[Congressional Record (Bound Edition), Volume 156 (2010), Part 3]
[Senate]
[Pages 3357-3387]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       TAX EXTENDERS ACT OF 2009

  On Wednesday, March 10, 2010, the Senate passed H.R. 4213, as 
amended, as follows:

                               H.R. 4213

         Resolved, That the bill from the House of Representatives 
     (H.R. 4213) entitled ``An Act to amend the Internal Revenue 
     Code of 1986 to extend certain expiring provisions, and for 
     other purposes.'', do pass with the following amendment:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 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 3358]]

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.
Sec. 304. Lookback for credit balance rule for plans maintained by 
              charities.

                    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. 500. 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.
Sec. 602. Election to temporarily utilize unused AMT credits determined 
              by domestic investment.
Sec. 603. Information reporting for rental property expense payments.
Sec. 604. Extension of low-income housing credit rules for buildings in 
              GO zones.
Sec. 605. Increase in information return penalties.

[[Page 3359]]

Sec. 606. Tax-exempt bond financing.
Sec. 607. Application of levy to payments to Federal vendors relating 
              to property.
Sec. 608. Election for refundable low-income housing credit for 2010.
Sec. 609. Low-income housing grant election.
Sec. 610. Rollovers from elective deferral plans to Roth designated 
              accounts.
Sec. 611. Modification of standards for windows, doors, and skylights 
              with respect to the credit for nonbusiness energy 
              property.
Sec. 612. Participants in government section 457 plans allowed to treat 
              elective deferrals as Roth contributions.
Sec. 613. Extension of special allowance for certain property.
Sec. 614. Application of bad checks penalty to electronic payments.
Sec. 615. Grants for energy efficient appliances in lieu of tax credit.
Sec. 616. Budgetary effects of legislation passed by the Senate.
Sec. 617. Senate spending disclosure.
Sec. 618. Allocation of geothermal receipts.
Sec. 619. Qualifying timber contract options.
Sec. 620. ARRA planning and reporting.
Sec. 621. GAO study.
Sec. 622. Extension and modification of section 45 credit for refined 
              coal from steel industry fuel.
Sec. 623. Modifications to mine rescue team training credit and 
              election to expense advanced mine safety equipment.
Sec. 624. Application of continuous levy to employment tax liability of 
              certain Federal contractors.

             TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

Sec. 701. Determination of budgetary effects.

               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).

[[Page 3360]]

       ``(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 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

[[Page 3361]]

     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''.
       (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

[[Page 3362]]

     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 ``April 5, 2010'' each place it appears and 
     inserting ``December 31, 2010'';
       (B) in the heading for subsection (b)(2), by striking 
     ``april 5, 2010'' and inserting ``december 31, 2010''; and
       (C) in subsection (b)(3), by striking ``September 4, 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 ``April 5, 2010'' and 
     inserting ``December 31, 2010'';
       (B) in the heading for paragraph (2), by striking ``april 
     5, 2010'' and inserting ``december 31, 2010''; and
       (C) in paragraph (3), by striking ``October 5, 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 ``April 5, 2010'' each place it appears and 
     inserting ``January 1, 2011''; and
       (B) in subsection (c), by striking ``September 4, 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 ``September 4, 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 (C), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) 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 
     Temporary Extension Act of 2010.

                     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), as amended by 
     section 3 of the Temporary Extension Act of 2010, is amended 
     by striking ``March 31, 2010'' and inserting ``December 31, 
     2010''.
       (b) 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 
     April 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) 2010 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

[[Page 3363]]

     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.''.
       (c) 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.

     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 ``March 31, 2010'' 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.
       ``(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''.

[[Page 3364]]



     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 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 Act 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''.

[[Page 3365]]

       (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 31, 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.''. The amendment 
     made by this section shall be considered to have taken effect 
     on February 28, 2010.

