[Congressional Record (Bound Edition), Volume 156 (2010), Part 8]
[Senate]
[Pages 10563-10566]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4343. Mr. WEBB (for himself, Mr. Nelson of Florida, and Mr. 
Warner) submitted an amendment intended to be proposed to amendment SA 
4301 proposed by Mr. Baucus to the bill H.R. 4213, to amend the 
Internal Revenue Code of 1986 to extend certain expiring provisions, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title VI, insert the following:

     SEC. ----. GUIDANCE ON TAX TREATMENT OF LOSSES RELATED TO 
                   TAINTED DRYWALL AS CASUALTY LOSS DEDUCTIONS.

       Not later than the due date, including extension, for 
     filing a return of tax for taxable year 2009, the Secretary 
     of the Treasury shall issue guidance with respect to the 
     availability of a casualty loss deduction under section 
     165(c)(3) of the Internal Revenue Code of 1986 for a taxpayer 
     who has sustained a loss due to defective or tainted drywall, 
     including drywall imported from China.
                                 ______
                                 
  SA 4344. Mr. REID proposed an amendment to amendment SA 4301 proposed 
by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
as follows:

       At the end of part I of subtitle B of title II, insert the 
     following:

     SEC. ----. FIRST-TIME HOMEBUYER CREDIT.

       (a) In General.--Paragraph (2) of section 36(h) is amended 
     by striking ``paragraph (1) shall be applied by substituting 
     `July 1, 2010''' and inserting ``and who purchases such 
     residence before October 1, 2010, paragraph (1) shall be 
     applied by substituting `October 1, 2010'''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     36(h)(3) is amended by inserting ``and for `October 1, 
     2010''' after ``for `July 1, 2010'''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply to residences purchased after June 30, 
     2010.
       (d) Offset.--
       (1) Disallowance of deduction for punitive damages.--
       (A) In general.--Section 162(g) (relating to treble damage 
     payments under the antitrust laws) is amended--
       (i) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (ii) by striking ``If'' and inserting:
       ``(1) Treble damages.--If'', and
       (iii) by adding at the end the following new paragraph:
       ``(2) Punitive damages.--No deduction shall be allowed 
     under this chapter for any amount paid or incurred for 
     punitive damages in connection with any judgment in, or 
     settlement of, any action. This paragraph shall not apply to 
     punitive damages described in section 104(c).''.
       (B) Conforming amendment.--The heading for section 162(g) 
     is amended by inserting ``Or Punitive Damages'' after 
     ``Laws''.
       (2) Inclusion in income of punitive damages paid by insurer 
     or otherwise.--
       (A) In general.--Part II of subchapter B of chapter 1 
     (relating to items specifically included in gross income) is 
     amended by adding at the end the following new section:

     ``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR 
                   OTHERWISE.

       ``Gross income shall include any amount paid to or on 
     behalf of a taxpayer as insurance or otherwise by reason of 
     the taxpayer's liability (or agreement) to pay punitive 
     damages.''.
       (B) Reporting requirements.--Section 6041 (relating to 
     information at source) is amended by adding at the end the 
     following new subsection:
       ``(h) Section To Apply to Punitive Damages Compensation.--
     This section shall apply to payments by a person to or on 
     behalf of another person as insurance or otherwise by reason 
     of the other person's liability (or agreement) to pay 
     punitive damages.''.
       (C) Conforming amendment.--The table of sections for part 
     II of subchapter B of chapter 1 is amended by adding at the 
     end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to damages paid or incurred after December 31, 
     2011.
                                 ______
                                 
  SA 4345. Mr. TESTER submitted an amendment intended to be proposed to 
amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 236, strike line 20 and all that follows 
     through page 237, line 5.

[[Page 10564]]


                                 ______
                                 
  SA 4346. Mr. COBURN submitted an amendment intended to be proposed to 
amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike section 522.
                                 ______
                                 
  SA 4347. Mr. REID (for Ms. Klobuchar) proposed an amendment to the 
bill S. 1660, to amend the Toxic Substances Control Act to reduce the 
emissions of formaldehyde from composite wood products, and for other 
purposes, as follows:

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Formaldehyde Standards for 
     Composite Wood Products Act''.

     SEC. 2. FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS.

