[Congressional Record (Bound Edition), Volume 156 (2010), Part 8]
[Senate]
[Pages 11504-11562]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4386. Mr. REID (for Mr. Baucus) proposed an amendment 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:

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

[[Page 11505]]



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

       (a) Short Title.--This Act may be cited as the ``American 
     Jobs and Closing Tax Loopholes Act of 2010''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in titles I, II, and IV of 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--INFRASTRUCTURE INCENTIVES

Sec. 101. Extension of Build America Bonds.
Sec. 102. Exempt-facility bonds for sewage and water supply facilities.
Sec. 103. Extension of exemption from alternative minimum tax treatment 
              for certain tax-exempt bonds.
Sec. 104. Extension and additional allocations of recovery zone bond 
              authority.
Sec. 105. Allowance of new markets tax credit against alternative 
              minimum tax.
Sec. 106. Extension of tax-exempt eligibility for loans guaranteed by 
              Federal home loan banks.
Sec. 107. Extension of temporary small issuer rules for allocation of 
              tax-exempt interest expense by financial institutions.

               TITLE II--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

Sec. 201. Alternative motor vehicle credit for new qualified hybrid 
              motor vehicles other than passenger automobiles and light 
              trucks.
Sec. 202. Incentives for biodiesel and renewable diesel.
Sec. 203. Credit for electricity produced at certain open-loop biomass 
              facilities.
Sec. 204. Extension and modification of credit for steel industry fuel.
Sec. 205. Credit for producing fuel from coke or coke gas.
Sec. 206. New energy efficient home credit.
Sec. 207. Excise tax credits and outlay payments for alternative fuel 
              and alternative fuel mixtures.
Sec. 208. Special rule for sales or dispositions to implement FERC or 
              State electric restructuring policy for qualified 
              electric utilities.
Sec. 209. Suspension of limitation on percentage depletion for oil and 
              gas from marginal wells.
Sec. 210. Direct payment of energy efficient appliances tax credit.
Sec. 211. Modification of standards for windows, doors, and skylights 
              with respect to the credit for nonbusiness energy 
              property.

                   Subtitle B--Individual Tax Relief

                    PART I--Miscellaneous Provisions

Sec. 221. Deduction for certain expenses of elementary and secondary 
              school teachers.
Sec. 222. Additional standard deduction for State and local real 
              property taxes.
Sec. 223. Deduction of State and local sales taxes.
Sec. 224. Contributions of capital gain real property made for 
              conservation purposes.
Sec. 225. Above-the-line deduction for qualified tuition and related 
              expenses.
Sec. 226. Tax-free distributions from individual retirement plans for 
              charitable purposes.
Sec. 227. Look-thru of certain regulated investment company stock in 
              determining gross estate of nonresidents.
Sec. 228. First-time homebuyer credit.

                  PART II--Low-income Housing Credits

Sec. 231. Election for direct payment of low-income housing credit for 
              2010.
Sec. 232. Low-income housing grant election.

                    Subtitle C--Business Tax Relief

Sec. 241. Research credit.
Sec. 242. Indian employment tax credit.
Sec. 243. New markets tax credit.
Sec. 244. Railroad track maintenance credit.
Sec. 245. Mine rescue team training credit.
Sec. 246. Employer wage credit for employees who are active duty 
              members of the uniformed services.
Sec. 247. 5-year depreciation for farming business machinery and 
              equipment.
Sec. 248. 15-year straight-line cost recovery for qualified leasehold 
              improvements, qualified restaurant buildings and 
              improvements, and qualified retail improvements.
Sec. 249. 7-year recovery period for motorsports entertainment 
              complexes.
Sec. 250. Accelerated depreciation for business property on an Indian 
              reservation.
Sec. 251. Enhanced charitable deduction for contributions of food 
              inventory.
Sec. 252. Enhanced charitable deduction for contributions of book 
              inventories to public schools.
Sec. 253. Enhanced charitable deduction for corporate contributions of 
              computer inventory for educational purposes.
Sec. 254. Election to expense mine safety equipment.
Sec. 255. Special expensing rules for certain film and television 
              productions.
Sec. 256. Expensing of environmental remediation costs.
Sec. 257. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 258. Modification of tax treatment of certain payments to 
              controlling exempt organizations.
Sec. 259. Exclusion of gain or loss on sale or exchange of certain 
              brownfield sites from unrelated business income.
Sec. 260. Timber REIT modernization.
Sec. 261. Treatment of certain dividends of regulated investment 
              companies.
Sec. 262. RIC qualified investment entity treatment under FIRPTA.
Sec. 263. Exceptions for active financing income.
Sec. 264. Look-thru treatment of payments between related controlled 
              foreign corporations under foreign personal holding 
              company rules.
Sec. 265. Basis adjustment to stock of S corps making charitable 
              contributions of property.
Sec. 266. Empowerment zone tax incentives.
Sec. 267. Tax incentives for investment in the District of Columbia.
Sec. 268. Renewal community tax incentives.
Sec. 269. Temporary increase in limit on cover over of rum excise taxes 
              to Puerto Rico and the Virgin Islands.
Sec. 270. Payment to American Samoa in lieu of extension of economic 
              development credit.
Sec. 271. Election to temporarily utilize unused AMT credits determined 
              by domestic investment.
Sec. 272. Study of extended tax expenditures.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--National Disaster Relief

Sec. 281. Waiver of certain mortgage revenue bond requirements.
Sec. 282. Losses attributable to federally declared disasters.
Sec. 283. Special depreciation allowance for qualified disaster 
              property.
Sec. 284. Net operating losses attributable to federally declared 
              disasters.
Sec. 285. Expensing of qualified disaster expenses.

                      PART II--Regional Provisions

                    subpart a--new york liberty zone

Sec. 291. Special depreciation allowance for nonresidential and 
              residential real property.
Sec. 292. Tax-exempt bond financing.

                           subpart b--go zone

Sec. 295. Increase in rehabilitation credit.
Sec. 296. Work opportunity tax credit with respect to certain 
              individuals affected by Hurricane Katrina for employers 
              inside disaster areas.
Sec. 297. Extension of low-income housing credit rules for buildings in 
              GO zones.

                   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. Suspension of certain funding level limitations.
Sec. 304. Lookback for credit balance rule.
Sec. 305. Information reporting.
Sec. 306. Rollover of amounts received in airline carrier bankruptcy.

                    Subtitle B--Multiemployer Plans

Sec. 311. Optional use of 30-year amortization periods.
Sec. 312. Optional longer recovery periods for multiemployer plans in 
              endangered or critical status.
Sec. 313. Modification of certain amortization extensions under prior 
              law.
Sec. 314. Alternative default schedule for plans in endangered or 
              critical status.
Sec. 315. Transition rule for certifications of plan status.

                       TITLE IV--REVENUE OFFSETS

                     Subtitle A--Foreign Provisions

Sec. 401. Rules to prevent splitting foreign tax credits from the 
              income to which they relate.
Sec. 402. Denial of foreign tax credit with respect to foreign income 
              not subject to United States taxation by reason of 
              covered asset acquisitions.

[[Page 11506]]

Sec. 403. Separate application of foreign tax credit limitation, etc., 
              to items resourced under treaties.
Sec. 404. Limitation on the amount of foreign taxes deemed paid with 
              respect to section 956 inclusions.
Sec. 405. Special rule with respect to certain redemptions by foreign 
              subsidiaries.
Sec. 406. Modification of affiliation rules for purposes of rules 
              allocating interest expense.
Sec. 407. Termination of special rules for interest and dividends 
              received from persons meeting the 80-percent foreign 
              business requirements.
Sec. 408. Source rules for income on guarantees.
Sec. 409. Limitation on extension of statute of limitations for failure 
              to notify Secretary of certain foreign transfers.

    Subtitle B--Personal Service Income Earned in Pass-thru Entities

Sec. 411. Partnership interests transferred in connection with 
              performance of services.
Sec. 412. Income of partners for performing investment management 
              services treated as ordinary income received for 
              performance of services.
Sec. 413. Employment tax treatment of professional service businesses.

                    Subtitle C--Corporate Provisions

Sec. 421. Treatment of securities of a controlled corporation exchanged 
              for assets in certain reorganizations.
Sec. 422. Taxation of boot received in reorganizations.

                      Subtitle D--Other Provisions

Sec. 431. Modifications with respect to Oil Spill Liability Trust Fund.
Sec. 432. Time for payment of corporate estimated taxes.
Sec. 433. Denial of deduction for punitive damages.
Sec. 434. Elimination of advance refundability of earned income credit.

          TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE

        Subtitle A--Unemployment Insurance and Other Assistance

Sec. 501. Extension of unemployment insurance provisions.
Sec. 502. Coordination of emergency unemployment compensation with 
              regular compensation.
Sec. 503. Extension of the Emergency Contingency Fund.
Sec. 504. Requiring States to not reduce regular compensation in order 
              to be eligible for funds under the emergency unemployment 
              compensation program.

                     Subtitle B--Health Provisions

Sec. 511. Extension of section 508 reclassifications.
Sec. 512. Repeal of delay of RUG-IV.
Sec. 513. Limitation on reasonable costs payments for certain clinical 
              diagnostic laboratory tests furnished to hospital 
              patients in certain rural areas.
Sec. 514. Funding for claims reprocessing.
Sec. 515. Medicaid and CHIP technical corrections.
Sec. 516. Addition of inpatient drug discount program to 340B drug 
              discount program.
Sec. 517. Continued inclusion of orphan drugs in definition of covered 
              outpatient drugs with respect to children's hospitals 
              under the 340B drug discount program.
Sec. 518. Conforming amendment related to waiver of coinsurance for 
              preventive services.
Sec. 519. Establish a CMS-IRS data match to identify fraudulent 
              providers.
Sec. 520. Clarification of effective date of part B special enrollment 
              period for disabled TRICARE beneficiaries.
Sec. 521. Physician payment update.
Sec. 522. Adjustment to Medicare payment localities.
Sec. 523. Clarification of 3-day payment window.
Sec. 524. Extension of ARRA increase in FMAP.
Sec. 525. Clarification for affiliated hospitals for distribution of 
              additional residency positions.
Sec. 526. Treatment of certain drugs for computation of Medicaid AMP.

                       TITLE VI--OTHER PROVISIONS

                     Subtitle A--General Provisions

Sec. 601. Extension of national flood insurance program.
Sec. 602. Allocation of geothermal receipts.
Sec. 603. Small business loan guarantee enhancement extensions.
Sec. 604. Emergency agricultural disaster assistance.
Sec. 605. Summer employment for youth.
Sec. 606. Housing Trust Fund.
Sec. 607. The Individual Indian Money Account Litigation Settlement Act 
              of 2010.
Sec. 608. Appropriation of funds for final settlement of claims from In 
              re Black Farmers Discrimination Litigation.
Sec. 609. Expansion of eligibility for concurrent receipt of military 
              retired pay and veterans' disability compensation to 
              include all chapter 61 disability retirees regardless of 
              disability rating percentage or years of service.
Sec. 610. Extension of use of 2009 poverty guidelines.
Sec. 611. Refunds disregarded in the administration of Federal programs 
              and federally assisted programs.
Sec. 612. State court improvement program.
Sec. 613. Qualifying timber contract options.
Sec. 614. Extension and flexibility for certain allocated surface 
              transportation programs.
Sec. 615. Community College and Career Training Grant Program.
Sec. 616. Extensions of duty suspensions on cotton shirting fabrics and 
              related provisions.
Sec. 617. Modification of Wool Apparel Manufacturers Trust Fund.
Sec. 618. Department of Commerce Study.
Sec. 619. ARRA planning and reporting.
Sec. 620. Amendment of Travel Promotion Act of 2009.
Sec. 621. Limitation on penalty for failure to disclose reportable 
              transactions based on resulting tax benefits.
Sec. 622. Report on tax shelter penalties and certain other enforcement 
              actions.

                     Subtitle B--Additional Offsets

Sec. 631. Sunset of temporary increase in benefits under the 
              supplemental nutrition assistance program.
Sec. 632. Rescissions.

       TITLE VII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

Sec. 701. Short title.
Sec. 702. Definitions.
Sec. 703. Sense of Congress.
Sec. 704. Quarterly report on risks posed by foreign holdings of debt 
              instruments of the United States.
Sec. 705. Annual report on risks posed by the Federal debt of the 
              United States.
Sec. 706. Corrective action to address unacceptable and unsustainable 
              risks to United States national security and economic 
              stability.

      TITLE VIII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

Sec. 801. Short title.
Sec. 802. Definitions.
Sec. 803. Sense of Congress.
Sec. 804. Annual report on risks posed by foreign holdings of debt 
              instruments of the United States.
Sec. 805. Annual report on risks posed by the Federal debt of the 
              United States.
Sec. 806. Corrective action to address unacceptable risks to United 
              States national security and economic stability.

               TITLE IX--OFFICE OF THE HOMEOWNER ADVOCATE

Sec. 901. Office of the Homeowner Advocate.
Sec. 902. Functions of the Office.
Sec. 903. Relationship with existing entities.
Sec. 904. Rule of construction.
Sec. 905. Reports to Congress.
Sec. 906. Funding.
Sec. 907. Prohibition on participation in Making Home Affordable for 
              borrowers who strategically default.
Sec. 908. Public availability of information.

                     TITLE X--BUDGETARY PROVISIONS

Sec. 1001. Budgetary provisions.

                   TITLE I--INFRASTRUCTURE INCENTIVES

     SEC. 101. EXTENSION OF BUILD AMERICA BONDS.

       (a) In General.--Subparagraph (B) of section 54AA(d)(1) is 
     amended by striking ``January 1, 2011'' and inserting 
     ``January 1, 2013''.
       (b) Extension of Payments to Issuers.--
       (1) In general.--Section 6431 is amended--
       (A) by striking ``January 1, 2011'' in subsection (a) and 
     inserting ``January 1, 2013''; and
       (B) by striking ``January 1, 2011'' in subsection (f)(1)(B) 
     and inserting ``a particular date''.
       (2) Conforming amendments.--Subsection (g) of section 54AA 
     is amended--
       (A) by striking ``January 1, 2011'' and inserting ``January 
     1, 2013''; and
       (B) by striking ``Qualified Bonds Issued Before 2011'' in 
     the heading and inserting ``Certain Qualified Bonds''.
       (c) Reduction in Percentage of Payments to Issuers.--
     Subsection (b) of section 6431 is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'';
       (2) by striking ``35 percent'' and inserting ``the 
     applicable percentage''; and
       (3) by adding at the end the following new paragraph:

[[Page 11507]]

       ``(2) Applicable percentage.--For purposes of this 
     subsection, the term `applicable percentage' means the 
     percentage determined in accordance with the following table:

------------------------------------------------------------------------
 ``In the case of a qualified bond issued     The applicable percentage
           during calendar year:                         is:
------------------------------------------------------------------------
2009 or 2010..............................  35 percent
2011......................................  32 percent
2012......................................  30 percent.''.
------------------------------------------------------------------------


       (d) Current Refundings Permitted.--Subsection (g) of 
     section 54AA is amended by adding at the end the following 
     new paragraph:
       ``(3) Treatment of current refunding bonds.--
       ``(A) In general.--For purposes of this subsection, the 
     term `qualified bond' includes any bond (or series of bonds) 
     issued to refund a qualified bond if--
       ``(i) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(ii) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(iii) the refunded bond is redeemed not later than 90 
     days after the date of the issuance of the refunding bond.
       ``(B) Applicable percentage.--In the case of a refunding 
     bond referred to in subparagraph (A), the applicable 
     percentage with respect to such bond under section 6431(b) 
     shall be the lowest percentage specified in paragraph (2) of 
     such section.
       ``(C) Determination of average maturity.--For purposes of 
     subparagraph (A)(i), average maturity shall be determined in 
     accordance with section 147(b)(2)(A).''.
       (e) Clarification Related to Levees and Flood Control 
     Projects.--Subparagraph (A) of section 54AA(g)(2) is amended 
     by inserting ``(including capital expenditures for levees and 
     other flood control projects)'' after ``capital 
     expenditures''.

     SEC. 102. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY 
                   FACILITIES.

       (a) Bonds for Water and Sewage Facilities Exempt From 
     Volume Cap on Private Activity Bonds.--
       (1) In general.--Paragraph (3) of section 146(g) is amended 
     by inserting ``(4), (5),'' after ``(2),''.
       (2) Conforming amendment.--Paragraphs (2) and (3)(B) of 
     section 146(k) are both amended by striking ``(4), (5), 
     (6),'' and inserting ``(6)''.
       (b) Tax-exempt Issuance by Indian Tribal Governments.--
       (1) In general.--Subsection (c) of section 7871 is amended 
     by adding at the end the following new paragraph:
       ``(4) Exception for bonds for water and sewage 
     facilities.--Paragraph (2) shall not apply to an exempt 
     facility bond 95 percent or more of the net proceeds (as 
     defined in section 150(a)(3)) of which are to be used to 
     provide facilities described in paragraph (4) or (5) of 
     section 142(a).''.
       (2) Conforming amendment.--Paragraph (2) of section 7871(c) 
     is amended by striking ``paragraph (3)'' and inserting 
     ``paragraphs (3) and (4)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 103. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX 
                   TREATMENT FOR CERTAIN TAX-EXEMPT BONDS.

       (a) In General.--Clause (vi) of section 57(a)(5)(C) is 
     amended--
       (1) by striking ``January 1, 2011'' in subclause (I) and 
     inserting ``January 1, 2012''; and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``, 2010, and 2011''.
       (b) Adjusted Current Earnings.--Clause (iv) of section 
     56(g)(4)(B) is amended--
       (1) by striking ``January 1, 2011'' in subclause (I) and 
     inserting ``January 1, 2012''; and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

     SEC. 104. EXTENSION AND ADDITIONAL ALLOCATIONS OF RECOVERY 
                   ZONE BOND AUTHORITY.

       (a) Extension of Recovery Zone Bond Authority.--Section 
     1400U-2(b)(1) and section 1400U-3(b)(1)(B) are each amended 
     by striking ``January 1, 2011'' and inserting ``January 1, 
     2012''.
       (b) Additional Allocations of Recovery Zone Bond Authority 
     Based on Unemployment.--Section 1400U-1 is amended by adding 
     at the end the following new subsection:
       ``(c) Allocation of 2010 Recovery Zone Bond Limitations 
     Based on Unemployment.--
       ``(1) In general.--The Secretary shall allocate the 2010 
     national recovery zone economic development bond limitation 
     and the 2010 national recovery zone facility bond limitation 
     among the States in the proportion that each such State's 
     2009 unemployment number bears to the aggregate of the 2009 
     unemployment numbers for all of the States.
       ``(2) Minimum allocation.--The Secretary shall adjust the 
     allocations under paragraph (1) for each State to the extent 
     necessary to ensure that no State (prior to any reduction 
     under paragraph (3)) receives less than 0.9 percent of the 
     2010 national recovery zone economic development bond 
     limitation and 0.9 percent of the 2010 national recovery zone 
     facility bond limitation.
       ``(3) Allocations by states.--
       ``(A) In general.--Each State with respect to which an 
     allocation is made under paragraph (1) shall reallocate such 
     allocation among the counties and large municipalities (as 
     defined in subsection (a)(3)(B)) in such State in the 
     proportion that each such county's or municipality's 2009 
     unemployment number bears to the aggregate of the 2009 
     unemployment numbers for all the counties and large 
     municipalities (as so defined) in such State.
       ``(B) 2010 allocation reduced by amount of previous 
     allocation.--Each State shall reduce (but not below zero)--
       ``(i) the amount of the 2010 national recovery zone 
     economic development bond limitation allocated to each county 
     or large municipality (as so defined) in such State by the 
     amount of the national recovery zone economic development 
     bond limitation allocated to such county or large 
     municipality under subsection (a)(3)(A) (determined without 
     regard to any waiver thereof), and
       ``(ii) the amount of the 2010 national recovery zone 
     facility bond limitation allocated to each county or large 
     municipality (as so defined) in such State by the amount of 
     the national recovery zone facility bond limitation allocated 
     to such county or large municipality under subsection 
     (a)(3)(A) (determined without regard to any waiver thereof).
       ``(C) Waiver of suballocations.--A county or municipality 
     may waive any portion of an allocation made under this 
     paragraph. A county or municipality shall be treated as 
     having waived any portion of an allocation made under this 
     paragraph which has not been allocated to a bond issued 
     before May 1, 2011. Any allocation waived (or treated as 
     waived) under this subparagraph may be used or reallocated by 
     the State.
       ``(D) Special rule for a municipality in a county.--In the 
     case of any large municipality any portion of which is in a 
     county, such portion shall be treated as part of such 
     municipality and not part of such county.
       ``(4) 2009 unemployment number.--For purposes of this 
     subsection, the term `2009 unemployment number' means, with 
     respect to any State, county or municipality, the number of 
     individuals in such State, county, or municipality who were 
     determined to be unemployed by the Bureau of Labor Statistics 
     for December 2009.
       ``(5) 2010 national limitations.--
       ``(A) Recovery zone economic development bonds.--The 2010 
     national recovery zone economic development bond limitation 
     is $10,000,000,000. Any allocation of such limitation under 
     this subsection shall be treated for purposes of section 
     1400U-2 in the same manner as an allocation of national 
     recovery zone economic development bond limitation.
       ``(B) Recovery zone facility bonds.--The 2010 national 
     recovery zone facility bond limitation is $15,000,000,000. 
     Any allocation of such limitation under this subsection shall 
     be treated for purposes of section 1400U-3 in the same manner 
     as an allocation of national recovery zone facility bond 
     limitation.''.
       (c) Authority of State to Waive Certain 2009 Allocations.--
     Subparagraph (A) of section 1400U-1(a)(3) is amended by 
     adding at the end the following: ``A county or municipality 
     shall be treated as having waived any portion of an 
     allocation made under this subparagraph which has not been 
     allocated to a bond issued before May 1, 2011. Any allocation 
     waived (or treated as waived) under this subparagraph may be 
     used or reallocated by the State.''.

     SEC. 105. ALLOWANCE OF NEW MARKETS TAX CREDIT AGAINST 
                   ALTERNATIVE MINIMUM TAX.

       (a) In General.--Subparagraph (B) of section 38(c)(4), as 
     amended by the Patient Protection and Affordable Care Act, is 
     amended by redesignating clauses (v) through (ix) as clauses 
     (vi) through (x), respectively, and by inserting after clause 
     (iv) the following new clause:
       ``(v) the credit determined under section 45D, but only 
     with respect to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b)) initially 
     made before January 1, 2012,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b) of the 
     Internal Revenue Code of 1986) initially made after March 15, 
     2010.

     SEC. 106. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR LOANS 
                   GUARANTEED BY FEDERAL HOME LOAN BANKS.

       Clause (iv) of section 149(b)(3)(A) is amended by striking 
     ``December 31, 2010'' and inserting ``December 31, 2011''.

     SEC. 107. EXTENSION OF TEMPORARY SMALL ISSUER RULES FOR 
                   ALLOCATION OF TAX-EXEMPT INTEREST EXPENSE BY 
                   FINANCIAL INSTITUTIONS.

       (a) In General.--Clauses (i), (ii), and (iii) of section 
     265(b)(3)(G) are each amended by striking ``or 2010'' and 
     inserting ``, 2010, or 2011''.

[[Page 11508]]

       (b) Conforming Amendment.--Subparagraph (G) of section 
     265(b)(3) is amended by striking ``and 2010'' in the heading 
     and inserting ``, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

               TITLE II--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

     SEC. 201. 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. 202. 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. 203. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
                   LOOP BIOMASS FACILITIES.

       (a) In General.--Clause (ii) of section 45(b)(4)(B) is 
     amended--
       (1) by striking ``5-year period'' and inserting ``6-year 
     period''; and
       (2) by adding at the end the following: ``In the case of 
     the last year of the 6-year period described in the preceding 
     sentence, the credit determined under subsection (a) with 
     respect to electricity produced during such year shall not 
     exceed 80 percent of such credit determined without regard to 
     this sentence.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after December 
     31, 2009.

     SEC. 204. EXTENSION AND MODIFICATION OF CREDIT FOR 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 apply to fuel produced and sold after 
     September 30, 2008.
       (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. 205. 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. 206. 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. 207. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR 
                   ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

       (a) Alternative Fuel Credit.--Paragraph (5) of section 
     6426(d) is amended by striking ``after December 31, 2009'' 
     and all that follows and inserting ``after--
       ``(A) September 30, 2014, in the case of liquefied 
     hydrogen,
       ``(B) December 31, 2010, in the case of fuels described in 
     subparagraph (A), (C), (F), or (G) of paragraph (2), and
       ``(C) December 31, 2009, in any other case.''.
       (b) Alternative Fuel Mixture Credit.--Paragraph (3) of 
     section 6426(e) is amended by striking ``after December 31, 
     2009'' and all that follows and inserting ``after--
       ``(A) September 30, 2014, in the case of liquefied 
     hydrogen,
       ``(B) December 31, 2010, in the case of fuels described in 
     subparagraph (A), (C), (F), or (G) of subsection (d)(2), and
       ``(C) December 31, 2009, in any other case.''.
       (c) Payment Authority.--
       (1) In general.--Paragraph (6) of section 6427(e) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(E) any alternative fuel or alternative fuel mixture (as 
     so defined) involving fuel described in subparagraph (A), 
     (C), (F), or (G) of section 6426(d)(2) sold or used after 
     December 31, 2010.''.
       (2) Conforming amendment.--Subparagraph (C) of section 
     6427(e)(6) is amended by inserting ``or (E)'' after 
     ``subparagraph (D)''.
       (d) Exclusion of Black Liquor From Credit Eligibility.--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''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 208. 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) Modification of Definition of Independent Transmission 
     Company.--
       (1) In general.--Clause (i) of section 451(i)(4)(B) is 
     amended to read as follows:
       ``(i) who the Federal Energy Regulatory Commission 
     determines in its authorization of the transaction under 
     section 203 of the Federal Power Act (16 U.S.C. 824b) or by 
     declaratory order--

       ``(I) is not itself a market participant as determined by 
     the Commission, and also is not controlled by any such market 
     participant, or
       ``(II) to be independent from market participants or to be 
     an independent transmission company within the meaning of 
     such Commission's rules applicable to independent 
     transmission providers, and''.

       (2) Related persons.--Paragraph (4) of section 451(i) is 
     amended by adding at the end the following flush sentence:

     ``For purposes of subparagraph (B)(i)(I), a person shall be 
     treated as controlled by another person if such persons would 
     be treated as a single employer under section 52.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to dispositions after December 31, 2009.
       (2) Modifications.--The amendments made by subsection (b) 
     shall apply to dispositions after the date of the enactment 
     of this Act.

     SEC. 209. 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.

     SEC. 210. DIRECT PAYMENT OF ENERGY EFFICIENT APPLIANCES TAX 
                   CREDIT.

       In the case of any taxable year which includes the last day 
     of calendar year 2009 or

[[Page 11509]]

     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. No amount shall be includible in gross income or 
     alternative minimum taxable income by reason of this section.

     SEC. 211. 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 Jobs and Closing Tax Loopholes 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 Jobs and Closing 
     Tax Loopholes 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.

                   Subtitle B--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

     SEC. 221. 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. 222. 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. 223. 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. 224. 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. 225. 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.
       (c) Temporary Coordination With Hope and Lifetime Learning 
     Credits.--In the case of any taxpayer for any taxable year 
     beginning in 2010, no deduction shall be allowed under 
     section 222 of the Internal Revenue Code of 1986 if--
       (1) the taxpayer's net Federal income tax reduction which 
     would be attributable to such deduction for such taxable 
     year, is less than
       (2) the credit which would be allowed to the taxpayer for 
     such taxable year under section 25A of such Code (determined 
     without regard to sections 25A(e) and 26 of such Code).

     SEC. 226. 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. 227. 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.

     SEC. 228. 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.

                  PART II--LOW-INCOME HOUSING CREDITS

     SEC. 231. ELECTION FOR DIRECT PAYMENT OF 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 Direct Payment of Credit.--
       ``(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 credits 
     returned to the State attributable to section 1400N(c) 
     (including credits made available under such section as 
     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 credits for 2010 
     attributable to the application of such section 702(d)(2) and 
     704(b), multiplied by
       ``(B) 10.

     For purposes of subparagraph (A)(ii), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) shall be applied without regard to clause (i)
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1, 2012' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36C,''.

     SEC. 232. 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 for 2009 or 2010 
     attributable to section 1400N(c) of such Code (including 
     credits made available under such section as 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 credits for 2009 attributable 
     to 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

[[Page 11510]]

     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.

                    Subtitle C--Business Tax Relief

     SEC. 241. 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. 242. 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. 243. 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. 244. 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. 245. 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) Credit Allowable Against AMT.--Subparagraph (B) of 
     section 38(c)(4), as amended by section 105, is amended--
       (1) by redesignating clauses (vii) through (x) as clauses 
     (viii) through (xi), respectively; and
       (2) by inserting after clause (vi) the following new 
     clause:
       ``(vii) the credit determined under section 45N,''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2009.
       (2) Allowance against amt.--The amendments made by 
     subsection (b) shall apply to credits determined for taxable 
     years beginning after December 31, 2009, and to carrybacks of 
     such credits.

     SEC. 246. 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. 247. 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. 248. 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. 249. 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. 250. 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. 251. 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. 252. 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. 253. 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. 254. 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. 255. 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. 256. 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. 257. 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. 258. 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. 259. 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. 260. 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 ``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. 261. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
                   INVESTMENT COMPANIES.

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

[[Page 11511]]

     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. 262. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
                   FIRPTA.

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

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

     SEC. 263. 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. 264. 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. 265. 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. 266. 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. 267. 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. 268. 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. 269. 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. 270. PAYMENT TO AMERICAN SAMOA IN LIEU OF EXTENSION OF 
                   ECONOMIC DEVELOPMENT CREDIT.

       The Secretary of the Treasury (or his designee) shall pay 
     $18,000,000 to the Government of American Samoa for purposes 
     of economic development. The payment made under the preceding 
     sentence shall be treated for purposes of section 1324 of 
     title 31, United States Code, as a refund of internal revenue 
     collections to which such section applies.

     SEC. 271. 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:

[[Page 11512]]

       ``(g) Election for Corporations With New Domestic 
     Investments.--
       ``(1) In general.--If a corporation elects to have this 
     subsection apply for its first taxable year beginning after 
     December 31, 2009, the limitation imposed by subsection (c) 
     for such taxable year shall be increased by the AMT credit 
     adjustment amount.
       ``(2) AMT credit adjustment amount.--For purposes of 
     paragraph (1), the term `AMT credit adjustment amount' means, 
     the lesser of--
       ``(A) 50 percent of a corporation's minimum tax credit for 
     its first taxable year beginning after December 31, 2009, 
     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 subsection (b) of 
     section 6401, the aggregate increase in the credits allowable 
     under this part for any taxable year resulting from the 
     application of this subsection shall be treated as allowed 
     under subpart C (and not under any other subpart). For 
     purposes of section 6425, any amount treated as so allowed 
     shall be treated as a payment of estimated income tax for the 
     taxable year.
       ``(5) Election.--An election under this subsection shall be 
     made at such time and in such manner as prescribed by the 
     Secretary, and once made, may be revoked only with the 
     consent of the Secretary. Not later than 90 days after the 
     date of the enactment of this subsection, the Secretary shall 
     issue guidance specifying such time and manner.
       ``(6) Treatment of certain partnership investments.--For 
     purposes of this subsection, a corporation shall take into 
     account its allocable share of any new domestic investments 
     by a partnership for any taxable year if, and only if, more 
     than 90 percent of the capital and profits interests in such 
     partnership are owned by such corporation (directly or 
     indirectly) at all times during such taxable year.
       ``(7) No double benefit.--
       ``(A) In general.--A corporation making an election under 
     this subsection may not make an election under subparagraph 
     (H) of section 172(b)(1).
       ``(B) Special rules with respect to taxpayers previously 
     electing applicable net operating losses.--In the case of a 
     corporation which made an election under subparagraph (H) of 
     section 172(b)(1) and elects the application of this 
     subsection--
       ``(i) Election of applicable net operating loss treated as 
     revoked.--The election under such subparagraph (H) shall 
     (notwithstanding clause (iii)(II) of such subparagraph) be 
     treated as having been revoked by the taxpayer.
       ``(ii) Coordination with provision for expedited refund.--
     The amount otherwise treated as a payment of estimated income 
     tax under the last sentence of paragraph (4) shall be reduced 
     (but not below zero) by the aggregate increase in unpaid tax 
     liability determined under this chapter by reason of the 
     revocation of the election under clause (i).
       ``(iii) Application of statute of limitations.--With 
     respect to the revocation of an election under clause (i)--

       ``(I) the statutory period for the assessment of any 
     deficiency attributable to such revocation shall not expire 
     before the end of the 3-year period beginning on the date of 
     the election to have this subsection apply, and
       ``(II) such deficiency may be assessed before the 
     expiration of such 3-year period notwithstanding the 
     provisions of any other law or rule of law which would 
     otherwise prevent such assessment.