     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 
     drought, excessive rainfall, or a 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 fruits and vegetables or 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 112.5 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) 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 
     $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.
       (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 on a pro rata basis based on the value 
     of specialty crop losses in those counties during the 2009 
     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 for counties described in paragraph (1)(B) 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) Prohibition.--An eligible specialty crop producer that 
     receives assistance under this subsection shall be ineligible 
     to receive assistance under subsection (b).
       (6) 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).

[[Page 3366]]

       (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 for the purchase, improvement, or 
     operation of the poultry farm.
       (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) 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.
       (j) 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 and 
     the amendment made by this section.
       (B) Procedure.--The promulgation of the regulations and 
     administration of this section and the amendment made by 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 $10,000,000 
     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

[[Page 3367]]

     (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'', $560,000,000, 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 ``March 28, 
     2010'' and inserting ``December 31, 2010''.
       (3) Effective date for loan guarantees.--The amendment made 
     by paragraph (2) shall take effect on February 27, 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--

       ``(I) give notice of the election to participants and 
     beneficiaries of the plan, and
       ``(II) 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) Annual limitation.--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.
       ``(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.
       ``(III) Limitation on years to which amounts carried for.--
     No amount shall be carried under subclause (I) or (II) to a 
     plan year which begins after the first plan year following 
     the last plan year in the restriction period (or after the 
     second plan year following such last plan year in the case of 
     an election year with respect to which 15-year amortization 
     was elected under paragraph (2)(D)).
       ``(IV) 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.

[[Page 3368]]

       ``(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 
     28, 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 after February 28, 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 March 1, 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 the 
     sum of the dividends declared during the plan year by the 
     plan sponsor plus the aggregate amount paid for the 
     redemption of stock of the plan sponsor redeemed during the 
     plan year over the greater of--

       ``(I) the adjusted net income (within the meaning of 
     section 4043) of the plan sponsor for the preceding plan 
     year, determined without regard to any reduction by reason of 
     interest, taxes, depreciation, or amortization, or
       ``(II) in the case of a plan sponsor that determined and 
     declared dividends in the same manner for at least 5 
     consecutive years immediately preceding such plan year, the 
     aggregate amount of dividends determined and declared for 
     such plan year using such manner.

       ``(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 28, 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).
       ``(iv) Exception for certain redemptions.--Redemptions that 
     are made pursuant to a plan maintained with respect to 
     employees, or that are made on account of the death, 
     disability, or termination of employment of an employee or 
     shareholder, shall not be taken into account under clause 
     (i).
       ``(v) Exception for certain preferred stock.--

       ``(I) In general.--Dividends and redemptions with respect 
     to applicable preferred stock shall not be taken into account 
     under clause (i) to the extent that dividends accrue with 
     respect to such stock at a specified rate in all events and 
     without regard to the plan sponsor's income, and interest 
     accrues on any unpaid dividends with respect to such stock.
       ``(II) Applicable preferred stock.--For purposes of 
     subclause (I), the term `applicable preferred stock' means 
     preferred stock which was issued before March 1, 2010 (or 
     which was issued after such date and is held by an employee 
     benefit plan subject to the provisions of this title).

       ``(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 3-year 
     period beginning with the election year (or, if later, the 
     first plan year beginning after December 31, 2009), and
       ``(II) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the election year, the 5-
     year period beginning with the election year (or, if later, 
     the first plan year beginning after December 31, 2009).

       ``(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.

[[Page 3369]]

       ``(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--

       ``(I) give notice of the election to participants and 
     beneficiaries of the plan, and
       ``(II) 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) Annual limitation.--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.
       ``(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.
       ``(III) Limitation on years to which amounts carried for.--
     No amount shall be carried under subclause (I) or (II) to a 
     plan year which begins after the first plan year following 
     the last plan year in the restriction period (or after the 
     second plan year following such last plan year in the case of 
     an election year with respect to which 15-year amortization 
     was elected under paragraph (2)(D)).
       ``(IV) 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 
     28, 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 after February 28, 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 March 1, 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 the 
     sum of the dividends declared during the plan year by the 
     plan sponsor plus the aggregate amount paid for the 
     redemption of stock of the plan sponsor redeemed during the 
     plan year over the greater of--

