exceeds the aggregate amount allocated under paragraph

[[Page 2534]]

     (2) for such year, such limitation for the succeeding 
     calendar year shall be increased by the amount of such 
     excess.
       ``(c) Maturity Limitation.--
       ``(1) In general.--A bond shall not be treated as a clean 
     renewable water supply bond if the maturity of such bond 
     exceeds 20 years.
       ``(2) Coordination with section 54a.--The maturity 
     limitation in section 54A(d)(5) shall not apply to any clean 
     renewable water supply bond.
       ``(d) Refinancing Rules.--For purposes of paragraph (a)(1), 
     a qualified project may be refinanced with proceeds of a 
     clean renewable water supply bond only if the indebtedness 
     being refinanced (including any obligation directly or 
     indirectly refinanced by such indebtedness) was originally 
     incurred by a qualified borrower after the date of the 
     enactment of this section.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Governmental body.--The term `governmental body' 
     means any State or Indian tribal government, or any political 
     subdivision thereof.
       ``(2) Local water company.--The term `local water company' 
     means any entity responsible for providing water service to 
     the general public (including electric utility, industrial, 
     agricultural, commercial, or residential users) pursuant to 
     State or tribal law.
       ``(3) Qualified borrower.--The term `qualified borrower' 
     means a governmental body or a local water company.
       ``(4) Qualified desalination facility.--The term `qualified 
     desalination facility' means any facility that is used to 
     produce new water supplies by desalinating seawater, 
     groundwater, or surface water if the facility's source water 
     includes chlorides or total dissolved solids that, either 
     continuously or seasonally, exceed maximum permitted levels 
     for primary or secondary drinking water under Federal or 
     State law (as in effect on the date of issuance of the 
     issue).
       ``(5) Qualified groundwater remediation facility.--The term 
     `qualified groundwater remediation facility' means any 
     facility that is used to reclaim contaminated or naturally 
     impaired groundwater for direct delivery for potable use if 
     the facility's source water includes constituents that exceed 
     maximum contaminant levels regulated under the Safe Drinking 
     Water Act (as in effect on the date of the enactment of this 
     section).
       ``(6) Qualified issuer.--The term `qualified issuer' 
     means--
       ``(A) a governmental body, or
       ``(B) in the case of a State or political subdivision 
     thereof (as defined for purposes of section 103), any entity 
     qualified to issue tax-exempt bonds under section 103 on 
     behalf of such State or political subdivision.
       ``(7) Qualified project.--
       ``(A) In general.--The term `qualified project' means any 
     facility owned by a qualified borrower which is a--
       ``(i) qualified desalination facility,
       ``(ii) qualified recycled water facility,
       ``(iii) qualified groundwater remediation facility, or
       ``(iv) facility that is functionally related or subordinate 
     to a facility described in clause (i), (ii), or (iii).
       ``(B) Environmental impact.--A project shall not be treated 
     as a qualified project under subparagraph (A) unless such 
     project is designed to comply with regulations issued under 
     subsection (f) relating to the minimization of the 
     environmental impact of the project.
       ``(8) Qualified recycled water facility.--
       ``(A) In general.--The term `qualified recycled water 
     facility' means any wastewater treatment or distribution 
     facility which--
       ``(i) exceeds the requirements for the treatment and 
     disposal of wastewater under the Clean Water Act and any 
     other Federal or State water pollution control standards for 
     the discharge and disposal of wastewater to surface water, 
     land, or groundwater (as such requirements and standards are 
     in effect on the date of issuance of the issue), and
       ``(ii) except as provided in subparagraph (B), is used to 
     reclaim wastewater produced by the general public (including 
     electric utility, industrial, agricultural, commercial, or 
     residential users) to the extent such reclaimed wastewater is 
     used for a beneficial use that the issuer reasonably expects 
     as of the date of issuance of the issue otherwise would have 
     been satisfied with potable water supplies.
       ``(B) Impermissible uses.--Reclaimed wastewater is not used 
     for a use described in subparagraph (A)(ii) to the extent 
     such reclaimed wastewater is--
       ``(i) discharged into a waterway or used to meet waterway 
     discharge permit requirements and not used to supplement 
     potable water supplies,
       ``(ii) used to restore habitat,
       ``(iii) used to provide once-through cooling for an 
     electric generation facility, or
       ``(iv) intentionally introduced into the groundwater and 
     not used to supplement potable water supplies.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as are necessary to carry out the purposes of 
     this section, including regulations promulgated in 
     consultation with the Administrator of the Environmental 
     Protection Agency to ensure the environmental impact of 
     qualified facilities is minimized.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d) of the Internal Revenue 
     Code of 1986 is amended by striking ``or'' at the end of 
     subparagraph (D), by inserting ``or'' at the end of 
     subparagraph (E), and by inserting after subparagraph (E) the 
     following new subparagraph:
       ``(F) a clean renewable water supply bond,''.
       (2) Subparagraph (C) of section 54A(d)(2) of such Code is 
     amended by striking ``and'' at the end of clause (iv), by 
     striking the period at the end of clause (v) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(vi) in the case of a clean renewable water supply bond, 
     a purpose specified in section 54G(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 54G. Clean renewable water supply bonds.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2008.
                                 ______
                                 
  SA 3380. Mr. NELSON of Florida (for himself and Mr. Crapo) submitted 
an amendment intended to be proposed to amendment SA 3336 proposed by 
Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. __. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINITION OF 
                   CELLULOSIC BIOFUEL.

       (a) Cellulosic Biofuel Producer Credit.--
       (1) General rule.--Paragraph (4) of section 40(a) of the 
     Internal Revenue Code of 1986 is amended by inserting ``and 
     algae-based'' after ``cellulosic''.
       (2) Definitions.--Paragraph (6) of section 40(b) of such 
     Code is amended--
       (A) by inserting ``and algae-based'' after ``Cellulosic'' 
     in the heading,
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) In general.--The cellulosic and algae-based biofuel 
     producer credit of any taxpayer is an amount equal to the 
     applicable amount for each gallon of--
       ``(i) qualified cellulosic biofuel production, and
       ``(ii) qualified algae-based biofuel production.'',
       (C) by redesignating subparagraphs (F), (G), and (H) as 
     subparagraphs (I), (J), and (K), respectively,
       (D) by inserting ``and algae-based'' after ``cellulosic'' 
     in the heading of subparagraph (I), as so redesignated,
       (E) by inserting ``or algae-based biofuel, whichever is 
     appropriate,'' after ``cellulosic biofuel'' in subparagraph 
     (J), as so redesignated,
       (F) by inserting ``and qualified algae-based biofuel 
     production'' after ``qualified cellulosic biofuel 
     production'' in subparagraph (K), as so redesignated, and
       (G) by inserting after subparagraph (E) the following new 
     subparagraphs:
       ``(F) Qualified algae-based biofuel production.--For 
     purposes of this section, the term `qualified algae-based 
     biofuel production' means any algae-based biofuel which is 
     produced by the taxpayer, and which during the taxable year--
       ``(i) is sold by the taxpayer to another person--

       ``(I) for use by such other person in the production of a 
     qualified algae-based biofuel mixture in such other person's 
     trade or business (other than casual off-farm production),
       ``(II) for use by such other person as a fuel in a trade or 
     business, or
       ``(III) who sells such algae-based biofuel at retail to 
     another person and places such algae-based biofuel in the 
     fuel tank of such other person, or

       ``(ii) is used or sold by the taxpayer for any purpose 
     described in clause (i).

     The qualified algae-based biofuel production of any taxpayer 
     for any taxable year shall not include any alcohol which is 
     purchased by the taxpayer and with respect to which such 
     producer increases the proof of the alcohol by additional 
     distillation.
       ``(G) Qualified algae-based biofuel mixture.--For purposes 
     of this paragraph, the term `qualified algae-based biofuel 
     mixture' means a mixture of algae-based biofuel and gasoline 
     or of algae-based biofuel and a special fuel which--
       ``(i) is sold by the person producing such mixture to any 
     person for use as a fuel, or
       ``(ii) is used as a fuel by the person producing such 
     mixture.
       ``(H) Algae-based biofuel.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `algae-based biofuel' means any 
     liquid fuel, including gasoline, diesel, aviation fuel, and 
     ethanol, which--

       ``(I) is produced from the biomass of algal organisms, and
       ``(II) meets the registration requirements for fuels and 
     fuel additives established by the

[[Page 2535]]

     Environmental Protection Agency under section 211 of the 
     Clean Air Act (42 U.S.C. 7545).

       ``(ii) Algal organism.--The term `algal organism' means a 
     single- or multi-cellular organism which is primarily aquatic 
     and classified as a non-vascular plant, including microalgae, 
     blue-green algae (cyanobacteria), and macroalgae (seaweeds).
       ``(iii) Exclusion of low-proof alcohol.--Such term shall 
     not include any alcohol with a proof of less than 150. The 
     determination of the proof of any alcohol shall be made 
     without regard to any added denaturants.''.
       (3) Conforming amendments.--
       (A) Subparagraph (D) of section 40(d)(3) of such Code is 
     amended--
       (i) by inserting ``and algae-based'' after ``cellulosic'' 
     in the heading,
       (ii) by inserting ``or (b)(6)(F)'' after ``(b)(6)(C)'' in 
     clause (ii), and
       (iii) by inserting ``or algae-based'' after ``such 
     cellulosic''.
       (B) Paragraph (6) of section 40(d) of such Code is 
     amended--
       (i) by inserting ``and algae-based'' after ``cellulosic'' 
     in the heading, and
       (ii) by striking the first sentence and inserting ``No 
     cellulosic and algae-based biofuel producer credit shall be 
     determined under subsection (a) with respect to any 
     cellulosic or algae-based biofuel unless such cellulosic or 
     algae-based biofuel is produced in the United States and used 
     as a fuel in the United States.''
       (C) Paragraph (3) of section 40(e) of such Code is amended 
     by inserting ``and algae-based'' after ``cellulosic'' in the 
     heading.
       (D) Paragraph (1) of section 4101(a) of such Code is 
     amended--
       (i) by inserting ``or algae-based'' after ``cellulosic'', 
     and
       (ii) by inserting ``and 40(b)(6)(H), respectively'' after 
     ``section 40(b)(6)(E)''.
       (b) Special Allowance for Cellulosic Biofuel Plant 
     Property.--Subsection (l) of section 168 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by inserting ``and Algae-Based'' after ``Cellulosic'' 
     in the heading,
       (2) by inserting ``and any qualified algae-based biofuel 
     plant property'' after ``qualified cellulosic biofuel plant 
     property'' in paragraph (1),
       (3) by redesignating paragraphs (4) through (8) as 
     paragraphs (6) through (10), respectively,
       (4) by inserting ``or qualified algae-based biofuel plant 
     property'' after ``cellulosic biofuel plant property'' in 
     paragraph (7)(C), as so redesignated,
       (5) by striking ``with respect to'' and all that follows in 
     paragraph (9), as so redesignated, and inserting ``with 
     respect to any qualified cellulosic biofuel plant property 
     and any qualified algae-based biofuel plant property which 
     ceases to be such qualified property.'',
       (6) by inserting ``or qualified algae-based biofuel plant 
     property'' after ``cellulosic biofuel plant property'' in 
     paragraph (10), as so redesignated, and
       (7) by inserting after paragraph (3) the following new 
     paragraphs:
       ``(4) Qualified algae-based biofuel plant property.--The 
     term `qualified algae-based biofuel plant property' means 
     property of a character subject to the allowance for 
     depreciation--
       ``(A) which is used in the United States solely to produce 
     algae-based biofuel,
       ``(B) the original use of which commences with the taxpayer 
     after the date of the enactment of this paragraph,
       ``(C) which is acquired by the taxpayer by purchase (as 
     defined in section 179(d)) after the date of the enactment of 
     this paragraph, but only if no written binding contract for 
     the acquisition was in effect on or before such date, and
       ``(D) which is placed in service by the taxpayer before 
     January 1, 2013.
       ``(5) Algae-based biofuel.--
       ``(A) In general.--The term `algae-based biofuel' means any 
     liquid fuel which is produced from the biomass of algal 
     organisms.
       ``(B) Algal organism.--The term `algal organism' means a 
     single- or multi-cellular organism which is primarily aquatic 
     and classified as a non-vascular plant, including microalgae, 
     blue-green algae (cyanobacteria), and macroalgae 
     (seaweeds).''.
       (c) Effective Dates.--
       (1) Cellulosic biofuel producer credit.--The amendments 
     made by subsection (a) shall apply to fuel produced after the 
     date of the enactment of this Act.
       (2) Special allowance for cellulosic biofuel plant 
     property.--The amendments made by subsection (b) shall apply 
     to property purchased and placed in service after the date of 
     the enactment of this Act.
                                 ______
                                 
  SA 3381. Mr. LIEBERMAN (for himself, Ms. Collins, Mrs. Feinstein, Mr. 
Byrd, Mr. Ensign, and Mr. Voinovich) submitted an amendment intended to 
be proposed to amendment SA 3336 proposed by Mr. Baucus to the bill 
H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain 
expiring provisions, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the end, add the following:

             TITLE VIII--DC OPPORTUNITY SCHOLARSHIP PROGRAM

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Scholarships for 
     Opportunity and Results Act of 2010'' or the ``SOAR Act''.

     SEC. 802. FINDINGS.

       Congress finds the following:
       (1) Parents are best equipped to make decisions for their 
     children, including the educational setting that will best 
     serve the interests and educational needs of their child.
       (2) For many parents in the District of Columbia, public 
     school choice provided under the Elementary and Secondary 
     Education Act of 1965, as amended by the No Child Left Behind 
     Act of 2001, as well as under other public school choice 
     programs, is inadequate. More educational options are needed 
     to ensure all families in the District of Columbia have 
     access to a quality education. In particular, funds are 
     needed to provide low-income parents with enhanced public 
     opportunities and private educational environments, 
     regardless of whether such environments are secular or 
     nonsecular.
       (3) Public school records raise persistent concerns 
     regarding health and safety problems in District of Columbia 
     public schools. For example, more than half of the District 
     of Columbia's teenage public school students attend schools 
     that meet the District of Columbia's definition of 
     ``persistently dangerous'' due to the number of violent 
     crimes.
       (4) While the per student cost for students in the public 
     schools of the District of Columbia is one of the highest in 
     the United States, test scores for such students continue to 
     be among the lowest in the Nation. The National Assessment of 
     Educational Progress (NAEP), an annual report released by the 
     National Center for Education Statistics, reported in its 
     2007 study that students in the District of Columbia were 
     being outperformed by every State in the Nation. On the 2007 
     NAEP, 61 percent of fourth grade students scored ``below 
     basic'' in reading, and 51 percent scored ``below basic'' in 
     mathematics. Among eighth grade students, 52 percent scored 
     ``below basic'' in reading and 56 percent scored ``below 
     basic'' in mathematics. On the 2007 NAEP reading assessment, 
     only 14 percent of the District of Columbia fourth grade 
     students could read proficiently, while only 12 percent of 
     the eighth grade students scored at the proficient or 
     advanced level.
       (5) In 2003, Congress passed the DC School Choice Incentive 
     Act of 2003 (Public Law 108-199; 118 Stat. 126) to provide 
     opportunity scholarships to parents of students in the 
     District of Columbia that could be used by students in 
     kindergarten through grade 12 to attend a private educational 
     institution. The opportunity scholarship program under such 
     Act was part of a comprehensive 3-part funding arrangement 
     that also included additional funds for the District of 
     Columbia public schools, and additional funds for public 
     charter schools of the District of Columbia. The intent of 
     the approach was to ensure that progress would continue to be 
     made to improve public schools and public charter schools, 
     and that funding for the opportunity scholarship program 
     would not lead to a reduction in funding for the District of 
     Columbia public and charter schools. Resources would be 
     available for a variety of educational options that would 
     give families in the District of Columbia a range of choices 
     with regard to the education of their children.
       (6) The opportunity scholarship program was established in 
     accordance with the U.S. Supreme Court decision, Zelman v. 
     Simmons-Harris, 536 U.S. 639 (2002), which found that a 
     program enacted for the valid secular purpose of providing 
     educational assistance to low-income children in a 
     demonstrably failing public school system is constitutional 
     if it is neutral with respect to religion and provides 
     assistance to a broad class of citizens who direct government 
     aid to religious and secular schools solely as a result of 
     their genuine and independent private choices.
       (7) Since the opportunity scholarship program's inception, 
     it has consistently been oversubscribed. Parents express 
     strong support for the opportunity scholarship program. A 
     rigorous analysis of the program by the Institute of 
     Education Sciences (IES) shows statistically significant 
     improvements in parental satisfaction and in reading scores 
     that are even more dramatic when only those students 
     consistently using the scholarships are considered.
       (8) The DC opportunity scholarship program is a program 
     that offers families in need, in the District of Columbia, 
     important alternatives while public schools are improved. It 
     is the sense of Congress that this program should continue as 
     1 of a 3-part comprehensive funding strategy for the District 
     of Columbia school system that provides new and equal funding 
     for public schools, public charter schools, and opportunity 
     scholarships for students to attend private schools.