       ``(C) Exception for eligible small businesses.--
     Subparagraphs (A) and (B) shall not apply to an eligible 
     small business as defined in section 172(b)(1)(H)(v)(II).
       ``(8) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this subsection, 
     including to prevent fraud and abuse under this 
     subsection.''.
       (b) Conforming Amendments.--
       (1) Section 6211(b)(4)(A) is amended by inserting 
     ``53(g),'' after ``53(e),''.
       (2) Section 1324(b)(2) of title 31, United States Code, is 
     amended by inserting ``53(g),'' after ``53(e),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 272. STUDY OF EXTENDED TAX EXPENDITURES.

       (a) Findings.--Congress finds the following:
       (1) Currently, the aggregate cost of Federal tax 
     expenditures rivals, or even exceeds, the amount of total 
     Federal discretionary spending.
       (2) Given the escalating public debt, a critical 
     examination of this use of taxpayer dollars is essential.
       (3) Additionally, tax expenditures can complicate the 
     Internal Revenue Code of 1986 for taxpayers and complicate 
     tax administration for the Internal Revenue Service.
       (4) To facilitate a better understanding of tax 
     expenditures in the future, it is constructive for 
     legislation extending these provisions to include a study of 
     such provisions.
       (b) Requirement to Report.--Not later than November 30, 
     2010, the Chief of Staff of the Joint Committee on Taxation, 
     in consultation with the Comptroller General of the United 
     States, shall submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a report on each tax expenditure (as defined in 
     section 3(3) of the Congressional Budget Impoundment Control 
     Act of 1974 (2 U.S.C. 622(3)) extended by this title.
       (c) Rolling Submission of Reports.--The Chief of Staff of 
     the Joint Committee on Taxation shall initially submit the 
     reports for each such tax expenditure enacted in this 
     subtitle (relating to business tax relief) and subtitle A 
     (relating to energy) in order of the tax expenditure 
     incurring the least aggregate cost to the greatest aggregate 
     cost (determined by reference to the cost estimate of this 
     Act by the Joint Committee on Taxation). Thereafter, such 
     reports may be submitted in such order as the Chief of Staff 
     determines appropriate.
       (d) Contents of Report.--Such reports shall contain the 
     following:
       (1) An explanation of the tax expenditure and any relevant 
     economic, social, or other context under which it was first 
     enacted.
       (2) A description of the intended purpose of the tax 
     expenditure.
       (3) An analysis of the overall success of the tax 
     expenditure in achieving such purpose, and evidence 
     supporting such analysis.
       (4) An analysis of the extent to which further extending 
     the tax expenditure, or making it permanent, would contribute 
     to achieving such purpose.
       (5) A description of the direct and indirect beneficiaries 
     of the tax expenditure, including identifying any unintended 
     beneficiaries.
       (6) An analysis of whether the tax expenditure is the most 
     cost-effective method for achieving the purpose for which it 
     was intended, and a description of any more cost-effective 
     methods through which such purpose could be accomplished.
       (7) A description of any unintended effects of the tax 
     expenditure that are useful in understanding the tax 
     expenditure's overall value.
       (8) An analysis of how the tax expenditure could be 
     modified to better achieve its original purpose.
       (9) A brief description of any interactions (actual or 
     potential) with other tax expenditures or direct spending 
     programs in the same or related budget function worthy of 
     further study.
       (10) A description of any unavailable information the staff 
     of the Joint Committee on Taxation may need to complete a 
     more thorough examination and analysis of the tax 
     expenditure, and what must be done to make such information 
     available.
       (e) Minimum Analysis by Deadline.--In the event the Chief 
     of Staff of the Joint Committee on Taxation concludes it will 
     not be feasible to complete all reports by the date specified 
     in subsection (a), at a minimum, the reports for each tax 
     expenditure enacted in this subtitle (relating to business 
     tax relief) and subtitle A (relating to energy) shall be 
     completed by such date.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

     SEC. 281. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS.

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

     SEC. 282. 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''.

[[Page 11513]]

       (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. 283. 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. 284. 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. 285. 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. 291. 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. 292. 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. 295. 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. 296. 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.

     SEC. 297. 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''.

                   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) ERISA Amendments.--
       (1) In general.--Section 303(c)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)(2)) 
     is amended by adding at the end the following subparagraphs:
       ``(D) Special rule.--
       ``(i) In general.--In the case of the shortfall 
     amortization base of a plan for any applicable plan year, the 
     shortfall amortization installments are the amounts described 
     in clause (ii) or (iii), if made applicable by an election 
     under clause (iv). In the absence of a timely election, such 
     installments shall be determined without regard to this 
     subparagraph.
       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments described in this clause are--

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

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments described in this clause are the amounts under 
     subparagraphs (A) and (B) determined by substituting `15 
     plan-year period' for `7-plan-year period'.
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor may, with respect to a 
     plan, elect, with respect to any of not more than 2 
     applicable plan years, to determine shortfall amortization 
     installments under this subparagraph. An election under 
     either clause (ii) or clause (iii) may be made with respect 
     to either of such applicable plan years.
       ``(II) Eligibility for election.--An election may be made 
     to determine shortfall amortization installments under this 
     subparagraph with respect to a plan only if, as of the date 
     of the election--

       ``(aa) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(bb) there are no unpaid minimum required contributions 
     with respect to the plan for purposes of section 4971 of the 
     Internal Revenue Code of 1986,
       ``(cc) there is no lien in favor of the plan under 
     subsection (k) or under section 430(k) of such Code, and
       ``(dd) a distress termination has not been initiated for 
     the plan under section 4041(c).

       ``(III) Rules relating to election.--Such election shall be 
     made at such times, and in such form and manner, as shall be 
     prescribed by the Secretary of the Treasury and shall be 
     irrevocable, except under such limited circumstances, and 
     subject to such conditions, as such Secretary may prescribe.

       ``(E) Applicable plan year.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `applicable plan year' means, subject to the election of the 
     plan sponsor under subparagraph (D)(iv), each of not more 
     than 2 of the plan years beginning in 2008, 2009, 2010, or 
     2011.
       ``(ii) Special rule relating to 2008.--A plan year may be 
     elected as an applicable plan year pursuant to this 
     subparagraph only if the due date under subsection (j)(1) for 
     the payment of the minimum required contribution for such 
     plan year occurs on or after March 10, 2010.
       ``(F) Increases in shortfall amortization installments in 
     cases of excess compensation or certain dividends or stock 
     redemptions.--
       ``(i) In general.--If, with respect to an election for an 
     applicable plan year under subparagraph (D), there is an 
     installment acceleration amount with respect to a plan for 
     any plan year in the restriction period (or if there is an 
     installment acceleration amount carried forward to a plan 
     year not in the restriction period), then the shortfall 
     amortization installment otherwise determined and payable 
     under this paragraph for such plan year shall be increased by 
     such amount.
       ``(ii) Back-end adjustment to amortization schedule.--
     Subject to rules prescribed by the Secretary of the Treasury, 
     if a shortfall amortization installment with respect to any 
     shortfall amortization base for an applicable plan year is 
     required to be increased for any plan year under clause (i), 
     subsequent shortfall amortization installments with respect 
     to such base shall be reduced, in reverse order of the 
     otherwise required installments beginning with the final 
     scheduled installment, to the extent necessary to limit the 
     present value of such subsequent shortfall amortization 
     installments (after application of this subparagraph) to the 
     present value of the remaining unamortized shortfall 
     amortization base.
       ``(iii) Installment acceleration amount.--For purposes of 
     this subparagraph--

       ``(I) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year in a restriction 
     period with respect to an applicable plan year, the sum of--

       ``(aa) the aggregate amount of excess employee compensation 
     determined under clause (iv) for the plan year, plus
       ``(bb) the dividend and redemption amount determined under 
     clause (v) for the plan year.

       ``(II) Cumulative limitation.--The installment acceleration 
     amount for any plan year shall not exceed the excess (if any) 
     of--

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

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

       ``(aa) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to subclause 
     (II)) exceeds the limitation under subclause (II), then, 
     subject to item (bb), such excess shall be treated as an 
     installment acceleration amount for the succeeding plan year.
       ``(bb) Cap to apply.--If any amount treated as an 
     installment acceleration amount under item (aa) or this item 
     with respect any

[[Page 11514]]

     succeeding plan year, when added to other installment 
     acceleration amounts (determined without regard to subclause 
     (II)) with respect to the plan year, exceeds the limitation 
     under subclause (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.
       ``(cc) Limitation on years to which amounts carried 
     forward.--No amount shall be carried forward under item (aa) 
     or (bb) to a plan year which begins after 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 
     subparagraph (D)(iii)).
       ``(dd) Ordering rules.--For purposes of applying item (bb), 
     installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     subclause (II) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.
       ``(iv) Excess employee compensation.--

       ``(I) In general.--For purposes of this paragraph, the term 
     `excess employee compensation' means the sum of--

       ``(aa) with respect to any employee, for any plan year, the 
     excess (if any) of--
       ``(AA) 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
       ``(BB) $1,000,000, plus
       ``(bb) the amount of assets 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, during the calendar year 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.

       ``(II) No double counting.--No amount shall be taken into 
     account under subclause (I) more than once.
       ``(III) Employee; remuneration.--For purposes of this 
     clause, 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 the Internal Revenue Code 
     of 1986 for the taxable year ending during such calendar 
     year, and the term `remuneration' shall include earned income 
     of such an individual.
       ``(IV) Certain payments under existing contracts.--There 
     shall not be taken into account under subclause (I)(aa) any 
     remuneration consisting of nonqualified deferred 
     compensation, restricted stock (or restricted stock units), 
     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.
       ``(V) Only remuneration for post-2009 services counted.--
     Remuneration shall be taken into account under subclause 
     (I)(aa) only to the extent attributable to services performed 
     by the employee for the plan sponsor after December 31, 2009.
       ``(VI) Commissions.--

       ``(aa) In general.--There shall not be taken into account 
     under subclause (I)(aa) 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.
       ``(bb) Specified employees.--Item (aa) shall not apply in 
     the case of any specified employee (within the meaning of 
     section 409A(a)(2)(B)(i) of the Internal Revenue Code of 
     1986) or any employee who would be such a specified employee 
     if the plan sponsor were a corporation described in such 
     section.

       ``(VII) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under subclause 
     (I)(aa)(BB) shall be increased by an amount equal to--

       ``(aa) such dollar amount, multiplied by
       ``(bb) the cost-of-living adjustment determined under 
     section 1(f)(3) of the Internal Revenue Code of 1986 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 $20,000, such increase shall be rounded to the 
     next lowest multiple of $20,000.

       ``(v) Certain dividends and redemptions.--

       ``(I) In general.--The dividend and redemption amount 
     determined under this clause for any plan year is the lesser 
     of--

       ``(aa) the excess of--
       ``(AA) the sum of the dividends paid during the plan year 
     by the plan sponsor, plus the amounts paid for the redemption 
     of stock of the plan sponsor redeemed during the plan year, 
     over
       ``(BB) an amount equal to the average of adjusted annual 
     net income of the plan sponsor for the last 5 fiscal years of 
     the plan sponsor ending before such plan year, or
       ``(bb) the sum of--
       ``(AA) the amounts paid for the redemption of stock of the 
     plan sponsor redeemed during the plan year, plus
       ``(BB) the excess of dividends paid during the plan year by 
     the plan sponsor over the dividend base amount.

       ``(II) Definitions.--

       ``(aa) Adjusted annual net income.--For purposes of 
     subclause (I)(aa)(BB), the term `adjusted annual net income' 
     with respect to any fiscal year means annual net income, 
     determined in accordance with generally accepted accounting 
     principles (before after-tax gain or loss on any sale of 
     assets), but without regard to any reduction by reason of 
     depreciation or amortization, except that in no event shall 
     adjusted annual net income for any fiscal year be less than 
     zero.
       ``(bb) Dividend base amount.--For purposes of this clause, 
     the term `dividend base amount' means, with respect to a plan 
     year, an amount equal to the greater of--
       ``(AA) the median of the amounts of the dividends paid 
     during each of the last 5 fiscal years of the plan sponsor 
     ending before such plan year, or
       ``(BB) the amount of dividends paid during such plan year 
     on preferred stock that was issued on or before May 21, 2010, 
     or that is replacement stock for such preferred stock.

       ``(III) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of subclause (I) (other than for 
     purposes of calculating the dividend base amount), there 
     shall only be taken into account dividends declared, and 
     redemptions occurring, after February 28, 2010.
       ``(IV) 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 subclause (I).
       ``(V) Exception for stock dividends.--Any distribution by 
     the plan sponsor to its shareholders of stock issued by the 
     plan sponsor shall not be taken into account under subclause 
     (I).
       ``(VI) Exception for certain redemptions.--The following 
     shall not be taken into account under subclause (I):

       ``(aa) Redemptions of securities which, at the time of 
     redemption, are not listed on an established securities 
     market and--
       ``(AA) are made pursuant to a pension plan that is 
     qualified under section 401 of the Internal Revenue Code of 
     1986 or a shareholder-approved program, or
       ``(BB) are made on account of an employee's termination of 
     employment with the plan sponsor, or the death or disability 
     of a shareholder.
       ``(bb) Redemptions of securities which are not, immediately 
     after issuance, listed on an established securities market 
     and are, or had previously been--
       ``(AA) held, directly or indirectly, by, or for the benefit 
     of, the Federal Government or a Federal reserve bank, or
       ``(BB) held by a national government (or a government-
     related entity of such a government) or an employee benefit 
     plan if such shares are substantially identical to shares 
     described in subitem (AA).
       ``(vi) Other definitions and rules.--For purposes of this 
     subparagraph--

       ``(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 applicable plan year with respect 
     to which an election is made under subparagraph (D)--

       ``(aa) except as provided in item (bb), the 3-year period 
     beginning with the applicable plan year (or, if later, the 
     first plan year beginning after December 31, 2009), or
       ``(bb) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the applicable plan year, 
     the 5-year period beginning with such plan 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 subparagraph (D) with respect to 2 or 
     more plans, the Secretary of the Treasury shall provide rules 
     for the application of this subparagraph 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 clause (i) (determined 
     without regard to this subparagraph).

       ``(G) Mergers and acquisitions.--The Secretary of the 
     Treasury shall prescribe rules for the application of 
     subparagraphs (D) and (F) in any case where there is a merger 
     or acquisition involving a plan sponsor making the election 
     under subparagraph (D).
       ``(H) Regulations and guidance.--The Secretary of the 
     Treasury may prescribe such regulations and other guidance of 
     general applicability as such Secretary may determine 
     necessary to achieve the purposes of subparagraphs (D) and 
     (F).''.
       (2) Notice requirement.--Section 204 of such Act (29 U.S.C. 
     1054) is amended--
       (A) by redesignating subsection (k) as subsection (l); and
       (B) by inserting after subsection (j) the following new 
     subsection:

[[Page 11515]]

       ``(k) Notice in Connection With Shortfall Amortization 
     Election.--
       ``(1) In general.--Not later 30 days after the date of an 
     election under clause (iv) of section 303(c)(2)(D) in 
     connection with a single-employer plan, the plan 
     administrator shall provide notice of such election in 
     accordance with this subsection to each plan participant and 
     beneficiary, each labor organization representing such 
     participants and beneficiaries, and the Pension Benefit 
     Guaranty Corporation.
       ``(2) Matters included in notice.--Each notice provided 
     pursuant to this subsection shall set forth--
       ``(A) a statement that recently enacted legislation permits 
     employers to delay pension funding;
       ``(B) with respect to required contributions--
       ``(i) the amount of contributions that would have been 
     required had the election not been made;
       ``(ii) the amount of the reduction in required 
     contributions for the applicable plan year that occurs on 
     account of the election; and
       ``(iii) the number of plan years to which such reduction 
     will apply;
       ``(C) with respect to a plan's funding status as of the end 
     of the plan year preceding the applicable plan year--
       ``(i) the liabilities determined under section 
     4010(d)(1)(A); and
       ``(ii) the market value of assets of the plan; and
       ``(D) with respect to installment acceleration amounts (as 
     defined in section 303(c)(2)(F)(iii)(I))--
       ``(i) an explanation of section 303(c)(2)(F) (relating to 
     increases in shortfall amortization installments in cases of 
     excess compensation or certain dividends or stock 
     redemptions); and
       ``(ii) a statement that increases in required contributions 
     may occur in the event of future payments of excess employee 
     compensation or certain share repurchasing or dividend 
     activity and that subsequent notices of any such payments or 
     activity will be provided in the annual funding notice 
     provided pursuant to section 101(f).
       ``(3) Other requirements.--
       ``(A) Form.--The notice required by paragraph (1) shall be 
     written in a manner calculated to be understood by the 
     average plan participant. The Secretary of the Treasury shall 
     prescribe a model notice that a plan administrator may use to 
     satisfy the requirements of paragraph (1).
       ``(B) Provision to designated persons.--Any notice under 
     paragraph (1) may be provided to a person designated, in 
     writing, by the person to which it would otherwise be 
     provided.
       ``(4) Effect of egregious failure.--
       ``(A) In general.--In the case of any egregious failure to 
     meet any requirement of this subsection with respect to any 
     election, such election shall be treated as having not been 
     made.
       ``(B) Egregious failure.--For purposes of subparagraph (A), 
     there is an egregious failure to meet the requirements of 
     this subsection if such failure is in the control of the plan 
     sponsor and is--
       ``(i) an intentional failure (including any failure to 
     promptly provide the required notice or information after the 
     plan administrator discovers an unintentional failure to meet 
     the requirements of this subsection),
       ``(ii) a failure to provide most of the participants and 
     beneficiaries with most of the information they are entitled 
     to receive under this subsection, or
       ``(iii) a failure which is determined to be egregious under 
     regulations prescribed by the Secretary of the Treasury.
       ``(5) Use of new technologies.--The Secretary of the 
     Treasury may, in consultation with the Secretary, by 
     regulations or other guidance of general applicability, allow 
     any notice under this subsection to be provided using new 
     technologies.''.
       (C) Subsequent supplemental notices.--Section 101(f)(2)(C) 
     of such Act (29 U.S.C. 1021(f)(2)(C)) is amended--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by redesignating clause (ii) as clause (iii); and
       (iii) by inserting after clause (i) the following new 
     clause:
       ``(ii) any excess employee compensation amounts and any 
     dividends and redemptions amounts determined under section 
     303(c)(2)(F) for the preceding plan year with respect to the 
     plan, and''.
       (3) Disregard of installment acceleration amounts in 
     determining quarterly contributions.--Section 303(j)(3) of 
     such Act (29 U.S.C. 1083(j)(3)) is amended by adding at the 
     end the following new subparagraph:
       ``(F) Disregard of installment acceleration amounts.--
     Subparagraph (D) shall be applied without regard to any 
     increase under subsection (c)(2)(F).''.
       (4) Conforming amendment.--Section 303(c)(1) of such Act 
     (29 U.S.C. 1083(c)(1)) is amended 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''.
       (b) IRC Amendments.--
       (1) In general.--Section 430(c)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     subparagraphs:
       ``(D) Special rule.--
       ``(i) In general.--In the case of the shortfall 
     amortization base of a plan for any applicable plan year, the 
     shortfall amortization installments are the amounts described 
     in clause (ii) or (iii), if made applicable by an election 
     under clause (iv). In the absence of a timely election, such 
     installments shall be determined without regard to this 
     subparagraph.
       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments described in this clause are--

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

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments described in this clause are the amounts under 
     subparagraphs (A) and (B) determined by substituting `15 
     plan-year period' for `7-plan-year period'.
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor may, with respect to a 
     plan, elect, with respect to any of not more than 2 
     applicable plan years, to determine shortfall amortization 
     installments under this subparagraph. An election under 
     either clause (ii) or clause (iii) may be made with respect 
     to either of such applicable plan years.
       ``(II) Eligibility for election.--An election may be made 
     to determine shortfall amortization installments under this 
     subparagraph with respect to a plan only if, as of the date 
     of the election--

       ``(aa) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(bb) there are no unpaid minimum required contributions 
     with respect to the plan for purposes of section 4971,
       ``(cc) there is no lien in favor of the plan under 
     subsection (k) or under section 303(k) of the Employee 
     Retirement Income Security Act of 1974, and
       ``(dd) a distress termination has not been initiated for 
     the plan under section 4041(c) of such Act.

       ``(III) Rules relating to election.--Such election shall be 
     made at such times, and in such form and manner, as shall be 
     prescribed by the Secretary and shall be irrevocable, except 
     under such limited circumstances, and subject to such 
     conditions, as the Secretary may prescribe.

       ``(E) Applicable plan year.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `applicable plan year' means, subject to the election of the 
     plan sponsor under subparagraph (D)(iv), each of not more 
     than 2 of the plan years beginning in 2008, 2009, 2010, or 
     2011.
       ``(ii) Special rule relating to 2008.--A plan year may be 
     elected as an applicable plan year pursuant to this 
     subparagraph only if the due date under subsection (j)(1) for 
     the payment of the minimum required contribution for such 
     plan year occurs on or after March 10, 2010.
       ``(F) Increases in shortfall amortization installments in 
     cases of excess compensation or certain dividends or stock 
     redemptions.--
       ``(i) In general.--If, with respect to an election for an 
     applicable plan year under subparagraph (D), there is an 
     installment acceleration amount with respect to a plan for 
     any plan year in the restriction period (or if there is an 
     installment acceleration amount carried forward to a plan 
     year not in the restriction period), then the shortfall 
     amortization installment otherwise determined and payable 
     under this paragraph for such plan year shall be increased by 
     such amount.
       ``(ii) Back-end adjustment to amortization schedule.--
     Subject to rules prescribed by the Secretary, if a shortfall 
     amortization installment with respect to any shortfall 
     amortization base for an applicable plan year is required to 
     be increased for any plan year under clause (i), subsequent 
     shortfall amortization installments with respect to such base 
     shall be reduced, in reverse order of the otherwise required 
     installments beginning with the final scheduled installment, 
     to the extent necessary to limit the present value of such 
     subsequent shortfall amortization installments (after 
     application of this subparagraph) to the present value of the 
     remaining unamortized shortfall amortization base.
       ``(iii) Installment acceleration amount.--For purposes of 
     this subparagraph--

       ``(I) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year in a restriction 
     period with respect to an applicable plan year, the sum of--

       ``(aa) the aggregate amount of excess employee compensation 
     determined under clause (iv) for the plan year, plus

[[Page 11516]]

       ``(bb) the dividend and redemption amount determined under 
     clause (v) for the plan year.

       ``(II) Cumulative limitation.--The installment acceleration 
     amount for any plan year shall not exceed the excess (if any) 
     of--

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

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

       ``(aa) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to subclause 
     (II)) exceeds the limitation under subclause (II), then, 
     subject to item (bb), such excess shall be treated as an 
     installment acceleration amount for the succeeding plan year.
       ``(bb) Cap to apply.--If any amount treated as an 
     installment acceleration amount under item (aa) or this item 
     with respect any succeeding plan year, when added to other 
     installment acceleration amounts (determined without regard 
     to subclause (II)) with respect to the plan year, exceeds the 
     limitation under subclause (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.
       ``(cc) Limitation on years to which amounts carried 
     forward.--No amount shall be carried forward under item (aa) 
     or (bb) to a plan year which begins after 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 
     subparagraph (D)(iii)).
       ``(dd) Ordering rules.--For purposes of applying item (bb), 
     installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     subclause (II) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.
       ``(iv) Excess employee compensation.--

       ``(I) In general.--For purposes of this paragraph, the term 
     `excess employee compensation' means the sum of--

       ``(aa) with respect to any employee, for any plan year, the 
     excess (if any) of--
       ``(AA) the aggregate amount includible in income under 
     chapter 1 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
       ``(BB) $1,000,000, plus
       ``(bb) the amount of assets 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, during the calendar year 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.

       ``(II) No double counting.--No amount shall be taken into 
     account under subclause (I) more than once.
       ``(III) Employee; remuneration.--For purposes of this 
     clause, 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 `remuneration' shall 
     include earned income of such an individual.
       ``(IV) Certain payments under existing contracts.--There 
     shall not be taken into account under subclause (I) any 
     remuneration consisting of nonqualified deferred 
     compensation, restricted stock (or restricted stock units), 
     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.

       ``(V) Only remuneration for post-2009 services counted.--
     Remuneration shall be taken into account under subclause 
     (I)(aa) only to the extent attributable to services performed 
     by the employee for the plan sponsor after December 31, 2009.
       ``(VI) Commissions.--

       ``(aa) In general.--There shall not be taken into account 
     under subclause (I)(aa) 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.
       ``(bb) Specified employees.--Item (aa) shall not apply in 
     the case of any specified employee (within the meaning of 
     section 409A(a)(2)(B)(i)) or any employee who would be such a 
     specified employee if the plan sponsor were a corporation 
     described in such section.

       ``(VII) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under subclause 
     (I)(aa)(BB) shall be increased by an amount equal to--

       ``(aa) such dollar amount, multiplied by
       ``(bb) 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 $20,000, such increase shall be rounded to the 
     next lowest multiple of $20,000.

       ``(v) Certain dividends and redemptions.--

       ``(I) In general.--The dividend and redemption amount 
     determined under this clause for any plan year is the lesser 
     of--

       ``(aa) the excess of--
       ``(AA) the sum of the dividends paid during the plan year 
     by the plan sponsor, plus the amounts paid for the redemption 
     of stock of the plan sponsor redeemed during the plan year, 
     over
       ``(BB) an amount equal to the average of adjusted annual 
     net income of the plan sponsor for the last 5 fiscal years of 
     the plan sponsor ending before such plan year, or
       ``(bb) the sum of--
       ``(AA) the amounts paid for the redemption of stock of the 
     plan sponsor redeemed during the plan year, plus
       ``(BB) the excess of dividends paid during the plan year by 
     the plan sponsor over the dividend base amount.

       ``(II) Definitions.--

       ``(aa) Adjusted annual net income.--For purposes of 
     subclause (I)(aa)(BB), the term `adjusted annual net income' 
     with respect to any fiscal year means annual net income, 
     determined in accordance with generally accepted accounting 
     principles (before after-tax gain or loss on any sale of 
     assets), but without regard to any reduction by reason of 
     depreciation or amortization, except that in no event shall 
     adjusted annual net income for any fiscal year be less than 
     zero.
       ``(bb) Dividend base amount.--For purposes of this clause, 
     the term `dividend base amount' means, with respect to a plan 
     year, an amount equal to the greater of--
       ``(AA) the median of the amounts of the dividends paid 
     during each of the last 5 fiscal years of the plan sponsor 
     ending before such plan year, or
       ``(BB) the amount of dividends paid during such plan year 
     on preferred stock that was issued on or before May 21, 2010, 
     or that is replacement stock for such preferred stock.

       ``(III) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of subclause (I) (other than for 
     purposes of calculating the dividend base amount), there 
     shall only be taken into account dividends declared, and 
     redemptions occurring, after February 28, 2010.
       ``(IV) 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 subclause (I).
       ``(V) Exception for stock dividends.--Any distribution by 
     the plan sponsor to its shareholders of stock issued by the 
     plan sponsor shall not be taken into account under subclause 
     (I).
       ``(VI) Exception for certain redemptions.--The following 
     shall not be taken into account under subclause (I):

       ``(aa) Redemptions of securities which, at the time of 
     redemption, are not listed on an established securities 
     market and--
       ``(AA) are made pursuant to a pension plan that is 
     qualified under section 401 or a shareholder-approved 
     program, or
       ``(BB) are made on account of an employee's termination of 
     employment with the plan sponsor, or the death or disability 
     of a shareholder.
       ``(bb) Redemptions of securities which are not, immediately 
     after issuance, listed on an established securities market 
     and are, or had previously been--
       ``(AA) held, directly or indirectly, by, or for the benefit 
     of, the Federal Government or a Federal reserve bank, or
       ``(BB) held by a national government (or a government-
     related entity of such a government) or an employee benefit 
     plan if such shares are substantially identical to shares 
     described in subitem (AA).
       ``(vi) Other definitions and rules.--For purposes of this 
     subparagraph--

       ``(I) Plan sponsor.--The term `plan sponsor' includes any 
     group of which the plan sponsor is a member and which is 
     treated as a single employer under subsection (b), (c), (m), 
     or (o) of section 414.
       ``(II) Restriction period.--The term `restriction period' 
     means, with respect to any applicable plan year with respect 
     to which an election is made under subparagraph (D)--

       ``(aa) except as provided in item (bb), the 3-year period 
     beginning with the applicable plan year (or, if later, the 
     first plan year beginning after December 31, 2009), or
       ``(bb) if the plan sponsor elects 15-year amortization for 
     the shortfall amortization base for the applicable plan year, 
     the 5-year period beginning with such plan 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 subparagraph (D) with respect to 2 or 
     more plans, the Secretary shall provide rules for the 
     application of this subparagraph to such plans,

[[Page 11517]]

     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 clause (i) (determined 
     without regard to this subparagraph).

       ``(G) Mergers and acquisitions.--The Secretary shall 
     prescribe rules for the application of subparagraphs (D) and 
     (F) in any case where there is a merger or acquisition 
     involving a plan sponsor making the election under 
     subparagraph (D).
       ``(H) Regulations and guidance.--The Secretary may 
     prescribe such regulations and other guidance of general 
     applicability as the Secretary may determine necessary to 
     achieve the purposes of subparagraphs (D) and (F).''.
       (2) Notice requirement.--
       (A) In general.--Section 4980F of such Code is amended--
       (i) by striking ``subsection (e)'' each place it appears in 
     subsection (a) and paragraphs (1) and (3) of subsection (c) 
     and inserting ``subsections (e) and (f)'';
       (ii) by striking ``subsection (e)'' in subsection (c)(2)(A) 
     and inserting ``subsection (e), (f), or both, as the case may 
     be''; and
       (iii) by redesignating subsection (f) as subsection (g) and 
     by inserting after subsection (e) the following new 
     subsection:
       ``(f) Notice in Connection With Shortfall Amortization 
     Election.--
       ``(1) In general.--Not later 30 days after the date of an 
     election under clause (iv) of section 430(c)(2)(D) in 
     connection with a plan, the plan administrator shall provide 
     notice of such election in accordance with this subsection to 
     each plan participant and beneficiary, each labor 
     organization representing such participants and 
     beneficiaries, and the Pension Benefit Guaranty Corporation.
       ``(2) Matters included in notice.--Each notice provided 
     pursuant to this subsection shall set forth--
       ``(A) a statement that recently enacted legislation permits 
     employers to delay pension funding;
       ``(B) with respect to required contributions--
       ``(i) the amount of contributions that would have been 
     required had the election not been made;
       ``(ii) the amount of the reduction in required 
     contributions for the applicable plan year that occurs on 
     account of the election; and
       ``(iii) the number of plan years to which such reduction 
     will apply;
       ``(C) with respect to a plan's funding status as of the end 
     of the plan year preceding the applicable plan year--
       ``(i) the liabilities determined under section 
     4010(d)(1)(A) of the Employee Retirement Income Security Act 
     of 1974; and
       ``(ii) the market value of assets of the plan; and
       ``(D) with respect to installment acceleration amounts (as 
     defined in section 430(c)(2)(F)(iii)(I))--
       ``(i) an explanation of section 430(c)(2)(F) (relating to 
     increases in shortfall amortization installments in cases of 
     excess compensation or certain dividends or stock 
     redemptions); and
       ``(ii) a statement that increases in required contributions 
     may occur in the event of future payments of excess employee 
     compensation or certain share repurchasing or dividend 
     activity and that subsequent notices of any such payments or 
     activity will be provided in the annual funding notice 
     provided pursuant to section 101(f) of the Employee 
     Retirement Income Security Act of 1974.
       ``(3) Other requirements.--
       ``(A) Form.--The notice required by paragraph (1) shall be 
     written in a manner calculated to be understood by the 
     average plan participant and shall provide sufficient 
     information (as determined in accordance with regulations or 
     other guidance of general applicability prescribed by the 
     Secretary) to allow plan participants and beneficiaries to 
     understand the effect of the election. The Secretary shall 
     prescribe a model notice that a plan administrator may use to 
     satisfy the requirements of paragraph (1).
       ``(B) Provision to designated persons.--Any notice under 
     paragraph (1) may be provided to a person designated, in 
     writing, by the person to which it would otherwise be 
     provided.''.
       (B) Conforming amendment.--Subsection (g) of section 4980F 
     of such Code is amended by inserting ``or (f)'' after 
     ``subsection (e)''.
       (3) Disregard of installment acceleration amounts in 
     determining quarterly contributions.--Section 430(j)(3) of 
     such Code is amended by adding at the end the following new 
     subparagraph:
       ``(F) Disregard of installment acceleration amounts.--
     Subparagraph (D) shall be applied without regard to any 
     increase under subsection (c)(2)(F).''.
       (4) Conforming amendment.--Paragraph (1) of section 430(c) 
     of such Code is amended 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''.
       (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 FUNDING RELIEF TO PLANS WITH 
                   DELAYED EFFECTIVE DATE.