       ``(I) 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, 
     determined without regard to any reduction by reason of 
     interest, taxes, depreciation, or amortization, or
       ``(II) in the case of a plan sponsor that determined and 
     declared dividends in the same manner for at least 5 
     consecutive years immediately preceding such plan year, the 
     aggregate amount of dividends determined and declared for 
     such plan year using such manner.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause

[[Page 3370]]

     (i), there shall only be taken into account dividends 
     declared, and redemptions occurring, after February 28, 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).
       ``(iv) Exception for certain redemptions.--Redemptions that 
     are made pursuant to a plan maintained with respect to 
     employees, or that are made on account of the death, 
     disability, or termination of employment of an employee or 
     shareholder, shall not be taken into account under clause 
     (i).
       ``(v) Exception for certain preferred stock.--

       ``(I) In general.--Dividends and redemptions with respect 
     to applicable preferred stock shall not be taken into account 
     under clause (i) to the extent that dividends accrue with 
     respect to such stock at a specified rate in all events and 
     without regard to the plan sponsor's income, and interest 
     accrues on any unpaid dividends with respect to such stock.
       ``(II) Applicable preferred stock.--For purposes of 
     subclause (I), the term `applicable preferred stock' means 
     preferred stock which was issued before March 1, 2010 (or 
     which was issued after such date and is held by an employee 
     benefit plan subject to the provisions of title I of Employee 
     Retirement Income Security Act of 1974).

       ``(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 3-year 
     period beginning with the election year (or, if later, the 
     first plan year beginning after December 31, 2009), and
       ``(II) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the election year, the 5-
     year period beginning with the election year (or, if later, 
     the first plan year beginning after December 31, 2009).

       ``(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 (determined without regard to section 414(c) of the 
     Internal Revenue Code) 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--

[[Page 3371]]

       ``(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).''.

       (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.

     SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE FOR PLANS 
                   MAINTAINED BY CHARITIES.

       (a) Amendment to Erisa.--Paragraph (3) of section 303(f) of 
     the Employee Retirement Income Security Act of 1974 is 
     amended by adding the following at the end thereof:
       ``(D) Special rule for certain years of plans maintained by 
     charities.--
       ``(i) In general.--For purposes of applying subparagraph 
     (C) for plan years beginning after August 31, 2009, and 
     before September 1, 2011, the ratio determined under such 
     subparagraph for the preceding plan year shall be the greater 
     of--

       ``(I) such ratio, as determined without regard to this 
     subparagraph, or
       ``(II) the ratio for such plan for the plan year beginning 
     after August 31, 2007, and before September 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, 2008, and before January 1, 2011, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before September 1, 2007, as determined under 
     rules prescribed by the Secretary of the Treasury.

       ``(iii) Limitation to charities.--This subparagraph shall 
     not apply to any plan unless such plan is maintained 
     exclusively by one or more organizations described in section 
     501(c)(3) of the Internal Revenue Code of 1986.''.
       (b) Amendment to Internal Revenue Code of 1986.--Paragraph 
     (3) of section 430(f) of the Internal Revenue Code of 1986 is 
     amended by adding the following at the end thereof:
       ``(D) Special rule for certain years of plans maintained by 
     charities.--
       ``(i) In general.--For purposes of applying subparagraph 
     (C) for plan years beginning after August 31, 2009, and 
     before September 1, 2011, the ratio determined under such 
     subparagraph for the preceding plan year of a plan shall be 
     the greater of--

       ``(I) such ratio, as determined without regard to this 
     subsection, or
       ``(II) the ratio for such plan for the plan year beginning 
     after August 31, 2007 and before September 1, 2008, as 
     determined under rules prescribed by the Secretary.

       ``(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 September 1, 2007, as determined under 
     rules prescribed by the Secretary.

       ``(iii) Limitation to charities.--This subparagraph shall 
     not apply to any plan unless such plan is maintained 
     exclusively by one or more organizations described in section 
     501(c)(3).''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning after August 31, 2009.
       (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, 2008.