     SEC. 803. PURPOSE.

       The purpose of this title is to provide low-income parents 
     residing in the District of Columbia, particularly parents of 
     students who attend elementary schools or secondary schools 
     identified for improvement, corrective action, or 
     restructuring under section

[[Page 2536]]

     1116 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6316), with expanded opportunities for enrolling 
     their children in other schools in the District of Columbia, 
     at least until the public schools in the District of Columbia 
     have adequately addressed shortfalls in health, safety, and 
     security and the students in the District of Columbia public 
     schools are testing in mathematics and reading at or above 
     the national average.

     SEC. 804. GENERAL AUTHORITY.

       (a) Authority.--From funds appropriated to carry out this 
     title, the Secretary shall award grants on a competitive 
     basis to eligible entities with approved applications under 
     section 805 to carry out activities to provide eligible 
     students with expanded school choice opportunities. The 
     Secretary may award a single grant or multiple grants, 
     depending on the quality of applications submitted and the 
     priorities of this title.
       (b) Duration of Grants.--The Secretary shall make grants 
     under this section for a period of not more than 5 years.
       (c) Memorandum of Understanding.--The Secretary and the 
     Mayor of the District of Columbia shall enter into a 
     memorandum of understanding regarding the design of, 
     selection of eligible entities to receive grants under, and 
     implementation of, a program assisted under this title.
       (d) Special Rule.--Notwithstanding any other provision of 
     law, funding appropriated for the opportunity scholarship 
     program under the Omnibus Appropriations Act, 2009 (Public 
     Law 111-8), the District of Columbia Appropriations Act, 2010 
     (Public Law 111-117), or any other Act, may be used to 
     provide opportunity scholarships under section 807 to new 
     applicants.

     SEC. 805. APPLICATIONS.

       (a) In General.--In order to receive a grant under this 
     title, an eligible entity shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       (b) Contents.--The Secretary may not approve the request of 
     an eligible entity for a grant under this title unless the 
     entity's application includes--
       (1) a detailed description of--
       (A) how the entity will address the priorities described in 
     section 806;
       (B) how the entity will ensure that if more eligible 
     students seek admission in the program than the program can 
     accommodate, eligible students are selected for admission 
     through a random selection process which gives weight to the 
     priorities described in section 806;
       (C) how the entity will ensure that if more participating 
     eligible students seek admission to a participating school 
     than the school can accommodate, participating eligible 
     students are selected for admission through a random 
     selection process;
       (D) how the entity will notify parents of eligible students 
     of the expanded choice opportunities and how the entity will 
     ensure that parents receive sufficient information about 
     their options to allow the parents to make informed 
     decisions;
       (E) the activities that the entity will carry out to 
     provide parents of eligible students with expanded choice 
     opportunities through the awarding of scholarships under 
     section 807(a);
       (F) how the entity will determine the amount that will be 
     provided to parents for the tuition, fees, and transportation 
     expenses, if any;
       (G) how the entity will--
       (i) seek out private elementary schools and secondary 
     schools in the District of Columbia to participate in the 
     program; and
       (ii) ensure that participating schools will meet the 
     reporting and other requirements of this title;
       (H) how the entity will ensure that participating schools 
     are financially responsible and will use the funds received 
     under this title effectively;
       (I) how the entity will address the renewal of scholarships 
     to participating eligible students, including continued 
     eligibility; and
       (J) how the entity will ensure that a majority of its 
     voting board members or governing organization are residents 
     of the District of Columbia;
       (2) an assurance that the entity will comply with all 
     requests regarding any evaluation carried out under section 
     809; and
       (3) an assurance that site inspections of participating 
     schools will be conducted at appropriate intervals.

     SEC. 806. PRIORITIES.

       In awarding grants under this title, the Secretary shall 
     give priority to applications from eligible entities that 
     will most effectively--
       (1) give priority to eligible students who, in the school 
     year preceding the school year for which the eligible student 
     is seeking a scholarship, attended an elementary school or 
     secondary school identified for improvement, corrective 
     action, or restructuring under section 1116 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6316);
       (2) give priority to students whose household includes a 
     sibling or other child who is already participating in the 
     program of the eligible entity under this title, regardless 
     of whether such students have, in the past, been assigned as 
     members of a control study group for the purposes of an 
     evaluation under section 809;
       (3) target resources to students and families that lack the 
     financial resources to take advantage of available 
     educational options; and
       (4) provide students and families with the widest range of 
     educational options.

     SEC. 807. USE OF FUNDS.

       (a) Scholarships.--
       (1) In general.--Subject to paragraphs (2) and (3), an 
     eligible entity receiving a grant under this title shall use 
     the grant funds to provide eligible students with 
     scholarships to pay the tuition, fees, and transportation 
     expenses, if any, to enable the eligible students to attend 
     the District of Columbia private elementary school or 
     secondary school of their choice beginning in school year 
     2010-2011. Each such eligible entity shall ensure that the 
     amount of any tuition or fees charged by a school 
     participating in such eligible entity's program under this 
     title to an eligible student participating in the program 
     does not exceed the amount of tuition or fees that the school 
     charges to students who do not participate in the program.
       (2) Payments to parents.--An eligible entity receiving a 
     grant under this title shall make scholarship payments under 
     the program under this title to the parent of the eligible 
     student participating in the program, in a manner which 
     ensures that such payments will be used for the payment of 
     tuition, fees, and transportation expenses (if any), in 
     accordance with this title.
       (3) Amount of assistance.--
       (A) Varying amounts permitted.--Subject to the other 
     requirements of this section, an eligible entity receiving a 
     grant under this title may award scholarships in larger 
     amounts to those eligible students with the greatest need.
       (B) Annual limit on amount.--
       (i) Limit for school year 2010-2011.--The amount of 
     assistance provided to any eligible student by an eligible 
     entity under a program under this title for school year 2010-
     2011 may not exceed--

       (I) $9,000 for attendance in kindergarten through grade 8; 
     and
       (II) $11,000 for attendance in grades 9 through 12.

       (ii) Cumulative inflation adjustment.--The limits described 
     in clause (i) shall apply for each school year following 
     school year 2010-2011, except that the Secretary shall adjust 
     the maximum amounts of assistance (as described in clause (i) 
     and adjusted under this clause for the preceding year) for 
     inflation, as measured by the percentage increase, if any, 
     from the preceding fiscal year in the Consumer Price Index 
     for All Urban Consumers, published by the Bureau of Labor 
     Statistics of the Department of Labor.
       (4) Participating school requirements.--None of the funds 
     provided under this title for opportunity scholarships may be 
     used by an eligible student to enroll in a participating 
     private school unless the participating school--
       (A) has and maintains a valid certificate of occupancy 
     issued by the District of Columbia;
       (B) makes readily available to all prospective students 
     information on its school accreditation;
       (C) in the case of a school that has been operating for 5 
     years or less, submits to the eligible entity administering 
     the program proof of adequate financial resources reflecting 
     the financial sustainability of the school and the school's 
     ability to be in operation through the school year;
       (D) has financial systems, controls, policies, and 
     procedures to ensure that Federal funds are used according to 
     this title;
       (E) ensures that each teacher of core subject matter in the 
     school has a baccalaureate degree or equivalent degree; and
       (F) is in compliance with the accreditation and other 
     standards prescribed under the District of Colombia 
     compulsory school attendance laws that apply to educational 
     institutions not affiliated with the District of Columbia 
     Public Schools.
       (b) Administrative Expenses.--An eligible entity receiving 
     a grant under this title may use not more than 3 percent of 
     the amount provided under the grant each year for the 
     administrative expenses of carrying out its program under 
     this title during the year, including--
       (1) determining the eligibility of students to participate;
       (2) selecting eligible students to receive scholarships;
       (3) determining the amount of scholarships and issuing the 
     scholarships to eligible students; and
       (4) compiling and maintaining financial and programmatic 
     records.
       (c) Parental Assistance.--An eligible entity receiving a 
     grant under this title may use not more than 2 percent of the 
     amount provided under the grant each year for the expenses of 
     educating parents about the program under this title and 
     assisting parents through the application process under this 
     title during the year, including--
       (1) providing information about the program and the 
     participating schools to parents of eligible students;

[[Page 2537]]

       (2) providing funds to assist parents of students in 
     meeting expenses that might otherwise preclude the 
     participation of eligible students in the program; and
       (3) streamlining the application process for parents.
       (d) Student Academic Assistance.--An eligible entity 
     receiving a grant under this title may use not more than 1 
     percent of the amount provided under the grant each year for 
     expenses to provide tutoring services to participating 
     eligible students that need additional academic assistance in 
     the students' new schools. If there are insufficient funds to 
     pay for these costs for all such students, the eligible 
     entity shall give priority to students who previously 
     attended an elementary school or secondary school that was 
     identified for improvement, corrective action, or 
     restructuring under section 1116 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6316) as of the 
     time the student attended the school.

     SEC. 808. NONDISCRIMINATION.

       (a) In General.--An eligible entity or a school 
     participating in any program under this title shall not 
     discriminate against program participants or applicants on 
     the basis of race, color, national origin, religion, or sex.
       (b) Applicability and Single Sex Schools, Classes, or 
     Activities.--
       (1) In general.--Notwithstanding any other provision of 
     law, the prohibition of sex discrimination in subsection (a) 
     shall not apply to a participating school that is operated 
     by, supervised by, controlled by, or connected to a religious 
     organization to the extent that the application of subsection 
     (a) is inconsistent with the religious tenets or beliefs of 
     the school.
       (2) Single sex schools, classes, or activities.--
     Notwithstanding subsection (a) or any other provision of law, 
     a parent may choose and a school may offer a single sex 
     school, class, or activity.
       (3) Applicability.--For purposes of this title, the 
     provisions of section 909 of the Education Amendments of 1972 
     (20 U.S.C. 1688) shall apply to this title as if section 909 
     of the Education Amendments of 1972 (20 U.S.C. 1688) were 
     part of this title.
       (c) Children With Disabilities.--Nothing in this title may 
     be construed to alter or modify the provisions of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1400 
     et seq.).
       (d) Religiously Affiliated Schools.--
       (1) In general.--Notwithstanding any other provision of 
     law, a school participating in any program under this title 
     that is operated by, supervised by, controlled by, or 
     connected to, a religious organization may exercise its right 
     in matters of employment consistent with title VII of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000e-1 et seq.), 
     including the exemptions in such title.
       (2) Maintenance of purpose.--Notwithstanding any other 
     provision of law, funds made available under this title to 
     eligible students, which are used at a participating school 
     as a result of their parents' choice, shall not, consistent 
     with the first amendment of the United States Constitution, 
     necessitate any change in the participating school's teaching 
     mission, require any participating school to remove religious 
     art, icons, scriptures, or other symbols, or preclude any 
     participating school from retaining religious terms in its 
     name, selecting its board members on a religious basis, or 
     including religious references in its mission statements and 
     other chartering or governing documents.
       (e) Rule of Construction.--A scholarship (or any other form 
     of support provided to parents of eligible students) under 
     this title shall be considered assistance to the student and 
     shall not be considered assistance to the school that enrolls 
     the eligible student. The amount of any scholarship (or other 
     form of support provided to parents of an eligible student) 
     under this title shall not be treated as income of the 
     parents for purposes of Federal tax laws or for determining 
     eligibility for any other Federal program.

     SEC. 809. EVALUATIONS.

       (a) In General.--
       (1) Duties of the secretary and the mayor.--The Secretary 
     and the Mayor of the District of Columbia shall--
       (A) jointly enter into an agreement with the Institute of 
     Education Sciences of the Department of Education to evaluate 
     annually the performance of students who received 
     scholarships under the 5-year program under this title, and
       (B) make the evaluations public in accordance with 
     subsection (c).
       (2) Duties of the secretary.--The Secretary, through a 
     grant, contract, or cooperative agreement, shall--
       (A) ensure that the evaluation is conducted using the 
     strongest possible research design for determining the 
     effectiveness of the program funded under this title that 
     addresses the issues described in paragraph (4); and
       (B) disseminate information on the impact of the program in 
     increasing the academic growth and achievement of 
     participating students, and on the impact of the program on 
     students and schools in the District of Columbia.
       (3) Duties of the institute of education sciences.--The 
     Institute of Education Sciences shall--
       (A) use a grade appropriate measurement each school year to 
     assess participating eligible students;
       (B) measure the academic achievement of all participating 
     eligible students; and
       (C) work with the eligible entities to ensure that the 
     parents of each student who applies for a scholarship under 
     this title (regardless of whether the student receives the 
     scholarship) and the parents of each student participating in 
     the scholarship program under this title, agree that the 
     student will participate in the measurements given annually 
     by the Institute of Educational Sciences for the period for 
     which the student applied for or received the scholarship, 
     respectively, except that nothing in this subparagraph shall 
     affect a student's priority for an opportunity scholarship as 
     provided under section 806(2).
       (4) Issues to be evaluated.--The issues to be evaluated 
     include the following:
       (A) A comparison of the academic growth and achievement of 
     participating eligible students in the measurements described 
     in this section to the academic growth and achievement of--
       (i) students in the same grades in the District of Columbia 
     public schools; and
       (ii) the eligible students in the same grades in the 
     District of Columbia public schools who sought to participate 
     in the scholarship program but were not selected.
       (B) The success of the program in expanding choice options 
     for parents.
       (C) The reasons parents choose for their children to 
     participate in the program.
       (D) A comparison of the retention rates, dropout rates, and 
     (if appropriate) graduation and college admission rates, of 
     students who participate in the program funded under this 
     title with the retention rates, dropout rates, and (if 
     appropriate) graduation and college admission rates of 
     students of similar backgrounds who do not participate in 
     such program.
       (E) The impact of the program on students, and public 
     elementary schools and secondary schools, in the District of 
     Columbia.
       (F) A comparison of the safety of the schools attended by 
     students who participate in the program funded under this 
     title and the schools attended by students who do not 
     participate in the program, based on the perceptions of the 
     students and parents and on objective measures of safety.
       (G) Such other issues as the Secretary considers 
     appropriate for inclusion in the evaluation.
       (H) An analysis of the issues described in subparagraphs 
     (A) through (G) with respect to the subgroup of eligible 
     students participating in the program funded under this title 
     who consistently use the opportunity scholarships to attend a 
     participating school.
       (I) An assessment of the academic value added by 
     participating schools on a school-by-school basis based on 
     test results from participating eligible students using the 
     same test as is administered to students attending District 
     of Columbia public schools, except that if the evaluator is 
     able certify that other means are available to compare 
     results from the test administrated in District of Columbia 
     public schools to the nationally normed test used at the 
     participating school, such nationally normed test may be 
     used. Such assessment shall be based on the strongest 
     possible research design and shall, to the extent possible, 
     test students under conditions that yield scientifically 
     valid results. Such assessment shall also provide, to the 
     extent possible, a scientifically valid analysis of how such 
     schools provide academic value added as compared to public 
     schools in the District of Columbia. The results of the 
     assessment shall be supplied to parents and included in all 
     reports to Congress so as to ensure that Federal dollars used 
     for the purposes of the program are positively impacting the 
     achievement levels of student participants.
       (5) Prohibition.--Personally identifiable information 
     regarding the results of the measurements used for the 
     evaluations may not be disclosed, except to the parents of 
     the student to whom the information relates.
       (b) Reports.--The Secretary shall submit to the Committees 
     on Appropriations, Education and Labor, and Oversight and 
     Government Reform of the House of Representatives and the 
     Committees on Appropriations, Health, Education, Labor, and 
     Pensions, and Homeland Security and Governmental Affairs of 
     the Senate--
       (1) annual interim reports, not later than December 1 of 
     each year for which a grant is made under this title, on the 
     progress and preliminary results of the evaluation of the 
     program funded under this title; and
       (2) a final report, not later than 1 year after the final 
     year for which a grant is made under this title, on the 
     results of the evaluation of the program funded under this 
     title.
       (c) Public Availability.--All reports and underlying data 
     gathered pursuant to this section shall be made available to 
     the public upon request, in a timely manner following 
     submission of the applicable report under subsection (b), 
     except that personally identifiable information shall not be 
     disclosed or made available to the public.
       (d) Limit on Amount Expended.--The amount expended by the 
     Secretary to carry out this section for any fiscal year may 
     not

[[Page 2538]]

     exceed 5 percent of the total amount appropriated to carry 
     out this title for the fiscal year.