       (a) Amendment.--The Toxic Substances Control Act (15 U.S.C. 
     2601 et seq.) is amended by adding at the end the following:

     ``TITLE VI--FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS

     ``SEC. 601. FORMALDEHYDE STANDARDS.

       ``(a) Definitions.--In this section:
       ``(1) Finished good.--
       ``(A) In general.--The term `finished good' means any good 
     or product (other than a panel) containing--
       ``(i) hardwood plywood;
       ``(ii) particleboard; or
       ``(iii) medium-density fiberboard.
       ``(B) Exclusions.--The term `finished good' does not 
     include--
       ``(i) any component part or other part used in the assembly 
     of a finished good; or
       ``(ii) any finished good that has previously been sold or 
     supplied to an individual or entity that purchased or 
     acquired the finished good in good faith for purposes other 
     than resale, such as--

       ``(I) an antique; or
       ``(II) secondhand furniture.

       ``(2) Hardboard.--The term `hardboard' has such meaning as 
     the Administrator shall establish, by regulation, pursuant to 
     subsection (d).
       ``(3) Hardwood plywood.--
       ``(A) In general.--The term `hardwood plywood' means a 
     hardwood or decorative panel that is--
       ``(i) intended for interior use; and
       ``(ii) composed of (as determined under the standard 
     numbered ANSI/HPVA HP-1-2009) an assembly of layers or plies 
     of veneer, joined by an adhesive with--

       ``(I) lumber core;
       ``(II) particleboard core;
       ``(III) medium-density fiberboard core;
       ``(IV) hardboard core; or
       ``(V) any other special core or special back material.

       ``(B) Exclusions.--The term `hardwood plywood' does not 
     include--
       ``(i) military-specified plywood;
       ``(ii) curved plywood; or
       ``(iii) any other product specified in--

       ``(I) the standard entitled `Voluntary Product Standard-
     Structural Plywood' and numbered PS 1-07; or
       ``(II) the standard entitled `Voluntary Product Standard-
     Performance Standard for Wood-Based Structural-Use Panels' 
     and numbered PS 2-04.

       ``(C) Laminated products.--
       ``(i) Rulemaking.--

       ``(I) In general.--The Administrator shall conduct a 
     rulemaking process pursuant to subsection (d) that uses all 
     available and relevant information from State authorities, 
     industry, and other available sources of such information, 
     and analyzes that information to determine, at the discretion 
     of the Administrator, whether the definition of the term 
     `hardwood plywood' should exempt engineered veneer or any 
     laminated product.
       ``(II) Modification.--The Administrator may modify any 
     aspect of the definition contained in clause (ii) before 
     including that definition in the regulations promulgated 
     pursuant to subclause (I).

       ``(ii) Laminated product.--The term `laminated product' 
     means a product--

       ``(I) in which a wood veneer is affixed to--

       ``(aa) a particleboard platform;
       ``(bb) a medium-density fiberboard platform; or
       ``(cc) a veneer-core platform; and