       ``(a) Alternative Elections.--
       ``(1) In general.--Subject to this section, a plan sponsor 
     of a plan to which section 104, 105, or 106 of this Act 
     applies may either elect the application of subsection (b) 
     with respect to the plan for not more than 2 applicable plan 
     years or elect the application of subsection (c) with respect 
     to the plan for 1 applicable plan year.
       ``(2) Eligibility for elections.--An election may be made 
     by a plan sponsor under paragraph (1) with respect to a plan 
     only if at the time of the election--
       ``(A) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(B) there are no accumulated funding deficiencies (as 
     defined in section 302(a)(2) of the Employee Retirement 
     Income Security Act of 1974 (as in effect immediately before 
     the enactment of this Act) or in section 412(a) of the 
     Internal Revenue Code of 1986 (as so in effect)) with respect 
     to the plan,
       ``(C) there is no lien in favor of the plan under section 
     302(d) (as so in effect) or under section 412(n) of such Code 
     (as so in effect), and
       ``(D) a distress termination has not been initiated for the 
     plan under section 4041(c) of the Employee Retirement Income 
     Security Act of 1974.
       ``(b) Alternative Additional Funding Charge.--If the plan 
     sponsor elects the application of this subsection with 
     respect to the plan, for purposes of applying section 302(d) 
     of the Employee Retirement Income Security Act of 1974 (as in 
     effect before the amendments made by this subtitle and 
     subtitle B) and section 412(l) of the Internal Revenue Code 
     of 1986 (as so in effect)--
       ``(1) the deficit reduction contribution under paragraph 
     (2) of such section 302(d) and paragraph (2) of such section 
     412(l) for such plan for any applicable plan year, shall be 
     zero, and
       ``(2) the additional funding charge under paragraph (1) of 
     such section 302(d) and paragraph (1) of such section 412(l) 
     for such plan for any applicable plan year shall be increased 
     by an amount equal to the installment acceleration amount (as 
     defined in sections 303(c)(2)(F)(iii)(I) of such Act (as 
     amended by the American Jobs and Closing Tax Loopholes Act of 
     2010) and 430(c)(2)(F)(iii)(I) of such Code (as so amended)) 
     with respect to the plan sponsor for such plan year, 
     determined by treating the later of such plan year or the 
     first plan year beginning after December 31, 2009, as the 
     restriction period.
       ``(c) Application of 15-year Amortization.--If the plan 
     sponsor elects the application of this subsection with 
     respect to the plan, for purposes of applying section 302(d) 
     of such Act (as in effect before the amendments made by this 
     subtitle and subtitle B) and section 412(l) of such Code (as 
     so in effect)--
       ``(1) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in paragraph 
     (4)(C) of such section 302(d) and paragraph (4)(C) of such 
     section 412(l) for any pre-effective date plan year beginning 
     with or after the applicable plan year shall be the ratio 
     of--
       ``(A) the annual installments payable in each plan year if 
     the increased unfunded new liability for such plan year were 
     amortized in equal installments over the period beginning 
     with such plan year and ending with the last plan year in the 
     period of 15 plan years beginning with the applicable plan 
     year, 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,
       ``(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, and
       ``(3) the additional funding charge with respect to the 
     plan for a plan year shall be increased by an amount equal to 
     the installment acceleration amount (as defined in section 
     303(c)(2)(F)(iii) of such Act (as amended by the American 
     Jobs and Closing Tax Loopholes Act of 2010 and section 
     430(c)(2)(F)(iii) of such Code (as so amended)) with respect 
     to the plan sponsor for such plan year, determined without 
     regard to subclause (II) of such sections 303(c)(2)(F)(iii) 
     and 430(c)(2)(F)(iii).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Applicable plan year.--
       ``(A) In general.--The term `applicable plan year' with 
     respect to a plan means, subject to the election of the plan 
     sponsor under subsection (a), a plan year beginning in 2009, 
     2010, or 2011.
       ``(B) Election.--
       ``(i) In general.--The election described in subsection (a) 
     shall be made at such times,

[[Page 11518]]

     and in such form and manner, as shall be prescribed by the 
     Secretary of the Treasury.
       ``(ii) Reduction in years which may be elected.--The number 
     of applicable plan years for which an election may be made 
     under section 303(c)(2)(D) of the Employee Retirement Income 
     Security Act of 1974 (as amended by the American Jobs and 
     Closing Tax Loopholes Act of 2010) or section 430(c)(2)(D) of 
     the Internal Revenue Code of 1986 (as so amended) shall be 
     reduced by the number of applicable plan years for which an 
     election under this section is made.
       ``(C) Allocation of installment acceleration amount for 
     multiple plan election.--In the case of an election under 
     this section with respect to 2 or more plans by the same plan 
     sponsor, the installment acceleration amount shall be 
     apportioned ratably with respect to such plans in proportion 
     to the deficit reduction contributions of the plans 
     determined without regard to subsection (b)(1).
       ``(2) Plan sponsor.--The term `plan sponsor' shall have the 
     meaning provided such term in section 303(c)(2)(F)(vi)(I) of 
     the Employee Retirement Income Security Act of 1974 (as 
     amended by the American Jobs and Closing Tax Loopholes Act of 
     2010) and section 430(c)(2)(F)(vi)(I) of the Internal Revenue 
     Code of 1986 (as so amended).
       ``(3) 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.
       ``(4) 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 (as in effect before the amendments 
     made by this subtitle and subtitle B) and section 412(c)(2) 
     of such Code (as so in effect) 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 (as so in effect) and 412(l)(8)(B) 
     of such Code (as so in effect)) of the plan for the second 
     plan year preceding the first applicable plan year of such 
     plan for which an election under this section is made.
       ``(5) Other definitions.--The terms `unfunded new 
     liability' and `current liability' shall have the meanings 
     set forth in section 302(d) of such Act (as so in effect) and 
     section 412(l) of such Code (as so in effect).
       ``(6) Additional funding charge increase not to exceed 
     relief.--
       ``(A) Election under subsection (b).--In the case of an 
     election under subsection (b), an increase resulting from the 
     application of subsection (b)(2) in the additional funding 
     charge with respect to a plan for a plan year shall not 
     exceed the excess (if any) of--
       ``(i) the deficit reduction contribution under section 
     302(d)(2) of such Act (as so in effect) and section 412(l)(2) 
     of such Code (as so in effect) for such plan year, determined 
     as if the election had not been made, over
       ``(ii) the deficit reduction contribution under such 
     sections for such plan (determined without regard to any 
     increase under subsection (b)(2)).
       ``(B) Election under subsection (c).--An increase resulting 
     from the application of subsection (c)(3) in the additional 
     funding charge with respect to a plan for a plan year shall 
     not exceed the excess (if any) of--
       ``(i) the sum of the deficit reduction contributions under 
     section 302(d)(2) of such Act (as so in effect) and section 
     412(l)(2) of such Code (as so in effect) for such plan for 
     such plan year and for all preceding plan years beginning 
     with or after the applicable plan year, determined as if the 
     election had not been made, over
       ``(ii) the sum of the deficit reduction contributions under 
     such sections for such plan years (determined without regard 
     to any increase under subsection (c)(3)).
       ``(e) Notice.--Not later 30 days after the date of an 
     election under subsection (a) in connection with a plan, the 
     plan administrator shall provide notice pursuant to, and 
     subject to, rules similar to the rules of sections 204(k) of 
     the Employee Retirement Income Security Act of 1974 (as 
     amended by the American Jobs and Closing Tax Loopholes Act of 
     2010) and 4980F(f) of the Internal Revenue Code of 1986 (as 
     so amended).''.
       (b) Eligible Charity Plans.--Section 104 of such Act 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--
       ``(1) the plan is maintained by one or more employers 
     employing employees who are accruing benefits based on 
     service for the plan year,
       ``(2) such employees are employed in at least 20 States,
       ``(3) each such employee (other than a de minimis number of 
     employees) is employed by an employer described in section 
     501(c)(3) of such Code and the primary exempt purpose of each 
     such employer is to provide services with respect to 
     children, and
       ``(4) the plan sponsor elects (at such time and in such 
     form and manner as shall be prescribed by the Secretary of 
     the Treasury) to be so treated.
     Any election under this subsection may be revoked only with 
     the consent of the Secretary of the Treasury.''.
       (c) Regulations.--The Secretary of the Treasury may 
     prescribe such regulations as may be necessary to carry out 
     the purposes of the amendments made by this section.
       (d) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to plan years beginning on or after January 1, 2009.
       (2) Eligible charity plans.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2009.

     SEC. 303. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.

       (a) Limitations on Benefit Accruals.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 (Public 
     Law 110-458; 122 Stat. 5118) is amended--
       (1) by striking ``the first plan year beginning during the 
     period beginning on October 1, 2008, and ending on September 
     30, 2009'' and inserting ``any plan year beginning during the 
     period beginning on October 1, 2008, and ending on December 
     31, 2011'';
       (2) by striking ``substituting'' and all that follows 
     through ``for such plan year'' and inserting ``substituting 
     for such percentage the plan's adjusted funding target 
     attainment percentage for the last plan year ending before 
     September 30, 2009,''; and
       (3) by striking ``for the preceding plan year is greater'' 
     and inserting ``for such last plan year is greater''.
       (b) Social Security Level-income Options.--
       (1) ERISA amendment.--Section 206(g)(3)(E) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following new sentence: ``For purposes of 
     applying clause (i) in the case of payments the annuity 
     starting date for which occurs on or before December 31, 
     2011, payments under a social security leveling option shall 
     be treated as not in excess of the monthly amount paid under 
     a single life annuity (plus an amount not in excess of a 
     social security supplement described in the last sentence of 
     section 204(b)(1)(G)).''.
       (2) IRC amendment.--Section 436(d)(5) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new sentence: ``For purposes of applying 
     subparagraph (A) in the case of payments the annuity starting 
     date for which occurs on or before December 31, 2011, 
     payments under a social security leveling option shall be 
     treated as not in excess of the monthly amount paid under a 
     single life annuity (plus an amount not in excess of a social 
     security supplement described in the last sentence of section 
     411(a)(9)).''.
       (3) Effective date.--
       (A) In general.--The amendments made by this subsection 
     shall apply to annuity payments the annuity starting date for 
     which occurs on or after January 1, 2011.
       (B) Permitted application.--A plan shall not be treated as 
     failing to meet the requirements of sections 206(g) of the 
     Employee Retirement Income Security Act of 1974 (as amended 
     by this subsection) and section 436(d) of the Internal 
     Revenue Code of 1986 (as so amended) if the plan sponsor 
     elects to apply the amendments made by this subsection to 
     payments the annuity starting date for which occurs on or 
     after the date of the enactment of this Act and before 
     January 1, 2011.
       (c) Application of Credit Balance With Respect to 
     Limitations on Shutdown Benefits and Unpredictable Contingent 
     Event Benefits.--With respect to plan years beginning on or 
     before December 31, 2011, in applying paragraph (5)(C) of 
     subsection (g) of section 206 of the Employee Retirement 
     Income Security Act of 1974 and subsection (f)(3) of section 
     436 of the Internal Revenue Code of 1986 in the case of 
     unpredictable contingent events (within the meaning of 
     section 206(g)(1)(C) of such Act and section 436(b)(3) of 
     such Code) occurring on or after January 1, 2010, the 
     references, in clause (i) of such paragraph (5)(C) and 
     subparagraph (A) of such subsection (f)(3), to paragraph 
     (1)(B) of such subsection (g) and subsection (b)(2) of such 
     section 436 shall be disregarded.

     SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE.

       (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 plan years.--
       ``(i) In general.--For purposes of applying subparagraph 
     (C) for plan years beginning after June 30, 2009, and on or 
     before December 31, 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 June 30, 2007, and on or before June 30, 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--

[[Page 11519]]

       ``(I) clause (i) shall apply to plan years beginning after 
     December 31, 2008, and on or before December 31, 2010, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before July 1, 2007, as determined under rules 
     prescribed by the Secretary of the Treasury.''.

       (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 plan years.--
       ``(i) In general.--For purposes of applying subparagraph 
     (C) for plan years beginning after June 30, 2009, and on or 
     before December 31, 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 June 30, 2007, and on or before June 30, 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, 2008, and on or before December 31, 2010, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before July 1, 2007, as determined under rules 
     prescribed by the Secretary.''.

     SEC. 305. INFORMATION REPORTING.

       (a) In General.--Section 4010(b) of the Employee Retirement 
     Security Act of 1974 (29 U.S.C. 1310(b)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) either of the following requirements are met:
       ``(A) the funding target attainment percentage (as defined 
     in subsection (d)(2)(B)) at the end of the preceding plan 
     year of a plan maintained by the contributing sponsor or any 
     member of its controlled group is less than 80 percent; or
       ``(B) the aggregate unfunded vested benefits (as determined 
     under section 4006(a)(3)(E)(iii)) of plans maintained by the 
     contributing sponsor and the members of its controlled group 
     exceed $75,000,000 (disregarding plans with no unfunded 
     vested benefits);''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after 2009.

     SEC. 306. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER 
                   BANKRUPTCY.

       (a) General Rules.--
       (1) Rollover of airline payment amount.--If a qualified 
     airline employee receives any airline payment amount and 
     transfers any portion of such amount to a traditional IRA 
     within 180 days of receipt of such amount (or, if later, 
     within 180 days of the date of the enactment of this Act), 
     then such amount (to the extent so transferred) shall be 
     treated as a rollover contribution described in section 
     402(c) of the Internal Revenue Code of 1986. A qualified 
     airline employee making such a transfer may exclude from 
     gross income the amount transferred, in the taxable year in 
     which the airline payment amount was paid to the qualified 
     airline employee by the commercial passenger airline carrier.
       (2) Transfer of amounts attributable to airline payment 
     amount following rollover to roth ira.--A qualified airline 
     employee who has contributed an airline payment amount to a 
     Roth IRA that is treated as a qualified rollover contribution 
     pursuant to section 125 of the Worker, Retiree, and Employer 
     Recovery Act of 2008 may transfer to a traditional IRA, in a 
     trustee-to-trustee transfer, all or any part of the 
     contribution (together with any net income allocable to such 
     contribution), and the transfer to the traditional IRA will 
     be deemed to have been made at the time of the rollover to 
     the Roth IRA, if such transfer is made within 180 days of the 
     date of the enactment of this Act. A qualified airline 
     employee making such a transfer may exclude from gross income 
     the airline payment amount previously rolled over to the Roth 
     IRA, to the extent an amount attributable to the previous 
     rollover was transferred to a traditional IRA, in the taxable 
     year in which the airline payment amount was paid to the 
     qualified airline employee by the commercial passenger 
     airline carrier. No amount so transferred to a traditional 
     IRA may be treated as a qualified rollover contribution with 
     respect to a Roth IRA within the 5-taxable year period 
     beginning with the taxable year in which such transfer was 
     made.
       (3) Extension of time to file claim for refund.--A 
     qualified airline employee who excludes an amount from gross 
     income in a prior taxable year under paragraph (1) or (2) may 
     reflect such exclusion in a claim for refund filed within the 
     period of limitation under section 6511(a) (or, if later, 
     April 15, 2011).
       (b) Treatment of Airline Payment Amounts and Transfers for 
     Employment Taxes.--For purposes of chapter 21 of the Internal 
     Revenue Code of 1986 and section 209 of the Social Security 
     Act, an airline payment amount shall not fail to be treated 
     as a payment of wages by the commercial passenger airline 
     carrier to the qualified airline employee in the taxable year 
     of payment because such amount is excluded from the qualified 
     airline employee's gross income under subsection (a).
       (c) Definitions and Special Rules.--For purposes of this 
     section--
       (1) Airline payment amount.--
       (A) In general.--The term ``airline payment amount'' means 
     any payment of any money or other property which is payable 
     by a commercial passenger airline carrier to a qualified 
     airline employee--
       (i) under the approval of an order of a Federal bankruptcy 
     court in a case filed after September 11, 2001, and before 
     January 1, 2007; and
       (ii) in respect of the qualified airline employee's 
     interest in a bankruptcy claim against the carrier, any note 
     of the carrier (or amount paid in lieu of a note being 
     issued), or any other fixed obligation of the carrier to pay 
     a lump sum amount.

     The amount of such payment shall be determined without regard 
     to any requirement to deduct and withhold tax from such 
     payment under sections 3102(a) and 3402(a).
       (B) Exception.--An airline payment amount shall not include 
     any amount payable on the basis of the carrier's future 
     earnings or profits.
       (2) Qualified airline employee.--The term ``qualified 
     airline employee'' means an employee or former employee of a 
     commercial passenger airline carrier who was a participant in 
     a defined benefit plan maintained by the carrier which--
       (A) is a plan described in section 401(a) of the Internal 
     Revenue Code of 1986 which includes a trust exempt from tax 
     under section 501(a) of such Code; and
       (B) was terminated or became subject to the restrictions 
     contained in paragraphs (2) and (3) of section 402(b) of the 
     Pension Protection Act of 2006.
       (3) Traditional ira.--The term ``traditional IRA'' means an 
     individual retirement plan (as defined in section 7701(a)(37) 
     of the Internal Revenue Code of 1986) which is not a Roth 
     IRA.
       (4) Roth ira.--The term ``Roth IRA'' has the meaning given 
     such term by section 408A(b) of such Code.
       (d) Surviving Spouse.--If a qualified airline employee died 
     after receiving an airline payment amount, or if an airline 
     payment amount was paid to the surviving spouse of a 
     qualified airline employee in respect of the qualified 
     airline employee, the surviving spouse of the qualified 
     airline employee may take all actions permitted under section 
     125 of the Worker, Retiree and Employer Recovery Act of 2008, 
     or under this section, to the same extent that the qualified 
     airline employee could have done had the qualified airline 
     employee survived.
       (e) Effective Date.--This section shall apply to transfers 
     made after the date of the enactment of this Act with respect 
     to airline payment amounts paid before, on, or after such 
     date.

                    Subtitle B--Multiemployer Plans

     SEC. 311. OPTIONAL USE OF 30-YEAR AMORTIZATION PERIODS.

       (a) Elective Special Relief Rules.--
       (1) ERISA amendment.--Section 304(b) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following new paragraph:
       ``(8) Elective special relief rules.--Notwithstanding any 
     other provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--The plan sponsor of a multiemployer plan 
     with respect to which the solvency test under subparagraph 
     (B) is met may elect to treat the portion of any experience 
     loss or gain for a plan year that is attributable to the 
     allocable portion of the net investment losses incurred in 
     either or both of the first two plan years ending on or after 
     June 30, 2008, as an experience loss separate from other 
     experience losses or gains to be amortized in equal annual 
     installments (until fully amortized) over the period--

       ``(I) beginning with the plan year for which the allocable 
     portion is determined, and
       ``(II) ending with the last plan year in the 30-plan year 
     period beginning with the plan year following the plan year 
     in which such net investment loss was incurred.

       ``(ii) Coordination with extensions.--If an election is 
     made under clause (i) 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 plan year for which the election 
     under this subparagraph is made, such extension shall not 
     result in such amortization period exceeding 30 years.

       ``(iii) Definitions and rules.--For purposes of this 
     subparagraph--

       ``(I) Net investment losses.--

       ``(aa) In general.--The net investment loss incurred by a 
     plan in a plan year is equal to the excess of--
       ``(AA) the expected value of the assets as of the end of 
     the plan year, over
       ``(BB) the market value of the assets as of the end of the 
     plan year,

     including any difference attributable to a criminally 
     fraudulent investment arrangement.

[[Page 11520]]

       ``(bb) Expected value.--For purposes of item (aa), the 
     expected value of the assets as of the end of a plan year is 
     the excess of--
       ``(AA) the market value of the assets at the beginning of 
     the plan year plus contributions made during the plan year, 
     over
       ``(BB) disbursements made during the plan year.

     The amounts described in subitems (AA) and (BB) shall be 
     adjusted with interest at the valuation rate to the end of 
     the plan year.

       ``(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.
       ``(III) Amount attributable to allocable portion of net 
     investment loss.--The amount attributable to the allocable 
     portion of the net investment loss for a plan year shall be 
     an amount equal to the allocable portion of net investment 
     loss for the plan year under subclauses (IV) and (V), 
     increased with interest at the valuation rate determined from 
     the plan year after the plan year in which the net investment 
     loss was incurred.
       ``(IV) Allocable portion of net investment losses.--Except 
     as provided in subclause (V), the net investment loss 
     incurred in a plan year shall be allocated among the 5 plan 
     years following the plan year in which the investment loss is 
     incurred in accordance with the following table:

``Plan year after the plan year in which the net investment loss was 
  incurred                     Allocable portion of net investment loss
1st...............................................................\1/2\
2nd.................................................................  0
3rd...............................................................\1/6\
4th...............................................................\1/6\
5th...............................................................\1/6\

       ``(V) Special rule for plans that adopt longer smoother 
     period.--If a plan sponsor elects an extended smoothing 
     period for its asset valuation method under subsection 
     (c)(2)(B), then the allocable portion of net investment loss 
     for the first two plan years following the plan year the 
     investment loss is incurred is the same as determined under 
     subclause (IV), but the remaining \1/2\ of the net investment 
     loss is allocated ratably over the period beginning with the 
     third plan year following the plan year the net investment 
     loss is incurred and ending with the last plan year in the 
     extended smoothing period.
       ``(VI) Special rule for overstatement of loss.--If, for a 
     plan year, there is an experience loss for the plan and the 
     amount described in subclause (III) exceeds the total amount 
     of the experience loss for the plan year, then the excess 
     shall be treated as an experience gain.
       ``(VII) Special rule in years for which overall experience 
     is gain.--If, for a plan year, there is no experience loss 
     for the plan, then, in addition to amortization of net 
     investment losses under clause (i), the amount described in 
     subclause (III) shall be treated as an experience gain in 
     addition to any other experience gain.

       ``(B) Solvency test.--
       ``(i) In general.--An election may be made under this 
     paragraph if the election includes certification by the plan 
     actuary in connection with the election that the plan is 
     projected to have a funded percentage at the end of the first 
     15 plan years that is not less than 100 percent of the funded 
     percentage for the plan year of the election.
       ``(ii) Funded percentage.--For purposes of clause (i), the 
     term `funded percentage' has the meaning provided in section 
     305(i)(2), except that the value of the plan's assets 
     referred to in section 305(i)(2)(A) shall be the market value 
     of such assets.
       ``(iii) Actuarial assumptions.--In making any certification 
     under this subparagraph, the plan actuary shall use the same 
     actuarial estimates, assumptions, and methods as those 
     applicable for the most recent certification under section 
     305, except that the plan actuary may take into account 
     benefit reductions and increases in contribution rates, under 
     either funding improvement plans adopted under section 305(c) 
     or under section 432(c) of the Internal Revenue Code of 1986 
     or rehabilitation plans adopted under section 305(e) or under 
     section 432(e) of such Code, that the plan actuary reasonably 
     anticipates will occur without regard to any change in status 
     of the plan resulting from the election.
       ``(C) Additional restriction on benefit increases.--If an 
     election is made under subparagraph (A), then, in addition to 
     any other applicable restrictions on benefit increases, a 
     plan amendment which is adopted on or after March 10, 2010, 
     and which increases benefits may not go into effect during 
     the period beginning on such date and ending with the second 
     plan year beginning after such date 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 election to have this paragraph apply to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for the first 3 plan years ending on or after such 
     date 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.
       ``(D) Time, form, and manner of election.--An election 
     under this paragraph shall be made not later than June 30, 
     2011, and shall be made in such form and manner as the 
     Secretary of the Treasury may prescribe.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall--
       ``(i) give notice of such 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 Pension Benefit 
     Guaranty Corporation may prescribe.''.
       (2) IRC amendment.--Section 431(b) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(8) Elective special relief rules.--Notwithstanding any 
     other provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--The plan sponsor of a multiemployer plan 
     with respect to which the solvency test under subparagraph 
     (B) is met may elect to treat the portion of any experience 
     loss or gain for a plan year that is attributable to the 
     allocable portion of the net investment losses incurred in 
     either or both of the first two plan years ending on or after 
     June 30, 2008, as an experience loss separate from other 
     experience losses and gains to be amortized in equal annual 
     installments (until fully amortized) over the period--

       ``(I) beginning with the plan year for which the allocable 
     portion is determined, and
       ``(II) ending with the last plan year in the 30-plan year 
     period beginning with the plan year following the plan year 
     in which such net investment loss was incurred.

       ``(ii) Coordination with extensions.--If an election is 
     made under clause (i) 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 plan year for which the election 
     under this subparagraph is made, such extension shall not 
     result in such amortization period exceeding 30 years.

       ``(iii) Definitions and rules.--For purposes of this 
     subparagraph--

       ``(I) Net investment losses.--

       ``(aa) In general.--The net investment loss incurred by a 
     plan in a plan year is equal to the excess of--
       ``(AA) the expected value of the assets as of the end of 
     the plan year, over
       ``(BB) the market value of the assets as of the end of the 
     plan year,

     including any difference attributable to a criminally 
     fraudulent investment arrangement.
       ``(bb) Expected value.--For purposes of item (aa), the 
     expected value of the assets as of the end of a plan year is 
     the excess of--
       ``(AA) the market value of the assets at the beginning of 
     the plan year plus contributions made during the plan year, 
     over
       ``(BB) disbursements made during the plan year.

     The amounts described in subitems (AA) and (BB) shall be 
     adjusted with interest at the valuation rate to the end of 
     the plan year.

       ``(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.
       ``(III) Amount attributable to allocable portion of net 
     investment loss.--The amount attributable to the allocable 
     portion of the net investment loss for a plan year shall be 
     an amount equal to the allocable portion of net investment 
     loss for the plan year under subclauses (IV) and (V), 
     increased with interest at the valuation rate determined from 
     the plan year after the plan year in which the net investment 
     loss was incurred.
       ``(IV) Allocable portion of net investment losses.--Except 
     as provided in subclause (V), the net investment loss 
     incurred in a plan year shall be allocated among the 5 plan 
     years following the plan year in which the investment loss is 
     incurred in accordance with the following table:

``Plan year after the plan year in which the net investment loss was 
  incurred                     Allocable portion of net investment loss
1st...............................................................\1/2\
2nd.................................................................  0
3rd...............................................................\1/6\
4th...............................................................\1/6\
5th...............................................................\1/6\

       ``(V) Special rule for plans that adopt longer smoother 
     period.--If a plan sponsor elects an extended smoothing 
     period for its asset valuation method under subsection 
     (c)(2)(B), then the allocable portion of net investment loss 
     for the first two plan years following the plan year the 
     investment loss is

[[Page 11521]]

     incurred is the same as determined under subclause (IV), but 
     the remaining \1/2\ of the net investment loss is allocated 
     ratably over the period beginning with the third plan year 
     following the plan year the net investment loss is incurred 
     and ending with the last plan year in the extended smoothing 
     period.
       ``(VI) Special rule for overstatement of loss.--If, for a 
     plan year, there is an experience loss for the plan and the 
     amount described in subclause (III) exceeds the total amount 
     of the experience loss for the plan year, then the excess 
     shall be treated as an experience gain.
       ``(VII) Special rule in years for which overall experience 
     is gain.--If, for a plan year, there is no experience loss 
     for the plan, then, in addition to amortization of net 
     investment losses under clause (i), the amount described in 
     subclause (III) shall be treated as an experience gain in 
     addition to any other experience gain.

       ``(B) Solvency test.--
       ``(i) In general.--An election may be made under this 
     paragraph if the election includes certification by the plan 
     actuary in connection with the election that the plan is 
     projected to have a funded percentage at the end of the first 
     15 plan years that is not less than 100 percent of the funded 
     percentage for the plan year of the election.
       ``(ii) Funded percentage.--For purposes of clause (i), the 
     term `funded percentage' has the meaning provided in section 
     432(i)(2), except that the value of the plan's assets 
     referred to in section 432(i)(2)(A) shall be the market value 
     of such assets.
       ``(iii) Actuarial assumptions.--In making any certification 
     under this subparagraph, the plan actuary shall use the same 
     actuarial estimates, assumptions, and methods as those 
     applicable for the most recent certification under section 
     432, except that the plan actuary may take into account 
     benefit reductions and increases in contribution rates, under 
     either funding improvement plans adopted under section 432(c) 
     or under section 305(c) of the Employee Retirement Income 
     Security Act of 1974 or rehabilitation plans adopted under 
     section 432(e) or under section 305(e) of such Act, that the 
     plan actuary reasonably anticipates will occur without regard 
     to any change in status of the plan resulting from the 
     election.
       ``(C) Additional restriction on benefit increases.--If an 
     election is made under subparagraph (A), then, in addition to 
     any other applicable restrictions on benefit increases, a 
     plan amendment which is adopted on or after March 10, 2010, 
     and which increases benefits may not go into effect during 
     the period beginning on such date and ending with the second 
     plan year beginning after such date 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 election to have this paragraph apply to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for the first 3 plan years ending on or after such 
     date 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 or to comply with other applicable 
     law.
       ``(D) Time, form, and manner of election.--An election 
     under this paragraph shall be made not later than June 30, 
     2011, and shall be made in such form and manner as the 
     Secretary may prescribe.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall--
       ``(i) give notice of such 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 Pension Benefit 
     Guaranty Corporation may prescribe.''.
       (b) Asset Smoothing for Multiemployer Plans.--
       (1) ERISA amendment.--Section 304(c)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1084(c)(2)) 
     is amended--
       (A) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (B) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Extended asset smoothing period for certain 
     investment losses.--The Secretary of the Treasury shall not 
     treat the asset valuation method of a multiemployer plan as 
     unreasonable solely because such method spreads the 
     difference between expected and actual returns for either or 
     both of the first 2 plan years ending on or after June 30, 
     2008, over a period of not more than 10 years. Any change in 
     valuation method to so spread such difference shall be 
     treated as approved, but only if, in the case that the plan 
     sponsor has made an election under subsection (b)(8), any 
     resulting change in asset value is treated for purposes of 
     amortization as a net experience loss or gain.''.
       (2) IRC amendment.--Section 431(c)(2) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (B) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Extended asset smoothing period for certain 
     investment losses.--The Secretary shall not treat the asset 
     valuation method of a multiemployer plan as unreasonable 
     solely because such method spreads the difference between 
     expected and actual returns for either or both of the first 2 
     plan years ending on or after June 30, 2008, over a period of 
     not more than 10 years. Any change in valuation method to so 
     spread such difference shall be treated as approved, but only 
     if, in the case that the plan sponsor has made an election 
     under subsection (b)(8), any resulting change in asset value 
     is treated for purposes of amortization as a net experience 
     loss or gain.''.
       (c) Effective Date and Special Rules.--
       (1) Effective date.--The amendments made by this section 
     shall take effect as of the first day of the first plan year 
     beginning after June 30, 2008, except that any election a 
     plan sponsor makes pursuant to this section or the amendments 
     made thereby that affects the plan's funding standard account 
     for any plan year beginning before October 1, 2009, 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 
     that plan year.
       (2) Deemed approval for certain funding method changes.--In 
     the case of a multiemployer plan with respect to which an 
     election has been made under section 304(b)(8) of the 
     Employee Retirement Income Security Act of 1974 (as amended 
     by this section) or section 431(b)(8) of the Internal Revenue 
     Code of 1986 (as so amended)--
       (A) any change in the plan's funding method for a plan year 
     beginning on or after July 1, 2008, and on or before December 
     31, 2010, from a method that does not establish a base for 
     experience gains and losses to one that does establish such a 
     base shall be treated as approved by the Secretary of the 
     Treasury; and
       (B) any resulting funding method change base shall be 
     treated for purposes of amortization as a net experience loss 
     or gain.

     SEC. 312. OPTIONAL LONGER RECOVERY PERIODS FOR MULTIEMPLOYER 
                   PLANS IN ENDANGERED OR CRITICAL STATUS.