     SEC. 810. REPORTING REQUIREMENTS.

       (a) Activities Reports.--Each eligible entity receiving 
     funds under this title during a year shall submit a report to 
     the Secretary not later than July 30 of the following year 
     regarding the activities carried out with the funds during 
     the preceding year.
       (b) Achievement Reports.--
       (1) In general.--In addition to the reports required under 
     subsection (a), each grantee receiving funds under this title 
     shall, not later than September 1 of the year during which 
     the second academic year of the grantee's program is 
     completed and each of the next 2 years thereafter, submit to 
     the Secretary a report, including any pertinent data 
     collected in the preceding 2 academic years, concerning--
       (A) the academic growth and achievement of students 
     participating in the program;
       (B) the graduation and college admission rates of students 
     who participate in the program, where appropriate; and
       (C) parental satisfaction with the program.
       (2) Prohibiting disclosure of personal information.--No 
     report under this subsection may contain any personally 
     identifiable information.
       (c) Reports to Parent.--
       (1) In general.--Each grantee receiving funds under this 
     title shall ensure that each school participating in the 
     grantee's program under this title during a year reports at 
     least once during the year to the parents of each of the 
     school's students who are participating in the program on--
       (A) the student's academic achievement, as measured by a 
     comparison with the aggregate academic achievement of other 
     participating students at the student's school in the same 
     grade or level, as appropriate, and the aggregate academic 
     achievement of the student's peers at the student's school in 
     the same grade or level, as appropriate; and
       (B) the safety of the school, including the incidence of 
     school violence, student suspensions, and student expulsions.
       (2) Prohibiting disclosure of personal information.--No 
     report under this subsection may contain any personally 
     identifiable information, except as to the student who is the 
     subject of the report to that student's parent.
       (d) Report to Congress.--The Secretary shall submit to the 
     Committees on Appropriations, Education and the Workforce, 
     and Oversight and Government Reform of the House of 
     Representatives and the Committees on Appropriations, Health, 
     Education, Labor, and Pensions, and Homeland Security and 
     Governmental Affairs of the Senate an annual report on the 
     findings of the reports submitted under subsections (a) and 
     (b).

     SEC. 811. OTHER REQUIREMENTS FOR PARTICIPATING SCHOOLS.

       (a) Testing.--Students participating in a program under 
     this title shall take a nationally norm-referenced 
     standardized test in reading and mathematics. Results of such 
     test shall be reported to the student's parent and the 
     Institute of Education Sciences. To preserve confidentiality, 
     at no time should results for individual students or schools 
     be released to the public.
       (b) Requests for Data and Information.--Each school 
     participating in a program funded under this title shall 
     comply with all requests for data and information regarding 
     evaluations conducted under section 809(a).
       (c) Rules of Conduct and Other School Policies.--A 
     participating school, including a participating school 
     described in section 808(d), may require eligible students to 
     abide by any rules of conduct and other requirements 
     applicable to all other students at the school.

     SEC. 812. DEFINITIONS.

       In this title:
       (1) Elementary school.--The term ``elementary school'' 
     means an institutional day or residential school, including a 
     public elementary charter school, that provides elementary 
     education, as determined under District of Columbia law.
       (2) Eligible entity.--The term ``eligible entity'' means 
     any of the following:
       (A) A nonprofit organization.
       (B) A consortium of nonprofit organizations.
       (3) Eligible student.--The term ``eligible student'' means 
     a student who is a resident of the District of Columbia and 
     comes from a household--
       (A) receiving assistance under the supplemental nutrition 
     assistance program established under the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2011 et seq.); or
       (B) whose income does not exceed--
       (i) 185 percent of the poverty line;
       (ii) in the case of a student in a household that had a 
     student participating in a program under this title for the 
     preceding school year, 250 percent of the poverty line; or
       (iii) in the case of a student in a household that had a 
     student participating in a program under the DC School Choice 
     Incentive Act of 2003 (Public Law 108-199; 118 Stat. 126) on 
     or before the date of enactment of this title, 300 percent of 
     the poverty line.
       (4) Parent.--The term ``parent'' has the meaning given that 
     term in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801).
       (5) Poverty line.--The term ``poverty line'' has the 
     meaning given that term in section 9101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7801).
       (6) Secondary school.--The term ``secondary school'' means 
     an institutional day or residential school, including a 
     public secondary charter school, that provides secondary 
     education, as determined under District of Columbia law, 
     except that the term does not include any education beyond 
     grade 12.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.

     SEC. 813. TRANSITION PROVISIONS.

       (a) Repeal; Sunset of Other Provisions.--
       (1) Repeal.--The DC School Choice Incentive Act of 2003 
     (title III of division C of the Consolidated Appropriations 
     Act, 2004 (Public Law 108-199; 118 Stat. 126)) is repealed.
       (2) Sunset of other provisions.--Notwithstanding any other 
     provision of law, all of the provisos under the heading 
     ``federal payment for school improvement'' under the District 
     of Columbia Appropriations Act, 2010 (Public Law 111-117), 
     shall cease to have effect on and after the date of enactment 
     of this Act.
       (b) Reauthorization of Program.--This title shall be deemed 
     to be the reauthorization of the opportunity scholarship 
     program under the DC School Choice Incentive Act of 2003.
       (c) Orderly Transition.--Subject to subsections (d) and 
     (e), the Secretary shall take such steps as the Secretary 
     determines to be appropriate to provide for the orderly 
     transition to the authority of this title from any authority 
     under the provisions of the DC School Choice Incentive Act of 
     2003 (Public Law 108-199; 118 Stat. 126), as the DC School 
     Choice Incentive Act of 2003 was in effect on the day before 
     the date of enactment of this title.
       (d) Rule of Construction.--Nothing in this title or a 
     repeal made by this title shall be construed to alter or 
     affect the memorandum of understanding entered into with the 
     District of Columbia, or any grant or contract awarded, under 
     the DC School Choice Incentive Act of 2003 (Public Law 108-
     199; 118 Stat. 126), as the DC School Choice Incentive Act of 
     2003 was in effect on the day before the date of enactment of 
     this title.
       (e) Multi-Year Awards.--The recipient of a multi-year grant 
     or contract award under the DC School Choice Incentive Act of 
     2003 (Public Law 108-199; 118 Stat. 126), as the DC School 
     Choice Incentive Act of 2003 was in effect on the day before 
     the date of enactment of this title, shall continue to 
     receive funds in accordance with the terms and conditions of 
     such award.

     SEC. 814. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated--
       (1) to carry out this title, $20,000,000 for fiscal year 
     2010 and such sums as may be necessary for each of the 4 
     succeeding fiscal years;
       (2) for the District of Columbia public schools, in 
     addition to any other amounts available for District of 
     Columbia public schools, $20,000,000 for fiscal year 2010 and 
     such sums as may be necessary for each of the 4 succeeding 
     fiscal years; and
       (3) for District of Columbia public charter schools, in 
     addition to any other amounts available for District of 
     Columbia public charter schools, $20,000,000 for fiscal year 
     2010 and such sums as may be necessary for each of the 4 
     succeeding fiscal years.
                                 ______
                                 
  SA 3382. Ms. STABENOW (for herself, Mr. Hatch, Mr. Schumer, Mr. 
Crapo, Mr. Risch, Ms. Snowe, Mr. Brown of Ohio, and Mr. Enzi) submitted 
an amendment intended to be proposed to amendment SA 3336 proposed by 
Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; as 
follows:

       At the end of title VI, add the following:

     SEC. 602. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS 
                   DETERMINED BY DOMESTIC INVESTMENT.

       (a) In General.--Section 53 is amended by adding at the end 
     the following new subsection:
       ``(g) Election for Corporations With Unused Credits.--
       ``(1) In general.--If a corporation elects to have this 
     subsection apply, then notwithstanding any other provision of 
     law, the limitation imposed by subsection (c) for any such 
     taxable year shall be increased by the AMT credit adjustment 
     amount.
       ``(2) AMT credit adjustment amount.--For purposes of 
     paragraph (1), the term `AMT credit adjustment amount' means 
     with respect to any taxable year beginning in 2010, the 
     lesser of--
       ``(A) 50 percent of a corporation's minimum tax credit 
     determined under subsection (b), or
       ``(B) 10 percent of new domestic investments made during 
     such taxable year.
       ``(3) New domestic investments.--For purposes of this 
     subsection, the term `new domestic investments' means the 
     cost of qualified property (as defined in section 
     168(k)(2)(A)(i))--

[[Page 2539]]

       ``(A) the original use of which commences with the taxpayer 
     during the taxable year, and
       ``(B) which is placed in service in the United States by 
     the taxpayer during such taxable year.
       ``(4) Credit refundable.--For purposes of subsections (b) 
     and (c) of section 6401, the aggregate increase in the 
     credits allowable under part IV of subchapter A for any 
     taxable year resulting from the application of this 
     subsection shall be treated as allowed under subpart C of 
     such part (and not to any other subpart).
       ``(5) Election.--
       ``(A) In general.--An election under this subsection shall 
     be made at such time and in such manner as prescribed by the 
     Secretary, and once effective, may be revoked only with the 
     consent of the Secretary.
       ``(B) Interim elections.--Until such time as the Secretary 
     prescribes a manner for making an election under this 
     subsection, a taxpayer is treated as having made a valid 
     election by providing written notification to the Secretary 
     and the Commissioner of Internal Revenue of such election.
       ``(6) Treatment of certain partnership investments.--For 
     purposes of this subsection, any corporation's allocable 
     share of any new domestic investments by a partnership more 
     than 90 percent of the capital and profits interest in which 
     is owned by such corporation (directly or indirectly) at all 
     times during the taxable year in which an election under this 
     subsection is in effect shall be considered new domestic 
     investments of such corporation for such taxable year.
       ``(7) No double benefit.--Notwithstanding clause (iii)(II) 
     of section 172(b)(1)(H), any taxpayer which has previously 
     made an election under such section shall be deemed to have 
     revoked such election by the making of its first election 
     under this subsection.
       ``(8) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out this subsection, including to 
     prevent fraud and abuse under this subsection.
       ``(9) Termination.--This subsection shall not apply to any 
     taxable year that begins after December 31, 2010.''.
       (b) Quick Refund of Refundable Credit.--Section 6425 is 
     amended by adding at the end the following new subsection:
       ``(e) Allowance of AMT Credit Adjustment Amount.--The 
     amount of an adjustment under this section as determined 
     under subsection (c)(2) for any taxable year may be increased 
     to the extent of the corporation's AMT credit adjustment 
     amount determined under section 53(g) for such taxable 
     year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 603. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE 
                   PAYMENTS.

       (a) In General.--Section 6041 is amended by adding at the 
     end 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, 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 amendment made by this section 
     shall apply to payments made after December 31, 2010.
                                 ______
                                 
  SA 3383. Mr. WICKER (for himself and Mr. Cochran) submitted an 
amendment intended to be proposed to amendment SA 3336 proposed by Mr. 
Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 38, after line 24, add the following:

     SEC. 186. TAX-EXEMPT BOND FINANCING.

       (a) In General.--Paragraphs (2)(D) and (7)(C) of section 
     1400N(a) are each amended by striking``January 1, 2011'' and 
     inserting ``January 1, 2012''.
       (b) Conforming Amendments.--Sections 702(d)(1) and 704(a) 
     of the Heartland Disaster Tax Relief Act of 2008 (Public Law 
     110-343; 122 Stat. 3913, 3919) are each amended by 
     striking``January 1, 2011'' each place it appears and 
     inserting ``January 1, 2012''.
                                 ______
                                 
  SA 3384. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
by her to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in title VI, insert the following:

     SEC. 6__. ENERGY EFFICIENCY LOAN GUARANTEES.

       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.''.
                                 ______
                                 
  SA 3385. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. __. EXTENSION OF TIME TO MEET CRITERIA FOR CERTIFICATION 
                   FOR QUALIFYING ADVANCED COAL PROJECT CREDIT.

       (a) In General.--Subparagraph (D) of section 48A(d)(2) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following: ``The Secretary may extend the 2-year 
     period in the preceding sentence if the Secretary determines 
     that a failure to meet such criteria is due to circumstances 
     beyond the control of the applicant, except that the 
     Secretary may not extend such time period later than December 
     31, 2014.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to applications submitted after the date which is 
     3 years before the date of the enactment of this Act.
                                 ______
                                 
  SA 3386. Mr. BROWN of Ohio submitted an amendment intended to be 
proposed by him to the bill H.R. 4213, to amend the Internal Revenue 
Code of 1986 to extend certain expiring provisions, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

               DIVISION __--TRADE ENFORCEMENT PRIORITIES

     SEC. __01. SHORT TITLE.

       This division may be cited as the ``Trade Enforcement 
     Priorities Act''.

     SEC. __02. IDENTIFICATION OF TRADE ENFORCEMENT PRIORITIES.

       (a) In General.--Section 310 of the Trade Act of 1974 (19 
     U.S.C. 2420) is amended to read as follows:

     ``SEC. 310. IDENTIFICATION OF TRADE ENFORCEMENT PRIORITIES.