       ``(II) that is--

       ``(aa) a component part;
       ``(bb) used in the construction or assembly of a finished 
     good; and
       ``(cc) produced by the manufacturer or fabricator of the 
     finished good in which the product is incorporated.
       ``(4) Manufactured home.--The term `manufactured home' has 
     the meaning given the term in section 3280.2 of title 24, 
     Code of Federal Regulations (as in effect on the date of 
     promulgation of regulations pursuant to subsection (d)).
       ``(5) Medium-density fiberboard.--The term `medium-density 
     fiberboard' means a panel composed of cellulosic fibers made 
     by dry forming and pressing a resinated fiber mat (as 
     determined under the standard numbered ANSI A208.2-2009).
       ``(6) Modular home.--The term `modular home' means a home 
     that is constructed in a factory in 1 or more modules--
       ``(A) each of which meet applicable State and local 
     building codes of the area in which the home will be located; 
     and
       ``(B) that are transported to the home building site, 
     installed on foundations, and completed.
       ``(7) No-added formaldehyde-based resin.--
       ``(A) In general.--(i) The term `no-added formaldehyde-
     based resin' means a resin formulated with no added 
     formaldehyde as part of the resin cross-linking structure in 
     a composite wood product that meets the emission standards in 
     subparagraph (C) as measured by--
       ``(I) one test conducted pursuant to test method ASTM E-
     1333-96 (2002) or, subject to clause (ii), ASTM D-6007-02; 
     and
       ``(II) 3 months of routine quality control tests pursuant 
     to ASTM D-6007-02 or ASTM D-5582 or such other routine 
     quality control test methods as may be established by the 
     Administrator through rulemaking.
       ``(ii) Test results obtained under clause (i)(I) or (II) by 
     any test method other than ASTM E-1333-96 (2002) must include 
     a showing of equivalence by means established by the 
     Administrator through rulemaking.
       ``(B) Inclusions.--The term `no-added formaldehyde-based 
     resin' may include any resin made from--
       ``(i) soy;
       ``(ii) polyvinyl acetate; or
       ``(iii) methylene diisocyanate.
       ``(C) Emission standards.--The following are the emission 
     standards for composite wood products made with no-added 
     formaldehyde-based resins under this paragraph:
       ``(i) No higher than 0.04 parts per million of formaldehyde 
     for 90 percent of the 3 months of routine quality control 
     testing data required under subparagraph (A)(ii).
       ``(ii) No test result higher than 0.05 parts per million of 
     formaldehyde for hardwood plywood and 0.06 parts per million 
     for particleboard, medium-density fiberboard, and thin 
     medium-density fiberboard.
       ``(8) Particleboard.--
       ``(A) In general.--The term `particleboard' means a panel 
     composed of cellulosic material in the form of discrete 
     particles (as distinguished from fibers, flakes, or strands) 
     that are pressed together with resin (as determined under the 
     standard numbered ANSI A208.1-2009).
       ``(B) Exclusions.--The term `particleboard' does not 
     include any product specified in the standard entitled 
     `Voluntary Product Standard-Performance Standard for Wood-
     Based Structural-Use Panels' and numbered PS 2-04.
       ``(9) Recreational vehicle.--The term `recreational 
     vehicle' has the meaning given the term in section 3282.8 of 
     title 24, Code of Federal Regulations (as in effect on the 
     date of promulgation of regulations pursuant to subsection 
     (d)).
       ``(10) Ultra low-emitting formaldehyde resin.--
       ``(A) In general.--(i) The term `ultra low-emitting 
     formaldehyde resin' means a resin in a composite wood product 
     that meets the emission standards in subparagraph (C) as 
     measured by--
       ``(I) 2 quarterly tests conducted pursuant to test method 
     ASTM E-1333--96 (2002) or, subject to clause (ii), ASTM D-
     6007-02; and
       ``(II) 6 months of routine quality control tests pursuant 
     to ASTM D-6007-02 or ASTM D-5582 or such other routine 
     quality control test methods as may be established by the 
     Administrator through rulemaking.
       ``(ii) Test results obtained under clause (i)(I) or (II) by 
     any test method other than ASTM E-1333-96 (2002) must include 
     a showing of equivalence by means established by the 
     Administrator through rulemaking.
       ``(B) Inclusions.--The term `ultra low-emitting 
     formaldehyde resin' may include--
       ``(i) melamine-urea-formaldehyde resin;
       ``(ii) phenol formaldehyde resin; and
       ``(iii) resorcinol formaldehyde resin.
       ``(C) Emission standards.--
       ``(i) The Administrator may, pursuant to regulations issued 
     under subsection (d), reduce the testing requirements for a 
     manufacturer only if its product made with ultra low-emitting 
     formaldehyde resin meets the following emission standards:

       ``(I) For hardwood plywood, no higher than 0.05 parts per 
     million of formaldehyde.
       ``(II) For medium-density fiberboard--

       ``(aa) no higher than 0.06 parts per million of 
     formaldehyde for 90 percent of 6 months of routine quality 
     control testing data required under subparagraph (A)(ii); and
       ``(bb) no test result higher than 0.09 parts per million of 
     formaldehyde.

       ``(III) For particleboard--

       ``(aa) no higher than 0.05 parts per million of 
     formaldehyde for 90 percent of 6 months of routine quality 
     control testing data required under subparagraph (A)(ii); and
       ``(bb) no test result higher than 0.08 parts per million of 
     formaldehyde.

       ``(IV) For thin medium-density fiberboard--

       ``(aa) no higher than 0.08 parts per million of 
     formaldehyde for 90 percent of 6 months of routine quality 
     control testing data required under subparagraph (A)(ii); and
       ``(bb) no test result higher than 0.11 parts per million of 
     formaldehyde.