       (a) ERISA Amendments.--
       (1) Funding improvement period.--Section 305(c)(4) of the 
     Employee Retirement Income Security Act of 1974 is amended--
       (A) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (B) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Election to extend period.--The plan sponsor of an 
     endangered or seriously endangered plan may elect to extend 
     the applicable funding improvement period by up to 5 years, 
     reduced by any extension of the period previously elected 
     pursuant to section 205 of the Worker, Retiree and Employer 
     Relief Act of 2008. Such an election shall be made not later 
     than June 30, 2011, and in such form and manner as the 
     Secretary of the Treasury may prescribe.''.
       (2) Rehabilitation period.--Section 305(e)(4) of such Act 
     is amended--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) in last sentence of subparagraph (A), by striking 
     ``subparagraph (B)'' each place it appears and inserting 
     ``subparagraph (C)''; and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Election to extend period.--The plan sponsor of a 
     plan in critical status may elect to extend the 
     rehabilitation period by up to five years, reduced by any 
     extension of the period previously elected pursuant to 
     section 205 of the Worker, Retiree and Employer Relief Act of 
     2008. Such an election shall be made not later than June 30, 
     2011, and in such form and manner as the Secretary of the 
     Treasury may prescribe.''.
       (b) IRC Amendments.--
       (1) Funding improvement period.--Section 432(c)(4) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (B) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Election to extend period.--The plan sponsor of an 
     endangered or seriously endangered plan may elect to extend 
     the applicable funding improvement period by up to 5 years, 
     reduced by any extension of the period previously elected 
     pursuant to section 205 of the Worker, Retiree and Employer 
     Relief Act of 2008. Such an election shall be made not later 
     than June 30, 2011, and in such form and manner as the 
     Secretary may prescribe.''.
       (2) Rehabilitation period.--Section 432(e)(4) of such Code 
     is amended--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) in last sentence of subparagraph (A), by striking 
     ``subparagraph (B)'' each place it appears and inserting 
     ``subparagraph (C)''; and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Election to extend period.--The plan sponsor of a 
     plan in critical status may elect to extend the 
     rehabilitation period by up to five years, reduced by any 
     extension of the period previously elected pursuant to 
     section 205 of the Worker, Retiree and Employer Relief Act of 
     2008. Such an election shall be made not later than June 30, 
     2011,

[[Page 11522]]

     and in such form and manner as the Secretary may 
     prescribe.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to funding improvement periods and 
     rehabilitation periods in connection with funding improvement 
     plans and rehabilitation plans adopted or updated on or after 
     the date of the enactment of this Act.

     SEC. 313. MODIFICATION OF CERTAIN AMORTIZATION EXTENSIONS 
                   UNDER PRIOR LAW.

       (a) In General.--In the case of an amortization extension 
     that was granted to a multiemployer plan under the terms of 
     section 304 of the Employee Retirement Income Security Act of 
     1974 (as in effect immediately prior to enactment of the 
     Pension Protection Act of 2006) or section 412(e) of the 
     Internal Revenue Code (as so in effect), the determination of 
     whether any financial condition on the amortization extension 
     is satisfied shall be made by assuming that for any plan year 
     that contains some or all of the period beginning June 30, 
     2008, and ending October 31, 2008, the actual rate of return 
     on the plan assets was equal to the interest rate used for 
     purposes of charging or crediting the funding standard 
     account in such plan year, unless the plan sponsor elects 
     otherwise in such form and manner as shall be prescribed by 
     the Secretary of Treasury.
       (b) Revocation of Amortization Extensions.--The plan 
     sponsor of a multiemployer plan may, in such form and manner 
     and after such notice as may be prescribed by the Secretary, 
     revoke any amortization extension described in subsection 
     (a), effective for plan years following the date of the 
     revocation.

     SEC. 314. ALTERNATIVE DEFAULT SCHEDULE FOR PLANS IN 
                   ENDANGERED OR CRITICAL STATUS.

       (a) ERISA Amendments.--
       (1) Endangered status.--Section 305(c)(7) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1085(c)(7)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(D) Alternative default schedule.--
       ``(i) In general.--A plan sponsor may, for purposes of this 
     paragraph, designate an alternative schedule of contribution 
     rates and related benefit changes meeting the requirements of 
     clause (ii) as the default schedule, in lieu of the default 
     schedule referred to in subparagraph (A).
       ``(ii) Requirements.--An alternative schedule designated 
     pursuant to clause (i) meets the requirements of this clause 
     if such schedule has been adopted in collective bargaining 
     agreements covering at least 75 percent of the active 
     participants as of the date of the designation.''.
       (2) Critical status.--Section 305(e)(3) of such Act (29 
     U.S.C. 1085(e)(3)) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Alternative default schedule.--
       ``(i) In general.--A plan sponsor may, for purposes of 
     subparagraph (C), designate an alternative schedule of 
     contribution rates and related benefit changes meeting the 
     requirements of clause (ii) as the default schedule, in lieu 
     of the default schedule referred to in subparagraph (C)(i).
       ``(ii) Requirements.--An alternative schedule designated 
     pursuant to clause (i) meets the requirements of this clause 
     if such schedule has been adopted in collective bargaining 
     agreements covering at least 75 percent of the active 
     participants as of the date of the designation.''.
       (b) Internal Revenue Code Amendments.--
       (1) Endangered status.--Section 432(c)(7) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subparagraph:
       ``(C) Alternative default schedule.--
       ``(i) In general.--A plan sponsor may, for purposes of this 
     paragraph, designate an alternative schedule of contribution 
     rates and related benefit changes meeting the requirements of 
     clause (ii) as the default schedule, in lieu of the default 
     schedule referred to in subparagraph (A).
       ``(ii) Requirements.--An alternative schedule designated 
     pursuant to clause (i) meets the requirements of this clause 
     if such schedule has been adopted in collective bargaining 
     agreements covering at least 75 percent of the active 
     participants as of the date of the designation.''.
       (2) Critical status.--Section 432(e)(3) of such Code is 
     amended by adding at the end the following new subparagraph:
       ``(D) Alternative default schedule.--
       ``(i) In general.--A plan sponsor may, for purposes of 
     subparagraph (C), designate an alternative schedule of 
     contribution rates and related benefit changes meeting the 
     requirements of clause (ii) as the default schedule, in lieu 
     of the default schedule referred to in subparagraph (C)(i).
       ``(ii) Requirements.--An alternative schedule designated 
     pursuant to clause (i) meets the requirements of this clause 
     if such schedule has been adopted in collective bargaining 
     agreements covering at least 75 percent of the active 
     participants as of the date of the designation.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to designations of default schedules by plan 
     sponsors on or after the date of the enactment of this Act.
       (d) Cross-reference.--For sunset of the amendments made by 
     this section, see section 221(c) of the Pension Protection 
     Act of 2006.

     SEC. 315. TRANSITION RULE FOR CERTIFICATIONS OF PLAN STATUS.

       (a) In General.--A plan actuary shall not be treated as 
     failing to meet the requirements of section 305(b)(3)(A) of 
     the Employee Retirement Income Security Act of 1974 and 
     section 432(b)(3)(A) of the Internal Revenue Code of 1986 in 
     connection with a certification required under such sections 
     the deadline for which is after the date of the enactment of 
     this Act if the plan actuary makes such certification at any 
     time earlier than 75 days after the date of the enactment of 
     this Act.
       (b) Revision of Prior Certification.--
       (1) In general.--If--
       (A) a plan sponsor makes an election under section 
     304(b)(8) of the Employee Retirement Income Security Act of 
     1974 and section 431(b)(8) of the Internal Revenue Code of 
     1986, or under section 304(c)(2)(B) of such Act and section 
     432(c)(2)(B) such Code, with respect to a plan for a plan 
     year beginning on or after October 1, 2009; and
       (B) the plan actuary's certification of the plan status for 
     such plan year (hereinafter in this subsection referred to as 
     ``original certification'') did not take into account any 
     election so made,

     then the plan sponsor may direct the plan actuary to make a 
     new certification with respect to the plan for the plan year 
     which takes into account such election (hereinafter in this 
     subsection referred to as ``new certification'') if the 
     plan's status under section 305 of such Act and section 432 
     of such Code would change as a result of such election. Any 
     such new certification shall be treated as the most recent 
     certification referred to in section 304(b)(3)(B)(iii) of 
     such Act and section 431(b)(8)(B)(iii) of such Code.
       (2) Due date for new certification.--Any such new 
     certification shall be made pursuant to section 305(b)(3) of 
     such Act and section 432(b)(3) of such Code; except that any 
     such new certification shall be made not later than 75 days 
     after the date of the enactment of this Act.
       (3) Notice.--
       (A) In general.--Except as provided in subparagraph (B), 
     any such new certification shall be treated as the original 
     certification for purposes of section 305(b)(3)(D) of such 
     Act and section 432(b)(3)(D) of such Code.
       (B) Notice already provided.--In any case in which notice 
     has been provided under such sections with respect to the 
     original certification, not later than 30 days after the new 
     certification is made, the plan sponsor shall provide notice 
     of any change in status under rules similar to the rules such 
     sections.
       (4) Effect of change in status.--If a plan ceases to be in 
     critical status pursuant to the new certification, then the 
     plan shall, not later than 30 days after the due date 
     described in paragraph (2), cease any restriction of benefit 
     payments, and imposition of contribution surcharges, under 
     section 305 of such Act and section 432 of such Code by 
     reason of the original certification.

                       TITLE IV--REVENUE OFFSETS

                     Subtitle A--Foreign Provisions

     SEC. 401. RULES TO PREVENT SPLITTING FOREIGN TAX CREDITS FROM 
                   THE INCOME TO WHICH THEY RELATE.

       (a) In General.--Subpart A of part III of subchapter N of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 909. SUSPENSION OF TAXES AND CREDITS UNTIL RELATED 
                   INCOME TAKEN INTO ACCOUNT.

       ``(a) In General.--If there is a foreign tax credit 
     splitting event with respect to a foreign income tax paid or 
     accrued by the taxpayer, such tax shall not be taken into 
     account for purposes of this title before the taxable year in 
     which the related income is taken into account under this 
     chapter by the taxpayer.
       ``(b) Special Rules With Respect to Section 902 
     Corporations.--If there is a foreign tax credit splitting 
     event with respect to a foreign income tax paid or accrued by 
     a section 902 corporation, such tax shall not be taken into 
     account--
       ``(1) for purposes of section 902 or 960, or
       ``(2) for purposes of determining earnings and profits 
     under section 964(a),

     before the taxable year in which the related income is taken 
     into account under this chapter by such section 902 
     corporation or a domestic corporation which meets the 
     ownership requirements of subsection (a) or (b) of section 
     902 with respect to such section 902 corporation.
       ``(c) Special Rules.--For purposes of this section--
       ``(1) Application to partnerships, etc.--In the case of a 
     partnership, subsections (a) and (b) shall be applied at the 
     partner level. Except as otherwise provided by the Secretary, 
     a rule similar to the rule of the preceding sentence shall 
     apply in the case of any S corporation or trust.
       ``(2) Treatment of foreign taxes after suspension.--In the 
     case of any foreign income tax not taken into account by 
     reason of subsection (a) or (b), except as otherwise provided 
     by the Secretary, such tax shall be so taken into account in 
     the taxable year referred to in such subsection (other than 
     for

[[Page 11523]]

     purposes of section 986(a)) as a foreign income tax paid or 
     accrued in such taxable year.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Foreign tax credit splitting event.--There is a 
     foreign tax credit splitting event with respect to a foreign 
     income tax if the related income is (or will be) taken into 
     account under this chapter by a covered person.
       ``(2) Foreign income tax.--The term `foreign income tax' 
     means any income, war profits, or excess profits tax paid or 
     accrued to any foreign country or to any possession of the 
     United States.
       ``(3) Related income.--The term `related income' means, 
     with respect to any portion of any foreign income tax, the 
     income (or, as appropriate, earnings and profits) to which 
     such portion of foreign income tax relates.
       ``(4) Covered person.--The term `covered person' means, 
     with respect to any person who pays or accrues a foreign 
     income tax (hereafter in this paragraph referred to as the 
     `payor')--
       ``(A) any entity in which the payor holds, directly or 
     indirectly, at least a 10 percent ownership interest 
     (determined by vote or value),
       ``(B) any person which holds, directly or indirectly, at 
     least a 10 percent ownership interest (determined by vote or 
     value) in the payor,
       ``(C) any person which bears a relationship to the payor 
     described in section 267(b) or 707(b), and
       ``(D) any other person specified by the Secretary for 
     purposes of this paragraph.
       ``(5) Section 902 corporation.--The term `section 902 
     corporation' means any foreign corporation with respect to 
     which one or more domestic corporations meets the ownership 
     requirements of subsection (a) or (b) of section 902.
       ``(e) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this section, including 
     regulations or other guidance which provides--
       ``(1) appropriate exceptions from the provisions of this 
     section, and
       ``(2) for the proper application of this section with 
     respect to hybrid instruments.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part III of subchapter N of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 909. Suspension of taxes and credits until related income taken 
              into account.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) foreign income taxes (as defined in section 909(d) of 
     the Internal Revenue Code of 1986, as added by this section) 
     paid or accrued after May 20, 2010; and
       (2) foreign income taxes (as so defined) paid or accrued by 
     a section 902 corporation (as so defined) on or before such 
     date (and not deemed paid under section 902(a) or 960 of such 
     Code on or before such date), but only for purposes of 
     applying sections 902 and 960 with respect to periods after 
     such date.

     Section 909(b)(2) of the Internal Revenue Code of 1986, as 
     added by this section, shall not apply to foreign income 
     taxes described in paragraph (2).

     SEC. 402. DENIAL OF FOREIGN TAX CREDIT WITH RESPECT TO 
                   FOREIGN INCOME NOT SUBJECT TO UNITED STATES 
                   TAXATION BY REASON OF COVERED ASSET 
                   ACQUISITIONS.

       (a) In General.--Section 901 is amended by redesignating 
     subsection (m) as subsection (n) and by inserting after 
     subsection (l) the following new subsection:
       ``(m) Denial of Foreign Tax Credit With Respect to Foreign 
     Income Not Subject to United States Taxation by Reason of 
     Covered Asset Acquisitions.--
       ``(1) In general.--In the case of a covered asset 
     acquisition, the disqualified portion of any foreign income 
     tax determined with respect to the income or gain 
     attributable to the relevant foreign assets--
       ``(A) shall not be taken into account in determining the 
     credit allowed under subsection (a), and
       ``(B) in the case of a foreign income tax paid by a section 
     902 corporation (as defined in section 909(d)(5)), shall not 
     be taken into account for purposes of section 902 or 960.
       ``(2) Covered asset acquisition.--For purposes of this 
     section, the term `covered asset acquisition' means--
       ``(A) a qualified stock purchase (as defined in section 
     338(d)(3)) to which section 338(a) applies,
       ``(B) any transaction which--
       ``(i) is treated as an acquisition of assets for purposes 
     of this chapter, and
       ``(ii) is treated as the acquisition of stock of a 
     corporation (or is disregarded) for purposes of the foreign 
     income taxes of the relevant jurisdiction,
       ``(C) any acquisition of an interest in a partnership which 
     has an election in effect under section 754, and
       ``(D) to the extent provided by the Secretary, any other 
     similar transaction.
       ``(3) Disqualified portion.--For purposes of this section--
       ``(A) In general.--The term `disqualified portion' means, 
     with respect to any covered asset acquisition, for any 
     taxable year, the ratio (expressed as a percentage) of--
       ``(i) the aggregate basis differences (but not below zero) 
     allocable to such taxable year under subparagraph (B) with 
     respect to all relevant foreign assets, divided by
       ``(ii) the income on which the foreign income tax referred 
     to in paragraph (1) is determined (or, if the taxpayer fails 
     to substantiate such income to the satisfaction of the 
     Secretary, such income shall be determined by dividing the 
     amount of such foreign income tax by the highest marginal tax 
     rate applicable to such income in the relevant jurisdiction).
       ``(B) Allocation of basis difference.--For purposes of 
     subparagraph (A)(i)--
       ``(i) In general.--The basis difference with respect to any 
     relevant foreign asset shall be allocated to taxable years 
     using the applicable cost recovery method under this chapter.
       ``(ii) Special rule for disposition of assets.--Except as 
     otherwise provided by the Secretary, in the case of the 
     disposition of any relevant foreign asset--

       ``(I) the basis difference allocated to the taxable year 
     which includes the date of such disposition shall be the 
     excess of the basis difference with respect to such asset 
     over the aggregate basis difference with respect to such 
     asset which has been allocated under clause (i) to all prior 
     taxable years, and
       ``(II) no basis difference with respect to such asset shall 
     be allocated under clause (i) to any taxable year thereafter.

       ``(C) Basis difference.--
       ``(i) In general.--The term `basis difference' means, with 
     respect to any relevant foreign asset, the excess of--

       ``(I) the adjusted basis of such asset immediately after 
     the covered asset acquisition, over
       ``(II) the adjusted basis of such asset immediately before 
     the covered asset acquisition.

       ``(ii) Built-in loss assets.--In the case of a relevant 
     foreign asset with respect to which the amount described in 
     clause (i)(II) exceeds the amount described in clause (i)(I), 
     such excess shall be taken into account under this subsection 
     as a basis difference of a negative amount.
       ``(iii) Special rule for section 338 elections.--In the 
     case of a covered asset acquisition described in paragraph 
     (2)(A), the covered asset acquisition shall be treated for 
     purposes of this subparagraph as occurring at the close of 
     the acquisition date (as defined in section 338(h)(2)).
       ``(4) Relevant foreign assets.--For purposes of this 
     section, the term `relevant foreign asset' means, with 
     respect to any covered asset acquisition, any asset 
     (including any goodwill, going concern value, or other 
     intangible) with respect to such acquisition if income, 
     deduction, gain, or loss attributable to such asset is taken 
     into account in determining the foreign income tax referred 
     to in paragraph (1).
       ``(5) Foreign income tax.--For purposes of this section, 
     the term `foreign income tax' means any income, war profits, 
     or excess profits tax paid or accrued to any foreign country 
     or to any possession of the United States.
       ``(6) Taxes allowed as a deduction, etc.--Sections 275 and 
     78 shall not apply to any tax which is not allowable as a 
     credit under subsection (a) by reason of this subsection.
       ``(7) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this subsection, including to 
     exempt from the application of this subsection certain 
     covered asset acquisitions, and relevant foreign assets with 
     respect to which the basis difference is de minimis.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to covered asset 
     acquisitions (as defined in section 901(m)(2) of the Internal 
     Revenue Code of 1986, as added by this section) after--
       (A) May 20, 2010, if the transferor and the transferee are 
     related; and
       (B) the date of the enactment of this Act in any other 
     case.
       (2) Transition rule.--The amendments made by this section 
     shall not apply to any covered asset acquisition (as so 
     defined) with respect to which the transferor and the 
     transferee are not related if such acquisition is--
       (A) made pursuant to a written agreement which was binding 
     on May 20, 2010, and at all times thereafter,
       (B) described in a ruling request submitted to the Internal 
     Revenue Service on or before such date; or
       (C) described on or before such date in a public 
     announcement or in a filing with the Securities and Exchange 
     Commission.
       (3) Related persons.--For purposes of this subsection, a 
     person shall be treated as related to another person if the 
     relationship between such persons is described in section 267 
     or 707(b) of the Internal Revenue Code of 1986.

     SEC. 403. SEPARATE APPLICATION OF FOREIGN TAX CREDIT 
                   LIMITATION, ETC., TO ITEMS RESOURCED UNDER 
                   TREATIES.

       (a) In General.--Subsection (d) of section 904 is amended 
     by redesignating paragraph (6) as paragraph (7) and by 
     inserting after paragraph (5) the following new paragraph:
       ``(6) Separate application to items resourced under 
     treaties.--
       ``(A) In general.--If--

[[Page 11524]]

       ``(i) without regard to any treaty obligation of the United 
     States, any item of income would be treated as derived from 
     sources within the United States,
       ``(ii) under a treaty obligation of the United States, such 
     item would be treated as arising from sources outside the 
     United States, and
       ``(iii) the taxpayer chooses the benefits of such treaty 
     obligation,
     subsections (a), (b), and (c) of this section and sections 
     902, 907, and 960 shall be applied separately with respect to 
     each such item.
       ``(B) Coordination with other provisions.--This paragraph 
     shall not apply to any item of income to which subsection 
     (h)(10) or section 865(h) applies.
       ``(C) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this paragraph, including 
     regulations or other guidance which provides that related 
     items of income may be aggregated for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 404. LIMITATION ON THE AMOUNT OF FOREIGN TAXES DEEMED 
                   PAID WITH RESPECT TO SECTION 956 INCLUSIONS.

       (a) In General.--Section 960 is amended by adding at the 
     end the following new subsection:
       ``(c) Limitation With Respect to Section 956 Inclusions.--
       ``(1) In general.--If there is included under section 
     951(a)(1)(B) in the gross income of a domestic corporation 
     any amount attributable to the earnings and profits of a 
     foreign corporation which is a member of a qualified group 
     (as defined in section 902(b)) with respect to the domestic 
     corporation, the amount of any foreign income taxes deemed to 
     have been paid during the taxable year by such domestic 
     corporation under section 902 by reason of subsection (a) 
     with respect to such inclusion in gross income shall not 
     exceed the amount of the foreign income taxes which would 
     have been deemed to have been paid during the taxable year by 
     such domestic corporation if cash in an amount equal to the 
     amount of such inclusion in gross income were distributed as 
     a series of distributions (determined without regard to any 
     foreign taxes which would be imposed on an actual 
     distribution) through the chain of ownership which begins 
     with such foreign corporation and ends with such domestic 
     corporation.
       ``(2) Authority to prevent abuse.--The Secretary shall 
     issue such regulations or other guidance as is necessary or 
     appropriate to carry out the purposes of this subsection, 
     including regulations or other guidance which prevent the 
     inappropriate use of the foreign corporation's foreign income 
     taxes not deemed paid by reason of paragraph (1).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to acquisitions of United States property (as 
     defined in section 956(c) of the Internal Revenue Code of 
     1986) after May 20, 2010.

     SEC. 405. SPECIAL RULE WITH RESPECT TO CERTAIN REDEMPTIONS BY 
                   FOREIGN SUBSIDIARIES.

       (a) In General.--Paragraph (5) of section 304(b) is amended 
     by redesignating subparagraph (B) as subparagraph (C) and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Special rule in case of foreign acquiring 
     corporation.--In the case of any acquisition to which 
     subsection (a) applies in which the acquiring corporation is 
     a foreign corporation, no earnings and profits shall be taken 
     into account under paragraph (2)(A) (and subparagraph (A) 
     shall not apply) if more than 50 percent of the dividends 
     arising from such acquisition (determined without regard to 
     this subparagraph) would neither--
       ``(i) be subject to tax under this chapter for the taxable 
     year in which the dividends arise, nor
       ``(ii) be includible in the earnings and profits of a 
     controlled foreign corporation (as defined in section 957 and 
     without regard to section 953(c)).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to acquisitions after May 20, 2010.

     SEC. 406. MODIFICATION OF AFFILIATION RULES FOR PURPOSES OF 
                   RULES ALLOCATING INTEREST EXPENSE.

       (a) In General.--Subparagraph (A) of section 864(e)(5) is 
     amended by adding at the end the following: ``Notwithstanding 
     the preceding sentence, a foreign corporation shall be 
     treated as a member of the affiliated group if--
       ``(i) more than 50 percent of the gross income of such 
     foreign corporation for the taxable year is effectively 
     connected with the conduct of a trade or business within the 
     United States, and
       ``(ii) at least 80 percent of either the vote or value of 
     all outstanding stock of such foreign corporation is owned 
     directly or indirectly by members of the affiliated group 
     (determined with regard to this sentence).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 407. TERMINATION OF SPECIAL RULES FOR INTEREST AND 
                   DIVIDENDS RECEIVED FROM PERSONS MEETING THE 80-
                   PERCENT FOREIGN BUSINESS REQUIREMENTS.

       (a) In General.--Paragraph (1) of section 861(a) is amended 
     by striking subparagraph (A) and by redesignating 
     subparagraphs (B) and (C) as subparagraphs (A) and (B), 
     respectively.
       (b) Grandfather Rule With Respect to Withholding on 
     Interest and Dividends Received From Persons Meeting the 80-
     percent Foreign Business Requirements.--
       (1) In general.--Subparagraph (B) of section 871(i)(2) is 
     amended to read as follows:
       ``(B) The active foreign business percentage of--
       ``(i) any dividend paid by an existing 80/20 company, and
       ``(ii) any interest paid by an existing 80/20 company.''.
       (2) Definitions and special rules.--Section 871 is amended 
     by redesignating subsections (l) and (m) as subsections (m) 
     and (n), respectively, and by inserting after subsection (k) 
     the following new subsection:
       ``(l) Rules Relating to Existing 80/20 Companies.--For 
     purposes of this subsection and subsection (i)(2)(B)--
       ``(1) Existing 80/20 company.--
       ``(A) In general.--The term `existing 80/20 company' means 
     any corporation if--
       ``(i) such corporation met the 80-percent foreign business 
     requirements of section 861(c)(1) (as in effect before the 
     date of the enactment of this subsection) for such 
     corporation's last taxable year beginning before January 1, 
     2011,
       ``(ii) such corporation meets the 80-percent foreign 
     business requirements of subparagraph (B) with respect to 
     each taxable year after the taxable year referred to in 
     clause (i), and
       ``(iii) there has not been an addition of a substantial 
     line of business with respect to such corporation after the 
     date of the enactment of this subsection.
       ``(B) Foreign business requirements.--
       ``(i) In general.--Except as provided in clause (iv), a 
     corporation meets the 80-percent foreign business 
     requirements of this subparagraph if it is shown to the 
     satisfaction of the Secretary that at least 80 percent of the 
     gross income from all sources of such corporation for the 
     testing period is active foreign business income.
       ``(ii) Active foreign business income.--For purposes of 
     clause (i), the term `active foreign business income' means 
     gross income which--

       ``(I) is derived from sources outside the United States (as 
     determined under this subchapter), and
       ``(II) is attributable to the active conduct of a trade or 
     business in a foreign country or possession of the United 
     States.

       ``(iii) Testing period.--For purposes of this subsection, 
     the term `testing period' means the 3-year period ending with 
     the close of the taxable year of the corporation preceding 
     the payment (or such part of such period as may be 
     applicable). If the corporation has no gross income for such 
     3-year period (or part thereof), the testing period shall be 
     the taxable year in which the payment is made.
       ``(iv) Transition rule.--In the case of a taxable year for 
     which the testing period includes 1 or more taxable years 
     beginning before January 1, 2011--

       ``(I) a corporation meets the 80-percent foreign business 
     requirements of this subparagraph if and only if the weighted 
     average of--

       ``(aa) the percentage of the corporation's gross income 
     from all sources that is active foreign business income (as 
     defined in subparagraph (B) of section 861(c)(1) (as in 
     effect before the date of the enactment of this subsection)) 
     for the portion of the testing period that includes taxable 
     years beginning before January 1, 2011, and
       ``(bb) the percentage of the corporation's gross income 
     from all sources that is active foreign business income (as 
     defined in clause (ii) of this subparagraph) for the portion 
     of the testing period, if any, that includes taxable years 
     beginning on or after January 1, 2011,

     is at least 80 percent, and
       ``(II) the active foreign business percentage for such 
     taxable year shall equal the weighted average percentage 
     determined under subclause (I).

       ``(2) Active foreign business percentage.--Except as 
     provided in paragraph (1)(B)(iv), the term `active foreign 
     business percentage' means, with respect to any existing 80/
     20 company, the percentage which--
       ``(A) the active foreign business income of such company 
     for the testing period, is of
       ``(B) the gross income of such company for the testing 
     period from all sources.
       ``(3) Aggregation rules.--For purposes of applying 
     paragraph (1) (other than subparagraphs (A)(i) and (B)(iv) 
     thereof) and paragraph (2)--
       ``(A) In general.--The corporation referred to in paragraph 
     (1)(A) and all of such corporation's subsidiaries shall be 
     treated as one corporation.
       ``(B) Subsidiaries.--For purposes of subparagraph (A), the 
     term `subsidiary' means any corporation in which the 
     corporation referred to in subparagraph (A) owns (directly or 
     indirectly) stock meeting the requirements of section 
     1504(a)(2) (determined by substituting `50 percent' for `80 
     percent' each

[[Page 11525]]

     place it appears and without regard to section 1504(b)(3)).
       ``(4) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this section, including 
     regulations or other guidance which provide for the proper 
     application of the aggregation rules described in paragraph 
     (3).''.
       (c) Conforming Amendments.--
       (1) Section 861 is amended by striking subsection (c) and 
     by redesignating subsections (d), (e), and (f) as subsections 
     (c), (d), and (e), respectively.
       (2) Paragraph (9) of section 904(h) is amended to read as 
     follows:
       ``(9) Treatment of certain domestic corporations.--In the 
     case of any dividend treated as not from sources within the 
     United States under section 861(a)(2)(A), the corporation 
     paying such dividend shall be treated for purposes of this 
     subsection as a United States-owned foreign corporation.''.
       (3) Subsection (c) of section 2104 is amended in the last 
     sentence by striking ``or to a debt obligation of a domestic 
     corporation'' and all that follows and inserting a period.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2010.
       (2) Grandfather rule for outstanding debt obligations.--
       (A) In general.--The amendments made by this section shall 
     not apply to payments of interest on obligations issued 
     before the date of the enactment of this Act.
       (B) Exception for related party debt.--Subparagraph (A) 
     shall not apply to any interest which is payable to a related 
     person (determined under rules similar to the rules of 
     section 954(d)(3)).
       (C) Significant modifications treated as new issues.--For 
     purposes of subparagraph (A), a significant modification of 
     the terms of any obligation (including any extension of the 
     term of such obligation) shall be treated as a new issue.

     SEC. 408. SOURCE RULES FOR INCOME ON GUARANTEES.

       (a) Amounts Sourced Within the United States.--Subsection 
     (a) of section 861 is amended by adding at the end the 
     following new paragraph:
       ``(9) Guarantees.--Amounts received, directly or 
     indirectly, from--
       ``(A) a noncorporate resident or domestic corporation for 
     the provision of a guarantee of any indebtedness of such 
     resident or corporation, or
       ``(B) any foreign person for the provision of a guarantee 
     of any indebtedness of such person, if such amount is 
     connected with income which is effectively connected (or 
     treated as effectively connected) with the conduct of a trade 
     or business in the United States.''.
       (b) Amounts Sourced Without the United States.--Subsection 
     (a) of section 862 is amended by striking ``and'' at the end 
     of paragraph (7), by striking the period at the end of 
     paragraph (8) and inserting ``; and'', and by adding at the 
     end the following new paragraph:
       ``(9) amounts received, directly or indirectly, from a 
     foreign person for the provision of a guarantee of 
     indebtedness of such person other than amounts which are 
     derived from sources within the United States as provided in 
     section 861(a)(9).''.
       (c) Conforming Amendment.--Clause (ii) of section 
     864(c)(4)(B) is amended by striking ``dividends or interest'' 
     and inserting ``dividends, interest, or amounts received for 
     the provision of guarantees of indebtedness''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to guarantees issued after the date of the 
     enactment of this Act.

     SEC. 409. LIMITATION ON EXTENSION OF STATUTE OF LIMITATIONS 
                   FOR FAILURE TO NOTIFY SECRETARY OF CERTAIN 
                   FOREIGN TRANSFERS.

       (a) In General.--Paragraph (8) of section 6501(c) is 
     amended--
       (1) by striking ``In the case of any information'' and 
     inserting the following:
       ``(A) In general.--In the case of any information''; and
       (2) by adding at the end the following:
       ``(B) Application to failures due to reasonable cause.--If 
     the failure to furnish the information referred to in 
     subparagraph (A) is due to reasonable cause and not willful 
     neglect, subparagraph (A) shall apply only to the item or 
     items related to such failure.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 513 of the Hiring 
     Incentives to Restore Employment Act.

    Subtitle B--Personal Service Income Earned in Pass-thru Entities

     SEC. 411. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION 
                   WITH PERFORMANCE OF SERVICES.

       (a) Modification to Election To Include Partnership 
     Interest in Gross Income in Year of Transfer.--Subsection (c) 
     of section 83 is amended by redesignating paragraph (4) as 
     paragraph (5) and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Partnership interests.--Except as provided by the 
     Secretary, in the case of any transfer of an interest in a 
     partnership in connection with the provision of services to 
     (or for the benefit of) such partnership--
       ``(A) the fair market value of such interest shall be 
     treated for purposes of this section as being equal to the 
     amount of the distribution which the partner would receive if 
     the partnership sold (at the time of the transfer) all of its 
     assets at fair market value and distributed the proceeds of 
     such sale (reduced by the liabilities of the partnership) to 
     its partners in liquidation of the partnership, and
       ``(B) the person receiving such interest shall be treated 
     as having made the election under subsection (b)(1) unless 
     such person makes an election under this paragraph to have 
     such subsection not apply.''.
       (b) Conforming Amendment.--Paragraph (2) of section 83(b) 
     is amended by inserting ``or subsection (c)(4)(B)'' after 
     ``paragraph (1)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to interests in partnerships transferred after 
     the date of the enactment of this Act.