                    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 any experience loss or gain attributable 
     to net investment losses 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 the 
     period --

       ``(I) beginning with the plan year in which such portion is 
     first recognized in the actuarial value of assets, and
       ``(II) ending with the last plan year in the 30-plan year 
     period beginning with the plan year in which such net 
     investment loss was incurred.

       ``(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 the first 2 plan 
     years beginning after August 31, 2008, 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.

[[Page 3372]]

       ``(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--
       ``(i) give notice of such application to participants and 
     beneficiaries of the plan, and
       ``(ii) 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 any experience loss or gain attributable 
     to net investment losses 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 the 
     period --

       ``(I) beginning with the plan year in which such portion is 
     first recognized in the actuarial value of assets, and
       ``(II) ending with the last plan year in the 30-plan year 
     period beginning with the plan year in which such net 
     investment loss was incurred.

       ``(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,
       ``(II) provides that for either or both of the first 2 plan 
     years beginning after August 31, 2008, 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--
       ``(i) give notice of such application to participants and 
     beneficiaries of the plan, and
       ``(ii) 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 beginning 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

[[Page 3373]]

     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.
       ``(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. 500. 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:

[[Page 3374]]

       ``(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--
       (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 ``May 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 ``March 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 ``July 1, 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:

[[Page 3375]]

       ``(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.
       ``(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 ``March 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:

[[Page 3376]]

       ``(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 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;

[[Page 3377]]

       (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.''.

     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

[[Page 3378]]

       ``(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 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

[[Page 3379]]

     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 
     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

[[Page 3380]]

     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 ``March 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 ``March 28, 2010'' and 
     inserting ``December 31, 2014''; and
       (2) in paragraph (3)(C), by striking ``March 29, 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 210 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'';
       (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

[[Page 3381]]

     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 210 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 210 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 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

[[Page 3382]]

     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
       ``(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

[[Page 3383]]

     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 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.

       (a) Effective Date.--Unless specifically provided 
     otherwise, this title, and the amendments made by this title, 
     shall take effect on February 27, 2010, and with the 
     exception of the reference in subsection (b), all references 
     to the date of enactment of this Act shall be deemed to refer 
     to February 27, 2010, unless otherwise specified.
       (b) Noninfringement of Copyright.--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 ``March 31, 2010'' and 
     inserting ``September 30, 2010''; and
       (2) in subparagraph (B), by striking ``April 1, 2010'' and 
     inserting ``October 1, 2010''.

     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

[[Page 3384]]

     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))--
       ``(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.

     SEC. 604. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR 
                   BUILDINGS IN GO ZONES.

       Section 1400N(c)(5) is amended by striking ``January 1, 
     2011'' and inserting ``January 1, 2013''.

     SEC. 605. INCREASE IN INFORMATION RETURN PENALTIES.