[[Page 10565]]

       ``(ii) The Administrator may not, pursuant to regulations 
     issued under subsection (d), exempt a manufacturer from third 
     party certification requirements unless its product made with 
     ultra low-emitting formaldehyde resin meets the following 
     emission standards:

       ``(I) No higher than 0.04 parts per million of formaldehyde 
     for 90 percent of 6 months of routine quality control testing 
     data required under subparagraph (A)(ii).
       ``(II) No test result higher than 0.05 parts per million of 
     formaldehyde for hardwood plywood and 0.06 parts per million 
     for particleboard, medium-density fiberboard, and thin 
     medium-density fiberboard.

       ``(b) Requirement.--
       ``(1) In general.--Except as provided in an applicable 
     sell-through regulation promulgated pursuant to subsection 
     (d), effective beginning on the date that is 180 days after 
     the date of promulgation of those regulations, the emission 
     standards described in paragraph (2), shall apply to hardwood 
     plywood, medium-density fiberboard, and particleboard sold, 
     supplied, offered for sale, or manufactured in the United 
     States.
       ``(2) Emission standards.--The emission standards referred 
     to in paragraph (1), based on test method ASTM E-1333-96 
     (2002), are as follows:
       ``(A) For hardwood plywood with a veneer core, 0.05 parts 
     per million of formaldehyde.
       ``(B) For hardwood plywood with a composite core--
       ``(i) 0.08 parts per million of formaldehyde for any period 
     after the effective date described in paragraph (1) and 
     before July 1, 2012; and
       ``(ii) 0.05 parts per million of formaldehyde, effective on 
     the later of the effective date described in paragraph (1) or 
     July 1, 2012.
       ``(C) For medium-density fiberboard--
       ``(i) 0.21 parts per million of formaldehyde for any period 
     after the effective date described in paragraph (1) and 
     before July 1, 2011; and
       ``(ii) 0.11 parts per million of formaldehyde, effective on 
     the later of the effective date described in paragraph (1) or 
     July 1, 2011.
       ``(D) For thin medium-density fiberboard--
       ``(i) 0.21 parts per million of formaldehyde for any period 
     after the effective date described in paragraph (1) and 
     before July 1, 2012; and
       ``(ii) 0.13 parts per million of formaldehyde, effective on 
     the later of the effective date described in paragraph (1) or 
     July 1, 2012.
       ``(E) For particleboard--
       ``(i) 0.18 parts per million of formaldehyde for any period 
     after the effective date described in paragraph (1) and 
     before July 1, 2011; and
       ``(ii) 0.09 parts per million of formaldehyde, effective on 
     the later of the effective date described in paragraph (1) or 
     July 1, 2011.
       ``(3) Compliance with emission standards.--(A) Compliance 
     with the emission standards described in paragraph (2) shall 
     be measured by--
       ``(i) quarterly tests shall be conducted pursuant to test 
     method ASTM E-1333-96 (2002) or, subject to subparagraph (B), 
     ASTM D-6007-02; and
       ``(ii) quality control tests shall be conducted pursuant to 
     ASTM D-6007-02, ASTM D-5582, or such other test methods as 
     may be established by the Administrator through rulemaking.
       ``(B) Test results obtained under subparagraph (A)(i) or 
     (ii) by any test method other than ASTM E-1333-96 (2002) must 
     include a showing of equivalence by means established by the 
     Administrator through rulemaking.
       ``(C) Except where otherwise specified, the Administrator 
     shall establish through rulemaking the number and frequency 
     of tests required to demonstrate compliance with the emission 
     standards.
       ``(4) Applicability.--The formaldehyde emission standard 
     referred to in paragraph (1) shall apply regardless of 
     whether an applicable hardwood plywood, medium-density 
     fiberboard, or particleboard is--
       ``(A) in the form of an unfinished panel; or
       ``(B) incorporated into a finished good.
       ``(c) Exemptions.--The formaldehyde emission standard 
     referred to in subsection (b)(1) shall not apply to--
       ``(1) hardboard;
       ``(2) structural plywood, as specified in the standard 
     entitled `Voluntary Product Standard-Structural Plywood' and 
     numbered PS 1-07;
       ``(3) structural panels, as specified in the standard 
     entitled `Voluntary Product Standard-Performance Standard for 
     Wood-Based Structural-Use Panels' and numbered PS 2-04;
       ``(4) structural composite lumber, as specified in the 
     standard entitled `Standard Specification for Evaluation of 
     Structural Composite Lumber Products' and numbered ASTM D 
     5456-06;
       ``(5) oriented strand board;
       ``(6) glued laminated lumber, as specified in the standard 
     entitled `Structural Glued Laminated Timber' and numbered 
     ANSI A190.1-2002;
       ``(7) prefabricated wood I-joists, as specified in the 
     standard entitled `Standard Specification for Establishing 
     and Monitoring Structural Capacities of Prefabricated Wood I-
     Joists' and numbered ASTM D 5055-05;
       ``(8) finger-jointed lumber;
       ``(9) wood packaging (including pallets, crates, spools, 
     and dunnage);
       ``(10) composite wood products used inside a new--
       ``(A) vehicle (other than a recreational vehicle) 
     constructed entirely from new parts that has never been--
       ``(i) the subject of a retail sale; or
       ``(ii) registered with the appropriate State agency or 
     authority responsible for motor vehicles or with any foreign 
     state, province, or country;
       ``(B) rail car;
       ``(C) boat;
       ``(D) aerospace craft; or
       ``(E) aircraft;
       ``(11) windows that contain composite wood products, if the 
     window product contains less than 5 percent by volume of 
     hardwood plywood, particleboard, or medium-density 
     fiberboard, combined, in relation to the total volume of the 
     finished window product; or
       ``(12) exterior doors and garage doors that contain 
     composite wood products, if--
       ``(A) the doors are made from composite wood products 
     manufactured with no-added formaldehyde-based resins or ultra 
     low-emitting formaldehyde resins; or
       ``(B) the doors contain less than 3 percent by volume of 
     hardwood plywood, particleboard, or medium-density 
     fiberboard, combined, in relation to the total volume of the 
     finished exterior door or garage door.
       ``(d) Regulations.--
       ``(1) In general.--Not later than January 1, 2013, the 
     Administrator shall promulgate regulations to implement the 
     standards required under subsection (b) in a manner that 
     ensures compliance with the emission standards described in 
     subsection (b)(2).
       ``(2) Inclusions.--The regulations promulgated pursuant to 
     paragraph (1) shall include provisions relating to--
       ``(A) labeling;
       ``(B) chain of custody requirements;
       ``(C) sell-through provisions;
       ``(D) ultra low-emitting formaldehyde resins;
       ``(E) no-added formaldehyde-based resins;
       ``(F) finished goods;
       ``(G) third-party testing and certification;
       ``(H) auditing and reporting of third-party certifiers;
       ``(I) recordkeeping;
       ``(J) enforcement;
       ``(K) laminated products; and
       ``(L) exceptions from the requirements of regulations 
     promulgated pursuant to this subsection for products and 
     components containing de minimis amounts of composite wood 
     products.