       ``(a) Identification and Annual Report.--Not later than 75 
     days after the date that the National Trade Estimate under 
     section 181(b) is required to be submitted each calendar 
     year, the United States Trade Representative shall--
       ``(1) identify the trade enforcement priorities of the 
     United States;
       ``(2) identify trade enforcement actions that the United 
     States has taken during the previous year and provide an 
     assessment of the impact those enforcement actions have had 
     in addressing foreign trade barriers;
       ``(3) identify the priority foreign country trade practices 
     on which the Trade Representative will focus the trade 
     enforcement efforts of the United States during the upcoming 
     year; and
       ``(4) submit to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives and publish in the Federal Register a report 
     on the priorities, actions, assessments, and practices 
     identified in paragraphs (1), (2), and (3).
       ``(b) Factors To Consider.--In identifying priority foreign 
     country trade practices under subsection (a)(3), the Trade 
     Representative shall--
       ``(1) focus on those practices the elimination of which is 
     likely to have the most significant potential to increase 
     United States economic growth; and
       ``(2) concentrate on United States trading partners--
       ``(A) that represent the largest trade deficit in dollar 
     value with the United States, excluding petroleum and 
     petroleum products;
       ``(B) whose practices have the most negative impact on 
     maintaining and creating United States jobs, wages, and 
     productive capacity; and
       ``(C) whose practices limit market access for United States 
     goods and services; and
       ``(3) take into account all relevant factors, including--
       ``(A) the major barriers and trade distorting practices 
     described in the most recent National Trade Estimate required 
     under section 181(b);
       ``(B) the findings and practices described in the most 
     recent report required under--
       ``(i) section 182;
       ``(ii) section 1377 of the Omnibus Trade and 
     Competitiveness Act of 1988 (19 U.S.C. 3106);
       ``(iii) section 3005 of the Omnibus Trade and 
     Competitiveness Act of 1988 (22 U.S.C. 5305); and

[[Page 2540]]

       ``(iv) section 421 of the U.S.-China Relations Act of 2000 
     (22 U.S.C. 6951);
       ``(C) the findings and practices described in any other 
     report addressing international trade and investment barriers 
     prepared by the Trade Representative, the Department of 
     Commerce, the Department of Labor, the Department of 
     Agriculture, and the Department of State, or any other agency 
     or congressional commission during the 12 months preceding 
     the date on which the report described in subsection (a)(4) 
     is required to be submitted;
       ``(D) a foreign country's compliance with its obligations 
     under any trade agreements to which both the foreign country 
     and the United States are parties;
       ``(E) a foreign country's compliance with its obligations 
     under internationally recognized sanitary and phytosanitary 
     standards;
       ``(F) the international competitive position and export 
     potential of United States products and services; and
       ``(G) the enforcement of customs laws relating to 
     anticircumvention and transshipment.
       ``(c) Consultation.--
       ``(1) In general.--Not later than 90 days after the date 
     that the National Trade Estimate under section 181(b) is 
     required to be submitted, the Trade Representative shall 
     consult with the Committee on Finance of the Senate and the 
     Committee on Ways and Means of the House of Representatives 
     with respect to the priorities, actions, assessments, and 
     practices required to be identified in the report under 
     subsection (a).
       ``(2) Vote of committee.--If, as a result of the 
     consultations described in paragraph (1), either the 
     Committee on Finance of the Senate or the Committee on Ways 
     and Means of the House of Representatives requests 
     identification of a priority foreign country trade practice 
     by majority vote of the Committee, the Trade Representative 
     shall include such identification in the report required 
     under subsection (a).
       ``(3) Determination not to include priority foreign country 
     trade practices.--The Trade Representative may determine not 
     to include the priority foreign country trade practice 
     requested under paragraph (2) in the report required under 
     subsection (a) only if the Trade Representative finds that--
       ``(A) such practice is already being addressed under 
     provisions of United States trade law, under the Uruguay 
     Round Agreements (as defined in section 2(7) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3501(7))), under a bilateral 
     or regional trade agreement, or as part of trade negotiations 
     with that foreign country or other countries, and progress is 
     being made toward the elimination of such practice; or
       ``(B) identification of such practice as a priority foreign 
     country trade practice would be contrary to the interests of 
     United States trade policy.
       ``(4) Reasons for determination.--In the case of a 
     determination made pursuant to paragraph (3), the Trade 
     Representative shall set forth in detail the reasons for that 
     determination in the report required under subsection (a).
       ``(5) Report to be publicly available.--The Trade 
     Representative shall publish the report required under 
     subsection (a) in the Federal Register.
       ``(d) Investigation and Resolution.--
       ``(1) In general.--Not later than 120 days after the report 
     required under subsection (a) is submitted, the Trade 
     Representative shall engage in negotiations with the country 
     concerned in accordance with paragraph (2) or (3), as the 
     case may be, to resolve the practices identified in the 
     report.
       ``(2) Actions with respect to practices of members of the 
     world trade organization or countries with which the united 
     states has a trade agreement in effect.--In the case of any 
     priority foreign country trade practice identified under 
     subsection (a) of a country that is a member of the World 
     Trade Organization or a country with which the United States 
     has a bilateral or regional trade agreement in effect, the 
     Trade Representative shall, not later than 120 days after the 
     date that the report described in subsection (a) is 
     submitted--
       ``(A)(i) initiate dispute settlement consultations in the 
     World Trade Organization; or
       ``(ii) initiate dispute settlement consultations under the 
     applicable provisions of the bilateral or regional trade 
     agreement;
       ``(B) seek to negotiate an agreement that provides for the 
     elimination of the priority foreign country trade practice 
     or, if elimination of the practice is not feasible, an 
     agreement that provides for compensatory trade benefits; or
       ``(C) take any other action necessary to facilitate the 
     elimination of the priority foreign country trade practice.
       ``(3) Actions with respect to practices of other 
     countries.--In the case of any priority foreign country trade 
     practice identified under subsection (a) of a country that is 
     not described in paragraph (2), the Trade Representative 
     shall, not later than 120 days after the report described in 
     subsection (a) is submitted--
       ``(A) initiate an investigation under section 302(b)(1);
       ``(B) seek to negotiate an agreement that provides for the 
     elimination of the priority foreign country trade practice 
     or, if elimination of the practice is not feasible, an 
     agreement that provides for compensatory trade benefits; or
       ``(C) take any other action necessary to eliminate the 
     priority foreign country trade practice.
       ``(e) Additional Reporting.--
       ``(1) Report by trade representative.--Not later than 180 
     days after the date of the enactment of this section, and 
     every 180 days thereafter, the Trade Representative shall 
     report to the Committee on Finance of the Senate and the 
     Committee on Ways and Means of the House of Representatives 
     on the progress being made to realize the trade enforcement 
     priorities identified in subsection (a)(1) and the steps 
     being taken to address the priority foreign country trade 
     practices identified in subsection (a)(3).
       ``(2) Report by government accountability office.--Not 
     later than 2 years after the date of the enactment of this 
     section, and every 2 years thereafter, the Comptroller 
     General of the United States shall submit to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives a report assessing the actions 
     taken by the Trade Representative to realize the trade 
     enforcement priorities identified in subsection (a)(1) and 
     the steps being taken to address the priority foreign country 
     trade practices identified in subsection (a)(3).''.
       (b) Conforming Amendment.--The table of contents for the 
     Trade Act of 1974 is amended by striking the item relating to 
     section 310, and inserting the following new item:

``Sec. 310. Identification of trade enforcement priorities.''.
                                 ______
                                 
  SA 3387. Mr. DODD submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 73, line 18, before the comma insert ``and section 
     8 of the Temporary Extension Act of 2010''.
       On page 73, line 21, after the second period insert the 
     following: ``The amendment made by this section shall be 
     considered to have taken effect on February 28, 2010.''.
                                 ______
                                 
  SA 3388. Mr. BURRIS submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. ENHANCED OVERSIGHT OF STATE AND LOCAL ECONOMIC 
                   RECOVERY ACT.

       (a) Short Title.--This section may be cited as the 
     ``Enhanced Oversight of State and Local Economic Recovery 
     Act''.
       (b) Requirements for Funding for State and Local Oversight 
     Under American Recovery and Reinvestment Act of 2009.--
       (1) Federal agency requirement.--Section 1552 of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 297) is amended--
       (A) by inserting ``(a) Federal Agency Requirement.--'' 
     before ``Federal agencies receiving'';
       (B) by striking ``may,'' and all that follows through 
     ``reasonably'' and inserting ``shall, subject to guidance 
     from the Director of the Office of Management and Budget,''; 
     and
       (C) by striking ``data collection requirements'' and 
     inserting ``data collection requirements, auditing, contract 
     and grant planning and management, and investigations of 
     waste, fraud, and abuse''.
       (2) State and local government authority.--Section 1552 of 
     that Act is further amended by adding at the end the 
     following:
       ``(b) State and Local Government Authority.--
     Notwithstanding any other provision of law, State and local 
     governments receiving funds under this Act may set aside an 
     amount up to 0.5 percent of such funds, in addition to any 
     funds already allocated to administrative expenditures, to 
     conduct planning and oversight to prevent and detect waste, 
     fraud, and abuse.''.
       (3) Technical and conforming amendment.--The heading for 
     section 1552 of that Act is amended to read as follows:

     ``SEC. 1552. FUNDING FOR STATE AND LOCAL GOVERNMENT 
                   OVERSIGHT.''.

       (c) Authorization for Acquisition by State and Local 
     Governments Through Federal Supply Schedules.--Section 502 of 
     title 40, United States Code, is amended by adding at the end 
     the following:
       ``(e) Use of Supply Schedules for Economic Recovery.--
       ``(1) In general.--The Administrator may provide for the 
     use by State or local governments of Federal supply schedules 
     of the General Services Administration for goods or services 
     that are funded by the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5).
       ``(2) Voluntary use.--In the case of the use by a State or 
     local government of a Federal supply schedule under paragraph 
     (1),

[[Page 2541]]

     participation by a firm that sells to the Federal Government 
     through the supply schedule shall be voluntary with respect 
     to a sale to the State or local government through such 
     supply schedule.
       ``(3) Provisions to ensure proper usage by non-federal 
     users.--The Administrator shall, for authorized non-Federal 
     users of Federal Supply Schedules--
       ``(A) review the existing ordering guidance and, as 
     necessary, prescribe additional guidance to ensure proper 
     usage and to maximize task and delivery order competition;
       ``(B) make available the online electronic Request for 
     Quote (RFQ)/Request for Proposal (RFP) system; and
       ``(C) make available, free of charge, training related to 
     proper Schedule usage, including online training courses.
       ``(4) Definitions.--The definitions in subsection (c)(3) 
     shall apply for purposes of this subsection.''.
       (d) Definition of Jobs Created and Jobs Retained.--Section 
     1512(g) of the American Recovery and Reinvestment Act of 2009 
     (Public Law 111-5; 123 Stat. 288) is amended by adding at the 
     end ``The Director of the Office of Management and Budget 
     shall issue guidance to ensure accurate and consistent 
     reporting of `jobs created' and `jobs retained' as those 
     terms are used in subsection (c)(3)(D).''.
       (e) Federal Awards Under the American Recovery and 
     Reinvestment Act of 2009.--Section 2 of the Federal Funding 
     Accountability and Transparency Act of 2006 (31 U.S.C. 6101 
     note; Public Law 109-282) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) Additional website content.--Not later than 30 days 
     after the date of enactment of the Enhanced Oversight of 
     State and Local Economic Recovery Act, the Office of 
     Management and Budget shall ensure that the website under 
     this subsection--
       ``(A) clearly differentiates between projects funded under 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5) and other Federal awards; and
       ``(B) provides users with the ability to perform searches 
     for information in the website relating only to Federal 
     awards funded by the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5).''; and
       (2) by adding after subsection (g) the following:
       ``(h) Weblink.--The website Recovery.gov established under 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5) shall contain a prominently displayed weblink on 
     its front page to the website under this section.''.
                                 ______
                                 
  SA 3389. Mr. BURR proposed an amendment to amendment SA 3336 proposed 
by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. __. STATE AND LOCAL SALES TAX RELIEF FOR CONSUMERS.

       (a) In General.--The Secretary shall reimburse each State 
     for 75 percent of the amount of State and local sales tax 
     payable and not collected during the sales tax holiday 
     period.
       (b) Determination and Timing of Reimbursement.--
       (1) Predetermined amount.--Not later than 45 days after the 
     date of the enactment of this Act, the Secretary shall pay to 
     each State an amount equal to the sum of--
       (A)(i) 75 percent of the amount of State and local sales 
     tax payable and collected in such State during the same 
     period in 2009 as the sales tax holiday period, times
       (ii) an acceleration factor equal to 1.73, plus
       (B) an amount equal to 1 percent of the amount determined 
     under subparagraph (A) for State administrative costs.
       (2) Reconciliation amount.--Not later than July 1, 2010, 
     the Secretary shall pay to each electing State under 
     subsection (c)(2) an amount equal to the excess (if any) of--
       (A) 75 percent of the amount of State and local sales tax 
     payable and not collected in such State during the sales tax 
     holiday period, over
       (B) the amount determined under paragraph (1)(A) and paid 
     to such State.
       (c) Requirement for Reimbursement.--The Secretary may not 
     pay a reimbursement under this section unless--
       (1) the chief executive officer of the State informs the 
     Secretary, not later than the first day of the sales tax 
     holiday period of the intention of the State to qualify for 
     such reimbursement by not collecting sales tax payable during 
     the sales tax holiday period,
       (2) in the case of a State which elects to receive the 
     reimbursement of a reconciliation amount under subsection 
     (b)(2)--
       (A) the chief executive officer of the State informs the 
     Secretary and the Director of Management and Budget and the 
     retail sellers of tangible property in such State, not later 
     than the first day of the sales tax holiday period of the 
     intention of the State to make such an election,
       (B) the chief executive officer of the State informs the 
     retail sellers of tangible property in such State, not later 
     than the first day of the sales tax holiday period of the 
     intention of the State to make such an election and the 
     additional information (if any) that will be required as an 
     addendum to the standard reports required of such retail 
     sellers with respect to the reporting periods including the 
     sales tax holiday period,
       (C) the chief executive officer reports to the Secretary 
     and the Director of Management and Budget, not later than 
     June 1, 2010, the amount determined under subsection (b)(2) 
     in a manner specified by the Secretary,
       (D) if amount determined under subsection (b)(1)(A) and 
     paid to such State exceeds the amount determined under 
     subsection (b)(2)(A), the chief executive officer agrees to 
     remit to the Secretary such excess not later than July 1, 
     2010, and
       (E) the chief executive officer of the State certifies that 
     such State--
       (i) in the case of any retail seller unable to identify and 
     report sales which would otherwise be taxable during the 
     sales tax holiday period, shall treat the reporting by such 
     seller of sales revenue during such period, multiplied by the 
     ratio of taxable sales to total sales for the same period in 
     2010 as the sales tax holiday period, as a good faith effort 
     to comply with the requirements under subparagraph (B), and
       (ii) shall not treat any such retail seller of tangible 
     property who has made such a good faith effort liable for any 
     error made as a result of such effort to comply unless it is 
     shown that the retailer acted recklessly or fraudulently,
       (3) in the case of any home rule State, the chief executive 
     officer of such State certifies that all local governments 
     that impose sales taxes in such State agree to provide a 
     sales tax holiday during the sales tax holiday period,
       (4) the chief executive officer of the State agrees to pay 
     each local government's share of the reimbursement (as 
     determined under subsection (d)) not later than 20 days after 
     receipt of such reimbursement, and
       (5) in the case of not more than 20 percent of the States 
     which elect to receive the reimbursement of a reconciliation 
     amount under subsection (b)(2), the Director of Management 
     and Budget certifies the amount of the reimbursement required 
     under subsection (b)(2) based on the reports by the chief 
     executive officers of such States under paragraph (2)(C).
       (d) Determination of Reimbursement of Local Sales Taxes.--
     For purposes of subsection (c)(4), a local government's share 
     of the reimbursement to a State under this section shall be 
     based on the ratio of the local sales tax to the State sales 
     tax for such State for the same time period taken into 
     account in determining such reimbursement, based on data 
     published by the Bureau of the Census.
       (e) Definitions.--For purposes of this section--
       (1) Home rule state.--The term ``home rule State'' means a 
     State that does not control imposition and administration of 
     local taxes.
       (2) Local.--The term ``local'' means a city, county, or 
     other subordinate revenue or taxing authority within a State.
       (3) Sales tax.--The term ``sales tax'' means--
       (A) a tax imposed on or measured by general retail sales of 
     taxable tangible property, or services performed incidental 
     to the sale of taxable tangible property, that is--
       (i) calculated as a percentage of the price, gross 
     receipts, or gross proceeds, and
       (ii) can or is required to be directly collected by retail 
     sellers from purchasers of such property,
       (B) a use tax, or
       (C) the Illinois Retailers' Occupation Tax, as defined 
     under the law of the State of Illinois, but excludes any tax 
     payable with respect to food and beverages sold for immediate 
     consumption on the premises, beverages containing alcohol, 
     and tobacco products.
       (4) Sales tax holiday period.--The term ``sales tax holiday 
     period'' means the period--
       (A) beginning on the first Friday which is 30 days after 
     the date of the enactment of this Act, and
       (B) ending on the date which is 10 days after the date 
     described in subparagraph (A).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (6) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or the Commonwealth of 
     Puerto Rico.
       (7) Use tax.--The term ``use tax'' means a tax imposed on 
     the storage, use, or other consumption of tangible property 
     that is not subject to sales tax.