       (a) Failure To File Correct Information Returns.--
       (1) In general.--Subsections (a)(1), (b)(1)(A), and 
     (b)(2)(A) of section 6721 are each amended by striking 
     ``$50'' and inserting ``$100''.
       (2) Aggregate annual limitation.--Subsections (a)(1), 
     (d)(1)(A), and (e)(3)(A) of section 6721 are each amended by 
     striking ``$250,000'' and inserting ``$1,500,000''.
       (b) Reduction Where Correction Within 30 Days.--
       (1) In general.--Subparagraph (A) of section 6721(b)(1) is 
     amended by striking ``$15'' and inserting ``$30''.
       (2) Aggregate annual limitation.--Subsections (b)(1)(B) and 
     (d)(1)(B) of section 6721 are each amended by striking 
     ``$75,000'' and inserting ``$250,000''.
       (c) Reduction Where Correction on or Before August 1.--
       (1) In general.--Subparagraph (A) of section 6721(b)(2) is 
     amended by striking ``$30'' and inserting ``$60''.
       (2) Aggregate annual limitation.--Subsections (b)(2)(B) and 
     (d)(1)(C) of section 6721are each amended by striking 
     ``$150,000'' and inserting ``$500,000''.
       (d) Aggregate Annual Limitations for Persons With Gross 
     Receipts of Not More Than $5,000,000.--Paragraph (1) of 
     section 6721(d) is amended--
       (1) by striking ``$100,000'' in subparagraph (A) and 
     inserting ``$500,000'',
       (2) by striking ``$25,000'' in subparagraph (B) and 
     inserting ``$75,000'', and
       (3) by striking ``$50,000'' in subparagraph (C) and 
     inserting ``$200,000''.
       (e) Penalty in Case of Intentional Disregard.--Paragraph 
     (2) of section 6721(e) is amended by striking ``$100'' and 
     inserting ``$250''.
       (f) Adjustment for Inflation.--Section 6721 is amended by 
     adding at the end the following new subsection:
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d) (other than paragraph (2)(A) thereof), and (e) shall 
     be increased by such dollar amount multiplied by the cost-of-
     living adjustment determined under section 1(f)(3) determined 
     by substituting `calendar year 2011' for `calendar year 1992' 
     in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply with respect to information returns required to 
     be filed on or after January 1, 2011.

     SEC. 606. 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''.

     SEC. 607. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS 
                   RELATING TO PROPERTY.

       (a) In General.--Section 6331(h)(3) is amended by striking 
     ``goods or services'' and inserting ``property, goods, or 
     services''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to levies approved after the date of the 
     enactment of this Act.

     SEC. 608. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT 
                   FOR 2010.

       Subsection (n) of section 42, as added by section 121, is 
     amended to read as follows:
       ``(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

[[Page 3385]]

     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'.''.

     SEC. 609. 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 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.

     SEC. 610. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO ROTH 
                   DESIGNATED ACCOUNTS.

       (a) In General.--Section 402A(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Taxable rollovers to designated roth accounts.--
       ``(A) In general.--Notwithstanding sections 402(c), 
     403(b)(8), and 457(e)(16), in the case of any distribution to 
     which this paragraph applies--
       ``(i) there shall be included in gross income any amount 
     which would be includible were it not part of a qualified 
     rollover contribution,
       ``(ii) section 72(t) shall not apply, and
       ``(iii) unless the taxpayer elects not to have this clause 
     apply, any amount required to be included in gross income for 
     any taxable year beginning in 2010 by reason of this 
     paragraph shall be so included ratably over the 2-taxable-
     year period beginning with the first taxable year beginning 
     in 2011.
     Any election under clause (iii) for any distributions during 
     a taxable year may not be changed after the due date for such 
     taxable year.
       ``(B) Distributions to which paragraph applies.--In the 
     case of an applicable retirement plan which includes a 
     qualified Roth contribution program, this paragraph shall 
     apply to a distribution from such plan other than from a 
     designated Roth account which is contributed in a qualified 
     rollover contribution to the designated Roth account 
     maintained under such plan for the benefit of the individual 
     to whom the distribution is made.
       ``(C) Other rules.--The rules of subparagraphs (D), (E), 
     and (F) of section 408A(d)(3) (as in effect for taxable years 
     beginning after 2009) shall apply for purposes of this 
     paragraph.''.

     SEC. 611. 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) 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.

     SEC. 612. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
                   ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
                   CONTRIBUTIONS.

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

     SEC. 613. EXTENSION OF SPECIAL ALLOWANCE FOR CERTAIN 
                   PROPERTY.

       (a) In General.--Section 15345(d)(1)(D) of the Food 
     Conservation and Energy Act of 2008 (Public Law 110-246) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Conforming Amendment.--Section 15345(d)(1)(F) of such 
     Act is amended by striking ``January 1, 2008'' and inserting 
     ``January 1, 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 15345 of the Food 
     Conservation and Energy Act of 2008.

     SEC. 614. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC 
                   PAYMENTS.