     The Administrator shall not provide under subparagraph (L) 
     exceptions to the formaldehyde emission standard requirements 
     in subsection (b).
       ``(3) Sell-through provisions.--
       ``(A) In general.--Sell-through provisions established by 
     the Administrator under this subsection, with respect to 
     composite wood products and finished goods containing 
     regulated composite wood products (including recreational 
     vehicles, manufactured homes, and modular homes), shall--
       ``(i) be based on a designated date of manufacture (which 
     shall be no earlier than the date 180 days following the 
     promulgation of the regulations pursuant to this subsection) 
     of the composite wood product or finished good, rather than 
     date of sale of the composite wood product or finished good; 
     and
       ``(ii) provide that any inventory of composite wood 
     products or finished goods containing regulated composite 
     wood products, manufactured before the designated date of 
     manufacture of the composite wood products or finished goods, 
     shall not be subject to the formaldehyde emission standard 
     requirements under subsection (b)(1).
       ``(B) Implementing regulations.--The regulations 
     promulgated under this subsection shall--
       ``(i) prohibit the stockpiling of inventory to be sold 
     after the designated date of manufacture; and
       ``(ii) not require any labeling or testing of composite 
     wood products or finished goods containing regulated 
     composite wood products manufactured before the designated 
     date of manufacture.
       ``(C) Definition.--For purposes of this paragraph, the term 
     `stockpiling' means manufacturing or purchasing a composite 
     wood product or finished good containing a regulated 
     composite wood product between the date of enactment of the 
     Formaldehyde Standards for Composite Wood Products Act and 
     the date 180 days following the promulgation of the 
     regulations pursuant to this subsection at a rate which is 
     significantly greater (as determined by the Administrator) 
     than the rate at which such product or good was manufactured 
     or purchased during a base period (as determined by the 
     Administrator) ending before the date of enactment of the 
     Formaldehyde Standards for Composite Wood Products Act.
       ``(4) Import regulations.--Not later than July 1, 2013, the 
     Administrator, in coordination with the Commissioner of 
     Customs and Border Protection and other appropriate Federal 
     departments and agencies, shall revise regulations 
     promulgated pursuant to section 13 as the Administrator 
     determines to be necessary to ensure compliance with this 
     section.
       ``(5) Successor standards and test methods.--The 
     Administrator may, after public