     SEC. 412. INCOME OF PARTNERS FOR PERFORMING INVESTMENT 
                   MANAGEMENT SERVICES TREATED AS ORDINARY INCOME 
                   RECEIVED FOR PERFORMANCE OF SERVICES.

       (a) In General.--Part I of subchapter K of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT 
                   MANAGEMENT SERVICES TO PARTNERSHIP.

       ``(a) Treatment of Distributive Share of Partnership 
     Items.--For purposes of this title, in the case of an 
     investment services partnership interest--
       ``(1) In general.--Notwithstanding section 702(b)--
       ``(A) any net income with respect to such interest for any 
     partnership taxable year shall be treated as ordinary income, 
     and
       ``(B) any net loss with respect to such interest for such 
     year, to the extent not disallowed under paragraph (2) for 
     such year, shall be treated as an ordinary loss.

     All items of income, gain, deduction, and loss which are 
     taken into account in computing net income or net loss shall 
     be treated as ordinary income or ordinary loss (as the case 
     may be).
       ``(2) Treatment of losses.--
       ``(A) Limitation.--Any net loss with respect to such 
     interest shall be allowed for any partnership taxable year 
     only to the extent that such loss does not exceed the excess 
     (if any) of--
       ``(i) the aggregate net income with respect to such 
     interest for all prior partnership taxable years, over
       ``(ii) the aggregate net loss with respect to such interest 
     not disallowed under this subparagraph for all prior 
     partnership taxable years.
       ``(B) Carryforward.--Any net loss for any partnership 
     taxable year which is not allowed by reason of subparagraph 
     (A) shall be treated as an item of loss with respect to such 
     partnership interest for the succeeding partnership taxable 
     year.
       ``(C) Basis adjustment.--No adjustment to the basis of a 
     partnership interest shall be made on account of any net loss 
     which is not allowed by reason of subparagraph (A).
       ``(D) Prior partnership years.--Any reference in this 
     paragraph to prior partnership taxable years shall only 
     include prior partnership taxable years to which this section 
     applies.
       ``(3) Net income and loss.--For purposes of this section--
       ``(A) Net income.--The term `net income' means, with 
     respect to any investment services partnership interest for 
     any partnership taxable year, the excess (if any) of--
       ``(i) all items of income and gain taken into account by 
     the holder of such interest under section 702 with respect to 
     such interest for such year, over
       ``(ii) all items of deduction and loss so taken into 
     account.
       ``(B) Net loss.--The term `net loss' means, with respect to 
     such interest for such year, the excess (if any) of the 
     amount described in subparagraph (A)(ii) over the amount 
     described in subparagraph (A)(i).
       ``(4) Special rule for dividends.--Any dividend taken into 
     account in determining net income or net loss for purposes of 
     paragraph (1) shall not be treated as qualified dividend 
     income for purposes of section 1(h).
       ``(b) Dispositions of Partnership Interests.--
       ``(1) Gain.--Any gain on the disposition of an investment 
     services partnership interest shall be--
       ``(A) treated as ordinary income, and
       ``(B) recognized notwithstanding any other provision of 
     this subtitle.
       ``(2) Loss.--Any loss on the disposition of an investment 
     services partnership interest shall be treated as an ordinary 
     loss to the extent of the excess (if any) of--
       ``(A) the aggregate net income with respect to such 
     interest for all partnership taxable years to which this 
     section applies, over
       ``(B) the aggregate net loss with respect to such interest 
     allowed under subsection (a)(2) for all partnership taxable 
     years to which this section applies.
       ``(3) Election with respect to certain exchanges.--
     Paragraph (1)(B) shall not apply to the contribution of an 
     investment services

[[Page 11526]]

     partnership interest to a partnership in exchange for an 
     interest in such partnership if--
       ``(A) the taxpayer makes an irrevocable election to treat 
     the partnership interest received in the exchange as an 
     investment services partnership interest, and
       ``(B) the taxpayer agrees to comply with such reporting and 
     recordkeeping requirements as the Secretary may prescribe.
       ``(4) Disposition of portion of interest.--In the case of 
     any disposition of an investment services partnership 
     interest, the amount of net loss which otherwise would have 
     (but for subsection (a)(2)(C)) applied to reduce the basis of 
     such interest shall be disregarded for purposes of this 
     section for all succeeding partnership taxable years.
       ``(5) Distributions of partnership property.--In the case 
     of any distribution of property by a partnership with respect 
     to any investment services partnership interest held by a 
     partner--
       ``(A) the excess (if any) of--
       ``(i) the fair market value of such property at the time of 
     such distribution, over
       ``(ii) the adjusted basis of such property in the hands of 
     the partnership,

     shall be taken into account as an increase in such partner's 
     distributive share of the taxable income of the partnership 
     (except to the extent such excess is otherwise taken into 
     account in determining the taxable income of the 
     partnership),
       ``(B) such property shall be treated for purposes of 
     subpart B of part II as money distributed to such partner in 
     an amount equal to such fair market value, and
       ``(C) the basis of such property in the hands of such 
     partner shall be such fair market value.

     Subsection (b) of section 734 shall be applied without regard 
     to the preceding sentence. In the case of a taxpayer which 
     satisfies requirements similar to the requirements of 
     subparagraphs (A) and (B) of paragraph (3), this paragraph 
     and paragraph (1)(B) shall not apply to the distribution of a 
     partnership interest if such distribution is in connection 
     with a contribution (or deemed contribution) of any property 
     of the partnership to which section 721 applies pursuant to a 
     transaction described in paragraph (1)(B) or (2) of section 
     708(b).
       ``(6) Application of section 751.--
       ``(A) In general.--In applying section 751, an investment 
     services partnership interest shall be treated as an 
     inventory item.
       ``(B) Exception for certain dispositions of interests in a 
     publicly traded partnership.--Except as provided by the 
     Secretary, this paragraph shall not apply in the case of any 
     (direct or indirect) disposition of an interest in a publicly 
     traded partnership (as defined in section 7704) which is not 
     an investment services partnership interest in the hands of 
     the person disposing of such interest (or the hands of the 
     person holding such interest indirectly).
       ``(c) Investment Services Partnership Interest.--For 
     purposes of this section--
       ``(1) In general.--The term `investment services 
     partnership interest' means any interest in a partnership 
     which is held (directly or indirectly) by any person if it 
     was reasonably expected (at the time that such person 
     acquired such interest) that such person (or any person 
     related to such person) would provide (directly or, to the 
     extent provided by the Secretary, indirectly) a substantial 
     quantity of any of the following services with respect to 
     assets held (directly or indirectly) by the partnership:
       ``(A) Advising as to the advisability of investing in, 
     purchasing, or selling any specified asset.
       ``(B) Managing, acquiring, or disposing of any specified 
     asset.
       ``(C) Arranging financing with respect to acquiring 
     specified assets.
       ``(D) Any activity in support of any service described in 
     subparagraphs (A) through (C).
       ``(2) Specified asset.--The term `specified asset' means 
     securities (as defined in section 475(c)(2) without regard to 
     the last sentence thereof), real estate held for rental or 
     investment, interests in partnerships, commodities (as 
     defined in section 475(e)(2)), or options or derivative 
     contracts with respect to any of the foregoing.
       ``(3) Exception for family farms.--The term `specified 
     asset' shall not include any farm used for farming purposes 
     if such farm is held by a partnership all of the interests in 
     which are held (directly or indirectly) by members of the 
     same family. Terms used in the preceding sentence which are 
     also used in section 2032A shall have the same meaning as 
     when used in such section.
       ``(4) Exception for partnerships with pro rata allocations 
     based on capital.--Except as provided by the Secretary, the 
     term `investment services partnership interest' shall not 
     include any interest in a partnership if all distributions 
     and all allocations of the partnership, and of any other 
     partnership in which the partnership directly or indirectly 
     holds an interest, are made pro rata on the basis of the 
     capital contributions of each partner which constitute 
     qualified capital interests under subsection (d).
       ``(5) Related persons.--A person shall be treated as 
     related to another person if the relationship between such 
     persons is described in section 267 or 707(b).
       ``(d) Exception for Certain Capital Interests.--
       ``(1) In general.--In the case of any portion of an 
     investment services partnership interest which is a qualified 
     capital interest, all items of income, gain, loss, and 
     deduction which are allocated to such qualified capital 
     interest shall not be taken into account under subsection (a) 
     if--
       ``(A) allocations of items are made by the partnership to 
     such qualified capital interest in the same manner as such 
     allocations are made to other qualified capital interests 
     held by partners who do not provide any services described in 
     subsection (c)(1) and who are not related to the partner 
     holding the qualified capital interest, and
       ``(B) the allocations made to such other interests are 
     significant compared to the allocations made to such 
     qualified capital interest.
       ``(2) Authority to provide exceptions to allocation 
     requirements.--To the extent provided by the Secretary in 
     regulations or other guidance--
       ``(A) Allocations to portion of qualified capital 
     interest.--Paragraph (1) may be applied separately with 
     respect to a portion of a qualified capital interest.
       ``(B) No or insignificant allocations to nonservice 
     providers.--In any case in which the requirements of 
     paragraph (1)(B) are not satisfied, items of income, gain, 
     loss, and deduction shall not be taken into account under 
     subsection (a) to the extent that such items are properly 
     allocable under such regulations or other guidance to 
     qualified capital interests.
       ``(C) Allocations to service providers' qualified capital 
     interests which are less than other allocations.--Allocations 
     shall not be treated as failing to meet the requirement of 
     paragraph (1)(A) merely because the allocations to the 
     qualified capital interest represent a lower return than the 
     allocations made to the other qualified capital interests 
     referred to in such paragraph.
       ``(3) Special rule for changes in services.--In the case of 
     an interest in a partnership which is not an investment 
     services partnership interest and which, by reason of a 
     change in the services with respect to assets held (directly 
     or indirectly) by the partnership, would (without regard to 
     the reasonable expectation exception of subsection (c)(1)) 
     have become such an interest--
       ``(A) notwithstanding subsection (c)(1), such interest 
     shall be treated as an investment services partnership 
     interest as of the time of such change, and
       ``(B) for purposes of this subsection, the qualified 
     capital interest of the holder of such partnership interest 
     immediately after such change shall not be less than the fair 
     market value of such interest (determined immediately before 
     such change).
       ``(4) Special rule for tiered partnerships.--Except as 
     otherwise provided by the Secretary, in the case of tiered 
     partnerships, all items which are allocated in a manner which 
     meets the requirements of paragraph (1) to qualified capital 
     interests in a lower-tier partnership shall retain such 
     character to the extent allocated on the basis of qualified 
     capital interests in any upper-tier partnership.
       ``(5) Exception for no-self-charged carry and management 
     fee provisions.--Except as otherwise provided by the 
     Secretary, an interest shall not fail to be treated as 
     satisfying the requirement of paragraph (1)(A) merely because 
     the allocations made by the partnership to such interest do 
     not reflect the cost of services described in subsection 
     (c)(1) which are provided (directly or indirectly) to the 
     partnership by the holder of such interest (or a related 
     person).
       ``(6) Special rule for dispositions.--In the case of any 
     investment services partnership interest any portion of which 
     is a qualified capital interest, subsection (b) shall not 
     apply to so much of any gain or loss as bears the same 
     proportion to the entire amount of such gain or loss as--
       ``(A) the distributive share of gain or loss that would 
     have been allocated to the qualified capital interest 
     (consistent with the requirements of paragraph (1)) if the 
     partnership had sold all of its assets at fair market value 
     immediately before the disposition, bears to
       ``(B) the distributive share of gain or loss that would 
     have been so allocated to the investment services partnership 
     interest of which such qualified capital interest is a part.
       ``(7) Qualified capital interest.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified capital interest' 
     means so much of a partner's interest in the capital of the 
     partnership as is attributable to--
       ``(i) the fair market value of any money or other property 
     contributed to the partnership in exchange for such interest 
     (determined without regard to section 752(a)),
       ``(ii) any amounts which have been included in gross income 
     under section 83 with respect to the transfer of such 
     interest, and
       ``(iii) the excess (if any) of--

       ``(I) any items of income and gain taken into account under 
     section 702 with respect to such interest, over
       ``(II) any items of deduction and loss so taken into 
     account.

       ``(B) Adjustment to qualified capital interest.--

[[Page 11527]]

       ``(i) Distributions and losses.--The qualified capital 
     interest shall be reduced by distributions from the 
     partnership with respect to such interest and by the excess 
     (if any) of the amount described in subparagraph (A)(iii)(II) 
     over the amount described in subparagraph (A)(iii)(I).
       ``(ii) Special rule for contributions of property.--In the 
     case of any contribution of property described in 
     subparagraph (A)(i) with respect to which the fair market 
     value of such property is not equal to the adjusted basis of 
     such property immediately before such contribution, proper 
     adjustments shall be made to the qualified capital interest 
     to take into account such difference consistent with such 
     regulations or other guidance as the Secretary may provide.
       ``(8) Treatment of certain loans.--
       ``(A) Proceeds of partnership loans not treated as 
     qualified capital interest of service providing partners.--
     For purposes of this subsection, an investment services 
     partnership interest shall not be treated as a qualified 
     capital interest to the extent that such interest is acquired 
     in connection with the proceeds of any loan or other advance 
     made or guaranteed, directly or indirectly, by any other 
     partner or the partnership (or any person related to any such 
     other partner or the partnership). The preceding sentence 
     shall not apply to the extent the loan or other advance is 
     repaid before the date of the enactment of this section 
     unless such repayment is made with the proceeds of a loan or 
     other advance described in the preceding sentence.
       ``(B) Reduction in allocations to qualified capital 
     interests for loans from nonservice-providing partners to the 
     partnership.--For purposes of this subsection, any loan or 
     other advance to the partnership made or guaranteed, directly 
     or indirectly, by a partner not providing services described 
     in subsection (c)(1) to the partnership (or any person 
     related to such partner) shall be taken into account in 
     determining the qualified capital interests of the partners 
     in the partnership.
       ``(e) Other Income and Gain in Connection With Investment 
     Management Services.--
       ``(1) In general.--If--
       ``(A) a person performs (directly or indirectly) investment 
     management services for any entity,
       ``(B) such person holds (directly or indirectly) a 
     disqualified interest with respect to such entity, and
       ``(C) the value of such interest (or payments thereunder) 
     is substantially related to the amount of income or gain 
     (whether or not realized) from the assets with respect to 
     which the investment management services are performed,

     any income or gain with respect to such interest shall be 
     treated as ordinary income. Rules similar to the rules of 
     subsections (a)(4) and (d) shall apply for purposes of this 
     subsection.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Disqualified interest.--
       ``(i) In general.--The term `disqualified interest' means, 
     with respect to any entity--

       ``(I) any interest in such entity other than indebtedness,
       ``(II) convertible or contingent debt of such entity,
       ``(III) any option or other right to acquire property 
     described in subclause (I) or (II), and
       ``(IV) any derivative instrument entered into (directly or 
     indirectly) with such entity or any investor in such entity.

       ``(ii) Exceptions.--Such term shall not include--

       ``(I) a partnership interest,
       ``(II) except as provided by the Secretary, any interest in 
     a taxable corporation, and
       ``(III) except as provided by the Secretary, stock in an S 
     corporation.

       ``(B) Taxable corporation.--The term `taxable corporation' 
     means--
       ``(i) a domestic C corporation, or
       ``(ii) a foreign corporation substantially all of the 
     income of which is--

       ``(I) effectively connected with the conduct of a trade or 
     business in the United States, or
       ``(II) subject to a comprehensive foreign income tax (as 
     defined in section 457A(d)(2)).

       ``(C) Investment management services.--The term `investment 
     management services' means a substantial quantity of any of 
     the services described in subsection (c)(1).
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this section, including 
     regulations or other guidance to--
       ``(1) provide modifications to the application of this 
     section (including treating related persons as not related to 
     one another) to the extent such modification is consistent 
     with the purposes of this section,
       ``(2) prevent the avoidance of the purposes of this 
     section, and
       ``(3) coordinate this section with the other provisions of 
     this title.
       ``(g) Special Rules for Individuals.--In the case of an 
     individual--
       ``(1) In general.--Subsection (a)(1) shall apply only to 
     the applicable percentage of the net income or net loss 
     referred to in such subsection.
       ``(2) Dispositions, etc.--The amount which (but for this 
     paragraph) would be treated as ordinary income by reason of 
     subsection (b) or (e) shall be the applicable percentage of 
     such amount.
       ``(3) Pro rata allocation to items.--For purposes of 
     applying subsections (a) and (e), the aggregate amount 
     treated as ordinary income for any such taxable year shall be 
     allocated ratably among the items of income, gain, loss, and 
     deduction taken into account in determining such amount.
       ``(4) Special rule for recognition of gain.--Gain which 
     (but for this section) would not be recognized shall be 
     recognized by reason of subsection (b) only to the extent 
     that such gain is treated as ordinary income after 
     application of paragraph (2).
       ``(5) Coordination with limitation on losses.--For purposes 
     of applying paragraph (2) of subsection (a) with respect to 
     any net loss for any taxable year--
       ``(A) such paragraph shall only apply with respect to the 
     applicable percentage of such net loss for such taxable year,
       ``(B) in the case of a prior partnership taxable year 
     referred to in clause (i) or (ii) of subparagraph (A) of such 
     paragraph, only the applicable percentage (as in effect for 
     such prior taxable year) of net income or net loss for such 
     prior partnership taxable year shall be taken into account, 
     and
       ``(C) any net loss carried forward to the succeeding 
     partnership taxable year under subparagraph (B) of such 
     paragraph shall--
       ``(i) be taken into account in such succeeding year without 
     reduction under this subsection, and
       ``(ii) in lieu of being taken into account as an item of 
     loss in such succeeding year, shall be taken into account--

       ``(I) as an increase in net loss or as a reduction in net 
     income (including below zero), as the case may be, and
       ``(II) after any reduction in the amount of such net loss 
     or net income under this subsection.

     A rule similar to the rule of the preceding sentence shall 
     apply for purposes of subsection (b)(2)(A).
       ``(6) Coordination with treatment of dividends.--Subsection 
     (a)(4) shall only apply to the applicable percentage of 
     dividends described therein.
       ``(7) Applicable percentage.--For purposes of this 
     subsection--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), the term `applicable percentage' means 75 percent.
       ``(B) Exception for disposition of assets held by 
     investment services partnerships at least 5 years.--The 
     applicable percentage shall be 50 percent with respect to any 
     net income or net loss under subsection (a)(1) which is 
     properly allocable to gain or loss from the disposition (or a 
     distribution under subsection (b)(5)) of any asset (other 
     than an investment services partnership interest) which has 
     been held by the investment services partnership for at least 
     5 years.
       ``(C) Exception for disposition of investment services 
     partnership interests held at least 5 years.--
       ``(i) In general.--The applicable percentage shall be 50 
     percent with respect to--

       ``(I) net income or net loss under subsection (a)(1) which 
     is properly allocable to gain or loss from the disposition 
     (or a distribution under subsection (b)(5)) of an investment 
     services partnership interest which has been held at least 5 
     years, and
       ``(II) gain or loss under subsection (b) on the disposition 
     of an investment services partnership interest which has been 
     held for at least 5 years,

     but only to the extent such gain or loss is attributable to 
     assets held by the investment services partnership for at 
     least 5 years.
       ``(ii) Application in the case of tiered partnerships, 
     etc.--For purposes of determining whether the assets of the 
     investment services partnership have been held for at least 5 
     years under clause (i), an investment services partnership 
     shall be treated as owning its proportionate share of the 
     property of any other partnership in which it has held an 
     investment services partnership interest for at least 5 
     years.
       ``(iii) Regulations.--The Secretary may by regulation or 
     other guidance extend the application of clause (ii) to 
     entities other than investment services partnerships if 
     necessary to prevent the avoidance of the purposes of this 
     subparagraph.
       ``(D) Treatment of goodwill and other section 197 
     intangibles.--For purposes of this paragraph, in the case of 
     any section 197 intangible of an entity through which 
     services described in subparagraphs (A) through (D) of 
     subsection (c)(1) are directly or indirectly provided--
       ``(i) the holding period of such intangible shall not be 
     less than the holding period of the investment services 
     partnership interest in the partnership, and
       ``(ii) the value of such intangible shall be determined in 
     a manner consistent with the regulations described in 
     subparagraph (E).
       ``(E) Valuation methods.--The Secretary shall prescribe 
     regulations or guidance which provide--
       ``(i) the acceptable valuation methods for purposes of this 
     subparagraph, except that such methods shall not include any 
     valuation method which is inconsistent with the method used 
     by the taxpayer for other purposes (including reporting asset 
     valuations

[[Page 11528]]

     to partners or potential partners in the partnership or any 
     related partnership) if such inconsistent valuation method 
     would result in the treatment of a greater amount of gain as 
     attributable to a section 197 intangible than would result 
     under the valuation method used by the taxpayer for such 
     other purposes,
       ``(ii) circumstances under which valuations are 
     sufficiently independent to provide an accurate determination 
     of fair market value, and
       ``(iii) any information required to be furnished to the 
     Secretary by the parties to the disposition with respect to 
     such valuation.
       ``(F) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Investment services partnership.--The term 
     `investment services partnership' means, with respect to any 
     investment services partnership interest, the entity in which 
     such interest is held.
       ``(ii) Section 197 intangible.--The term `section 197 
     intangible' has the meaning given such term in section 
     197(d).
       ``(iii) Application to disqualified interests.--Rules 
     similar to the rules of this paragraph shall apply with 
     respect to income or gain with respect to a disqualified 
     interest under subsection (e).
       ``(h) Cross Reference.--For 40 percent penalty on certain 
     underpayments due to the avoidance of this section, see 
     section 6662.''.
       (b) Treatment for Purposes of Section 7704.--Subsection (d) 
     of section 7704 is amended by adding at the end the following 
     new paragraph:
       ``(6) Income from investment services partnership interests 
     not qualified.--
       ``(A) In general.--Items of income and gain shall not be 
     treated as qualifying income if such items are treated as 
     ordinary income by reason of the application of section 710 
     (relating to special rules for partners providing investment 
     management services to partnership). The preceding sentence 
     shall not apply to any item described in paragraph (1)(E) (or 
     so much of paragraph (1)(F) as relates to paragraph (1)(E)).
       ``(B) Special rules for certain partnerships.--
       ``(i) Certain partnerships owned by real estate investment 
     trusts.--Subparagraph (A) shall not apply in the case of a 
     partnership which meets each of the following requirements:

       ``(I) Such partnership is treated as publicly traded under 
     this section solely by reason of interests in such 
     partnership being convertible into interests in a real estate 
     investment trust which is publicly traded.
       ``(II) 50 percent or more of the capital and profits 
     interests of such partnership are owned, directly or 
     indirectly, at all times during the taxable year by such real 
     estate investment trust (determined with the application of 
     section 267(c)).
       ``(III) Such partnership meets the requirements of 
     paragraphs (2), (3), and (4) of section 856(c).

       ``(ii) Certain partnerships owning other publicly traded 
     partnerships.--Subparagraph (A) shall not apply in the case 
     of a partnership which meets each of the following 
     requirements:

       ``(I) Substantially all of the assets of such partnership 
     consist of interests in one or more publicly traded 
     partnerships (determined without regard to subsection 
     (b)(2)).
       ``(II) Substantially all of the income of such partnership 
     is ordinary income or section 1231 gain (as defined in 
     section 1231(a)(3)).

       ``(C) Transitional rule.--Subparagraph (A) shall not apply 
     to any taxable year of the partnership beginning before the 
     date which is 10 years after the date of the enactment of 
     this paragraph.''.
       (c) Imposition of Penalty on Underpayments.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (7) the following new paragraph:
       ``(8) The application of subsection (e) of section 710, the 
     regulations or other guidance prescribed under section 710(f) 
     to prevent the avoidance of the purposes of section 710, or 
     the regulations or other guidance prescribed under section 
     710(g)(7)(E).''.
       (2) Amount of penalty.--
       (A) In general.--Section 6662 is amended by adding at the 
     end the following new subsection:
       ``(k) Increase in Penalty in Case of Property Transferred 
     for Investment Management Services.--In the case of any 
     portion of an underpayment to which this section applies by 
     reason of subsection (b)(8), subsection (a) shall be applied 
     with respect to such portion by substituting `40 percent' for 
     `20 percent'.''.
       (B) Conforming amendment.--Subparagraph (B) of section 
     6662A(e)(2) is amended by striking ``or (i)'' and inserting 
     ``, (i), or (k)''.
       (3) Special rules for application of reasonable cause 
     exception.--Subsection (c) of section 6664 is amended--
       (A) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively;
       (B) by striking ``paragraph (3)'' in paragraph (5)(A), as 
     so redesignated, and inserting ``paragraph (4)''; and
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Special rule for underpayments attributable to 
     investment management services.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     portion of an underpayment to which section 6662 applies by 
     reason of subsection (b)(8) unless--
       ``(i) the relevant facts affecting the tax treatment of the 
     item are adequately disclosed,
       ``(ii) there is or was substantial authority for such 
     treatment, and
       ``(iii) the taxpayer reasonably believed that such 
     treatment was more likely than not the proper treatment.
       ``(B) Rules relating to reasonable belief.--Rules similar 
     to the rules of subsection (d)(3) shall apply for purposes of 
     subparagraph (A)(iii).''.
       (d) Income and Loss From Investment Services Partnership 
     Interests Taken Into Account in Determining Net Earnings From 
     Self-Employment.--
       (1) Internal revenue code.--Section 1402(a) is amended by 
     striking ``and'' at the end of paragraph (16), by striking 
     the period at the end of paragraph (17) and inserting ``; 
     and'', and by inserting after paragraph (17) the following 
     new paragraph:
       ``(18) notwithstanding the preceding provisions of this 
     subsection, in the case of any individual engaged in the 
     trade or business of providing services described in section 
     710(c)(1) with respect to any entity, any amount treated as 
     ordinary income or ordinary loss of such individual under 
     section 710 with respect to such entity shall be taken into 
     account in determining the net earnings from self-employment 
     of such individual.''.
       (2) Social security act.--Section 211(a) of the Social 
     Security Act is amended by striking ``and'' at the end of 
     paragraph (15), by striking the period at the end of 
     paragraph (16) and inserting ``; and'', and by inserting 
     after paragraph (16) the following new paragraph:
       ``(17) Notwithstanding the preceding provisions of this 
     subsection, in the case of any individual engaged in the 
     trade or business of providing services described in section 
     710(c)(1) of the Internal Revenue Code of 1986 with respect 
     to any entity, any amount treated as ordinary income or 
     ordinary loss of such individual under section 710 of such 
     Code with respect to such entity shall be taken into account 
     in determining the net earnings from self-employment of such 
     individual.''.
       (e) Conforming Amendments.--
       (1) Subsection (d) of section 731 is amended by inserting 
     ``section 710(b)(4) (relating to distributions of partnership 
     property),'' after ``to the extent otherwise provided by''.
       (2) Section 741 is amended by inserting ``or section 710 
     (relating to special rules for partners providing investment 
     management services to partnership)'' before the period at 
     the end.
       (3) The table of sections for part I of subchapter K of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Sec. 710. Special rules for partners providing investment management 
              services to partnership.''.

       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years ending after December 31, 2010.
       (2) Partnership taxable years which include effective 
     date.--In applying section 710(a) of the Internal Revenue 
     Code of 1986 (as added by this section) in the case of any 
     partnership taxable year which includes December 31, 2010, 
     the amount of the net income referred to in such section 
     shall be treated as being the lesser of the net income for 
     the entire partnership taxable year or the net income 
     determined by only taking into account items attributable to 
     the portion of the partnership taxable year which is after 
     such date.
       (3) Dispositions of partnership interests.--Section 710(b) 
     of the Internal Revenue Code of 1986 (as added by this 
     section) shall apply to dispositions and distributions after 
     December 31, 2010.
       (4) Other income and gain in connection with investment 
     management services.--Section 710(e) of such Code (as added 
     by this section) shall take effect on December 31, 2010.

     SEC. 413. EMPLOYMENT TAX TREATMENT OF PROFESSIONAL SERVICE 
                   BUSINESSES.

       (a) In General.--Section 1402 is amended by adding at the 
     end the following new subsection:
       ``(m) Special Rules for Professional Service Businesses.--
       ``(1) Shareholders providing services to disqualified s 
     corporations.--
       ``(A) In general.--In the case of any disqualified S 
     corporation, each shareholder of such disqualified S 
     corporation who provides substantial services with respect to 
     the professional service business referred to in subparagraph 
     (C) shall take into account such shareholder's pro rata share 
     of all items of income or loss described in section 1366 
     which are attributable to such business in determining the 
     shareholder's net earnings from self-employment.
       ``(B) Treatment of family members.--Except as otherwise 
     provided by the Secretary, the shareholder's pro rata share 
     of items referred to in subparagraph (A) shall be increased 
     by the pro rata share of such items of each member of such 
     shareholder's family (within the meaning of section 
     318(a)(1)) who

[[Page 11529]]

     does not provide substantial services with respect to such 
     professional service business.
       ``(C) Disqualified s corporation.--For purposes of this 
     subsection, the term `disqualified S corporation' means--
       ``(i) any S corporation which is a partner in a partnership 
     which is engaged in a professional service business if 
     substantially all of the activities of such S corporation are 
     performed in connection with such partnership, and
       ``(ii) any other S corporation which is engaged in a 
     professional service business if 80 percent or more of the 
     gross income of such business is attributable to service of 3 
     or fewer shareholders of such corporation.
       ``(2) Partners.--In the case of any partnership which is 
     engaged in a professional service business, subsection 
     (a)(13) shall not apply to any partner who provides 
     substantial services with respect to such professional 
     service business.
       ``(3) Professional service business.--For purposes of this 
     subsection, the term `professional service business' means 
     any trade or business (or portion thereof) providing services 
     in the fields of health, law, lobbying, engineering, 
     architecture, accounting, actuarial science, performing arts, 
     consulting, athletics, investment advice or management, or 
     brokerage services.
       ``(4) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection, including regulations which 
     prevent the avoidance of the purposes of this subsection 
     through tiered entities or otherwise.
       ``(5) Cross reference.--For employment tax treatment of 
     wages paid to shareholders of S corporations, see subtitle 
     C.''.
       (b) Conforming Amendment.--Section 211 of the Social 
     Security Act is amended by adding at the end the following 
     new subsection:
       ``(l) Special Rules for Professional Service Businesses.--
       ``(1) Shareholders providing services to disqualified s 
     corporations.--
       ``(A) In general.--In the case of any disqualified S 
     corporation, each shareholder of such disqualified S 
     corporation who provides substantial services with respect to 
     the professional service business referred to in subparagraph 
     (C) shall take into account such shareholder's pro rata share 
     of all items of income or loss described in section 1366 of 
     the Internal Revenue Code of 1986 which are attributable to 
     such business in determining the shareholder's net earnings 
     from self-employment.
       ``(B) Treatment of family members.--Except as otherwise 
     provided by the Secretary of the Treasury, the shareholder's 
     pro rata share of items referred to in subparagraph (A) shall 
     be increased by the pro rata share of such items of each 
     member of such shareholder's family (within the meaning of 
     section 318(a)(1) of the Internal Revenue Code of 1986) who 
     does not provide substantial services with respect to such 
     professional service business.
       ``(C) Disqualified s corporation.--For purposes of this 
     subsection, the term `disqualified S corporation' means--
       ``(i) any S corporation which is a partner in a partnership 
     which is engaged in a professional service business if 
     substantially all of the activities of such S corporation are 
     performed in connection with such partnership, and
       ``(ii) any other S corporation which is engaged in a 
     professional service business if 80 percent or more of the 
     gross income of such business is attributable to service of 3 
     or fewer shareholders of such corporation.
       ``(2) Partners.--In the case of any partnership which is 
     engaged in a professional service business, subsection 
     (a)(12) shall not apply to any partner who provides 
     substantial services with respect to such professional 
     service business.
       ``(3) Professional service business.--For purposes of this 
     subsection, the term `professional service business' means 
     any trade or business (or portion thereof) providing services 
     in the fields of health, law, lobbying, engineering, 
     architecture, accounting, actuarial science, performing arts, 
     consulting, athletics, investment advice or management, or 
     brokerage services.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    Subtitle C--Corporate Provisions

     SEC. 421. TREATMENT OF SECURITIES OF A CONTROLLED CORPORATION 
                   EXCHANGED FOR ASSETS IN CERTAIN 
                   REORGANIZATIONS.