       (a) In General.--Section 6657 is amended--
       (1) by striking ``If any check or money order in payment of 
     any amount'' and inserting ``If any instrument in payment, by 
     any commercially acceptable means, of any amount'', and
       (2) by striking ``such check'' each place it appears and 
     inserting ``such instrument''.
       (b) Effective Dates.--The amendments made by this section 
     shall apply to instruments tendered after the date of the 
     enactment of this Act.

     SEC. 615. GRANTS FOR ENERGY EFFICIENT APPLIANCES IN LIEU OF 
                   TAX CREDIT.

       In the case of any taxable year which includes the last day 
     of calendar year 2009 or calendar year 2010, a taxpayer who 
     elects to waive the credit which would otherwise be 
     determined with respect to the taxpayer under section 45M of 
     the Internal Revenue Code of 1986 for such taxable year shall 
     be treated as making a payment against the tax imposed under 
     subtitle A of such Code for such taxable year in an amount 
     equal to 85 percent of the amount of the credit which would 
     otherwise be so determined. Such payment shall be treated as 
     made on the later of the due date of the return of such tax 
     or the date on which such return is filed. Elections under 
     this section may be made separately for 2009 and 2010, but 
     once made shall be irrevocable.

     SEC. 616. BUDGETARY EFFECTS OF LEGISLATION PASSED BY THE 
                   SENATE.

       (a) Establishment of Web Page.--
       (1) In general.--Not later than 90 days after the enactment 
     of this Act, the Secretary of the Senate shall establish on 
     the official website of the United States Senate 
     (www.senate.gov) a page entitled ``Information on the 
     Budgetary Effects of Legislation Considered by the Senate'' 
     which shall include--
       (A) links to appropriate pages on the website of the 
     Congressional Budget Office (www.cbo.gov) that contain cost 
     estimates of legislation passed by the Senate; and
       (B) as available, links to pages with any other information 
     produced by the Congressional Budget Office that summarize or 
     further explain the budgetary effects of legislation 
     considered by the Senate.
       (2) Updates.--The Secretary of the Senate shall update this 
     page every 3 months.
       (b) CBO Requirements.--Nothing in this section shall be 
     construed as imposing any new requirements on the 
     Congressional Budget Office.

     SEC. 617. 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.

     SEC. 618. ALLOCATION OF GEOTHERMAL RECEIPTS.

       Notwithstanding any other provision of law, for fiscal year 
     2010 only, all funds received from sales, bonuses, royalties, 
     and rentals under the Geothermal Steam Act of 1970 (30 U.S.C. 
     1001 et seq.) shall be deposited in the Treasury, of which--

[[Page 3386]]

       (1) 50 percent shall be used by the Secretary of the 
     Treasury to make payments to States within the boundaries of 
     which the leased land and geothermal resources are located;
       (2) 25 percent shall be used by the Secretary of the 
     Treasury to make payments to the counties within the 
     boundaries of which the leased land or geothermal resources 
     are located; and
       (3) 25 percent shall be deposited in miscellaneous 
     receipts.

     SEC. 619. 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:
       (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 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 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).

     SEC. 620. ARRA PLANNING AND REPORTING.