     SEC. ___. RESCISSION OF DISCRETIONARY AMOUNTS APPROPRIATED BY 
                   THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 
                   2009.

       (a) In General.--All discretionary amounts made available 
     by the American Recovery and Reinvestment Act of 2009 (123 
     Stat. 115; Public Law No: 111-5) that are unobligated on the 
     date of the enactment of this Act are hereby rescinded.
       (b) Administration.--Not later than 30 days after the date 
     of the enactment of this

[[Page 2542]]

     Act, the Director of the Office of Management and Budget 
     shall--
       (1) administer the reduction specified in subsection (a); 
     and
       (2) submit to the Committee on Appropriations of the Senate 
     and the Committee on Appropriations of the House of 
     Representatives a report specifying the account and the 
     amount of each reduction made pursuant to subsection (a).
                                 ______
                                 
  SA 3390. Mr. BURR proposed an amendment to amendment SA 3336 proposed 
by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. __. EXTENSION AND MODIFICATION OF CERTAIN ECONOMIC 
                   RECOVERY PAYMENTS.

       (a) Short Title.--This section may be cited as the 
     ``Emergency Senior Citizens Relief Act of 2010''.
       (b) Extension and Modification of Payments.--Section 2201 
     of the American Recovery and Reinvestment Tax Act of 2009 is 
     amended--
       (1) in subsection (a)(1)(A)--
       (A) by inserting ``for each of calendar years 2009 and 
     2010'' after ``shall disburse'',
       (B) by inserting ``(for purposes of payments made for 
     calendar year 2009), or the 3-month period ending with the 
     month which ends prior to the month that includes the date of 
     the enactment of the Emergency Senior Citizens Relief Act of 
     2010 (for purposes of payments made for calendar year 2010)'' 
     after ``the date of the enactment of this Act'', and
       (C) by adding at the end the following new sentence: ``In 
     the case of an individual who is eligible for a payment under 
     the preceding sentence by reason of entitlement to a benefit 
     described in subparagraph (B)(i), no such payment shall be 
     made to such individual for calendar year 2010 unless such 
     individual was paid a benefit described in such subparagraph 
     (B)(i) for any month in the 12-month period ending with the 
     month which ends prior to the month that includes the date of 
     the enactment of the Emergency Senior Citizens Relief Act of 
     2010.'',
       (2) in subsection (a)(1)(B)(iii), by inserting ``(for 
     purposes of payments made under this paragraph for calendar 
     year 2009), or the 3-month period ending with the month which 
     ends prior to the month that includes the date of the 
     enactment of the Emergency Senior Citizens Relief Act of 2010 
     (for purposes of payments made under this paragraph for 
     calendar year 2010)'' before the period at the end,
       (3) in subsection (a)(2)--
       (A) by inserting ``, or who are utilizing a foreign or 
     domestic Army Post Office, Fleet Post Office, or Diplomatic 
     Post Office address'' after ``Northern Mariana Islands'', and
       (B) by striking ``current address of record'' and inserting 
     ``address of record, as of the date of certification under 
     subsection (b) for a payment under this section'',
       (4) in subsection (a)(3)--
       (A) by inserting ``per calendar year (determined with 
     respect to the calendar year for which the payment is made, 
     and without regard to the date such payment is actually paid 
     to such individual)'' after ``only 1 payment under this 
     section'', and
       (B) by inserting ``for the same year'' after ``payments'' 
     in the heading thereof,
       (5) in subsection (a)(4)--
       (A) by inserting ``(or, in the case of subparagraph (D), 
     shall not be due)'' after ``made'' in the matter preceding 
     subparagraph (A),
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) in the case of an individual entitled to a benefit 
     specified in paragraph (1)(B)(i) or paragraph 
     (1)(B)(ii)(VIII) if--
       ``(i) for the most recent month of such individual's 
     entitlement in the applicable 3-month period described in 
     paragraph (1); or
       ``(ii) for any month thereafter which is before the month 
     after the month of the payment;

     such individual's benefit under such paragraph was not 
     payable by reason of subsection (x) or (y) of section 202 of 
     the Social Security Act (42 U.S.C. 402) or section 1129A of 
     such Act (42 U.S.C. 1320a-8a);'',
       (C) in subparagraph (B), by striking ``3 month period'' and 
     inserting ``applicable 3-month period'',
       (D) by striking subparagraph (C) and inserting the 
     following:
       ``(C) in the case of an individual entitled to a benefit 
     specified in paragraph (1)(C) if--
       ``(i) for the most recent month of such individual's 
     eligibility in the applicable 3-month period described in 
     paragraph (1); or
       ``(ii) for any month thereafter which is before the month 
     after the month of the payment;

     such individual's benefit under such paragraph was not 
     payable by reason of subsection (e)(1)(A) or (e)(4) of 
     section 1611 (42 U.S.C. 1382) or section 1129A of such Act 
     (42 U.S.C. 1320a-8a); or'',
       (E) by striking subparagraph (D) and inserting the 
     following:
       ``(D) in the case of any individual whose date of death 
     occurs--
       ``(i) before the date of the receipt of the payment; or
       ``(ii) in the case of a direct deposit, before the date on 
     which such payment is deposited into such individual's 
     account.'',
       (F) by adding at the end the following flush sentence:

     ``In the case of any individual whose date of death occurs 
     before a payment is negotiated (in the case of a check) or 
     deposited (in the case of a direct deposit), such payment 
     shall not be due and shall not be reissued to the estate of 
     such individual or to any other person.'', and
       (G) by adding at the end, as amended by subparagraph (F), 
     the following new sentence: ``Subparagraphs (A)(ii) and 
     (C)(ii) shall apply only in the case of certifications under 
     subsection (b) which are, or but for this paragraph would be, 
     made after the date of the enactment of Emergency Senior 
     Citizens Relief Act of 2010, and shall apply to such 
     certifications without regard to the calendar year of the 
     payments to which such certifications apply.''.
       (6) in subsection (a)(5)--
       (A) by inserting ``, in the case of payments for calendar 
     year 2009, and no later than 120 days after the date of the 
     enactment of the Emergency Senior Citizens Relief Act of 
     2010, in the case of payments for calendar year 2010'' before 
     the period at the end of the first sentence of subparagraph 
     (A), and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Deadline.--No payment for calendar year 2009 shall be 
     disbursed under this section after December 31, 2010, and no 
     payment for calendar year 2010 shall be disbursed under this 
     section after December 31, 2011, regardless of any 
     determinations of entitlement to, or eligibility for, such 
     payment made after whichever of such dates is applicable to 
     such payment.'',
       (7) in subsection (b), by inserting ``(except that such 
     certification shall be affected by a determination that an 
     individual is an individual described in subparagraph (A), 
     (B), (C), or (D) of subsection (a)(4) during a period 
     described in such subparagraphs), and no individual shall be 
     certified to receive a payment under this section for a 
     calendar year if such individual has at any time been denied 
     certification for such a payment for such calendar year by 
     reason of subparagraph (A)(ii) or (C)(ii) of subsection 
     (a)(4) (unless such individual is subsequently determined not 
     to have been an individual described in either such 
     subparagraph at the time of such denial)'' before the period 
     at the end of the last sentence,
       (8) in subsection (c), by striking paragraph (4) and 
     inserting the following:
       ``(4) Payments subject to offset and reclamation.--
     Notwithstanding paragraph (3), any payment made under this 
     section--
       ``(A) shall, in the case of a payment by direct deposit 
     which is made after the date of the enactment of the 
     Emergency Senior Citizens Relief Act of 2010, be subject to 
     the reclamation provisions under subpart B of part 210 of 
     title 31, Code of Federal Regulations (relating to 
     reclamation of benefit payments); and
       ``(B) shall not, for purposes of section 3716 of title 31, 
     United States Code, be considered a benefit payment or cash 
     benefit made under the applicable program described in 
     subparagraph (B) or (C) of subsection (a)(1), and all amounts 
     paid shall be subject to offset under such section 3716 to 
     collect delinquent debts.'',
       (9) in subsection (e)--
       (A) by striking ``2011'' and inserting ``2012'',
       (B) by inserting ``section ___(c) of the Emergency Senior 
     Citizens Relief Act of 2010,'' after ``section 2202,'' in 
     paragraph (1), and
       (C) by adding at the following new paragraph:
       ``(5)(A) For the Secretary of the Treasury, an additional 
     $5,200,000 for purposes described in paragraph (1).
       ``(B) For the Commissioner of Social Security, an 
     additional $5,000,000 for the purposes described in paragraph 
     (2)(B).
       ``(C) For the Railroad Retirement Board, an additional 
     $600,000 for the purposes described in paragraph (3)(B).
       ``(D) For the Secretary of Veterans Affairs, an additional 
     $625,000 for the Information Systems Technology account''.
       (c) Extension of Special Credit for Certain Government 
     Retirees.--
       (1) In general.--In the case of an eligible individual (as 
     defined in section 2202(b) of the American Recovery and 
     Reinvestment Tax Act of 2009, applied by substituting 
     ``2010'' for ``2009''), with respect to the first taxable 
     year of such individual beginning in 2010, section 2202 of 
     the American Recovery and Reinvestment Tax Act of 2009 shall 
     be applied by substituting ``2010'' for ``2009'' each place 
     it appears.
       (2) Conforming amendment.--Subsection (c) of section 36A of 
     the Internal Revenue Code of 1986 is amended by inserting ``, 
     and any credit allowed to the taxpayer under section 
     ___(c)(1) of the Emergency Senior Citizens Relief Act of 
     2010'' after ``the American Recovery and Reinvestment Tax Act 
     of 2009''.
       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments

[[Page 2543]]

     made by this section shall take effect on the date of the 
     enactment of this Act.
       (2) Application of rule relating to deceased individuals.--
     The amendment made by subsection (a)(5)(F) shall take effect 
     as if included in section 2201 of the American Recovery and 
     Reinvestment Tax Act of 2009.
       (e) Emergency Designation.--This section is designated as 
     an emergency requirement pursuant to section 4(g) of the 
     Statutory Pay-As-You-Go Act of 2010 (P.L. 111-139), and 
     designated as an emergency requirement and necessary to meet 
     emergency needs pursuant to section 403(a) of S. Con. Res. 13 
     (111th Congress), the concurrent resolution on the budget for 
     fiscal year 2010.
       (f) Use of Stimulus Funds to Offset Spending.--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 $14,361,000,000 in order to 
     offset the net increase in spending resulting from the 
     provisions of, and amendments made by, subsections (b) and 
     (c) of this section. 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 3391. Mr. BROWN of Massachusetts proposed an amendment to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; as follows:

       At the end of title I, add the following:

     SEC. 103. EMPLOYEE PAYROLL TAX RATE CUT.

       (a) In General.--For the 6-calendar-month period beginning 
     after the date which is 60 days after the date of the 
     enactment of this Act, the Secretary of the Treasury shall 
     reduce the rate of tax under section 3101(a) of the Internal 
     Revenue Code of 1986 and 50 percent of the rate of tax under 
     section 1401(a) of such Code by such percentage such that the 
     resulting reduction in revenues to the Federal Old-Age and 
     Survivors Insurance Trust Fund is equal to 90 percent of the 
     amounts appropriated or made available and remaining 
     unobligated under division A of the American Recovery and 
     Reinvestment Act of 2009 (Pub. Law 111-5) (other than under 
     title X of such division A) as of the date of the enactment 
     of this Act.
       (b) Transfers to Federal Old-Age and Survivors Insurance 
     Trust Fund.--There are appropriated to the Federal Old-Age 
     and Survivors Trust Fund and the Federal Disability Insurance 
     Trust Fund established under section 201 of the Social 
     Security Act (42 U.S.C. 401) amounts equal to the reduction 
     in revenues to the Treasury by reason of the application of 
     subsection (a). Amounts appropriated by the preceding 
     sentence shall be transferred from the general fund at such 
     times and in such manner as to replicate to the extent 
     possible the transfers which would have occurred to such 
     Trust Fund had such amendment not been enacted.
       (c) Rescission of Certain Stimulus Funds.--Notwithstanding 
     section 5 of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 116), from the amounts 
     appropriated or made available under division A of such Act 
     (other than under title X of such division A), there is 
     rescinded 100 percent of the remaining unobligated amounts as 
     of the date of the enactment of this Act. 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.
       (d) Emergency Designation.--This section is designated as 
     an emergency requirement pursuant to section 4(g) of the 
     Statutory Pay-As-You-Go Act of 2010 (Public Law 111-139; 2 
     U.S.C. 933(g)) and section 403(a) of S. Con. Res. 13 (111th 
     Congress), the concurrent resolution on the budget for fiscal 
     year 2010. In the House of Representatives, this section is 
     designated as an emergency for purposes of pay-as-you-go 
     principles.  
                                 ______
                                 
  SA 3392. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 16, strike lines 7 through 16 and insert the 
     following:

     SEC. 131. PERMANENT EXTENSION OF RESEARCH CREDIT.

       (a) In General.--Section 41 is amended by striking 
     subsection (h).
       (b) Conforming Amendment.--Paragraph (1) of section 45C(b) 
     is amended by striking subparagraph (D).
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.
       (d) Transfer of Stimulus Funds.--Notwithstanding section 5 
     of the American Recovery and Reinvestment Act of 2009 (Pub. 
     Law 111-5), from the amounts appropriated or made available 
     and remaining unobligated under such Act, the Director of the 
     Office of Management and Budget shall transfer from time to 
     time to the general fund of the Treasury an amount equal to 
     the sum of the amount of any net reduction in revenues 
     resulting from the amendments made by this section.
                                 ______
                                 
  SA 3393. Mr. BEGICH submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 12, between lines 19 and 20, insert the following:

     SEC. ___. ENCOURAGEMENT OF CONTRIBUTIONS OF CAPITAL GAIN REAL 
                   PROPERTY MADE FOR CONSERVATION PURPOSES BY 
                   NATIVE CORPORATIONS.