       (a) In General.--Section 361 (relating to nonrecognition of 
     gain or loss to corporations; treatment of distributions) is 
     amended by adding at the end the following new subsection:
       ``(d) Special Rules for Transactions Involving Section 355 
     Distributions.--In the case of a reorganization described in 
     section 368(a)(1)(D) with respect to which stock or 
     securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355--
       ``(1) this section shall be applied by substituting `stock 
     other than nonqualified preferred stock (as defined in 
     section 351(g)(2))' for `stock or securities' in subsections 
     (a) and (b)(1), and
       ``(2) the first sentence of subsection (b)(3) shall apply 
     only to the extent that the sum of the money and the fair 
     market value of the other property transferred to such 
     creditors does not exceed the adjusted bases of such assets 
     transferred (reduced by the amount of the liabilities assumed 
     (within the meaning of section 357(c))).''.
       (b) Conforming Amendment.--Paragraph (3) of section 361(b) 
     is amended by striking the last sentence.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to exchanges 
     after the date of the enactment of this Act.
       (2) Transition rule.--The amendments made by this section 
     shall not apply to any exchange pursuant to a transaction 
     which is--
       (A) made pursuant to a written agreement which was binding 
     on March 15, 2010, and at all times thereafter;
       (B) described in a ruling request submitted to the Internal 
     Revenue Service on or before such date; or
       (C) described on or before such date in a public 
     announcement or in a filing with the Securities and Exchange 
     Commission.

     SEC. 422. TAXATION OF BOOT RECEIVED IN REORGANIZATIONS.

       (a) In General.--Paragraph (2) of section 356(a) is 
     amended--
       (1) by striking ``If an exchange'' and inserting ``Except 
     as otherwise provided by the Secretary--
       ``(A) In general.--If an exchange'';
       (2) by striking ``then there shall be'' and all that 
     follows through ``February 28, 1913'' and inserting ``then 
     the amount of other property or money shall be treated as a 
     dividend to the extent of the earnings and profits of the 
     corporation''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Certain reorganizations.--In the case of a 
     reorganization described in section 368(a)(1)(D) to which 
     section 354(b)(1) applies or any other reorganization 
     specified by the Secretary, in applying subparagraph (A)--
       ``(i) the earnings and profits of each corporation which is 
     a party to the reorganization shall be taken into account, 
     and
       ``(ii) the amount which is a dividend (and source thereof) 
     shall be determined under rules similar to the rules of 
     paragraphs (2) and (5) of section 304(b).''.
       (b) Earnings and Profits.--Paragraph (7) of section 312(n) 
     is amended by adding at the end the following: ``A similar 
     rule shall apply to an exchange to which section 356(a)(1) 
     applies.''.
       (c) Conforming Amendment.--Paragraph (1) of section 356(a) 
     is amended by striking ``then the gain'' and inserting ``then 
     (except as provided in paragraph (2)) the gain''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to exchanges 
     after the date of the enactment of this Act.
       (2) Transition rule.--The amendments made by this section 
     shall not apply to any exchange between unrelated persons 
     pursuant to a transaction which is--
       (A) made pursuant to a written agreement which was binding 
     on May 20, 2010, and at all times thereafter;
       (B) described in a ruling request submitted to the Internal 
     Revenue Service on or before such date; or
       (C) described in a public announcement or filing with the 
     Securities and Exchange Commission on or before such date.
       (3) Related persons.--For purposes of this subsection, a 
     person shall be treated as related to another person if the 
     relationship between such persons is described in section 267 
     or 707(b) of the Internal Revenue Code of 1986.

                      Subtitle D--Other Provisions

     SEC. 431. MODIFICATIONS WITH RESPECT TO OIL SPILL LIABILITY 
                   TRUST FUND.

       (a) Extension of Application of Oil Spill Liability Trust 
     Fund Financing Rate.--Paragraph (2) of section 4611(f) is 
     amended by striking ``December 31, 2017'' and inserting 
     ``December 31, 2020''.
       (b) Increase in Oil Spill Liability Trust Fund Financing 
     Rate.--Subparagraph (B) of section 4611(c)(2) is amended to 
     read as follows:
       ``(B) the Oil Spill Liability Trust Fund financing rate is 
     49 cents a barrel.''.
       (c) Increase in Per Incident Limitations on Expenditures.--
     Subparagraph (A) of section 9509(c)(2) is amended--
       (1) by striking ``$1,000,000,000'' in clause (i) and 
     inserting ``$5,000,000,000'';
       (2) by striking ``$500,000,000'' in clause (ii) and 
     inserting ``$2,500,000,000''; and
       (3) by striking ``$1,000,000,000 per incident, etc'' in the 
     heading and inserting ``Per incident limitations''.
       (d) Effective Date.--
       (1) Extension of financing rate.--Except as provided in 
     paragraph (2), the amendments made by this section shall take 
     effect on the date of the enactment of this Act.
       (2) Increase in financing rate.--The amendment made by 
     subsection (b) shall apply to crude oil received and 
     petroleum products entered during calendar quarters beginning 
     more than 60 days after the date of the enactment of this 
     Act.

[[Page 11530]]



     SEC. 432. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under paragraph (2) of section 561 of the 
     Hiring Incentives to Restore Employment Act in effect on the 
     date of the enactment of this Act is increased by 36 
     percentage points.

     SEC. 433. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

       (a) Disallowance of Deduction for Punitive Damages.--
       (1) In general.--Section 162(g) (relating to treble damage 
     payments under the antitrust laws) is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (B) by striking ``If'' and inserting:
       ``(1) Treble damages.--If'', and
       (C) 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).''.
       (2) Conforming amendment.--The heading for section 162(g) 
     is amended by inserting ``Or Punitive Damages'' after 
     ``Laws''.
       (b) Inclusion in Income of Punitive Damages Paid by Insurer 
     or Otherwise.--
       (1) 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.''.
       (2) 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.''.
       (3) 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.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to damages paid or incurred after December 31, 
     2011.

     SEC. 434. ELIMINATION OF ADVANCE REFUNDABILITY OF EARNED 
                   INCOME CREDIT.

       (a) In General.--The following provisions are repealed:
       (1) Section 3507.
       (2) Subsection (g) of section 32.
       (3) Paragraph (7) of section 6051(a).
       (b) Conforming Amendments.--
       (1) Section 6012(a) is amended by striking paragraph (8) 
     and by redesignating paragraph (9) as paragraph (8).
       (2) Section 6302 is amended by striking subsection (i).
       (3) The table of sections for chapter 25 is amended by 
     striking the item relating to section 3507.
       (c) Effective Date.--The repeals and amendments made by 
     this section shall apply to taxable years beginning after 
     December 31, 2010.

          TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE

        Subtitle A--Unemployment Insurance and Other Assistance

     SEC. 501. 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 ``June 2, 2010'' each place it appears and 
     inserting ``November 30, 2010'';
       (B) in the heading for subsection (b)(2), by striking 
     ``june 2, 2010'' and inserting ``november 30, 2010''; and
       (C) in subsection (b)(3), by striking ``November 6, 2010'' 
     and inserting ``April 30, 2011''.
       (2) 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 ``June 2, 2010'' each place it appears and 
     inserting ``December 1, 2010''; and
       (B) in subsection (c), by striking ``November 6, 2010'' and 
     inserting ``May 1, 2011''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``November 6, 2010'' and inserting 
     ``April 30, 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 (D), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (E) the following:
       ``(F) the amendments made by section 501(a)(1) of the 
     American Jobs and Closing Tax Loopholes Act of 2010; and''.
       (c) Conditions for Receiving Emergency Unemployment 
     Compensation.--Section 4001(d)(2) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended, in the matter preceding subparagraph (A), 
     by inserting before ``shall apply'' the following: 
     ``(including terms and conditions relating to availability 
     for work, active search for work, and refusal to accept 
     work)''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Continuing Extension Act of 2010 (Public Law 111-157).

     SEC. 502. COORDINATION OF EMERGENCY UNEMPLOYMENT COMPENSATION 
                   WITH REGULAR COMPENSATION.

       (a) Certain Individuals Not Ineligible by Reason of New 
     Entitlement to Regular Benefits.--Section 4002 of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
     U.S.C. 3304 note) is amended by adding at the end the 
     following:
       ``(g) Coordination of Emergency Unemployment Compensation 
     With Regular Compensation.--
       ``(1) If--
       ``(A) an individual has been determined to be entitled to 
     emergency unemployment compensation with respect to a benefit 
     year,
       ``(B) that benefit year has expired,
       ``(C) that individual has remaining entitlement to 
     emergency unemployment compensation with respect to that 
     benefit year, and
       ``(D) that individual would qualify for a new benefit year 
     in which the weekly benefit amount of regular compensation is 
     at least either $100 or 25 percent less than the individual's 
     weekly benefit amount in the benefit year referred to in 
     subparagraph (A),

     then the State shall determine eligibility for compensation 
     as provided in paragraph (2).
       ``(2) For individuals described in paragraph (1), the State 
     shall determine whether the individual is to be paid 
     emergency unemployment compensation or regular compensation 
     for a week of unemployment using one of the following 
     methods:
       ``(A) The State shall, if permitted by State law, establish 
     a new benefit year, but defer the payment of regular 
     compensation with respect to that new benefit year until 
     exhaustion of all emergency unemployment compensation payable 
     with respect to the benefit year referred to in paragraph 
     (1)(A);
       ``(B) The State shall, if permitted by State law, defer the 
     establishment of a new benefit year (which uses all the wages 
     and employment which would have been used to establish a 
     benefit year but for the application of this paragraph), 
     until exhaustion of all emergency unemployment compensation 
     payable with respect to the benefit year referred to in 
     paragraph(1)(A);
       ``(C) The State shall pay, if permitted by State law--
       ``(i) regular compensation equal to the weekly benefit 
     amount established under the new benefit year, and
       ``(ii) emergency unemployment compensation equal to the 
     difference between that weekly benefit amount and the weekly 
     benefit amount for the expired benefit year; or
       ``(D) The State shall determine rights to emergency 
     unemployment compensation without regard to any rights to 
     regular compensation if the individual elects to not file a 
     claim for regular compensation under the new benefit year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals whose benefit years, as described 
     in section 4002(g)(1)(B) the Supplemental Appropriations Act, 
     2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
     this section, expire after the date of enactment of this Act.

     SEC. 503. EXTENSION OF THE EMERGENCY CONTINGENCY FUND.

       (a) In General.--Section 403(c) of the Social Security Act 
     (42 U.S.C. 603(c)) is amended--
       (1) in paragraph (2)(A), by inserting ``, and for fiscal 
     year 2011, $2,500,000,000'' before ``for payment'';
       (2) by striking paragraph (2)(B) and inserting the 
     following:
       ``(B) Availability and use of funds.--
       ``(i) Fiscal years 2009 and 2010.--The amounts appropriated 
     to the Emergency Fund under subparagraph (A) for fiscal year 
     2009 shall remain available through fiscal year 2010 and 
     shall be used to make grants to States in each of fiscal 
     years 2009 and 2010 in accordance with paragraph (3), except 
     that the amounts shall remain available through fiscal year 
     2011 to make grants and payments to States in accordance with 
     paragraph (3)(C) to cover expenditures to subsidize 
     employment positions held by individuals placed in the 
     positions before fiscal year 2011.
       ``(ii) Fiscal year 2011.--Subject to clause (iii), the 
     amounts appropriated to the Emergency Fund under subparagraph 
     (A) for fiscal year 2011 shall remain available through 
     fiscal year 2012 and shall be used to make grants to States 
     based on expenditures in fiscal year 2011 for benefits and 
     services provided in fiscal year 2011 in accordance with the 
     requirements of paragraph (3).
       ``(iii) Reservation of funds.--Of the amounts appropriated 
     to the Emergency Fund under subparagraph (A) for fiscal year 
     2011, $500,000 shall be placed in reserve for use in fiscal 
     year 2012, and shall be used to award grants for any 
     expenditures described

[[Page 11531]]

     in this subsection incurred by States after September 30, 
     2011.'';
       (3) in paragraph (2)(C), by striking ``2010'' and inserting 
     ``2012'';
       (4) in paragraph (3)--
       (A) in clause (i) of each of subparagraphs (A), (B), and 
     (C)--
       (i) by striking ``year 2009 or 2010'' and inserting ``years 
     2009 through 2011'';
       (ii) by striking ``and'' at the end of subclause (I);
       (iii) by striking the period at the end of subclause (II) 
     and inserting ``; and''; and
       (iv) by adding at the end the following:

       ``(III) if the quarter is in fiscal year 2011, has provided 
     the Secretary with such information as the Secretary may find 
     necessary in order to make the determinations, or take any 
     other action, described in paragraph (5)(C).''; and

       (B) in subparagraph (C), by adding at the end the 
     following:
       ``(iv) Limitation on expenditures for subsidized 
     employment.--An expenditure for subsidized employment shall 
     be taken into account under clause (ii) only if the 
     expenditure is used to subsidize employment for--

       ``(I) a member of a needy family (without regard to whether 
     the family is receiving assistance under the State program 
     funded under this part); or
       ``(II) an individual who has exhausted (or, within 60 days, 
     will exhaust) all rights to receive unemployment compensation 
     under Federal and State law, and who is a member of a needy 
     family.'';

       (5) by striking paragraph (5) and inserting the following:
       ``(5) Limitations on payments; adjustment authority.--
       ``(A) Fiscal years 2009 and 2010.--The total amount payable 
     to a single State under subsection (b) and this subsection 
     for fiscal years 2009 and 2010 combined shall not exceed 50 
     percent of the annual State family assistance grant.
       ``(B) Fiscal year 2011.--Subject to subparagraph (C), the 
     total amount payable to a single State under subsection (b) 
     and this subsection for fiscal year 2011 shall not exceed 30 
     percent of the annual State family assistance grant.
       ``(C) Adjustment authority.--If the Secretary determines 
     that the Emergency Fund is at risk of being depleted before 
     September 30, 2011, or that funds are available to 
     accommodate additional State requests under this subsection, 
     the Secretary may, through program instructions issued 
     without regard to the requirements of section 553 of title 5, 
     United States Code--
       ``(i) specify priority criteria for awarding grants to 
     States during fiscal year 2011; and
       ``(ii) adjust the percentage limitation applicable under 
     subparagraph (B) with respect to the total amount payable to 
     a single State for fiscal year 2011.''; and
       (6) in paragraph (6), by inserting ``or for expenditures 
     described in paragraph (3)(C)(iv)'' before the period.
       (b) Conforming Amendments.--Section 2101 of division B of 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5) is amended--
       (1) in subsection (a)(2)--
       (A) by striking ``2010'' and inserting ``2011''; and
       (B) by striking all that follows ``repealed'' and inserting 
     a period; and
       (2) in subsection (d)(1), by striking ``2010'' and 
     inserting ``2011''.
       (c) Program Guidance.--The Secretary of Health and Human 
     Services shall issue program guidance, without regard to the 
     requirements of section 553 of title 5, United States Code, 
     which ensures that the funds provided under the amendments 
     made by this section to a jurisdiction for subsidized 
     employment do not support any subsidized employment position 
     the annual salary of which is greater than, at State option--
       (1) 200 percent of the poverty line (within the meaning of 
     section 673(2) of the Omnibus Budget Reconciliation Act of 
     1981, including any revision required by such section 673(2)) 
     for a family of 4; or
       (2) the median wage in the jurisdiction.

     SEC. 504. REQUIRING STATES TO NOT REDUCE REGULAR COMPENSATION 
                   IN ORDER TO BE ELIGIBLE FOR FUNDS UNDER THE 
                   EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

       Section 4001 of the Supplemental Appropriations Act, 2008 
     (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
     adding at the end the following new subsection:
       ``(g) Nonreduction Rule.--An agreement under this section 
     shall not apply (or shall cease to apply) with respect to a 
     State upon a determination by the Secretary that the method 
     governing the computation of regular compensation under the 
     State law of that State has been modified in a manner such 
     that--
       ``(1) the average weekly benefit amount of regular 
     compensation which will be payable during the period of the 
     agreement occurring on or after June 2, 2010 (determined 
     disregarding any additional amounts attributable to the 
     modification described in section 2002(b)(1) 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)), will be less than
       ``(2) the average weekly benefit amount of regular 
     compensation which would otherwise have been payable during 
     such period under the State law, as in effect on June 2, 
     2010.''.

                     Subtitle B--Health Provisions

     SEC. 511. EXTENSION OF SECTION 508 RECLASSIFICATIONS.

       (a) In General.--Section 106(a) 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), section 124 of 
     the Medicare Improvements for Patients and Providers Act of 
     2008 (Public Law 110-275), and sections 3137(a) and 10317 of 
     Public Law 111-148, is amended by striking ``September 30, 
     2010'' and inserting ``September 30, 2011''.
       (b) Conforming Amendment.--Section 117(a)(3) of the 
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
     Law 110-173)), is amended by inserting ``in fiscal years 2008 
     and 2009'' after ``For purposes of implementation of this 
     subsection''.

     SEC. 512. REPEAL OF DELAY OF RUG-IV.

       Effective as if included in the enactment of Public Law 
     111-148, section 10325 of such Act is repealed.

     SEC. 513. LIMITATION ON REASONABLE COSTS PAYMENTS FOR CERTAIN 
                   CLINICAL DIAGNOSTIC LABORATORY TESTS FURNISHED 
                   TO HOSPITAL PATIENTS IN CERTAIN RURAL AREAS.

       Section 3122 of Public Law 111-148 is repealed and the 
     provision of law amended by such section is restored as if 
     such section had not been enacted.

     SEC. 514. FUNDING FOR CLAIMS REPROCESSING.

       For purposes of carrying out the provisions of, and 
     amendments made by, this Act that relate to title XVIII of 
     the Social Security Act, and other provisions of such title 
     that involve reprocessing of claims, 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, $175,000,000. Amounts appropriated 
     under the preceding sentence shall remain available until 
     expended.

     SEC. 515. MEDICAID AND CHIP TECHNICAL CORRECTIONS.

       (a) Repeal of Exclusion of Certain Individuals and Entities 
     From Medicaid.--Section 6502 of Public Law 111-148 is 
     repealed and the provisions of law amended by such section 
     are restored as if such section had never been enacted. 
     Nothing in the previous sentence shall affect the execution 
     or placement of the insertion made by section 6503 of such 
     Act.
       (b) Income Level for Certain Children Under Medicaid.--
     Effective as if included in the enactment of Public Law 111-
     148, section 2001(a)(5)(B) of such Act is amended by striking 
     all that follows ``is amended'' and inserting the following: 
     ``by inserting after `100 percent' the following: `(or, 
     beginning January 1, 2014, 133 percent)'.''.
       (c) Calculation and Publication of Payment Error Rate 
     Measurement for Certain Years.--Section 601(b) of the 
     Children's Health Insurance Program Reauthorization Act of 
     2009 (Public Law 111-3) is amended by adding at the end the 
     following: ``The Secretary is not required under this 
     subsection to calculate or publish a national or a State-
     specific error rate for fiscal year 2009 or fiscal year 
     2010.''.
       (d) Corrections to Exceptions to Exclusion of Children of 
     Certain Employees.--Section 2110(b)(6) of the Social Security 
     Act (42 U.S.C. 1397jj(b)(6)) is amended--
       (1) in subparagraph (B)--
       (A) by striking ``per person'' in the heading; and
       (B) by striking ``each employee'' and inserting 
     ``employees''; and
       (2) in subparagraph (C), by striking ``, on a case-by-case 
     basis,''.
       (e) Electronic Health Records.--Effective as if included in 
     the enactment of section 4201(a)(2) of the American Recovery 
     and Reinvestment Act of 2009 (Public Law 111-5), section 
     1903(t) of the Social Security Act (42 U.S.C. 1396b(t)) is 
     amended--
       (1) in paragraph (3)(E), by striking ``reduced by any 
     payment that is made to such Medicaid provider from any other 
     source (other than under this subsection or by a State or 
     local government)'' and inserting ``reduced by the average 
     payment the Secretary estimates will be made to such Medicaid 
     providers (determined on a percentage or other basis for such 
     classes or types of providers as the Secretary may specify) 
     from other sources (other than under this subsection, or by 
     the Federal government or a State or local government)''; and
       (2) in paragraph (6)(B), by inserting before the period the 
     following: ``and shall be determined to have met such 
     responsibility to the extent that the payment to the Medicaid 
     provider is not in excess of 85 percent of the net average 
     allowable cost''.
       (f) Corrections of Designations.--
       (1) Section 1902 of the Social Security Act (42 U.S.C. 
     1396a) is amended--
       (A) in subsection (a)(10), in the matter following 
     subparagraph (G), by striking ``and'' before ``(XVI) the 
     medical'' and by striking ``(XVI) if'' and inserting ``(XVII) 
     if''; and
       (B) in subsection (ii)(2), by striking ``(XV)'' and 
     inserting ``(XVI)''.

[[Page 11532]]

       (2) Section 2107(e)(1) of the Social Security Act (42 
     U.S.C. 1397gg(e)(1)) is amended by redesignating the 
     subparagraph (N) of that section added by 2101(e) of Public 
     Law 111-148 as subparagraph (O).

     SEC. 516. ADDITION OF INPATIENT DRUG DISCOUNT PROGRAM TO 340B 
                   DRUG DISCOUNT PROGRAM.

       (a) Addition of Inpatient Drug Discount.--Title III of the 
     Public Health Service Act is amended by inserting after 
     section 340B (42 U.S.C. 256b) the following:

     ``SEC. 340B-1. DISCOUNT INPATIENT DRUGS FOR INDIVIDUALS 
                   WITHOUT PRESCRIPTION DRUG COVERAGE.

       ``(a) Requirements for Agreements With the Secretary.--
       ``(1) In general.--
       ``(A) Agreement.--The Secretary shall enter into an 
     agreement with each manufacturer of covered inpatient drugs 
     under which the amount required to be paid (taking into 
     account any rebate or discount, as provided by the Secretary) 
     to the manufacturer for covered inpatient drugs (other than 
     drugs described in paragraph (3)) purchased by a covered 
     entity on or after January 1, 2011, does not exceed an amount 
     equal to the average manufacturer price for the drug under 
     title XIX of the Social Security Act in the preceding 
     calendar quarter, reduced by the rebate percentage described 
     in paragraph (2). For a covered inpatient drug that also is a 
     covered outpatient drug under section 340B, the amount 
     required to be paid under the preceding sentence shall be 
     equal to the amount required to be paid under section 
     340B(a)(1) for such drug. The agreement with a manufacturer 
     under this subparagraph may, at the discretion of the 
     Secretary, be included in the agreement with the same 
     manufacturer under section 340B.
       ``(B) Ceiling price.--Each such agreement shall require 
     that the manufacturer furnish the Secretary with reports, on 
     a quarterly basis, of the price for each covered inpatient 
     drug subject to the agreement that, according to the 
     manufacturer, represents the maximum price that covered 
     entities may permissibly be required to pay for the drug 
     (referred to in this section as the `ceiling price'), and 
     shall require that the manufacturer offer each covered entity 
     covered inpatient drugs for purchase at or below the 
     applicable ceiling price if such drug is made available to 
     any other purchaser at any price.
       ``(C) Allocation method.--Each such agreement shall require 
     that, if the supply of a covered inpatient drug is 
     insufficient to meet demand, then the manufacturer may use an 
     allocation method that is reported in writing to, and 
     approved by, the Secretary and does not discriminate on the 
     basis of the price paid by covered entities or on any other 
     basis related to the participation of an entity in the 
     program under this section.
       ``(2) Rebate percentage defined.--
       ``(A) In general.--For a covered inpatient drug purchased 
     in a calendar quarter, the `rebate percentage' is the amount 
     (expressed as a percentage) equal to--
       ``(i) the average total rebate required under section 
     1927(c) of the Social Security Act (or the average total 
     rebate that would be required if the drug were a covered 
     outpatient drug under such section) with respect to the drug 
     (for a unit of the dosage form and strength involved) during 
     the preceding calendar quarter; divided by
       ``(ii) the average manufacturer price for such a unit of 
     the drug during such quarter.
       ``(B) Over the counter drugs.--
       ``(i) In general.--For purposes of subparagraph (A), in the 
     case of over the counter drugs, the `rebate percentage' shall 
     be determined as if the rebate required under section 1927(c) 
     of the Social Security Act is based on the applicable 
     percentage provided under section 1927(c)(3) of such Act.
       ``(ii) Definition.--The term `over the counter drug' means 
     a drug that may be sold without a prescription and which is 
     prescribed by a physician (or other persons authorized to 
     prescribe such drug under State law).
       ``(3) Drugs provided under state medicaid plans.--Drugs 
     described in this paragraph are drugs purchased by the entity 
     for which payment is made by the State under the State plan 
     for medical assistance under title XIX of the Social Security 
     Act.
       ``(4) Requirements for covered entities.--
       ``(A) Prohibiting duplicate discounts or rebates.--
       ``(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:
       ``(1) A subsection (d) hospital (as defined in section 
     1886(d)(1)(B) of the Social Security Act) that--
       ``(A) is owned or operated by a unit of State or local 
     government, is a public or private non-profit corporation 
     which is formally granted governmental powers by a unit of 
     State or local government, or is a private nonprofit hospital 
     which has a contract with a State or local government to 
     provide health care services to low income individuals who 
     are not entitled to benefits under title XVIII of the Social 
     Security Act or eligible for assistance under the State plan 
     for

[[Page 11533]]

     medical assistance under title XIX of such Act; and
       ``(B) for the most recent cost reporting period that ended 
     before the calendar quarter involved, had a disproportionate 
     share adjustment percentage (as determined using the 
     methodology under section 1886(d)(5)(F) of the Social 
     Security Act as in effect on the date of enactment of this 
     section) greater than 20.20 percent or was described in 
     section 1886(d)(5)(F)(i)(II) of such Act (as so in effect on 
     the date of enactment of this section).
       ``(2) A children's hospital excluded from the Medicare 
     prospective payment system pursuant to section 
     1886(d)(1)(B)(iii) of the Social Security Act that would meet 
     the requirements of paragraph (1), including the 
     disproportionate share adjustment percentage requirement 
     under subparagraph (B) of such paragraph, if the hospital 
     were a subsection (d) hospital as defined by section 
     1886(d)(1)(B) of the Social Security Act.
       ``(3) A free-standing cancer hospital excluded from the 
     Medicare prospective payment system pursuant to section 
     1886(d)(1)(B)(v) of the Social Security Act that would meet 
     the requirements of paragraph (1), including the 
     disproportionate share adjustment percentage requirement 
     under subparagraph (B) of such paragraph, if the hospital 
     were a subsection (d) hospital as defined by section 
     1886(d)(1)(B) of the Social Security Act.
       ``(4) An entity that is a critical access hospital (as 
     determined under section 1820(c)(2) of the Social Security 
     Act), and that meets the requirements of paragraph (1)(A).
       ``(5) An entity that is a rural referral center, as defined 
     by section 1886(d)(5)(C)(i) of the Social Security Act, or a 
     sole community hospital, as defined by section 
     1886(d)(5)(C)(iii) of such Act, and that both meets the 
     requirements of paragraph (1)(A) and has a disproportionate 
     share adjustment percentage equal to or greater than 8 
     percent.
       ``(c) Other Definitions.--In this section:
       ``(1) Average manufacturer price.--
       ``(A) In general.--The term `average manufacturer price'--
       ``(i) has the meaning given such term in section 1927(k) of 
     the Social Security Act, except that such term shall be 
     applied under this section with respect to covered inpatient 
     drugs in the same manner (as applicable) as such term is 
     applied under such section 1927(k) with respect to covered 
     outpatient drugs (as defined in such section); and
       ``(ii) with respect to a covered inpatient drug for which 
     there is no average manufacturer price (as defined in clause 
     (i)), shall be the amount determined under regulations 
     promulgated by the Secretary under subparagraph (B).
       ``(B) Rulemaking.--The Secretary shall by regulation, in 
     consultation with the Administrator of the Centers for 
     Medicare & Medicaid Services, establish a method for 
     determining the average manufacturer price for covered 
     inpatient drugs for which there is no average manufacturer 
     price (as defined in subparagraph (A)(i)). Regulations 
     promulgated with respect to covered inpatient drugs under the 
     preceding sentence shall provide for the application of 
     methods for determining the average manufacturer price that 
     are the same as the methods used to determine such price in 
     calculating rebates required for such drugs under an 
     agreement between a manufacturer and a State that satisfies 
     the requirements of section 1927(b) of the Social Security 
     Act, as applicable.
       ``(2) Covered inpatient drug.--The term `covered inpatient 
     drug' means a drug--
       ``(A) that is described in section 1927(k)(2) of the Social 
     Security Act;
       ``(B) that, notwithstanding paragraph (3)(A) of section 
     1927(k) of such Act, is used in connection with an inpatient 
     service provided by a covered entity that is enrolled to 
     participate in the drug discount program under this section; 
     and
       ``(C) that is not purchased by the covered entity through 
     or under contract with a group purchasing organization.
       ``(3) Health plan coverage.--The term `health plan 
     coverage' means--
       ``(A) health insurance coverage (as defined in section 
     2791, and including coverage under a State health benefits 
     risk pool);
       ``(B) coverage under a group health plan (as defined in 
     such section, and including coverage under a church plan, a 
     governmental plan, or a collectively bargained plan);
       ``(C) coverage under a Federal health care program (as 
     defined by section 1128B(f) of the Social Security Act); or
       ``(D) such other health benefits coverage as the Secretary 
     recognizes for purposes of this section.
       ``(4) Manufacturer.--The term `manufacturer' has the 
     meaning given such term in section 1927(k) of the Social 
     Security Act.
       ``(d) Program Integrity.--
       ``(1) Manufacturer compliance.--
       ``(A) In general.--From amounts appropriated under 
     subsection (f), the Secretary shall provide for improvements 
     in compliance by manufacturers with the requirements of this 
     section in order to prevent overcharges and other violations 
     of the discounted pricing requirements specified in this 
     section.
       ``(B) Improvements.--The improvements described in 
     subparagraph (A) shall include the following:
       ``(i) The establishment of a process to enable the 
     Secretary to verify the accuracy of ceiling prices calculated 
     by manufacturers under subsection (a)(1) and charged to 
     covered entities, which shall include the following:

       ``(I) Developing and publishing through an appropriate 
     policy or regulatory issuance, precisely defined standards 
     and methodology for the calculation of ceiling prices under 
     such subsection.
       ``(II) Comparing regularly the ceiling prices calculated by 
     the Secretary with the quarterly pricing data that is 
     reported by manufacturers to the Secretary.
       ``(III) Conducting periodic monitoring of sales 
     transactions by covered entities.
       ``(IV) Inquiring into any discrepancies between ceiling 
     prices and manufacturer pricing data that may be identified 
     and taking, or requiring manufacturers to take, corrective 
     action in response to such discrepancies, including the 
     issuance of refunds pursuant to the procedures set forth in 
     clause (ii).

       ``(ii) The establishment of procedures for manufacturers to 
     issue refunds to covered entities in the event that there is 
     an overcharge by the manufacturers, including the following:

       ``(I) Providing the Secretary with an explanation of why 
     and how the overcharge occurred, how the refunds will be 
     calculated, and to whom the refunds will be issued.
       ``(II) Oversight by the Secretary to ensure that the 
     refunds are issued accurately and within a reasonable period 
     of time.

       ``(iii) The provision of access through the Internet 
     website supported by the Department of Health and Human 
     Services to the applicable ceiling prices for covered 
     inpatient drugs as calculated and verified by the Secretary 
     in accordance with this section, in a manner (such as through 
     the use of password protection) that limits such access to 
     covered entities and adequately assures security and 
     protection of privileged pricing data from unauthorized re-
     disclosure.
       ``(iv) The development of a mechanism by which--

       ``(I) rebates, discounts, or other price concessions 
     provided by manufacturers to other purchasers subsequent to 
     the sale of covered inpatient drugs to covered entities are 
     reported to the Secretary; and
       ``(II) appropriate credits and refunds are issued to 
     covered entities if such discounts, rebates, or other price 
     concessions have the effect of lowering the applicable 
     ceiling price for the relevant quarter for the drugs 
     involved.

       ``(v) Selective auditing of manufacturers and wholesalers 
     to ensure the integrity of the drug discount program under 
     this section.
       ``(vi) The establishment of a requirement that 
     manufacturers and wholesalers use the identification system 
     developed by the Secretary for purposes of facilitating the 
     ordering, purchasing, and delivery of covered inpatient drugs 
     under this section, including the processing of chargebacks 
     for such drugs.
       ``(vii) The imposition of sanctions in the form of civil 
     monetary penalties, which--

       ``(I) shall be assessed according to standards and 
     procedures established in regulations to be promulgated by 
     the Secretary not later than January 1, 2011;
       ``(II) shall not exceed $10,000 per single dosage form of a 
     covered inpatient drug purchased by a covered entity where a 
     manufacturer knowingly charges such covered entity a price 
     for such drug that exceeds the ceiling price under subsection 
     (a)(1); and
       ``(III) shall not exceed $100,000 for each instance where a 
     manufacturer withholds or provides materially false 
     information to the Secretary or to covered entities under 
     this section or knowingly violates any provision of this 
     section (other than subsection (a)(1)).