       Section 1512 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 287) is amended--
       (1) in subsection (d)--
       (A) in the subsection heading, by inserting ``Plans and'' 
     after ``Agency'';
       (B) by striking ``Not later than'' and inserting the 
     following:
       ``(1) Definition.--In this subsection, the term `covered 
     program' means a program for which funds are appropriated 
     under this division--
       ``(A) in an amount that is--
       ``(i) more than $2,000,000,000; and
       ``(ii) more than 150 percent of the funds appropriated for 
     the program for fiscal year 2008; or
       ``(B) that did not exist before the date of enactment of 
     this Act.
       ``(2) Plans.--Not later than July 1, 2010, the head of each 
     agency that distributes recovery funds shall submit to 
     Congress and make available on the website of the agency a 
     plan for each covered program, which shall, at a minimum, 
     contain--
       ``(A) a description of the goals for the covered program 
     using recovery funds;
       ``(B) a discussion of how the goals described in 
     subparagraph (A) relate to the goals for ongoing activities 
     of the covered program, if applicable;
       ``(C) a description of the activities that the agency will 
     undertake to achieve the goals described in subparagraph (A);
       ``(D) a description of the total recovery funding for the 
     covered program and the recovery funding for each activity 
     under the covered program, including identifying whether the 
     activity will be carried out using grants, contracts, or 
     other types of funding mechanisms;
       ``(E) a schedule of milestones for major phases of the 
     activities under the covered program, with planned delivery 
     dates;
       ``(F) performance measures the agency will use to track the 
     progress of each of the activities under the covered program 
     in meeting the goals described in subparagraph (A), including 
     performance targets, the frequency of measurement, and a 
     description of the methodology for each measure;
       ``(G) a description of the process of the agency for the 
     periodic review of the progress of the covered program 
     towards meeting the goals described in subparagraph (A); and
       ``(H) a description of how the agency will hold program 
     managers accountable for achieving the goals described in 
     subparagraph (A).
       ``(3) Reports.--
       ``(A) In general.--Not later than''; and
       (C) by adding at the end the following:
       ``(B) Reports on plans.--Not later than 30 days after the 
     end of the calendar quarter ending September 30, 2010, and 
     every calendar quarter thereafter during which the agency 
     obligates or expends recovery funds, the head of each agency 
     that developed a plan for a covered program under paragraph 
     (2) shall submit to Congress and make available on a website 
     of the agency a report for each covered program that--
       ``(i) discusses the progress of the agency in implementing 
     the plan;
       ``(ii) describes the progress towards achieving the goals 
     described in paragraph (2)(A) for the covered program;
       ``(iii) discusses the status of each activity carried out 
     under the covered program, including whether the activity is 
     completed;
       ``(iv) details the unobligated and unexpired balances and 
     total obligations and outlays under the covered program;
       ``(v) discusses--

       ``(I) whether the covered program has met the milestones 
     for the covered program described in paragraph (2)(E);
       ``(II) if the covered program has failed to meet the 
     milestones, the reasons why; and
       ``(III) any changes in the milestones for the covered 
     program, including the reasons for the change;

       ``(vi) discusses the performance of the covered program, 
     including--

       ``(I) whether the covered program has met the performance 
     measures for the covered program described in paragraph 
     (2)(F);
       ``(II) if the covered program has failed to meet the 
     performance measures, the reasons why; and
       ``(III) any trends in information relating to the 
     performance of the covered program; and