[[Page 10566]]

     notice and opportunity for comment, substitute an industry 
     standard or test method referenced in this section with its 
     successor version.
       ``(e) Prohibited Acts.--An individual or entity that 
     violates any requirement under this section (including any 
     regulation promulgated pursuant to subsection (d)) shall be 
     considered to have committed a prohibited act under section 
     15.''.
       (b) Conforming Amendment.--The table of contents of the 
     Toxic Substances Control Act (15 U.S.C. prec. 2601) is 
     amended by adding at the end the following:

     ``TITLE VI--FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS

``Sec. 601. Formaldehyde standards.''.

     SEC. 3. REPORTS TO CONGRESS.

       Not later than one year after the date of enactment of this 
     Act, and annually thereafter through December 31, 2014, the 
     Administrator of the Environmental Protection Agency shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Energy and Commerce of the 
     House of Representatives a report describing, with respect to 
     the preceding year--
       (1) the status of the measures carried out or planned to be 
     carried out pursuant to title VI of the Toxic Substances 
     Control Act; and
       (2) the extent to which relevant industries have achieved 
     compliance with the requirements under that title.

     SEC. 4. MODIFICATION OF REGULATION.

       Not later than 180 days after the date of promulgation of 
     regulations pursuant to section 601(d) of the Toxic 
     Substances Control Act (as amended by section 2), the 
     Secretary of Housing and Urban Development shall update the 
     regulation contained in section 3280.308 of title 24, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this Act), to ensure that the regulation reflects the 
     standards established by section 601 of the Toxic Substances 
     Control Act.
                                 ______
                                 
  SA 4348. Mrs. MURRAY submitted an amendment intended to be proposed 
to amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of title VI, insert the following:

     SEC. ___. APPLICATION OF GRANTS FOR SPECIFIED ENERGY PROPERTY 
                   TO CERTAIN REGULATED COMPANIES.

       (a) In General.--The first sentence of section 1603(f) of 
     division B of the American Recovery and Reinvestment Act of 
     2009 is amended by inserting ``(other than subsection (d)(2) 
     thereof)'' after ``section 50 of the Internal Revenue Code of 
     1986''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 1603 of division 
     B the American Recovery and Reinvestment Act of 2009.
                                 ______
                                 
  SA 4349. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 255, strike line 14 and all that follows 
     through line 18 on page 260 and insert the following:
       ``(i) In general.--A covered entity shall not request 
     payment under title XIX of the Social Security Act for 
     medical assistance described in section 1905(a)(12) of such 
     Act with respect to a covered inpatient drug that is subject 
     to an agreement under this section if the drug is subject to 
     the payment of a rebate to the State under section 1927 of 
     such Act.
       ``(ii) Establishment of mechanism.--The Secretary shall 
     establish a mechanism to ensure that covered entities comply 
     with clause (i). If the Secretary does not establish a 
     mechanism under the previous sentence within 12 months of the 
     enactment of this section, the requirements of section 
     1927(a)(5)(C) of the Social Security Act shall apply.
       ``(iii) Prohibiting disclosure to group purchasing 
     organizations.--In the event that a covered entity is a 
     member of a group purchasing organization, such entity shall 
     not disclose the price or any other information pertaining to 
     any purchases under this section directly or indirectly to 
     such group purchasing organization.
       ``(B) Prohibiting resale, dispensing, or administration of 
     drugs except to certain patients.--With respect to any 
     covered inpatient drug that is subject to an agreement under 
     this subsection, a covered entity shall not dispense, 
     administer, resell, or otherwise transfer the covered 
     inpatient drug to a person unless--
       ``(i) such person is an inpatient of the entity; and
       ``(ii) such person does not have health plan coverage (as 
     defined in subsection (c)(3)) that provides prescription drug 
     coverage in the inpatient setting with respect to such 
     covered inpatient drug.