       (a) In General.--Paragraph (2) of section 170(b) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraph (C) as subparagraph (D), and by inserting after 
     subparagraph (B) the following new subparagraph:
       ``(C) Qualified conservation contributions by certain 
     native corporations.--
       ``(i) In general.--Any qualified conservation contribution 
     (as defined in subsection (h)(1)) which--

       ``(I) is made by a Native Corporation, and
       ``(II) is a contribution of property which was land 
     conveyed under the Alaska Native Claims Settlement Act,

     shall be allowed to the extent that the aggregate amount of 
     such contributions does not exceed the excess of the 
     taxpayer's taxable income over the amount of charitable 
     contributions allowable under subparagraph (A).
       ``(ii) Limitation.--This subparagraph shall not apply to 
     any contribution of property described in clause (i)(II) 
     which, by itself or when aggregated to any other property to 
     which this subparagraph applies, is a contribution of more 
     than 10 percent of the land conveyed to the Native 
     Corporation described in clause (i)(I) under the Alaska 
     Native Claims Settlement Act.
       ``(iii) Carryover.--If the aggregate amount of 
     contributions described in clause (i) exceeds the limitation 
     of clause (i), such excess shall be treated (in a manner 
     consistent with the rules of subsection (d)(2)) as a 
     charitable contribution to which clause (i) applies in each 
     of the 15 succeeding years in order of time.
       ``(iv) Definition.--For purposes of this subparagraph, the 
     term `Native Corporation' has the meaning given such term by 
     section 3(m) of the Alaska Native Claims Settlement Act.
       ``(v) Termination.--This subparagraph shall not apply to 
     any contribution in any taxable year beginning after December 
     31, 2010.''.
       (b) Conforming Amendment.--Section 170(b)(2)(A) of such 
     Code is amended by striking ``subparagraph (B) applies'' and 
     inserting ``subparagraphs (B) or (C) apply''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made after the date of the 
     enactment of this Act.
       (d) Rule of Construction.--Nothing in this section or the 
     amendments made by this section shall be construed to modify 
     any existing property rights conveyed to Native Corporations 
     (withing the meaning of section 3(m) of the Alaska Native 
     Claims Settlement Act) under such Act.
                                 ______
                                 
  SA 3394. Mrs. LINCOLN submitted an amendment intended to be proposed 
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. __. ENHANCED RESEARCH CREDIT FOR DOMESTIC MANUFACTURERS.

       (a) In General.--Section 41 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(i) Enhanced Credit for Domestic Manufacturers.--
       ``(1) In general.--In the case of a qualified domestic 
     manufacturer, this section shall be applied by increasing the 
     following by the bonus amount:
       ``(A) The 20 percent amount under subsection (a)(1).
       ``(B) The 20 percent amount under subsection (a)(2).
       ``(C) The 20 percent amount under subsection (a)(3).
       ``(D) The 14 percent amount under subsection (c)(5)(A).
       ``(2) Qualified domestic manufacturer.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified domestic 
     manufacturer' means a taxpayer who has domestic production 
     gross receipts which are more than 50 percent of total 
     production gross receipts.
       ``(B) Domestic production gross receipts.--The term 
     `domestic production gross receipts' has the meaning given to 
     such term under section 199(c)(4).

[[Page 2544]]

       ``(C) Total production gross receipts.--The term `total 
     production gross receipts' means the gross receipts of the 
     taxpayer which are described in section 199(c)(4), 
     determined--
       ``(i) without regard to whether property described in 
     subparagraph (A)(i)(I) or (A)(i)(III) thereof was 
     manufactured, produced, grown, or extracted in the United 
     States,
       ``(ii) by substituting `any property described in section 
     168(f)(3)' for `any qualified film' in subparagraph 
     (A)(i)(II) thereof, and
       ``(iii) without regard to whether any construction 
     described in subparagraph (A)(ii) thereof or services 
     described in subparagraph (A)(iii) thereof were performed in 
     the United States.
       ``(3) Bonus amount.--For purposes of paragraph (1), the 
     bonus amount shall be determined as follows:


``If the percentage of total production  The bonus amount is:
 gross receipts which are domestic
 production gross receipts is:
  More than 50 percent and not more      2 percentage points
   than 60 percent.
  More than 60 percent and not more      4 percentage points
   than 70 percent.
  More than 70 percent and not more      6 percentage points
   than 80 percent.
  More than 80 percent and not more      8 percentage points
   than 90 percent.
  More than 90 percent.................  10 percentage points.''.
 

       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.
                                 ______
                                 
  SA 3395. Mrs. LINCOLN (for herself, Ms. Snowe, Ms. Collins, Ms. 
Stabenow, Mr. Crapo, Mr. Cornyn, Ms. Cantwell, Ms. Klobuchar, Mrs. 
Murray, Mr. Roberts, and Mr. Vitter) submitted an amendment intended to 
be proposed to amendment SA 3336 proposed by Mr. Baucus to the bill 
H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain 
expiring provisions, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 8, between lines 14 and 15, insert the following:

     SEC. __. MODIFICATION OF RENEWABLE ELECTRICITY PRODUCTION 
                   CREDIT FOR BIOMASS FACILITIES.

       (a) Credit Allowed for On-Site Use of Electricity Produced 
     From Biomass.--Subsection (e) of section 45 is amended by 
     adding at the end the following new paragraph:
       ``(12) Credit allowed for electricity produced from biomass 
     for on-site use.--In the case of electricity produced after 
     the date of the enactment of this paragraph at any facility 
     described in paragraph (2) or (3) of subsection (d) which is 
     equipped with a metering device to determine electricity 
     consumption or sale, subsection (a)(2) shall be applied 
     without regard to subparagraph (B) thereof with respect to 
     such electricity produced and consumed at such facility.''.
       (b) Effective Date.--The amendment made by this subsection 
     shall apply to electricity produced after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3396. Mr. NELSON of Florida submitted an amendment intended to be 
proposed to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 
4213, to amend the Internal Revenue Code of 1986 to extend certain 
expiring provisions, and for other purposes; which was ordered to lie 
on the table; as follows:

       Beginning on page 77, strike line 24 and all that follows 
     through page 80, line 10, and insert the following:
       (c) Specialty Crop Assistance.--
       (1) Definitions.--In this subsection:
       (A) Disaster county.--
       (i) In general.--The term ``disaster county'' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration for the 2009 or 2010 
     crop year.
       (ii) Exclusion.--The term ``disaster county'' does not 
     include a contiguous county.
       (B) Eligible specialty crop producer.--The term ``eligible 
     specialty crop producer'' means an agricultural producer 
     that, for the 2009 or 2010 crop year, or both, as determined 
     by the Secretary--
       (i) produced, or was prevented from planting, a specialty 
     crop; and
       (ii) experienced crop losses in a disaster county due to 
     excessive rainfall, freeze, drought, or a related condition.
       (2) Assistance.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $500,000,000, to remain available until September 30, 2011, 
     to carry out a program of grants to States to assist eligible 
     specialty crop producers for losses due to excessive 
     rainfall, freeze, drought, and related conditions affecting 
     the 2009 or 2010 crop, or both.
       (3) Notification.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall notify the State 
     department of agriculture (or similar entity) in each State 
     of the availability of funds to assist eligible specialty 
     crop producers, including such terms as are determined by the 
     Secretary to be necessary for the equitable treatment of 
     eligible specialty crop producers.
       (4) Provision of grants.--
       (A) In general.--The Secretary shall make grants to States 
     for disaster counties with excessive rainfall, freeze, 
     drought, and related conditions on a pro rata basis based on 
     the value of specialty crop losses in those counties during 
     the 2009 and 2010 calendar years, as determined by the 
     Secretary.
       (B) Timing.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (C) Maximum grant.--The maximum amount of a grant made to a 
     State under this subsection may not exceed $100,000,000.
       (5) Requirements.--The Secretary shall make grants under 
     this subsection only to States that demonstrate to the 
     satisfaction of the Secretary that the State will--
       (A) use grant funds to assist eligible specialty crop 
     producers for losses due to a qualifying natural disaster;
       (B) provide assistance to eligible specialty crop producers 
     not later than 90 days after the date on which the State 
     receives grant funds; and
       (C) not later than 60 days after the date on which the 
     State provides assistance to eligible specialty crop 
     producers, submit to the Secretary a report that describes--
       (i) the manner in which the State provided assistance;
       (ii) the amounts of assistance provided by type of 
     specialty crop; and
       (iii) the process by which the State determined the levels 
     of assistance to eligible specialty crop producers.
       (6) Relation to other law.--Assistance received under this 
     subsection shall be included in the calculation of farm 
     revenue for the 2009 and 2010 crop year (as applicable) under 
     section 531(b)(4)(A) of the Federal Crop Insurance Act (7 
     U.S.C. 1531(b)(4)(A)) and section 901(b)(4)(A) of the Trade 
     Act of 1974 (19 U.S.C. 2497(b)(4)(A)).
                                 ______
                                 
  SA 3397. Mr. ROCKEFELLER (for himself and Mr. Grassley) submitted an 
amendment intended to be proposed to amendment SA 3336 proposed by Mr. 
Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of subtitle A of title I, insert the following:

     SEC. --. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND 
                   SKYLIGHTS WITH RESPECT TO THE CREDIT FOR 
                   NONBUSINESS ENERGY PROPERTY.

       (a) In General.--Paragraph (4) of section 25C(c) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``unless'' and all that follows and inserting ``unless--
       ``(A) in the case of any component placed in service after 
     the date which is 90 days after the date of the enactment of 
     the American Workers, State, and Business Relief Act of 2010, 
     such component meets the criteria for such components 
     established by the 2010 Energy Star Program Requirements for 
     Residential Windows, Doors, and Skylights, Version 5.0 (or 
     any subsequent version of such requirements which is in 
     effect after January 4, 2010),
       ``(B) in the case of any component placed in service after 
     the date of the enactment of the American Workers, State, and 
     Business Relief Act of 2010 and on or before the date which 
     is 90 days after such date, such component meets the criteria 
     described in subparagraph (A) or is equal to or below a U 
     factor of 0.30 and SHGC of 0.30, and
       ``(C) in the case of any component which is a garage door, 
     such component is equal to or below a U factor of 0.30 and 
     SHGC of 0.30.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
                                 ______
                                 
  SA 3398. Mr. DeMINT submitted an amendment intended to be proposed to 
amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       After section 431, insert the following:

   Subtitle E--Cooperative Governing of Individual Health Insurance 
                                Coverage

     SEC. 441. SHORT TITLE.

       This subtitle may be cited as the ``Health Care Choice Act 
     of 2010''.

[[Page 2545]]



     SEC. 442. SPECIFICATION OF CONSTITUTIONAL AUTHORITY FOR 
                   ENACTMENT OF LAW.

       This subtitle is enacted pursuant to the power granted 
     Congress under article I, section 8, clause 3, of the United 
     States Constitution.

     SEC. 443. FINDINGS.

       Congress finds the following:
       (1) The application of numerous and significant variations 
     in State law impacts the ability of insurers to offer, and 
     individuals to obtain, affordable individual health insurance 
     coverage, thereby impeding commerce in individual health 
     insurance coverage.
       (2) Individual health insurance coverage is increasingly 
     offered through the Internet, other electronic means, and by 
     mail, all of which are inherently part of interstate 
     commerce.
       (3) In response to these issues, it is appropriate to 
     encourage increased efficiency in the offering of individual 
     health insurance coverage through a collaborative approach by 
     the States in regulating this coverage.
       (4) The establishment of risk-retention groups has provided 
     a successful model for the sale of insurance across State 
     lines, as the acts establishing those groups allow insurance 
     to be sold in multiple States but regulated by a single 
     State.

     SEC. 444. COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH 
                   INSURANCE COVERAGE.

       (a) In General.--Title XXVII of the Public Health Service 
     Act (42 U.S.C. 300gg et seq.) is amended by adding at the end 
     the following:

``PART D--COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE COVERAGE

     ``SEC. 2795. DEFINITIONS.

       ``In this part:
       ``(1) Primary state.--The term `primary State' means, with 
     respect to individual health insurance coverage offered by a 
     health insurance issuer, the State designated by the issuer 
     as the State whose covered laws shall govern the health 
     insurance issuer in the sale of such coverage under this 
     part. An issuer, with respect to a particular policy, may 
     only designate one such State as its primary State with 
     respect to all such coverage it offers. Such an issuer may 
     not change the designated primary State with respect to 
     individual health insurance coverage once the policy is 
     issued, except that such a change may be made upon renewal of 
     the policy. With respect to such designated State, the issuer 
     is deemed to be doing business in that State.
       ``(2) Secondary state.--The term `secondary State' means, 
     with respect to individual health insurance coverage offered 
     by a health insurance issuer, any State that is not the 
     primary State. In the case of a health insurance issuer that 
     is selling a policy in, or to a resident of, a secondary 
     State, the issuer is deemed to be doing business in that 
     secondary State.
       ``(3) Health insurance issuer.--The term `health insurance 
     issuer' has the meaning given such term in section 
     2791(b)(2), except that such an issuer must be licensed in 
     the primary State and be qualified to sell individual health 
     insurance coverage in that State.
       ``(4) Individual health insurance coverage.--The term 
     `individual health insurance coverage' means health insurance 
     coverage offered in the individual market, as defined in 
     section 2791(e)(1).
       ``(5) Applicable state authority.--The term `applicable 
     State authority' means, with respect to a health insurance 
     issuer in a State, the State insurance commissioner or 
     official or officials designated by the State to enforce the 
     requirements of this title for the State with respect to the 
     issuer.
       ``(6) Hazardous financial condition.--The term `hazardous 
     financial condition' means that, based on its present or 
     reasonably anticipated financial condition, a health 
     insurance issuer is unlikely to be able--
       ``(A) to meet obligations to policyholders with respect to 
     known claims and reasonably anticipated claims; or
       ``(B) to pay other obligations in the normal course of 
     business.
       ``(7) Covered laws.--
       ``(A) In general.--The term `covered laws' means the laws, 
     rules, regulations, agreements, and orders governing the 
     insurance business pertaining to--
       ``(i) individual health insurance coverage issued by a 
     health insurance issuer;
       ``(ii) the offer, sale, rating (including medical 
     underwriting), renewal, and issuance of individual health 
     insurance coverage to an individual;
       ``(iii) the provision to an individual in relation to 
     individual health insurance coverage of health care and 
     insurance related services;
       ``(iv) the provision to an individual in relation to 
     individual health insurance coverage of management, 
     operations, and investment activities of a health insurance 
     issuer; and
       ``(v) the provision to an individual in relation to 
     individual health insurance coverage of loss control and 
     claims administration for a health insurance issuer with 
     respect to liability for which the issuer provides insurance.
       ``(B) Exception.--Such term does not include any law, rule, 
     regulation, agreement, or order governing the use of care or 
     cost management techniques, including any requirement related 
     to provider contracting, network access or adequacy, health 
     care data collection, or quality assurance.
       ``(8) State.--The term `State' means the 50 States and 
     includes the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(9) Unfair claims settlement practices.--The term `unfair 
     claims settlement practices' means only the following 
     practices:
       ``(A) Knowingly misrepresenting to claimants and insured 
     individuals relevant facts or policy provisions relating to 
     coverage at issue.
       ``(B) Failing to acknowledge with reasonable promptness 
     pertinent communications with respect to claims arising under 
     policies.
       ``(C) Failing to adopt and implement reasonable standards 
     for the prompt investigation and settlement of claims arising 
     under policies.
       ``(D) Failing to effectuate prompt, fair, and equitable 
     settlement of claims submitted in which liability has become 
     reasonably clear.
       ``(E) Refusing to pay claims without conducting a 
     reasonable investigation.
       ``(F) Failing to affirm or deny coverage of claims within a 
     reasonable period of time after having completed an 
     investigation related to those claims.
       ``(G) A pattern or practice of compelling insured 
     individuals or their beneficiaries to institute suits to 
     recover amounts due under its policies by offering 
     substantially less than the amounts ultimately recovered in 
     suits brought by them.
       ``(H) A pattern or practice of attempting to settle or 
     settling claims for less than the amount that a reasonable 
     person would believe the insured individual or the 
     individual's beneficiary was entitled by reference to written 
     or printed advertising material accompanying or made part of 
     an application.
       ``(I) Attempting to settle or settling claims on the basis 
     of an application that was materially altered without notice 
     to, or knowledge or consent of, the insured.
       ``(J) Failing to provide forms necessary to present claims 
     within 15 calendar days of a requests with reasonable 
     explanations regarding their use.
       ``(K) Attempting to cancel a policy in less time than that 
     prescribed in the policy or by the law of the primary State.
       ``(10) Fraud and abuse.--The term `fraud and abuse' means 
     an act or omission committed by a person who, knowingly and 
     with intent to defraud, commits, or conceals any material 
     information concerning, one or more of the following:
       ``(A) Presenting, causing to be presented, or preparing 
     with knowledge or belief that it will be presented to or by 
     an insurer, a reinsurer, broker, or its agent, false 
     information as part of, in support of, or concerning a fact 
     material to one or more of the following:
       ``(i) An application for the issuance or renewal of an 
     insurance policy or reinsurance contract.
       ``(ii) The rating of an insurance policy or reinsurance 
     contract.
       ``(iii) A claim for payment or benefit pursuant to an 
     insurance policy or reinsurance contract.
       ``(iv) Premiums paid on an insurance policy or reinsurance 
     contract.
       ``(v) Payments made in accordance with the terms of an 
     insurance policy or reinsurance contract.
       ``(vi) A document filed with the commissioner or the chief 
     insurance regulatory official of another jurisdiction.
       ``(vii) The financial condition of an insurer or reinsurer.
       ``(viii) The formation, acquisition, merger, 
     reconsolidation, dissolution, or withdrawal from one or more 
     lines of insurance or reinsurance in all or part of a State 
     by an insurer or reinsurer.
       ``(ix) The issuance of written evidence of insurance.
       ``(x) The reinstatement of an insurance policy.
       ``(B) Solicitation or acceptance of new or renewal 
     insurance risks on behalf of an insurer, reinsurer, or other 
     person engaged in the business of insurance by a person who 
     knows or should know that the insurer or other person 
     responsible for the risk is insolvent at the time of the 
     transaction.
       ``(C) Transaction of the business of insurance in violation 
     of laws requiring a license, certificate of authority, or 
     other legal authority for the transaction of the business of 
     insurance.
       ``(D) Attempt to commit, aiding or abetting in the 
     commission of, or conspiracy to commit the acts or omissions 
     specified in this paragraph.