       ``(2) Covered entity compliance.--
       ``(A) In general.--From amounts appropriated under 
     subsection (f), the Secretary shall provide for improvements 
     in compliance by covered entities with the requirements of 
     this section in order to prevent diversion and violations of 
     the duplicate discount provision and other requirements 
     specified under subsection (a)(4).
       ``(B) Improvements.--The improvements described in 
     subparagraph (A) shall include the following:
       ``(i) The development of procedures to enable and require 
     covered entities to update at least annually the information 
     on the Internet website supported by the Department of Health 
     and Human Services relating to this section.
       ``(ii) The development of procedures for the Secretary to 
     verify the accuracy of information regarding covered entities 
     that is listed on the website described in clause (i).
       ``(iii) The development of more detailed guidance 
     describing methodologies and options available to covered 
     entities for billing covered inpatient drugs to State 
     Medicaid agencies in a manner that avoids duplicate discounts 
     pursuant to subsection (a)(4)(A).
       ``(iv) The establishment of a single, universal, and 
     standardized identification system by which each covered 
     entity site and each covered entity's purchasing status under 
     sections 340B and this section can be identified by 
     manufacturers, distributors, covered entities, and the 
     Secretary for purposes of facilitating the ordering, 
     purchasing, and delivery of covered inpatient

[[Page 11534]]

     drugs under this section, including the processing of 
     chargebacks for such drugs.
       ``(v) The imposition of sanctions in the form of civil 
     monetary penalties, which--

       ``(I) shall be assessed according to standards and 
     procedures established in regulations promulgated by the 
     Secretary; and
       ``(II) shall not exceed $10,000 for each instance where a 
     covered entity knowingly violates subsection (a)(4)(B) or 
     knowingly violates any other provision of this section.

       ``(vi) The termination of a covered entity's participation 
     in the program under this section, for a period of time to be 
     determined by the Secretary, in cases in which the Secretary 
     determines, in accordance with standards and procedures 
     established by regulation, that--

       ``(I) the violation by a covered entity of a requirement of 
     this section was repeated and knowing; and
       ``(II) imposition of a monetary penalty would be 
     insufficient to reasonably ensure compliance with the 
     requirements of this section.

       ``(vii) The referral of matters, as appropriate, to the 
     Food and Drug Administration, the Office of the Inspector 
     General of the Department of Health and Human Services, or 
     other Federal or State agencies.
       ``(3) Administrative dispute resolution process.--From 
     amounts appropriated under subsection (f), the Secretary may 
     establish and implement an administrative process for the 
     resolution of the following:
       ``(A) Claims by covered entities that manufacturers have 
     violated the terms of their agreement with the Secretary 
     under subsection (a)(1).
       ``(B) Claims by manufacturers that covered entities have 
     violated subsection (a)(4)(A) or (a)(4)(B).
       ``(e) Audit and Sanctions.--
       ``(1) Audit.--From amounts appropriated under subsection 
     (f), the Inspector General of the Department of Health and 
     Human Services (referred to in this subsection as the 
     `Inspector General') shall audit covered entities under this 
     section to verify compliance with criteria for eligibility 
     and participation under this section, including the 
     antidiversion prohibitions under subsection (a)(4)(B), and 
     take enforcement action or provide information to the 
     Secretary who shall take action to ensure program compliance, 
     as appropriate. A covered entity shall provide to the 
     Inspector General, upon request, records relevant to such 
     audits.
       ``(2) Report.--For each audit conducted under paragraph 
     (1), the Inspector General shall prepare and publish in a 
     timely manner a report which shall include findings and 
     recommendations regarding--
       ``(A) the appropriateness of covered entity eligibility 
     determinations and, as applicable, certifications;
       ``(B) the effectiveness of antidiversion prohibitions; and
       ``(C) the effectiveness of restrictions on inpatient 
     dispensing and administration.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2011 and each 
     succeeding fiscal year.''.
       (b) Rulemaking.--Not later than January 1, 2011, the 
     Secretary shall promulgate regulations implementing section 
     340B-1 of the Public Health Service Act (as added by 
     subsection (a)).
       (c) Conforming Amendment to Section 340B.--Paragraph (1) of 
     section 340B(a) of the Public Health Service Act (42 U.S.C. 
     256b(a)) is amended by adding at the end the following: 
     ``Such agreement shall further require that, if the supply of 
     a covered outpatient drug is insufficient to meet demand, 
     then the manufacturer may use an allocation method that is 
     reported in writing to, and approved by, the Secretary and 
     does not discriminate on the basis of the price paid by 
     covered entities or on any other basis related to the 
     participation of an entity in the program under this section. 
     The agreement with a manufacturer under this paragraph may, 
     at the discretion of the Secretary, be included in the 
     agreement with the same manufacturer under section 340B-1.''.
       (d) Conforming Amendments to Medicaid.--Section 1927 of the 
     Social Security Act (42 U.S.C. 1396r-8) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), in the first sentence, by striking 
     ``and paragraph (6)'' and inserting ``, paragraph (6), and 
     paragraph (8)''; and
       (B) by adding at the end the following new paragraph:
       ``(8) Limitation on prices of drugs purchased by 340b-1-
     covered entities.--
       ``(A) Agreement with secretary.--A manufacturer meets the 
     requirements of this paragraph if the manufacturer has 
     entered into an agreement with the Secretary that meets the 
     requirements of section 340B-1 of the Public Health Service 
     Act with respect to covered inpatient drugs (as defined in 
     such section) purchased by a 340B-1-covered entity on or 
     after January 1, 2011.
       ``(B) 340B-1-covered entity defined.--In this subsection, 
     the term `340B-1-covered entity' means an entity described in 
     section 340B-1(b) of the Public Health Service Act.''; and
       (2) in subsection (c)(1)(C)(i)(I)--
       (A) by striking ``or'' before ``a covered entity''; and
       (B) by inserting before the semicolon the following: ``, or 
     a covered entity for a covered inpatient drug (as such terms 
     are defined in section 340B-1 of the Public Health Service 
     Act)''.

     SEC. 517. CONTINUED INCLUSION OF ORPHAN DRUGS IN DEFINITION 
                   OF COVERED OUTPATIENT DRUGS WITH RESPECT TO 
                   CHILDREN'S HOSPITALS UNDER THE 340B DRUG 
                   DISCOUNT PROGRAM.

       (a) Definition of Covered Outpatient Drug.--
       (1) Amendment.--Subsection (e) of section 340B of the 
     Public Health Service Act (42 U.S.C. 256b) is amended by 
     striking ``covered entities described in subparagraph 
     (M)''and inserting ``covered entities described in 
     subparagraph (M) (other than a children's hospital described 
     in subparagraph (M))''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect as if included in the enactment of section 
     2302 of the Health Care and Education Reconciliation Act of 
     2010 (Public Law 111-152).
       (b) Technical Amendment.--Subparagraph (B) of section 
     1927(a)(5) of the Social Security Act (42 U.S.C. 1396r-
     8(a)(5)) is amended by striking ``and a children's hospital'' 
     and all that follows through the end of the subparagraph and 
     inserting a period.

     SEC. 518. CONFORMING AMENDMENT RELATED TO WAIVER OF 
                   COINSURANCE FOR PREVENTIVE SERVICES.

       Effective as if included in section 10501(i)(2)(A) of 
     Public Law 111-148, section 1833(a)(3)(A) of the Social 
     Security Act (42 U.S.C. 1395l(a)(3)(A)) is amended by 
     striking ``section 1861(s)(10)(A)'' and inserting ``section 
     1861(ddd)(3)''.

     SEC. 519. ESTABLISH A CMS-IRS DATA MATCH TO IDENTIFY 
                   FRAUDULENT PROVIDERS.

       (a) Authority to Disclose Return Information Concerning 
     Outstanding Tax Debts for Purposes of Enhancing Medicare 
     Program Integrity.--
       (1) In general.--Section 6103(l) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(22) Disclosure of return information to department of 
     health and human services for purposes of enhancing medicare 
     program integrity.--
       ``(A) In general.--The Secretary shall, upon written 
     request from the Secretary of Health and Human Services, 
     disclose to officers and employees of the Department of 
     Health and Human Services return information with respect to 
     a taxpayer who has applied to enroll, or reenroll, as a 
     provider of services or supplier under the Medicare program 
     under title XVIII of the Social Security Act. Such return 
     information shall be limited to--
       ``(i) the taxpayer identity information with respect to 
     such taxpayer;
       ``(ii) the amount of the delinquent tax debt owed by that 
     taxpayer; and
       ``(iii) the taxable year to which the delinquent tax debt 
     pertains.
       ``(B) Restriction on disclosure.--Return information 
     disclosed under subparagraph (A) may be used by officers and 
     employees of the Department of Health and Human Services for 
     the purposes of, and to the extent necessary in, establishing 
     the taxpayer's eligibility for enrollment or reenrollment in 
     the Medicare program, or in any administrative or judicial 
     proceeding relating to, or arising from, a denial of such 
     enrollment or reenrollment, or in determining the level of 
     enhanced oversight to be applied with respect to such 
     taxpayer pursuant to section 1866(j)(3) of the Social 
     Security Act.
       ``(C) Delinquent tax debt.--For purposes of this paragraph, 
     the term `delinquent tax debt' means an outstanding debt 
     under this title for which a notice of lien has been filed 
     pursuant to section 6323, but the term does not include a 
     debt that is being paid in a timely manner pursuant to an 
     agreement under section 6159 or 7122, or a debt with respect 
     to which a collection due process hearing under section 6330 
     is requested, pending, or completed and no payment is 
     required.''.
       (2) Conforming amendments.--Section 6103(p)(4) of such 
     Code, as amended by sections 1414 and 3308 of Public Law 111-
     148, in the matter preceding subparagraph (A) and in 
     subparagraph (F)(ii), is amended by striking ``or (17)'' and 
     inserting ``(17), or (22)'' each place it appears.
       (b) Secretary's Authority to Use Information From the 
     Department of Treasury in Medicare Enrollments and 
     Reenrollments.--Section 1866(j)(2) of the Social Security Act 
     (42 U.S.C. 1395cc(j)), as inserted by section 6401(a) of 
     Public Law 111-148, is further amended--
       (1) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (2) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) Use of information from the department of treasury 
     concerning tax debts.--In reviewing the application of a 
     provider of services or supplier to enroll or reenroll under 
     the program under this title, the Secretary shall take into 
     account the information supplied by the Secretary of the 
     Treasury pursuant to section 6103(l)(22) of the Internal 
     Revenue Code of 1986, in determining whether to deny such 
     application or to apply enhanced oversight to such provider 
     of services or supplier pursuant to paragraph (3) if the 
     Secretary determines such provider of services or supplier 
     owes such a debt.''.

[[Page 11535]]

       (c) Authority to Adjust Payments of Providers of Services 
     and Suppliers With the Same Tax Identification Number for 
     Medicare Obligations.--Section 1866(j)(6) of the Social 
     Security Act (42 U.S.C. 1395cc(j)(6)), as inserted by section 
     6401(a) of Public Law 111-148 and as redesignated by section 
     1304 of Public Law 111-152, is amended--
       (1) in the paragraph heading, by striking ``past-due'' and 
     inserting ``medicare'';
       (2) in subparagraph (A), by striking ``past-due obligations 
     described in subparagraph (B)(ii) of an'' and inserting 
     ``amount described in subparagraph (B)(ii) due from such''; 
     and
       (3) in subparagraph (B)(ii), by striking ``a past-due 
     obligation'' and inserting ``an amount that is more than the 
     amount required to be paid''.

     SEC. 520. CLARIFICATION OF EFFECTIVE DATE OF PART B SPECIAL 
                   ENROLLMENT PERIOD FOR DISABLED TRICARE 
                   BENEFICIARIES.

       Effective as if included in the enactment of Public Law 
     111-148, section 3110(a)(2) of such Act is amended to read as 
     follows:
       ``(2) Effective date.--The amendment made by paragraph (1) 
     shall apply to elections made after the date of the enactment 
     of this Act.''.

     SEC. 521. PHYSICIAN PAYMENT UPDATE.

       Section 1848(d) of the Social Security Act (42 U.S.C. 
     1395w-4(d)) is amended--
       (1) in paragraph (10), in the heading, by striking 
     ``portion'' and inserting ``January through may ''; and
       (2) by adding at the end the following new paragraph:
       ``(11) Update for june through november of 2010.--
       ``(A) In general.--Subject to paragraphs (7)(B), (8)(B), 
     (9)(B), and (10)(B), in lieu of the update to the single 
     conversion factor established in paragraph (1)(C) that would 
     otherwise apply for 2010 for the period beginning on June 1, 
     2010, and ending on November 30, 2010, the update to the 
     single conversion factor shall be 2.2 percent.
       ``(B) No effect on computation of conversion factor for 
     remaining portion of 2010 and subsequent years.--The 
     conversion factor under this subsection shall be computed 
     under paragraph (1)(A) for the period beginning on December 
     1, 2010, and ending on December 31, 2010, and for 2011 and 
     subsequent years as if subparagraph (A) had never applied.''.

     SEC. 522. ADJUSTMENT TO MEDICARE PAYMENT LOCALITIES.

       (a) In General.--Section 1848(e) of the Social Security Act 
     (42 U.S.C.1395w-4(e)) is amended by adding at the end the 
     following new paragraph:
       ``(6) Transition to use of msas as fee schedule areas in 
     california.--
       ``(A) In general.--
       ``(i) Revision.--Subject to clause (ii) and notwithstanding 
     the previous provisions of this subsection, for services 
     furnished on or after January 1, 2012, the Secretary shall 
     revise the fee schedule areas used for payment under this 
     section applicable to the State of California using the 
     Metropolitan Statistical Area (MSA) iterative Geographic 
     Adjustment Factor methodology as follows:

       ``(I) The Secretary shall configure the physician fee 
     schedule areas using the Metropolitan Statistical Areas (each 
     in this paragraph referred to as an `MSA'), as defined by the 
     Director of the Office of Management and Budget as of the 
     date of the enactment of this paragraph, as the basis for the 
     fee schedule areas.
       ``(II) For purposes of this clause, the Secretary shall 
     treat all areas not included in an MSA as a single rest-of-
     State MSA and any reference in this paragraph to an MSA shall 
     be deemed to include a reference to such rest-of-State MSA.
       ``(III) The Secretary shall list all MSAs within the State 
     by Geographic Adjustment Factor described in paragraph (2) 
     (in this paragraph referred to as a `GAF') in descending 
     order.
       ``(IV) In the first iteration, the Secretary shall compare 
     the GAF of the highest cost MSA in the State to the weighted-
     average GAF of all the remaining MSAs in the State. If the 
     ratio of the GAF of the highest cost MSA to the weighted-
     average of the GAF of remaining lower cost MSAs is 1.05 or 
     greater, the highest cost MSA shall be a separate fee 
     schedule area.
       ``(V) In the next iteration, the Secretary shall compare 
     the GAF of the MSA with the second-highest GAF to the 
     weighted-average GAF of the all the remaining MSAs (excluding 
     MSAs that become separate fee schedule areas). If the ratio 
     of the second-highest MSA's GAF to the weighted-average of 
     the remaining lower cost MSAs is 1.05 or greater, the second-
     highest MSA shall be a separate fee schedule area.
       ``(VI) The iterative process shall continue until the ratio 
     of the GAF of the MSA with highest remaining GAF to the 
     weighted-average of the remaining MSAs with lower GAFs is 
     less than 1.05, and the remaining group of MSAs with lower 
     GAFs shall be treated as a single rest-of-State fee schedule 
     area.
       ``(VII) For purposes of the iterative process described in 
     this clause, if two MSAs have identical GAFs, they shall be 
     combined.

       ``(ii) Transition.--For services furnished on or after 
     January 1, 2012, and before January 1, 2017, in the State of 
     California, after calculating the work, practice expense, and 
     malpractice geographic indices that would otherwise be 
     determined under clauses (i), (ii), and (iii) of paragraph 
     (1)(A) for a fee schedule area determined under clause (i), 
     if the index for a county within a fee schedule area is less 
     than the index that would otherwise be in effect for such 
     county, the Secretary shall instead apply the index that 
     would otherwise be in effect for such county.
       ``(B) Subsequent revisions.--After the transition described 
     in subparagraph (A)(ii), not less than every 3 years the 
     Secretary shall review and update the fee schedule areas 
     using the methodology described in subparagraph (A)(i) and 
     any updated MSAs as defined by the Director of the Office of 
     Management and Budget. The Secretary shall review and make 
     any changes pursuant to such reviews concurrent with the 
     application of the periodic review of the adjustment factors 
     required under paragraph (1)(C) for California.
       ``(C) References to fee schedule areas.--Effective for 
     services furnished on or after January 1, 2012, for the State 
     of California, any reference in this section to a fee 
     schedule area shall be deemed a reference to a fee schedule 
     area established in accordance with this paragraph.''.
       (b) Conforming Amendment to Definition of Fee Schedule 
     Area.--Section 1848(j)(2) of the Social Security Act (42 
     U.S.C. 1395w(j)(2)) is amended by striking ``The term'' and 
     inserting ``Except as provided in subsection (e)(6)(C), the 
     term''.

     SEC. 523. CLARIFICATION OF 3-DAY PAYMENT WINDOW.

       (a) In General.--Section 1886 of the Social Security Act 
     (42 U.S.C. 1395ww) is amended--
       (1) by adding at the end of subsection (a)(4) the following 
     new sentence: ``In applying the first sentence of this 
     paragraph, the term `other services related to the admission' 
     includes all services that are not diagnostic services (other 
     than ambulance and maintenance renal dialysis services) for 
     which payment may be made under this title that are provided 
     by a hospital (or an entity wholly owned or operated by the 
     hospital) to a patient--
       ``(A) on the date of the patient's inpatient admission; or
       ``(B) during the 3 days (or, in the case of a hospital that 
     is not a subsection (d) hospital, during the 1 day) 
     immediately preceding the date of such admission unless the 
     hospital demonstrates (in a form and manner, and at a time, 
     specified by the Secretary) that such services are not 
     related (as determined by the Secretary) to such 
     admission.''; and
       (2) in subsection (d)(7)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the period and 
     inserting ``, and''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) the determination of whether services provided prior 
     to a patient's inpatient admission are related to the 
     admission (as described in subsection (a)(4)).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to services furnished on or after the date of the 
     enactment of this Act.
       (c) No Reopening of Previously Bundled Claims.--
       (1) In general.--The Secretary of Health and Human Services 
     may not reopen a claim, adjust a claim, or make a payment 
     pursuant to any request for payment under title XVIII of the 
     Social Security Act, submitted by an entity (including a 
     hospital or an entity wholly owned or operated by the 
     hospital) for services described in paragraph (2) for 
     purposes of treating, as unrelated to a patient's inpatient 
     admission, services provided during the 3 days (or, in the 
     case of a hospital that is not a subsection (d) hospital, 
     during the 1 day) immediately preceding the date of the 
     patient's inpatient admission.
       (2) Services described.--For purposes of paragraph (1), the 
     services described in this paragraph are other services 
     related to the admission (as described in section 1886(a)(4) 
     of the Social Security Act (42 U.S.C. 1395ww(a)(4)), as 
     amended by subsection (a)) which were previously included on 
     a claim or request for payment submitted under part A of 
     title XVIII of such Act for which a reopening, adjustment, or 
     request for payment under part B of such title, was not 
     submitted prior to the date of the enactment of this Act.
       (d) Implementation.--Notwithstanding any other provision of 
     law, the Secretary of Health and Human Services may implement 
     the provisions of this section (and amendments made by this 
     section) by program instruction or otherwise.
       (e) Rule of Construction.--Nothing in the amendments made 
     by this section shall be construed as changing the policy 
     described in section 1886(a)(4) of the Social Security Act 
     (42 U.S.C. 1395ww(a)(4)), as applied by the Secretary of 
     Health and Human Services before the date of the enactment of 
     this Act, with respect to diagnostic services.

     SEC. 524. EXTENSION OF ARRA INCREASE IN FMAP.

       Section 5001 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5) is amended--

[[Page 11536]]

       (1) in subsection (a)(3), by striking ``first calendar 
     quarter'' and inserting ``first 3 calendar quarters'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)''; and
       (B) by adding at the end the following:
       ``(3) Phase-down of general increase.--
       ``(A) Second quarter of fiscal year 2011.--For each State, 
     for the second quarter of fiscal year 2011, the FMAP for the 
     State shall be increased under paragraph (1) or (2) (as 
     applicable) by 3.2 percentage points.
       ``(B) Third quarter of fiscal year 2011.--For each State, 
     for the third quarter of fiscal year 2011, the FMAP for the 
     State shall be increased under paragraph (1) or (2) (as 
     applicable) by 1.2 percentage points.'';
       (3) 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'' 
     and inserting ``January 1, 2011'' each place it appears; 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'';
       (4) in subsection (e), by adding at the end the following:

     ``Notwithstanding paragraph (5), effective for payments made 
     on or after January 1, 2010, the increases in the FMAP for a 
     State under this section shall apply to payments under title 
     XIX of such Act that are attributable to expenditures for 
     medical assistance provided to nonpregnant childless adults 
     made eligible under a State plan under such title (including 
     under any waiver under such title or under section 1115 of 
     such Act (42 U.S.C. 1315)) who would have been eligible for 
     child health assistance or other health benefits under 
     eligibility standards in effect as of December 31, 2009, of a 
     waiver of the State child health plan under the title XXI of 
     such Act.'';
       (5) in subsection (g)--
       (A) in paragraph (1), by striking ``September 30, 2011'' 
     and inserting ``March 31, 2012'';
       (B) in paragraph (2), by inserting ``of such Act'' after 
     ``1923''; 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
       (6) in subsection (h)(3), by striking ``December 31, 2010'' 
     and inserting ``June 30, 2011''.

     SEC. 525. CLARIFICATION FOR AFFILIATED HOSPITALS FOR 
                   DISTRIBUTION OF ADDITIONAL RESIDENCY POSITIONS.

       Effective as if included in the enactment of section 
     5503(a) of Public Law 111-148, section 1886(h)(8) of the 
     Social Security Act (42 U.S.C. 1395ww(h)(8)), as added by 
     such section 5503(a), is amended by adding at the end the 
     following new subparagraph:
       ``(I) Affiliation.--The provisions of this paragraph shall 
     be applied to hospitals which are members of the same 
     affiliated group (as defined by the Secretary under paragraph 
     (4)(H)(ii)) and the reference resident level for each such 
     hospital shall be the reference resident level with respect 
     to the cost reporting period that results in the smallest 
     difference between the reference resident level and the 
     otherwise applicable resident limit.''.

     SEC. 526. TREATMENT OF CERTAIN DRUGS FOR COMPUTATION OF 
                   MEDICAID AMP.

       Effective as if included in the enactment of Public Law 
     111-148, section 1927(k)(1)(B)(i)(IV) of the Social Security 
     Act (42 U.S.C. 1396r-8(k)(1)(B)(i)(IV)), as amended by 
     section 2503(a)(2)(B) of Public Law 111-148 and section 
     1101(c)(2) of Public Law 111-152, is amended by adding at the 
     end the following: ``, unless the drug is an inhalation, 
     infusion, or injectable drug that is not dispensed through a 
     retail community pharmacy; and''.

                       TITLE VI--OTHER PROVISIONS

                     Subtitle A--General Provisions

     SEC. 601. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Extension.--Section 129 of the Continuing 
     Appropriations Resolution, 2010 (Public Law 111-68), as 
     amended by section 7(a) of Public Law 111-157, is 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.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be considered to have taken effect on May 31, 2010.

     SEC. 602. 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--
       (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. 603. 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'', $505,000,000, 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; 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.

     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 ``May 31, 2010'' 
     and inserting ``December 31, 2010''.
       (c) Appropriation.--There is appropriated for an additional 
     amount, out of any funds in the Treasury not otherwise 
     appropriated, for administrative expenses to carry out 
     sections 501 and 502 of division A of the American Recovery 
     and Reinvestment Act of 2009 (Public Law 111-5), $5,000,000, 
     to remain available until expended, which may be transferred 
     and merged with the appropriation for ``Small Business 
     Administration--Salaries and Expenses''.

     SEC. 604. EMERGENCY AGRICULTURAL 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 specialty 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 specialty crops or crops intended 
     for grazing) suffer at least a 5-percent crop loss on a farm 
     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 direct 
     payments under section 1105 of the Food, Conservation, and 
     Energy

[[Page 11537]]

     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 45 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) Administrative costs.--State Secretary of Agriculture 
     may not use more than five percent of the funds provided for 
     costs associated with the administration of the grants 
     provided in paragraph (1).
       (C) Administration of grants.--State Secretary of 
     Agriculture may enter into a contract with the Department of 
     Agriculture to administer the grants provided in paragraph 
     (1).
       (D) Timing.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (E) 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 issue payments to eligible specialty 
     crop producers;
       (B) provide assistance to eligible specialty crop producers 
     not later than 60 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.
       (D) Relation to other law.--Assistance received under this 
     subsection shall be included in the calculation of farm 
     revenue for the 2009 crop year under section 531(b)(4)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
     section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
     2497(b)(4)(A)).
       (d) Cottonseed Assistance.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $42,000,000 to provide supplemental assistance to eligible 
     producers and first-handlers of the 2009 crop of cottonseed 
     in a disaster county.
       (2) General terms.--Except as otherwise provided in this 
     subsection, the Secretary shall provide disaster assistance 
     under this subsection under the same terms and conditions as 
     assistance provided under section 3015 of the Emergency 
     Agricultural Disaster Assistance Act of 2006 (title III of 
     Public Law 109-234; 120 Stat. 477).
       (3) Distribution of assistance.--The Secretary shall 
     distribute assistance to first handlers for the benefit of 
     eligible producers in a disaster county in an amount equal to 
     the product obtained by multiplying--
       (A) the payment rate, as determined under paragraph (4); 
     and
       (B) the county-eligible production, as determined under 
     paragraph (5).
       (4) Payment rate.--The payment rate shall be equal to the 
     quotient obtained by dividing--
       (A) the total funds made available to carry out this 
     subsection; by
       (B) the sum of the county-eligible production, as 
     determined under paragraph (5).
       (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) 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.
       (2) Notification.--Not later than 45 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.
       (3) Provision of grants.--
       (A) 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 2009 
     calendar year, as determined by the Secretary.
       (B) Timing.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (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 aquaculture 
     producers;
       (B) provide assistance to eligible aquaculture producers 
     not later than 60 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 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.
       (5) 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.
       (6) 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 (4)(C).
       (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)).

[[Page 11538]]

       (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 of the Food 
     Security Act of 1985 (7 U.S.C. 1308) is amended--
       (1) in subsection (f)(6)--
       (A) in subparagraph (A), by inserting ``and subparagraph 
     (C)'' after ``subsection (d)''; and
       (B) by adding at the end the following:
       ``(C) Conservation reserve program.--Subparagraph (A) shall 
     not apply to payments under the conservation reserve program 
     established under subchapter B of chapter 1 of subtitle D of 
     title XII if--
       ``(i) except as otherwise provided in this paragraph or 
     section 1234(f)(4), the payments are generally subject to the 
     same limits applicable to other payees;
       ``(ii) the payments, and any payments made under other 
     programs to a State under subsection (g), are not subject to 
     limits on adjusted gross income under section 1001D;
       ``(iii) the Secretary establishes an exemption to the 
     limitation on the payments that is similar to the public 
     school land exception under subsection (g) except that under 
     this subparagraph, all States may receive the unlimited 
     school land exemption as applicable without regard to the 
     size of the population of the State; and
       ``(iv) for purposes of the payments, a State and any 
     political subdivisions and agencies of the State shall be 
     treated as 1 entity.''; and
       (2) in subsection (g), by adding at the end the following:
       ``(3) Exception for adjusted gross income limitation.--The 
     limitations described in section 1001D shall not apply to 
     this subsection.''.
       (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 (19 U.S.C. 2497a) may be used to carry 
     out this Act.

     SEC. 605. SUMMER EMPLOYMENT FOR YOUTH.

       There is appropriated, out of any funds in the Treasury not 
     otherwise appropriated, for an additional amount for 
     ``Department of Labor--Employment and Training 
     Administration--Training and Employment Services'' for 
     activities under the Workforce Investment Act of 1998 
     (``WIA''), $1,000,000,000 shall be available for obligation 
     on the date of enactment of this Act for grants to States for 
     youth activities, including summer employment for youth: 
     Provided, That no portion of such funds shall be reserved to 
     carry out section 127(b)(1)(A) of the WIA: Provided further, 
     That for purposes of section 127(b)(1)(C)(iv) of the WIA, 
     funds available for youth activities shall be allotted as if 
     the total amount available for youth activities in the fiscal 
     year does not exceed $1,000,000,000: Provided further, That 
     with respect to the youth activities provided with such 
     funds, section 101(13)(A) of the WIA shall be applied by 
     substituting ``age 24'' for ``age 21'': Provided further, 
     That the work readiness performance indicator described in 
     section 136(b)(2)(A)(ii)(I) of the WIA shall be the only 
     measure of performance used to assess the effectiveness of 
     summer employment for youth provided with such funds: 
     Provided further, That an amount that is not more than 1 
     percent of such amount may be used for the administration, 
     management, and oversight of the programs, activities, and 
     grants carried out with such funds, including the evaluation 
     of the use of such funds: Provided further, That funds 
     available under the preceding proviso, together with funds 
     described in section 801(a) of division A of the American 
     Recovery and reinvestment Act of 2009 (Public Law 111-5), and 
     funds provided in such Act under the heading ``Department of 
     Labor-Departmental Management-Salaries and Expenses'', shall 
     remain available for obligation through September 30, 2011.

     SEC. 606. HOUSING TRUST FUND.

       (a) Funding.--There is hereby appropriated for the Housing 
     Trust Fund established pursuant to section 1338 of the 
     Federal Housing Enterprises Financial Safety and Soundness 
     Act of 1992 (12 U.S.C. 4568), $1,065,000,000, for use under 
     such section: Provided, That of the total amount provided 
     under this heading, $65,000,000 shall be available to the 
     Secretary of Housing and Urban Development only for 
     incremental project-based voucher assistance to be allocated 
     to States to be used solely in conjunction with grant funds 
     awarded under such section 1338, pursuant to the formula 
     established under section 1338 and taking into account 
     different per unit subsidy needs among states, as determined 
     by the Secretary.
       (b) Amendments.--Section 1338 of the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992 (12 
     U.S.C. 4568) is amended--
       (1) in subsection (c)--
       (A) in paragraph (4)(A) by inserting after the period at 
     the end the following: ``Notwithstanding any other provision 
     of law, for the fiscal year following enactment of this 
     sentence and thereafter, the Secretary may make such notice 
     available only on the Internet at the appropriate government 
     website or websites or through other electronic media, as 
     determined by the Secretary.'';
       (B) in paragraph (5)(C), by striking ``(8)'' and inserting 
     ``(9)''; and
       (C) in paragraph (7)(A)--
       (i) by striking ``section 1335(a)(2)(B)'' and inserting 
     ``section 1335(a)(1)(B)''; and
       (ii) by inserting ``the units funded under'' after ``75 
     percent of''; and

[[Page 11539]]

       (2) by adding at the end the following new subsection:
       ``(k) Environmental Review.--For the purpose of 
     environmental compliance review, funds awarded under this 
     section shall be subject to section 288 of the HOME 
     Investment Partnerships Act (12 U.S.C. 12838) and shall be 
     treated as funds under the program established by such 
     Act.''.

     SEC. 607. THE INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION 
                   SETTLEMENT ACT OF 2010.