     For purposes of clause (ii), a person shall be treated as 
     having health plan coverage (as defined in subsection (c)(3)) 
     with respect to a covered inpatient drug if benefits are not 
     payable under such coverage with respect to such drug for 
     reasons such as the application of a deductible or cost 
     sharing or the use of utilization management.
       ``(C) Auditing.--A covered entity shall permit the 
     Secretary and the manufacturer of a covered inpatient drug 
     that is subject to an agreement under this subsection with 
     the entity (acting in accordance with procedures established 
     by the Secretary relating to the number, duration, and scope 
     of audits) to audit at the Secretary's or the manufacturer's 
     expense the records of the entity that directly pertain to 
     the entity's compliance with the requirements described in 
     subparagraph (A) or (B) with respect to drugs of the 
     manufacturer. The use or disclosure of information for 
     performance of such an audit shall be treated as a use or 
     disclosure required by law for purposes of section 164.512(a) 
     of title 45, Code of Federal Regulations.
       ``(D) Additional sanction for noncompliance.--If the 
     Secretary finds, after notice and hearing, that a covered 
     entity is in violation of a requirement described in 
     subparagraph (A) or (B), the covered entity shall be liable 
     to the manufacturer of the covered inpatient drug that is the 
     subject of the violation in an amount equal to the reduction 
     in the price of the drug (as described in subparagraph (A)) 
     provided under the agreement between the Secretary and the 
     manufacturer under this subsection.
       ``(E) Maintenance of records.--
       ``(i) In general.--A covered entity shall establish and 
     maintain an effective recordkeeping system to comply with 
     this section and shall certify to the Secretary that such 
     entity is in compliance with subparagraphs (A) and (B). The 
     Secretary shall require that hospitals that purchase covered 
     inpatient drugs for inpatient dispensing or administration 
     under this subsection appropriately segregate inventory of 
     such covered inpatient drugs, either physically or 
     electronically, from drugs for outpatient use, as well as 
     from drugs for inpatient dispensing or administration to 
     individuals who have (for purposes of subparagraph (B)) 
     health plan coverage described in clause (ii) of such 
     subparagraph.
       ``(ii) Certification of no third-party payer.--A covered 
     entity shall maintain records that contain certification by 
     the covered entity that no third party payment was received 
     for any covered inpatient drug that is subject to an 
     agreement under this subsection and that was dispensed to an 
     inpatient.
       ``(5) Treatment of distinct units of hospitals.--In the 
     case of a covered entity that is a distinct part of a 
     hospital, the distinct part of the hospital shall not be 
     considered a covered entity under this subsection unless the 
     hospital is otherwise a covered entity under this subsection.
       ``(6) Notice to manufacturers.--The Secretary shall notify 
     manufacturers of covered inpatient drugs and single State 
     agencies under section 1902(a)(5) of the Social Security Act 
     of the identities of covered entities under this subsection, 
     and of entities that no longer meet the requirements of 
     paragraph (4), by means of timely updates of the Internet 
     website supported by the Department of Health and Human 
     Services relating to this section.
       ``(7) No prohibition on larger discount.--Nothing in this 
     subsection shall prohibit a manufacturer from charging a 
     price for a drug that is lower than the maximum price that 
     may be charged under paragraph (1).
       ``(b) Covered Entity Defined.--In this section, the term 
     `covered entity' means an entity that meets the requirements 
     described in subsection (a)(4) that has applied for and 
     enrolled in the program described under this section and is 
     one of the following:
                                 ______
                                 
  SA 4350. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 255, line 18, strike ``a drug'' and insert ``a 
     covered inpatient drug''.
       On page 256, line 24, strike ``a patient'' and insert ``an 
     inpatient''.
       On page 260, line 17, after ``subsection (a)(4)'' insert 
     the following: ``that has applied for and enrolled in the 
     program described under this section''.

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