     ``SEC. 2796. APPLICATION OF LAW.

       ``(a) In General.--The covered laws of the primary State 
     shall apply to individual health insurance coverage offered 
     by a health insurance issuer in the primary State and in any 
     secondary State, but only if the coverage and issuer comply 
     with the conditions of this section with respect to the 
     offering of coverage in any secondary State.
       ``(b) Exemptions From Covered Laws in a Secondary State.--
     Except as provided in this section, a health insurance issuer 
     with respect to its offer, sale, rating (including medical 
     underwriting), renewal, and issuance

[[Page 2546]]

     of individual health insurance coverage in any secondary 
     State is exempt from any covered laws of the secondary State 
     (and any rules, regulations, agreements, or orders sought or 
     issued by such State under or related to such covered laws) 
     to the extent that such laws would--
       ``(1) make unlawful, or regulate, directly or indirectly, 
     the operation of the health insurance issuer operating in the 
     secondary State, except that any secondary State may require 
     such an issuer--
       ``(A) to pay, on a nondiscriminatory basis, applicable 
     premium and other taxes (including high risk pool 
     assessments) which are levied on insurers and surplus lines 
     insurers, brokers, or policyholders under the laws of the 
     State;
       ``(B) to register with and designate the State insurance 
     commissioner as its agent solely for the purpose of receiving 
     service of legal documents or process;
       ``(C) to submit to an examination of its financial 
     condition by the State insurance commissioner in any State in 
     which the issuer is doing business to determine the issuer's 
     financial condition, if--
       ``(i) the State insurance commissioner of the primary State 
     has not done an examination within the period recommended by 
     the National Association of Insurance Commissioners; and
       ``(ii) any such examination is conducted in accordance with 
     the examiners' handbook of the National Association of 
     Insurance Commissioners and is coordinated to avoid 
     unjustified duplication and unjustified repetition;
       ``(D) to comply with a lawful order issued--
       ``(i) in a delinquency proceeding commenced by the State 
     insurance commissioner if there has been a finding of 
     financial impairment under subparagraph (C); or
       ``(ii) in a voluntary dissolution proceeding;
       ``(E) to comply with an injunction issued by a court of 
     competent jurisdiction, upon a petition by the State 
     insurance commissioner alleging that the issuer is in 
     hazardous financial condition;
       ``(F) to participate, on a nondiscriminatory basis, in any 
     insurance insolvency guaranty association or similar 
     association to which a health insurance issuer in the State 
     is required to belong;
       ``(G) to comply with any State law regarding fraud and 
     abuse (as defined in section 2795(10)), except that if the 
     State seeks an injunction regarding the conduct described in 
     this subparagraph, such injunction must be obtained from a 
     court of competent jurisdiction;
       ``(H) to comply with any State law regarding unfair claims 
     settlement practices (as defined in section 2795(9)); or
       ``(I) to comply with the applicable requirements for 
     independent review under section 2798 with respect to 
     coverage offered in the State;
       ``(2) require any individual health insurance coverage 
     issued by the issuer to be countersigned by an insurance 
     agent or broker residing in that secondary State; or
       ``(3) otherwise discriminate against the issuer issuing 
     insurance in both the primary State and in any secondary 
     State.
       ``(c) Clear and Conspicuous Disclosure.--A health insurance 
     issuer shall provide the following notice, in 12-point bold 
     type, in any insurance coverage offered in a secondary State 
     under this part by such a health insurance issuer and at 
     renewal of the policy, with the 5 blank spaces therein being 
     appropriately filled with the name of the health insurance 
     issuer, the name of primary State, the name of the secondary 
     State, the name of the secondary State, and the name of the 
     secondary State, respectively, for the coverage concerned:
     This policy is issued by _____, and is governed by the laws 
     and regulations of the State of _____, and it has met all the 
     laws of that State as determined by that State's Department 
     of Insurance. This policy may be less expensive than others 
     because it is not subject to all of the insurance laws and 
     regulations of the State of _____, including coverage of some 
     services or benefits mandated by the law of the State of 
     _____. Additionally, this policy is not subject to all of the 
     consumer protection laws or restrictions on rate changes of 
     the State of _____. As with all insurance products, before 
     purchasing this policy, you should carefully review the 
     policy and determine what health care services the policy 
     covers and what benefits it provides, including any 
     exclusions, limitations, or conditions for such services or 
     benefits.''.
       ``(d) Prohibition on Certain Reclassifications and Premium 
     Increases.--
       ``(1) In general.--For purposes of this section, a health 
     insurance issuer that provides individual health insurance 
     coverage to an individual under this part in a primary or 
     secondary State may not upon renewal--
       ``(A) move or reclassify the individual insured under the 
     health insurance coverage from the class such individual is 
     in at the time of issue of the contract based on the health-
     status related factors of the individual; or
       ``(B) increase the premiums assessed the individual for 
     such coverage based on a health status-related factor or 
     change of a health status-related factor or the past or 
     prospective claim experience of the insured individual.
       ``(2) Construction.--Nothing in paragraph (1) shall be 
     construed to prohibit a health insurance issuer--
       ``(A) from terminating or discontinuing coverage or a class 
     of coverage in accordance with subsections (b) and (c) of 
     section 2742;
       ``(B) from raising premium rates for all policy holders 
     within a class based on claims experience;
       ``(C) from changing premiums or offering discounted 
     premiums to individuals who engage in wellness activities at 
     intervals prescribed by the issuer, if such premium changes 
     or incentives--
       ``(i) are disclosed to the consumer in the insurance 
     contract;
       ``(ii) are based on specific wellness activities that are 
     not applicable to all individuals; and
       ``(iii) are not obtainable by all individuals to whom 
     coverage is offered;
       ``(D) from reinstating lapsed coverage; or
       ``(E) from retroactively adjusting the rates charged an 
     insured individual if the initial rates were set based on 
     material misrepresentation by the individual at the time of 
     issue.
       ``(e) Prior Offering of Policy in Primary State.--A health 
     insurance issuer may not offer for sale individual health 
     insurance coverage in a secondary State unless that coverage 
     is currently offered for sale in the primary State.
       ``(f) Licensing of Agents or Brokers for Health Insurance 
     Issuers.--Any State may require that a person acting, or 
     offering to act, as an agent or broker for a health insurance 
     issuer with respect to the offering of individual health 
     insurance coverage obtain a license from that State, with 
     commissions or other compensation subject to the provisions 
     of the laws of that State, except that a State may not impose 
     any qualification or requirement which discriminates against 
     a nonresident agent or broker.
       ``(g) Documents for Submission to State Insurance 
     Commissioner.--Each health insurance issuer issuing 
     individual health insurance coverage in both primary and 
     secondary States shall submit--
       ``(1) to the insurance commissioner of each State in which 
     it intends to offer such coverage, before it may offer 
     individual health insurance coverage in such State--
       ``(A) a copy of the plan of operation, feasibility study, 
     or any similar statement of the policy being offered and its 
     coverage (which shall include the name of its primary State 
     and its principal place of business);
       ``(B) written notice of any change in its designation of 
     its primary State; and
       ``(C) written notice from the issuer of the issuer's 
     compliance with all the laws of the primary State; and
       ``(2) to the insurance commissioner of each secondary State 
     in which it offers individual health insurance coverage, a 
     copy of the issuer's quarterly financial statement submitted 
     to the primary State, which statement shall be certified by 
     an independent public accountant and contain a statement of 
     opinion on loss and loss adjustment expense reserves made 
     by--
       ``(A) a member of the American Academy of Actuaries; or
       ``(B) a qualified loss reserve specialist.
       ``(h) Power of Courts To Enjoin Conduct.--Nothing in this 
     section shall be construed to affect the authority of any 
     Federal or State court to enjoin--
       ``(1) the solicitation or sale of individual health 
     insurance coverage by a health insurance issuer to any person 
     or group who is not eligible for such insurance; or
       ``(2) the solicitation or sale of individual health 
     insurance coverage that violates the requirements of the law 
     of a secondary State which are described in subparagraphs (A) 
     through (H) of subsection (b)(1).
       ``(i) Power of Secondary States To Take Administrative 
     Action.--Nothing in this section shall be construed to affect 
     the authority of any State to enjoin conduct in violation of 
     that State's laws described in subsection (b)(1).
       ``(j) State Powers To Enforce State Laws.--
       ``(1) In general.--Subject to the provisions of subsection 
     (b)(1)(G) (relating to injunctions) and paragraph (2), 
     nothing in this section shall be construed to affect the 
     authority of any State to make use of any of its powers to 
     enforce the laws of such State with respect to which a health 
     insurance issuer is not exempt under subsection (b).
       ``(2) Courts of competent jurisdiction.--If a State seeks 
     an injunction regarding the conduct described in paragraphs 
     (1) and (2) of subsection (h), such injunction must be 
     obtained from a Federal or State court of competent 
     jurisdiction.
       ``(k) States' Authority To Sue.--Nothing in this section 
     shall affect the authority of any State to bring action in 
     any Federal or State court.
       ``(l) Generally Applicable Laws.--Nothing in this section 
     shall be construed to affect the applicability of State laws 
     generally applicable to persons or corporations.
       ``(m) Guaranteed Availability of Coverage to HIPPA Eligible 
     Individuals.--To the extent that a health insurance issuer is 
     offering coverage in a primary State that does not 
     accommodate residents of secondary States or does not provide 
     a working

[[Page 2547]]

     mechanism for residents of a secondary State, and the issuer 
     is offering coverage under this part in such secondary State 
     which has not adopted a qualified high risk pool as its 
     acceptable alternative mechanism (as defined in section 
     2744(c)(2)), the issuer shall, with respect to any individual 
     health insurance coverage offered in a secondary State under 
     this part, comply with the guaranteed availability 
     requirements for eligible individuals in section 2741.

     ``SEC. 2797. PRIMARY STATE MUST MEET FEDERAL FLOOR BEFORE 
                   ISSUER MAY SELL INTO SECONDARY STATES.

       ``A health insurance issuer may not offer, sell, or issue 
     individual health insurance coverage in a secondary State if 
     the State insurance commissioner does not use a risk-based 
     capital formula for the determination of capital and surplus 
     requirements for all health insurance issuers.

     ``SEC. 2798. INDEPENDENT EXTERNAL APPEALS PROCEDURES.

       ``(a) Right to External Appeal.--A health insurance issuer 
     may not offer, sell, or issue individual health insurance 
     coverage in a secondary State under the provisions of this 
     title unless--
       ``(1) both the secondary State and the primary State have 
     legislation or regulations in place establishing an 
     independent review process for individuals who are covered by 
     individual health insurance coverage, or
       ``(2) in any case in which the requirements of paragraph 
     (1) are not met with respect to either of such States, the 
     issuer provides an independent review mechanism substantially 
     identical (as determined by the applicable State authority of 
     such State) to that prescribed in the `Health Carrier 
     External Review Model Act' of the National Association of 
     Insurance Commissioners for all individuals who purchase 
     insurance coverage under the terms of this part, except that, 
     under such mechanism, the review is conducted by an 
     independent medical reviewer, or a panel of such reviewers, 
     with respect to whom the requirements of subsection (b) are 
     met.
       ``(b) Qualifications of Independent Medical Reviewers.--In 
     the case of any independent review mechanism referred to in 
     subsection (a)(2), the following provisions shall apply:
       ``(1) In general.--In referring a denial of a claim to an 
     independent medical reviewer, or to any panel of such 
     reviewers, to conduct independent medical review, the issuer 
     shall ensure that--
       ``(A) each independent medical reviewer meets the 
     qualifications described in paragraphs (2) and (3);
       ``(B) with respect to each review, each reviewer meets the 
     requirements of paragraph (4) and the reviewer, or at least 1 
     reviewer on the panel, meets the requirements described in 
     paragraph (5); and
       ``(C) compensation provided by the issuer to each reviewer 
     is consistent with paragraph (6).
       ``(2) Licensure and expertise.--Each independent medical 
     reviewer shall be a physician (allopathic or osteopathic) or 
     health care professional who--
       ``(A) is appropriately credentialed or licensed in 1 or 
     more States to deliver health care services; and
       ``(B) typically treats the condition, makes the diagnosis, 
     or provides the type of treatment under review.
       ``(3) Independence.--
       ``(A) In general.--Subject to subparagraph (B), each 
     independent medical reviewer in a case shall--
       ``(i) not be a related party (as defined in paragraph (7));
       ``(ii) not have a material familial, financial, or 
     professional relationship with such a party; and
       ``(iii) not otherwise have a conflict of interest with such 
     a party (as determined under regulations).
       ``(B) Exception.--Nothing in subparagraph (A) shall be 
     construed to--
       ``(i) prohibit an individual, solely on the basis of 
     affiliation with the issuer, from serving as an independent 
     medical reviewer if--

       ``(I) a non-affiliated individual is not reasonably 
     available;
       ``(II) the affiliated individual is not involved in the 
     provision of items or services in the case under review;
       ``(III) the fact of such an affiliation is disclosed to the 
     issuer and the enrollee (or authorized representative) and 
     neither party objects; and
       ``(IV) the affiliated individual is not an employee of the 
     issuer and does not provide services exclusively or primarily 
     to or on behalf of the issuer;