       ``(vii) evaluates the ability of the covered program to 
     meet the goals of the covered program given the performance 
     of the covered program.'';
       (2) in subsection (f)--
       (A) by striking ``Within 180 days'' and inserting the 
     following:
       ``(1) In general.--Within 180 days''; and
       (B) by adding at the end the following:
       ``(2) Penalties.--
       ``(A) In general.--Subject to subparagraphs (B), (C), and 
     (D), the Attorney General may bring a civil action in an 
     appropriate United States district court against a recipient 
     of recovery funds from an agency that does not provide the 
     information required under subsection (c) or knowingly 
     provides information under subsection (c) that contains a 
     material omission or misstatement. In a civil action under 
     this paragraph, the court may impose a civil penalty on a 
     recipient of recovery funds in an amount not more than 
     $250,000. Any amounts received from a civil penalty under 
     this paragraph shall be deposited in the general fund of the 
     Treasury.
       ``(B) Notification.--
       ``(i) In general.--The head of an agency shall provide a 
     written notification to a recipient of recovery funds from 
     the agency that fails to provide the information required 
     under subsection (c). A notification under this subparagraph 
     shall provide the recipient with information on how to comply 
     with the necessary reporting requirements and notice of the 
     penalties for failing to do so.
       ``(ii) Limitation.--A court may not impose a civil penalty 
     under subparagraph (A) relating to the failure to provide 
     information required under subsection (c) if, not later than 
     31 days after the date of the notification under clause (i), 
     the recipient of the recovery funds provides the information.
       ``(C) Considerations.--In determining the amount of a 
     penalty under this paragraph for a recipient of recovery 
     funds, a court shall consider--
       ``(i) the number of times the recipient has failed to 
     provide the information required under subsection (c);
       ``(ii) the amount of recovery funds provided to the 
     recipient;
       ``(iii) whether the recipient is a government, nonprofit 
     entity, or educational institution; and
       ``(iv) whether the recipient is a small business concern 
     (as defined under section 3 of the Small Business Act (15 
     U.S.C. 632)), with particular consideration given to 
     businesses with not more than 50 employees.
       ``(D) Applicability.--This paragraph shall apply to any 
     report required to be submitted on or after the date of 
     enactment of this paragraph.
       ``(E) Nonexclusivity.--The imposition of a civil penalty 
     under this subsection shall not preclude any other criminal, 
     civil, or administrative remedy available to the United 
     States or any other person under Federal or State law.
       ``(3) Technical assistance.--Each agency distributing 
     recovery funds shall provide technical assistance, as 
     necessary, to assist recipients of recovery funds in 
     complying with the requirements to provide information under 
     subsection (c), which shall include providing recipients with 
     a reminder regarding each reporting requirement.
       ``(4) Public listing.--
       ``(A) In general.--Not later than 45 days after the end of 
     each calendar quarter, and subject to the notification 
     requirements under paragraph (2)(B), the Board shall make 
     available on the website established under section 1526 a 
     list of all recipients of recovery funds that did not provide 
     the information required under subsection (c) for the 
     calendar quarter.
       ``(B) Contents.--A list made available under subparagraph 
     (A) shall, for each recipient of recovery funds on the list, 
     include the name and

[[Page 3387]]

     address of the recipient, the identification number for the 
     award, the amount of recovery funds awarded to the recipient, 
     a description of the activity for which the recovery funds 
     were provided, and, to the extent known by the Board, the 
     reason for noncompliance.
       ``(5) Regulations and reporting.--
       ``(A) Regulations.--Not later than 90 days after the date 
     of enactment of this paragraph, the Attorney General, in 
     consultation with the Director of the Office of Management 
     and Budget and the Chairperson, shall promulgate regulations 
     regarding implementation of this section.
       ``(B) Reporting.--
       ``(i) In general.--Not later than July 1, 2010, and every 3 
     months thereafter, the Director of the Office of Management 
     and Budget, in consultation with the Chairperson, shall 
     submit to Congress a report on the extent of noncompliance by 
     recipients of recovery funds with the reporting requirements 
     under this section.
       ``(ii) Contents.--Each report submitted under clause (i) 
     shall include--

       ``(I) information, for the quarter and in total, regarding 
     the number and amount of civil penalties imposed and 
     collected under this subsection, sorted by agency and 
     program;
       ``(II) information on the steps taken by the Federal 
     Government to reduce the level of noncompliance; and
       ``(III) any other information determined appropriate by the 
     Director.''; and

       (3) by adding at the end the following:
       ``(i) Termination.--The reporting requirements under this 
     section shall terminate on September 30, 2013.''.

     SEC. 621. 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 and Midwest 
     States over the past 20 years;
       (2) the role of the off-shoring of manufacturing jobs in 
     overall job loss in the regions; and
       (3) recommendations to attract industries and bring jobs to 
     the region.

     SEC. 622. 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.

     SEC. 623. 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.

     SEC. 624. APPLICATION OF CONTINUOUS LEVY TO EMPLOYMENT TAX 
                   LIABILITY OF CERTAIN FEDERAL CONTRACTORS.

       (a) In General.--Section 6330(h) is amended by inserting 
     ``or if the person subject to the levy (or any predecessor 
     thereof) is a Federal contractor that was identified as owing 
     such employment taxes through the Federal Payment Levy 
     Program'' before the period at the end of the first sentence.
       (b) Effective Date.--The amendment made by this section 
     shall apply to levies issued after December 31, 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.

                          ____________________