       ``(ii) prohibit an individual who has staff privileges at 
     the institution where the treatment involved takes place from 
     serving as an independent medical reviewer merely on the 
     basis of such affiliation if the affiliation is disclosed to 
     the issuer and the enrollee (or authorized representative) 
     and neither party objects; or
       ``(iii) prohibit receipt of compensation by an independent 
     medical reviewer from an entity if the compensation is 
     provided consistent with paragraph (6).
       ``(4) Practicing health care professional in same field.--
       ``(A) In general.--In a case involving treatment, or the 
     provision of items or services--
       ``(i) by a physician, a reviewer shall be a practicing 
     physician (allopathic or osteopathic) of the same or similar 
     specialty, as a physician who, acting within the appropriate 
     scope of practice within the State in which the service is 
     provided or rendered, typically treats the condition, makes 
     the diagnosis, or provides the type of treatment under 
     review; or
       ``(ii) by a non-physician health care professional, the 
     reviewer, or at least 1 member of the review panel, shall be 
     a practicing non-physician health care professional of the 
     same or similar specialty as the non-physician health care 
     professional who, acting within the appropriate scope of 
     practice within the State in which the service is provided or 
     rendered, typically treats the condition, makes the 
     diagnosis, or provides the type of treatment under review.
       ``(B) Practicing defined.--For purposes of this paragraph, 
     the term `practicing' means, with respect to an individual 
     who is a physician or other health care professional, that 
     the individual provides health care services to individual 
     patients on average at least 2 days per week.
       ``(5) Pediatric expertise.--In the case of an external 
     review relating to a child, a reviewer shall have expertise 
     under paragraph (2) in pediatrics.
       ``(6) Limitations on reviewer compensation.--Compensation 
     provided by the issuer to an independent medical reviewer in 
     connection with a review under this section shall--
       ``(A) not exceed a reasonable level; and
       ``(B) not be contingent on the decision rendered by the 
     reviewer.
       ``(7) Related party defined.--For purposes of this section, 
     the term `related party' means, with respect to a denial of a 
     claim under a coverage relating to an enrollee, any of the 
     following:
       ``(A) The issuer involved, or any fiduciary, officer, 
     director, or employee of the issuer.
       ``(B) The enrollee (or authorized representative).
       ``(C) The health care professional that provides the items 
     or services involved in the denial.
       ``(D) The institution at which the items or services (or 
     treatment) involved in the denial are provided.
       ``(E) The manufacturer of any drug or other item that is 
     included in the items or services involved in the denial.
       ``(F) Any other party determined under any regulations to 
     have a substantial interest in the denial involved.
       ``(8) Definitions.--For purposes of this subsection:
       ``(A) Enrollee.--The term `enrollee' means, with respect to 
     health insurance coverage offered by a health insurance 
     issuer, an individual enrolled with the issuer to receive 
     such coverage.
       ``(B) Health care professional.--The term `health care 
     professional' means an individual who is licensed, 
     accredited, or certified under State law to provide specified 
     health care services and who is operating within the scope of 
     such licensure, accreditation, or certification.

     ``SEC. 2799. ENFORCEMENT.

       ``(a) In General.--Subject to subsection (b), with respect 
     to specific individual health insurance coverage, the primary 
     State for such coverage has sole jurisdiction to enforce the 
     primary State's covered laws in the primary State and any 
     secondary State.
       ``(b) Secondary State's Authority.--Nothing in subsection 
     (a) shall be construed to affect the authority of a secondary 
     State to enforce its laws as set forth in the exception 
     specified in section 2796(b)(1).
       ``(c) Court Interpretation.--In reviewing action initiated 
     by the applicable secondary State authority, the court of 
     competent jurisdiction shall apply the covered laws of the 
     primary State.
       ``(d) Notice of Compliance Failure.--In the case of 
     individual health insurance coverage offered in a secondary 
     State that fails to comply with the covered laws of the 
     primary State, the applicable State authority of the 
     secondary State may notify the applicable State authority of 
     the primary State.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individual health insurance coverage offered, 
     issued, or sold after the date that is one year after the 
     date of the enactment of this Act.
       (c) GAO Ongoing Study and Reports.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct an ongoing study concerning the effect of the 
     amendment made by subsection (a) on--
       (A) the number of uninsured and under-insured;
       (B) the availability and cost of health insurance policies 
     for individuals with pre-existing medical conditions;
       (C) the availability and cost of health insurance policies 
     generally;
       (D) the elimination or reduction of different types of 
     benefits under health insurance policies offered in different 
     States; and
       (E) cases of fraud or abuse relating to health insurance 
     coverage offered under such amendment and the resolution of 
     such cases.
       (2) Annual reports.--The Comptroller General shall submit 
     to Congress an annual report, after the end of each of the 5 
     years following the effective date of the amendment made by 
     subsection (a), on the ongoing study conducted under 
     paragraph (1).

[[Page 2548]]



     SEC. 445. SEVERABILITY.

       If any provision of this subtitle or the application of 
     such provision to any person or circumstance is held to be 
     unconstitutional, the remainder of this subtitle and the 
     application of the provisions of such to any other person or 
     circumstance shall not be affected.
                                 ______
                                 
  SA 3399. Mr. NELSON of Florida (for himself and Mr. Cornyn) submitted 
an amendment intended to be proposed to amendment SA 3336 proposed by 
Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 
1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 268, between lines 11 and 12, insert the following:

     SEC. ___. MODIFICATION OF EXCEPTION FROM 10 PERCENT EARLY 
                   WITHDRAWAL PENALTY FOR PUBLIC SAFETY EMPLOYEES.

       (a) Repeal of Restriction to Defined Benefit Plans.--
     Subparagraph (A) of section 72(t)(10)(A) is amended by 
     striking ``which is a defined benefit plan''.
       (b) Application to Annuities Commencing Before the Pension 
     Protection Act of 2006.--Paragraph (10) of section 72(t) is 
     amended by adding at the end the following new subparagraph:
       ``(C) Transitional rule for annuities.--Paragraph (4) shall 
     not apply to any modification to a series of substantially 
     equal periodic payments which are made with respect to a 
     qualified public safety employee if such series of payments 
     commenced--
       ``(i) before the date of the enactment of the Pension 
     Protection Act of 2006, and
       ``(ii) after such qualified public safety employee's 
     separation from service after attainment of age 50.''.
       (c) Effective Dates.--
       (1) Repeal of restriction to defined benefit plans.--The 
     amendment made by subsection (a) shall apply to distributions 
     made after the date of the enactment of the Pension 
     Protection Act of 2006.
       (2) Transitional rule for annuities.--The amendment made by 
     subsection (b) shall apply to modifications made after the 
     date of the enactment of the Pension Protection Act of 2006.
                                 ______
                                 
  SA 3400. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of title VI, add the following:

     SEC. 602. LOAN GUARANTEES FOR SHIPYARDS AND REPROGRAMMING OF 
                   FUNDS FOR SEALIFT CAPACITY.

       Section 115 of the Miscellaneous Appropriations and Offsets 
     Act, 2004 (division H of Public Law 108-199; 118 Stat. 439), 
     as amended by section 1017 of the Emergency Supplemental 
     Appropriations Act for Defense, the Global War on Terror, and 
     Tsunami Relief, 2005 (Public Law 109-13; 119 Stat. 250), is 
     amended to read as follows:
       ``Sec. __. (a)(1) Of the amounts provided in the Department 
     of Defense Appropriations Act, 2002 (Public Law 107-117; 115 
     Stat. 2244), the Department of Defense Appropriations Act, 
     2003 (Public Law 107-248; 116 Stat. 1533), and the Department 
     of Defense Appropriations Act, 2004 (Public Law 108-87; 117 
     Stat. 1068) under the heading `National Defense Sealift Fund' 
     for construction of additional sealift capacity, 
     notwithstanding section 2218(c)(1) of title 10, United States 
     Code--
       ``(A) $15,000,000, shall be made available for the 
     Secretary of Transportation to make loan guarantees as 
     described in subsection (b); and
       ``(B) $25,000,000, shall be made available for--
       ``(i) design testing simulation and construction of 
     infrastructure improvements to a marine cargo terminal 
     capable of supporting a mixed use of traditional container 
     operations, high speed loading and off-loading, and military 
     sealift requirements; and
       ``(ii) engineering, simulation, and feasibility evaluation 
     of advance design vessels for the transport of high-value, 
     time sensitive cargoes to expand a capability to support 
     military sealift, aviation, and commercial operations.
       ``(2) The amounts made available in this subsection shall 
     remain available until expended.
       ``(b)(1) A loan guarantee described in this subsection is a 
     loan guarantee issued by the Secretary of Transportation to 
     maintain the capability of a qualified shipyard to construct 
     a large ocean going commercial vessel if the applicant for 
     such a loan guarantee demonstrates that absent such loan 
     guarantee--
       ``(A) the domestic capacity for the construction of large 
     ocean going commercial vessels will be significantly 
     impaired;
       ``(B) more than 1,000 shipbuilding-related jobs will be 
     terminated at any one facility; and
       ``(C) the capability of domestic shipyards to meet the 
     demand for replacement and expansion of the domestic ocean 
     going commercial fleet will be significantly constrained.
       ``(2) In this subsection, the term `qualified shipyard' 
     means a shipyard that--
       ``(A) is located in the United States;
       ``(B) consists of at least one facility with not less than 
     of 1,000 employees;
       ``(C) has exclusively constructed ocean going commercial 
     vessels larger than 20,000 gross registered tons;
       ``(D) delivered 8 or more such ocean going commercial 
     vessels during the 5-year period ending on the date of the 
     enactment of the American Workers, State, and Business Relief 
     Act of 2010; and
       ``(E) applies for a loan guarantee made available pursuant 
     to subsection (a)(1)(A).
       ``(3) Notwithstanding the provisions of chapter 537 of 
     subtitle V of title 46, United States Code, or any 
     regulations issued pursuant to such chapter, a loan guarantee 
     pursuant to subsection (a)(1)() shall be issued only to a 
     qualified shipyard upon commitment by the qualified shipyard 
     of not less than $40,000,000 in equity and demonstrated proof 
     that actual construction of the new vessel for which such 
     loan guarantee was issued will commence not later than April 
     30, 2010.
       ``(4) A loan guarantee issued pursuant to subsection 
     (a)(1)(A) shall be deemed to have a subsidy rate of no 
     greater than 9 percent.
       ``(5) The Secretary of Transportation shall select each 
     qualified shipyard to receive a loan guarantee pursuant to 
     subsection (a)(1)(A) not later than 60 days after the date of 
     the enactment of the American Workers, State, and Business 
     Relief Act of 2010.''.
                                 ______
                                 
  SA 3401. Mrs. LINCOLN submitted an amendment intended to be proposed 
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 75, line 4, strike ``excessive rainfall or 
     related'' and insert ``drought, excessive rainfall, or a 
     related''.
       On page 76, line 1, insert ``fruits and vegetables or'' 
     before ``crops intended''.
       On page 76, line 13, strike ``90'' and insert ``112.5''.
       Beginning on page 76, strike line 18 and all that follows 
     through ``(4)'' on page 77, line 17, and insert ``(3)''.
       On page 78, strike lines 3 through 7 and insert the 
     following: ``not more than $300,000,000, to remain available 
     until September 30, 2011, to carry out a program of grants to 
     States to assist eligible specialty crop producers for losses 
     due to a natural disaster affecting the 2009 crops, of which 
     not more than--
       (A) $150,000,000 shall be used to assist eligible specialty 
     crop producers in counties that have been declared a disaster 
     as the result of drought; and
       (B) $150,000,000 shall be used to assist eligible specialty 
     crop producers in counties that have been declared a disaster 
     as the result of excessive rainfall or a related condition.
       On page 78, lines 18 and 19, strike ``with excessive 
     rainfall and related conditions''.
       On page 78, line 21, strike ``2008'' and insert ``2009''.
       On page 79, lines 4 and 5, strike ``under this subsection'' 
     and insert ``for counties described in paragraph (1)(B)''.
       On page 80, between lines 3 and 4, insert the following:
       (5) Prohibition.--An eligible specialty crop producer that 
     receives assistance under this subsection shall be ineligible 
     to receive assistance under subsection (b).
       On page 80, line 4, strike ``(5)'' and insert ``(6)''.
       On page 87, between lines 4 and 5, insert the following:
       (h) Hay Quality Loss Assistance Program.--
       (1) Definition of disaster county.--In this subsection:
       (A) In general.--The term ``disaster county'' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration for flooding that 
     occurred during the period beginning on May 1, 2009, and 
     ending on December 31, 2009.
       (B) Exclusion.--The term ``disaster county'' does not 
     include--
       (i) a contiguous county; or
       (ii) a county that had less than a 10-percent loss in the 
     quality of the 2009 crop of hay, as determined by the 
     Secretary.
       (2) Assistance.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use such sums as are 
     necessary to provide assistance to eligible producers of the 
     2009 crop of hay that suffered quality losses in a disaster 
     county due to flooding that occurred during the period 
     beginning on May 1, 2009, and ending on December 31, 2009.
       (3) Eligibility.--
       (A) In general.--To be eligible to receive assistance under 
     this subsection, a producer shall certify to the Secretary 
     that the average quality loss of the producer meets or 
     exceeds the approved quality adjustment for hay due to 
     flooding at harvest.
       (B) Evidence.--
       (i) In general.--In making the certification described in 
     subparagraph (A), the producer shall provide to the Secretary 
     reliable and verifiable evidence of the quality loss and the 
     production of the producer.

[[Page 2549]]

       (ii) Lack of evidence.--If evidence described in clause (i) 
     is not available, the Secretary shall use--

       (I) in the case of unavailable quality loss evidence, 
     documentation provided by the Cooperative Extension Service, 
     State Department of Agriculture, or other reliable sources, 
     including institutions of higher education, buyers, and 
     cooperatives, as to the extent of quality loss in the 
     disaster county; and
       (II) in the case of unavailable production evidence, the 
     county average yield, as determined by the Secretary.

       (4) Determination of payment.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amount of assistance provided under this subsection to an 
     eligible producer shall equal the product obtained by 
     multiplying, as determined by the Secretary--
       (i) the quantity of hay harvested by the eligible producer;
       (ii) a quality adjustment that is equal to the difference 
     between--

       (I) the average price per ton for average quality hay; and
       (II) the average price per ton for poor quality hay due to 
     flooding; and

       (iii) 65 percent.
       (B) Limitation.--The maximum amount that an eligible 
     producer may receive under this subsection is $40,000.
       (5) Relationship to other law.--Assistance received under 
     this subsection shall be included in the calculation of farm 
     revenue for the 2009 crop year under section 531(b)(4)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
     section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
     2497(b)(4)(A)).
       (6) Adjusted gross income limitation.--A person or legal 
     entity with an average adjusted gross nonfarm income that 
     exceeds the amount described in section 1001D(b)(1)(A) of the 
     Food Security Act of 1985 (7 U.S.C. 1308-3a(b)(1)(A)) shall 
     be ineligible to receive benefits under this subsection.
       (7) Direct attribution.--In carrying out this subsection, 
     the Secretary shall apply section 1001(e) of the Food 
     Security Act of 1985 (7 U.S.C. 1308(e)).
       On page 87, line 5, strike ``(h)'' and insert ``(i)''.
       On page 89, line 15, insert ``for the purchase, 
     improvement, or operation of the poultry farm'' after 
     ``lender''.
       On page 89, strike line 24 and insert the following:
       (j) State and Local Governments.--Section 1001(f)(6)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is 
     amended by inserting ``(other than the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D of title XII of this Act)'' before the period at 
     the end.
       (k) Administration.--
       On page 90, line 4, insert ``and the amendment made by this 
     section'' after ``section''.
       On page 90, line 7, insert ``and the amendment made by this 
     section'' before ``shall be''.
       On page 91, line 1, strike ``$15,000,000'' and insert 
     ``$10,000,000''.

                          ____________________