       (a) Short Title.--This section may be cited as the 
     ``Individual Indian Money Account Litigation Settlement Act 
     of 2010''.
       (b) Definitions.--In this section:
       (1) Amended complaint.--The term ``Amended Complaint'' 
     means the Amended Complaint attached to the Settlement.
       (2) Land consolidation program.--The term ``Land 
     Consolidation Program'' means a program conducted in 
     accordance with the Settlement and the Indian Land 
     Consolidation Act (25 U.S.C. 2201 et seq.) under which the 
     Secretary may purchase fractional interests in trust or 
     restricted land.
       (3) Litigation.--The term ``Litigation'' means the case 
     entitled Elouise Cobell et al. v. Ken Salazar et al., United 
     States District Court, District of Columbia, Civil Action No. 
     96-1285 (JR).
       (4) Plaintiff.--The term ``Plaintiff'' means a member of 
     any class certified in the Litigation.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (6) Settlement.--The term ``Settlement'' means the Class 
     Action Settlement Agreement dated December 7, 2009, in the 
     Litigation, as modified by the parties to the Litigation.
       (7) Trust administration class.--The term ``Trust 
     Administration Class'' means the Trust Administration Class 
     as defined in the Settlement.
       (c) Purpose.--The purpose of this section is to authorize 
     the Settlement.
       (d) Authorization.--The Settlement is authorized, ratified, 
     and confirmed.
       (e) Jurisdictional Provisions.--
       (1) In general.--Notwithstanding the limitation of 
     jurisdiction of district courts contained in section 
     1346(a)(2) of title 28, United States Code, the United States 
     District Court for the District of Columbia shall have 
     jurisdiction over the claims asserted in the Amended 
     Complaint for purposes of the Settlement.
       (2) Certification of trust administration class.--
       (A) In general.--Notwithstanding the requirements of the 
     Federal Rules of Civil Procedure, the court overseeing the 
     Litigation may certify the Trust Administration Class.
       (B) Treatment.--On certification under subparagraph (A), 
     the Trust Administration Class shall be treated as a class 
     under Federal Rule of Civil Procedure 23(b)(3) for purposes 
     of the Settlement.
       (f) Trust Land Consolidation.--
       (1) Trust land consolidation fund.--
       (A) Establishment.--On final approval (as defined in the 
     Settlement) of the Settlement, there shall be established in 
     the Treasury of the United States a fund, to be known as the 
     ``Trust Land Consolidation Fund''.
       (B) Availability of amounts.--Amounts in the Trust Land 
     Consolidation Fund shall be made available to the Secretary 
     during the 10-year period beginning on the date of final 
     approval of the Settlement--
       (i) to conduct the Land Consolidation Program; and
       (ii) for other costs specified in the Settlement.
       (C) Deposits.--
       (i) In general.--On final approval (as defined in the 
     Settlement) of the Settlement, the Secretary of the Treasury 
     shall deposit in the Trust Land Consolidation Fund 
     $2,000,000,000 of the amounts appropriated by section 1304 of 
     title 31, United States Code.
       (ii) Conditions met.--The conditions described in section 
     1304 of title 31, United States Code, shall be considered to 
     be met for purposes of clause (i).
       (D) Transfers.--In a manner designed to encourage 
     participation in the Land Consolidation Program, the 
     Secretary may transfer, at the discretion of the Secretary, 
     not more than $60,000,000 of amounts in the Trust Land 
     Consolidation Fund to the Indian Education Scholarship 
     Holding Fund established under paragraph 2.
       (2) Indian education scholarship holding fund.--
       (A) Establishment.--On the final approval (as defined in 
     the Settlement) of the Settlement, there shall be established 
     in the Treasury of the United States a fund, to be known as 
     the ``Indian Education Scholarship Holding Fund''.
       (B) Availability.--Notwithstanding any other provision of 
     law governing competition, public notification, or Federal 
     procurement or assistance, amounts in the Indian Education 
     Scholarship Holding Fund shall be made available, without 
     further appropriation, to the Secretary to contribute to an 
     Indian Education Scholarship Fund, as described in the 
     Settlement, to provide scholarships for Native Americans.
       (3) Acquisition of trust or restricted land.--The Secretary 
     may acquire, at the discretion of the Secretary and in 
     accordance with the Land Consolidation Program, any 
     fractional interest in trust or restricted land.
       (4) Treatment of unlocatable plaintiffs.--A Plaintiff the 
     whereabouts of whom are unknown and who, after reasonable 
     efforts by the Secretary, cannot be located during the 5 year 
     period beginning on the date of final approval (as defined in 
     the Settlement) of the Settlement shall be considered to have 
     accepted an offer made pursuant to the Land Consolidation 
     Program.
       (g) Taxation and Other Benefits.--
       (1) Internal revenue code.--For purposes of the Internal 
     Revenue Code of 1986, amounts received by an individual 
     Indian as a lump sum or a periodic payment pursuant to the 
     Settlement--
       (A) shall not be included in gross income; and
       (B) shall not be taken into consideration for purposes of 
     applying any provision of the Internal Revenue Code of 1986 
     that takes into account excludable income in computing 
     adjusted gross income or modified adjusted gross income, 
     including section 86 of that Code (relating to Social 
     Security and tier 1 railroad retirement benefits).
       (2) Other benefits.--Notwithstanding any other provision of 
     law, for purposes of determining initial eligibility, ongoing 
     eligibility, or level of benefits under any Federal or 
     federally assisted program, amounts received by an individual 
     Indian as a lump sum or a periodic payment pursuant to the 
     Settlement shall not be treated for any household member, 
     during the 1-year period beginning on the date of receipt--
       (A) as income for the month during which the amounts were 
     received; or
       (B) as a resource.

     SEC. 608. APPROPRIATION OF FUNDS FOR FINAL SETTLEMENT OF 
                   CLAIMS FROM IN RE BLACK FARMERS DISCRIMINATION 
                   LITIGATION.

       (a) Definitions.--In this section:
       (1) Settlement agreement.--The term ``Settlement 
     Agreement'' means the settlement agreement dated February 18, 
     2010 (including any modifications agreed to by the parties 
     and approved by the court under that agreement) between 
     certain plaintiffs, by and through their counsel, and the 
     Secretary of Agriculture to resolve, fully and forever, the 
     claims raised or that could have been raised in the cases 
     consolidated in In re Black Farmers Discrimination 
     Litigation, No. 08-511 (D.D.C.), including Pigford claims 
     asserted under section 14012 of the Food, Conservation, and 
     Energy Act of 2008 (Public Law 110-246; 122 Stat. 2209).
       (2) Pigford claim.--The term ``Pigford claim'' has the 
     meaning given that term in section 14012(a)(3) of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 2210).
       (b) Appropriation of Funds.--There is hereby appropriated 
     to the Secretary of Agriculture $1,150,000,000, to remain 
     available until expended, to carry out the terms of the 
     Settlement Agreement if the Settlement Agreement is approved 
     by a court order that is or becomes final and nonappealable. 
     The funds appropriated by this subsection are in addition to 
     the $100,000,000 of funds of the Commodity Credit Corporation 
     made available by section 14012(i) of the Food, Conservation, 
     and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2212) 
     and shall be available for obligation only after those 
     Commodity Credit Corporation funds are fully obligated. If 
     the Settlement Agreement is not approved as provided in this 
     subsection, the $100,000,000 of funds of the Commodity Credit 
     Corporation made available by section 14012(i) of the Food, 
     Conservation, and Energy Act of 2008 shall be the sole 
     funding available for Pigford claims.
       (c) Use of Funds.--The use of the funds appropriated by 
     subsection (b) shall be subject to the express terms of the 
     Settlement Agreement.
       (d) Treatment of Remaining Funds.--If any of the funds 
     appropriated by subsection (b) are not obligated and expended 
     to carry out the Settlement Agreement, the Secretary of 
     Agriculture shall return the unused funds to the Treasury and 
     may not make the unused funds available for any purpose 
     related to section 14012 of the Food, Conservation, and 
     Energy Act of 2008, for any other settlement agreement 
     executed in In re Black Farmers Discrimination Litigation, 
     No. 08-511 (D.D.C.), or for any other purpose.
       (e) Rules of Construction.--Nothing in this section shall 
     be construed as requiring the United States, any of its 
     officers or agencies, or any other party to enter into the 
     Settlement Agreement or any other settlement agreement. 
     Nothing in this section shall be construed as creating the 
     basis for a Pigford claim.
       (f) Conforming Amendments.--Section 14012 of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 2209) is amended--
       (1) in subsection (c)(1)--
       (A) by striking ``subsection (h)'' and inserting 
     ``subsection (g)''; and
       (B) by striking ``subsection (i)'' and inserting 
     ``subsection (h)'';
       (2) by striking subsection (e);
       (3) in subsection (g), by striking ``subsection (f)'' and 
     inserting ``subsection (e)'';
       (4) in subsection (i)--
       (A) by striking ``(1) In general.--Of the funds'' and 
     inserting ``Of the funds''; and

[[Page 11540]]

       (B) by striking paragraph (2);
       (5) by striking subsection (j); and
       (6) by redesignating subsections (f), (g), (h), (i), and 
     (k) as subsections (e), (f), (g), (h), and (i), respectively.

     SEC. 609. EXPANSION OF ELIGIBILITY FOR CONCURRENT RECEIPT OF 
                   MILITARY RETIRED PAY AND VETERANS' DISABILITY 
                   COMPENSATION TO INCLUDE ALL CHAPTER 61 
                   DISABILITY RETIREES REGARDLESS OF DISABILITY 
                   RATING PERCENTAGE OR YEARS OF SERVICE.

       (a) Phased Expansion Concurrent Receipt.--Subsection (a) of 
     section 1414 of title 10, United States Code, is amended to 
     read as follows:
       ``(a) Payment of Both Retired Pay and Disability 
     Compensation.--
       ``(1) Payment of both required.--
       ``(A) In general.--Subject to subsection (b), a member or 
     former member of the uniformed services who is entitled for 
     any month to retired pay and who is also entitled for that 
     month to veterans' disability compensation for a qualifying 
     service-connected disability (in this section referred to as 
     a `qualified retiree') is entitled to be paid both for that 
     month without regard to sections 5304 and 5305 of title 38.
       ``(B) Applicability of full concurrent receipt phase-in 
     requirement.--During the period beginning on January 1, 2004, 
     and ending on December 31, 2013, payment of retired pay to a 
     qualified retiree is subject to subsection (c).
       ``(C) Phase-in exception for 100 percent disabled 
     retirees.--The payment of retired pay is subject to 
     subsection (c) only during the period beginning on January 1, 
     2004, and ending on December 31, 2004, in the case of the 
     following qualified retirees:
       ``(i) A qualified retiree receiving veterans' disability 
     compensation for a disability rated as 100 percent.
       ``(ii) A qualified retiree receiving veterans' disability 
     compensation at the rate payable for a 100 percent disability 
     by reason of a determination of individual unemployability.
       ``(D) Temporary phase-in exception for certain chapter 61 
     disability retirees; termination.--Subject to subsection (b), 
     during the period beginning on January 1, 2011, and ending on 
     September 30, 2012, subsection (c) shall not apply to a 
     qualified retiree described in subparagraph (B) or (C) of 
     paragraph (2).
       ``(2) Qualifying service-connected disability defined.--In 
     this section:
       ``(A) 50 percent rating threshold.--In the case of a member 
     or former member receiving retired pay under any provision of 
     law other than chapter 61 of this title, or under chapter 61 
     with 20 years or more of service otherwise creditable under 
     section 1405 or computed under section 12732 of this title, 
     the term `qualifying service-connected disability' means a 
     service-connected disability or combination of service-
     connected disabilities that is rated as not less than 50 
     percent disabling by the Secretary of Veterans Affairs. 
     However, during the period specified in paragraph (1)(D), 
     members or former members receiving retired pay under chapter 
     61 with 20 years or more of creditable service computed under 
     section 12732 of this title, but not otherwise entitled to 
     retired pay under any other provision of this title, shall 
     qualify in accordance with subparagraphs (B) and (C).
       ``(B) Inclusion of members not otherwise entitled to 
     retired pay.--In the case of a member or former member 
     receiving retired pay under chapter 61 of this title, but who 
     is not otherwise entitled to retired pay under any other 
     provision of this title, the term `qualifying service-
     connected disability' means a service-connected disability or 
     combination of service-connected disabilities that is rated 
     by the Secretary of Veterans Affairs at the disabling level 
     specified in one of the following clauses (which, subject to 
     paragraph (3), is effective on or after the date specified in 
     the applicable clause):
       ``(i) January 1, 2011, rated 100 percent, or a rate payable 
     at 100 percent by reason of individual unemployability or 
     rated 90 percent.
       ``(ii) January 1, 2012, rated 80 percent or 70 percent.
       ``(iii) January 1, 2013, rated 60 percent or 50 percent.
       ``(C) Elimination of rating threshold.--In the case of a 
     member or former member receiving retired pay under chapter 
     61 regardless of being otherwise eligible for retirement, the 
     term `qualifying service-connected disability' means a 
     service-connected disability or combination of service-
     connected disabilities that is rated by the Secretary of 
     Veterans Affairs at the disabling level specified in one of 
     the following clauses (which, subject to paragraph (3), is 
     effective on or after the date specified in the applicable 
     clause):
       ``(i) January 1, 2014, rated 40 percent or 30 percent.
       ``(ii) January 1, 2015, any rating.
       ``(3) Limited duration.--Notwithstanding the effective date 
     specified in each clause of subparagraphs (B) and (C) of 
     paragraph (2), the clause--
       ``(A) shall apply only if the termination date specified in 
     paragraph (1)(D) would occur during or after the calendar 
     year specified in the clause; and
       ``(B) shall not apply beyond the termination date specified 
     in paragraph (1)(D).''.
       (b) Conforming Amendment to Special Rules for Chapter 61 
     Disability Retirees.--Subsection (b) of such section is 
     amended to read as follows:
       ``(b) Special Rules for Chapter 61 Disability Retirees When 
     Eligibility Has Been Established for Such Retirees.--
       ``(1) General reduction rule.--The retired pay of a member 
     retired under chapter 61 of this title is subject to 
     reduction under sections 5304 and 5305 of title 38, but only 
     to the extent that the amount of the members retired pay 
     under chapter 61 of this title exceeds the amount of retired 
     pay to which the member would have been entitled under any 
     other provision of law based upon the member's service in the 
     uniformed services if the member had not been retired under 
     chapter 61 of this title.
       ``(2) Chapter 61 retirees not otherwise entitled to retired 
     pay.--
       ``(A) Before termination date.--If a member with a 
     qualifying service-connected disability (as defined in 
     subsection (a)(2)) is retired under chapter 61 of this title, 
     but is not otherwise entitled to retired pay under any other 
     provision of this title, and the termination date specified 
     in subsection (a)(1)(D) has not occurred, the retired pay of 
     the member is subject to reduction under sections 5304 and 
     5305 of title 38, but only to the extent that the amount of 
     the member's retired pay under chapter 61 of this title 
     exceeds the amount equal to 2\1/2\ percent of the member's 
     years of creditable service multiplied by the member's 
     retired pay base under section 1406(b)(1) or 1407 of this 
     title, whichever is applicable to the member.
       ``(B) After termination date.--Subsection (a) does not 
     apply to a member described in subparagraph (A) if the 
     termination date specified in subsection (a)(1)(D) has 
     occurred.''.
       (c) Conforming Amendment to Full Concurrent Receipt Phase-
     in.--Subsection (c) of such section is amended by striking 
     ``the second sentence of''.
       (d) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 1414. Concurrent receipt of retired pay and veterans' 
       disability compensation''.

       (2) Table of sections.--The table of sections at the 
     beginning of chapter 71 of such title is amended by striking 
     the item related to section 1414 and inserting the following 
     new item:

``1414. Concurrent receipt of retired pay and veterans' disability 
              compensation.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2011.

     SEC. 610. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.

       Section 1012 of the Department of Defense Appropriations 
     Act, 2010 (Public Law 111-118), as amended by section 6 of 
     the Continuing Extension Act of 2010 (Public Law 111-157), is 
     amended--
       (1) by striking ``before May 31, 2010''; and
       (2) by inserting ``for 2011'' after ``until updated poverty 
     guidelines''.

     SEC. 611. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       (a) In General.--Subchapter A of chapter 65 of the Internal 
     Revenue Code of 1986 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. 612. 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. 613. 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

[[Page 11541]]

     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. 614. EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED 
                   SURFACE TRANSPORTATION PROGRAMS.

       (a) Modification of Allocation Rules.--Section 411(d) of 
     the Surface Transportation Extension Act of 2010 (Public Law 
     111-147; 124 Stat. 80) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``1301, 1302,''; and
       (ii) by striking ``1198, 1204,''; and
       (B) in subparagraph (A)--
       (i) in the matter preceding clause (i) by striking 
     ``apportioned under sections 104(b) and 144 of title 23, 
     United States Code,'' and inserting ``specified in section 
     105(a)(2) of title 23, United States Code (except the high 
     priority projects program),''; and
       (ii) in clause (ii) by striking ``apportioned under such 
     sections of such Code'' and inserting ``specified in such 
     section 105(a)(2) (except the high priority projects 
     program)'';
       (2) in paragraph (2)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``1301, 1302,''; and
       (ii) by striking ``1198, 1204,''; and
       (B) in subparagraph (A)--
       (i) in the matter preceding clause (i) by striking 
     ``apportioned under sections 104(b) and 144 of title 23, 
     United States Code,'' and inserting ``specified in section 
     105(a)(2) of title 23, United States Code (except the high 
     priority projects program),''; and
       (ii) in clause (ii) by striking ``apportioned under such 
     sections of such Code'' and inserting ``specified in such 
     section 105(a)(2) (except the high priority projects 
     program)''; and
       (3) by adding at the end the following:
       ``(5) Projects of national and regional significance and 
     national corridor infrastructure improvement programs.--
       ``(A) Redistribution among states.--Notwithstanding 
     sections 1301(m) and 1302(e) of SAFETEA-LU (119 Stat. 1202 
     and 1205), the Secretary shall apportion funds authorized to 
     be appropriated under subsection (b) for the projects of 
     national and regional significance program and the national 
     corridor infrastructure improvement program among all States 
     such that each State's share of the funds so apportioned is 
     equal to the State's share for fiscal year 2009 of funds 
     apportioned or allocated for the programs specified in 
     section 105(a)(2) of title 23, United States Code.
       ``(B) Distribution among programs.--Funds apportioned to a 
     State pursuant to subparagraph (A) shall be--
       ``(i) made available to the State for the programs 
     specified in section 105(a)(2) of title 23, United States 
     Code (except the high priority projects program), and in the 
     same proportion for each such program that--

       ``(I) the amount apportioned to the State for that program 
     for fiscal year 2009; bears to
       ``(II) the amount apportioned to the State for fiscal year 
     2009 for all such programs; and

       ``(ii) administered in the same manner and with the same 
     period of availability as funding is administered under 
     programs identified in clause (i).''.
       (b) Expenditure Authority From Highway Trust Fund.--
     Paragraph (1) of section 9503(c) of the Internal Revenue Code 
     of 1986 is amended by striking ``Surface Transportation 
     Extension Act of 2010'' and inserting ``American Jobs and 
     Closing Tax Loopholes Act of 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect upon the date of enactment of the Surface 
     Transportation Extension Act of 2010 (Public Law 111-147; 124 
     Stat. 78 et seq.) and shall be treated as being included in 
     that Act at the time of the enactment of that Act.
       (d) Savings Clause.--
       (1) In general.--For fiscal year 2010 and for the period 
     beginning on October 1, 2010, and ending on December 31, 
     2010, the amount of funds apportioned to each State under 
     section 411(d) of the Surface Transportation Extension Act of 
     2010 (Public Law 111-147) that is determined by the amount 
     that the State received or was authorized to receive for 
     fiscal year 2009 to carry out the projects of national and 
     regional significance program and national corridor 
     infrastructure improvement program shall be the greater of--
       (A) the amount that the State was authorized to receive 
     under section 411(d) of the Surface Transportation Extension 
     Act of 2010 with respect to each such program according to 
     the provisions of that Act, as in effect on the day before 
     the date of enactment of this Act; or
       (B) the amount that the State is authorized to receive 
     under section 411(d) of the Surface Transportation Extension 
     Act of 2010 with respect to each such program pursuant to the 
     provisions of that Act, as amended by the amendments made by 
     this section.
       (2) Obligation authority.--For fiscal year 2010, the amount 
     of obligation authority distributed to each State shall be 
     the greater of--
       (A) the amount that the State was authorized to receive 
     pursuant to section 120(a)(4)(A) (as it pertains to the 
     Appalachian Development Highway System program) of title I of 
     division A of the Consolidated Appropriations Act, 2010 
     (Public Law 111-117) and sections 120(a)(4)(B) and 120(a)(6) 
     of such title, as of the day before the date of enactment of 
     this Act; or
       (B) the amount that the State is authorized to receive 
     pursuant to section 120(a)(4)(A) (as it pertains to the 
     Appalachian Development Highway System program) of title I of 
     division A of the Consolidated Appropriations Act, 2010 
     (Public Law 111-117) and sections 120(a)(4)(B) and 120(a)(6) 
     of such title, as of the date of enactment of this Act.
       (3) Authorization of appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) such sums as may be necessary to 
     carry out this subsection.
       (4) Increase in obligation limitation.--The limitation 
     under the heading ``Federal-aid Highways (Limitation on 
     Obligations) (Highway Trust Fund)'' in Public Law 111-117 is 
     increased by such sums as may be necessary to carry out this 
     subsection.
       (5) Contract authority.--Funds made available to carry out 
     this subsection shall be available for obligation and 
     administered in the same manner as if such funds were 
     apportioned under chapter 1 of title 23, United States Code.
       (6) Amounts.--The dollar amount specified in section 
     105(d)(1) of title 23, United States Code, the dollar amount 
     specified in section 120(a)(4)(B) of title I of division A of 
     the Consolidated Appropriations Act, 2010 (Public Law 111-
     117), and the dollar amount specified in section 120(b)(10) 
     of such title shall each be increased as necessary to carry 
     out this subsection.

     SEC. 615. COMMUNITY COLLEGE AND CAREER TRAINING GRANT 
                   PROGRAM.

       (a) In General.--Section 278(a) of the Trade Act of 1974 
     (19 U.S.C. 2372(a)) is amended by adding at the end the 
     following:
       ``(3) Rule of construction.--For purposes of this section, 
     any reference to `workers', `workers eligible for training 
     under section 236', or any other reference to workers under 
     this section shall be deemed to include individuals who are, 
     or are likely to become, eligible for unemployment 
     compensation as defined in section 85(b) of the Internal 
     Revenue Code of 1986, or who remain unemployed after 
     exhausting all rights to such compensation.''.
       (b) Definition of Eligible Institution.--Section 278(b)(1) 
     of the Trade Act of 1974 (19 U.S.C. 2372(b)(1)) is amended--
       (1) by striking ``section 102'' and inserting ``section 
     101(a)''; and
       (2) by striking ``1002'' and inserting ``1001(a)''.
       (c) Authorization of Appropriations.--Section 279 of the 
     Trade Act of 1974 (19 U.S.C. 2372a) is amended--
       (1) in subsection (a), by striking the last sentence; and
       (2) by adding at the end the following:
       ``(c) Administrative and Related Costs.--The Secretary may 
     retain not more than 5 percent of the funds appropriated 
     under subsection (b) for each fiscal year to administer, 
     evaluate, and establish reporting systems for

[[Page 11542]]

     the Community College and Career Training Grant program under 
     section 278.
       ``(d) Supplement Not Supplant.--Funds appropriated under 
     subsection (b) shall be used to supplement and not supplant 
     other Federal, State, and local public funds expended to 
     support community college and career training programs.
       ``(e) Availability.--Funds appropriated under subsection 
     (b) shall remain available for the fiscal year for which the 
     funds are appropriated and the subsequent fiscal year.''.

     SEC. 616. EXTENSIONS OF DUTY SUSPENSIONS ON COTTON SHIRTING 
                   FABRICS AND RELATED PROVISIONS.

       (a) Extensions.--Each of the following headings of the 
     Harmonized Tariff Schedule of the United States is amended by 
     striking the date in the effective date column and inserting 
     ``12/31/2013'':
       (1) Heading 9902.52.08 (relating to woven fabrics of 
     cotton).
       (2) Heading 9902.52.09 (relating to woven fabrics of 
     cotton).
       (3) Heading 9902.52.10 (relating to woven fabrics of 
     cotton).
       (4) Heading 9902.52.11 (relating to woven fabrics of 
     cotton).
       (5) Heading 9902.52.12 (relating to woven fabrics of 
     cotton).
       (6) Heading 9902.52.13 (relating to woven fabrics of 
     cotton).
       (7) Heading 9902.52.14 (relating to woven fabrics of 
     cotton).
       (8) Heading 9902.52.15 (relating to woven fabrics of 
     cotton).
       (9) Heading 9902.52.16 (relating to woven fabrics of 
     cotton).
       (10) Heading 9902.52.17 (relating to woven fabrics of 
     cotton).
       (11) Heading 9902.52.18 (relating to woven fabrics of 
     cotton).
       (12) Heading 9902.52.19 (relating to woven fabrics of 
     cotton).
       (13) Heading 9902.52.20 (relating to woven fabrics of 
     cotton).
       (14) Heading 9902.52.21 (relating to woven fabrics of 
     cotton).
       (15) Heading 9902.52.22 (relating to woven fabrics of 
     cotton).
       (16) Heading 9902.52.23 (relating to woven fabrics of 
     cotton).
       (17) Heading 9902.52.24 (relating to woven fabrics of 
     cotton).
       (18) Heading 9902.52.25 (relating to woven fabrics of 
     cotton).
       (19) Heading 9902.52.26 (relating to woven fabrics of 
     cotton).
       (20) Heading 9902.52.27 (relating to woven fabrics of 
     cotton).
       (21) Heading 9902.52.28 (relating to woven fabrics of 
     cotton).
       (22) Heading 9902.52.29 (relating to woven fabrics of 
     cotton).
       (23) Heading 9902.52.30 (relating to woven fabrics of 
     cotton).
       (24) Heading 9902.52.31 (relating to woven fabrics of 
     cotton).
       (b) Extension of Duty Refunds and Pima Cotton Trust Fund; 
     Modification of Affidavit Requirements.--Section 407 of title 
     IV of division C of the Tax Relief and Health Care Act of 
     2006 (Public Law 109-432; 120 Stat. 3060) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``amounts determined by 
     the Secretary'' and all that follows through ``5208.59.80'' 
     and inserting ``amounts received in the general fund that are 
     attributable to duties received since January 1, 2004, on 
     articles classified under heading 5208''; and
       (B) in paragraph (2), by striking ``October 1, 2008'' and 
     inserting ``December 31, 2013'';
       (2) in subsection (d)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``annually'' after ``provided''; and
       (B) in paragraph (1), by inserting ``during the year in 
     which the affidavit is filed and'' after ``imported cotton 
     fabric''; and
       (3) in subsection (f)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``annually'' after ``provided''; and
       (B) in paragraph (1), by inserting ``during the year in 
     which the affidavit is filed and'' after ``United States''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     and apply with respect to affidavits filed on or after such 
     date of enactment.

     SEC. 617. MODIFICATION OF WOOL APPAREL MANUFACTURERS TRUST 
                   FUND.

       (a) In General.--Section 4002(c)(2)(A) of the Miscellaneous 
     Trade and Technical Corrections Act of 2004 (Public Law 108-
     429; 118 Stat. 2600) is amended by striking ``chapter 51'' 
     and inserting ``chapter 62''.
       (b) Full Restoration of Payment Levels in Fiscal Year 
     2010.--
       (1) Transfer of amounts.--
       (A) In general.--Not later than 30 days after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall transfer to the Wool Apparel Manufacturers Trust Fund, 
     out of the general fund of the Treasury of the United States, 
     amounts determined by the Secretary of the Treasury to be 
     equivalent to amounts received in the general fund that are 
     attributable to the duty received on articles classified 
     under chapter 62 of the Harmonized Tariff Schedule of the 
     United States, subject to the limitation in subparagraph (B).
       (B) Limitation.--The Secretary of the Treasury shall not 
     transfer more than the amount determined by the Secretary to 
     be necessary for--
       (i) U.S. Customs and Border Protection to make payments to 
     eligible manufacturers under section 4002(c)(3) of the 
     Miscellaneous Trade and Technical Corrections Act of 2004 so 
     that the amount of such payments, when added to any other 
     payments made to eligible manufacturers under section 
     4002(c)(3) of such Act for calendar year 2010, equal the 
     total amount of payments authorized to be provided to 
     eligible manufacturers under section 4002(c)(3) of such Act 
     for calendar year 2010; and
       (ii) the Secretary of Commerce to provide grants to 
     eligible manufacturers under section 4002(c)(6) of the 
     Miscellaneous Trade and Technical Corrections Act of 2004 so 
     that the amounts of such grants, when added to any other 
     grants made to eligible manufacturers under section 
     4002(c)(6) of such Act for calendar year 2010, equal the 
     total amount of grants authorized to be provided to eligible 
     manufacturers under section 4002(c)(6) of such Act for 
     calendar year 2010.
       (2) Payment of amounts.--U.S. Customs and Border Protection 
     shall make payments described in paragraph (1) to eligible 
     manufacturers not later than 30 days after such transfer of 
     amounts from the general fund of the Treasury of the United 
     States to the Wool Apparel Manufacturers Trust Fund. The 
     Secretary of Commerce shall promptly provide grants described 
     in paragraph (1) to eligible manufacturers after such 
     transfer of amounts from the general fund of the Treasury of 
     the United States to the Wool Apparel Manufacturers Trust 
     Fund.
       (c) Rule of Construction.--The amendment made by subsection 
     (a) shall not be construed to affect the availability of 
     amounts transferred to the Wool Apparel Manufacturers Trust 
     Fund before the date of the enactment of this Act.

     SEC. 618. DEPARTMENT OF COMMERCE STUDY.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary of Commerce shall report to Congress 
     detailing--
       (1) the pattern of job loss in the New England, Mid-
     Atlantic, 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. 619. 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

[[Page 11543]]

     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 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. 620. AMENDMENT OF TRAVEL PROMOTION ACT OF 2009.

       (a) Travel Promotion Fund Fees.--Section 217(h)(3)(B) of 
     the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)) 
     is amended--
       (1) by striking ``subsection (d) of section 11 of the 
     Travel Promotion Act of 2009.'' in clause (ii) and inserting 
     ``subsection (d) of the Travel Promotion Act of 2009 (22 
     U.S.C. 2131(d)).''; and
       (2) by striking ``September 30, 2014.'' in clause (iii) and 
     inserting ``September 30, 2015.''.
       (b) Implementation Beginning in Fiscal Year 2011.--
     Subsection (d) of the Travel Promotion Act of 2009 (22 U.S.C. 
     2131(d)) is amended--
       (1) by striking ``For fiscal year 2010, the'' in paragraph 
     (2)(A) and inserting ``The'';
       (2) by striking ``quarterly, beginning on January 1, 
     2010,'' in paragraph (2)(A) and inserting ``monthly, 
     immediately following the collection of fees under section 
     217(h)(3)(B)(i)(I) of the Immigration and Nationality Act (8 
     U.S.C. 1187(h)(3)(B)(i)(I),'';
       (3) by striking ``fiscal years 2011 through 2014,'' in 
     paragraph (2)(B) and inserting ``fiscal years 2012 through 
     2015,'';
       (4) by striking ``fiscal year 2010,'' in paragraph (3)(A) 
     and inserting ``fiscal year 2011,'';
       (5) by striking ``fiscal year 2011,'' each place it appears 
     in paragraph (3)(A) and inserting ``fiscal year 2012,''; and
       (6) by striking ``fiscal year 2010, 2011, 2012, 2013, or 
     2014'' in paragraph (4)(B) and inserting ``fiscal year 2011, 
     2012, 2013, 2014, or 2015''.

     SEC. 621. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
                   REPORTABLE TRANSACTIONS BASED ON RESULTING TAX 
                   BENEFITS.

       (a) In General.--Subsection (b) of section 6707A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the amount of the penalty under subsection (a) 
     with respect to any reportable transaction shall be 75 
     percent of the decrease in tax shown on the return as a 
     result of such transaction (or which would have resulted from 
     such transaction if such transaction were respected for 
     Federal tax purposes).
       ``(2) Maximum penalty.--The amount of the penalty under 
     subsection (a) with respect to any reportable transaction 
     shall not exceed--
       ``(A) in the case of a listed transaction, $200,000 
     ($100,000 in the case of a natural person), or
       ``(B) in the case of any other reportable transaction, 
     $50,000 ($10,000 in the case of a natural person).
       ``(3) Minimum penalty.--The amount of the penalty under 
     subsection (a) with respect to any transaction shall not be 
     less than $10,000 ($5,000 in the case of a natural 
     person).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after December 31, 2006.

     SEC. 622. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER 
                   ENFORCEMENT ACTIONS.

       (a) In General.--The Commissioner of Internal Revenue, in 
     consultation with the Secretary of the Treasury, shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate an 
     annual report on the penalties assessed by the Internal 
     Revenue Service during the preceding year under each of the 
     following provisions of the Internal Revenue Code of 1986:

[[Page 11544]]

       (1) Section 6662A (relating to accuracy-related penalty on 
     understatements with respect to reportable transactions).
       (2) Section 6700(a) (relating to promoting abusive tax 
     shelters).
       (3) Section 6707 (relating to failure to furnish 
     information regarding reportable transactions).
       (4) Section 6707A (relating to failure to include 
     reportable transaction information with return).
       (5) Section 6708 (relating to failure to maintain lists of 
     advisees with respect to reportable transactions).
       (b) Additional Information.--The report required under 
     subsection (a) shall also include information on the 
     following with respect to each year:
       (1) Any action taken under section 330(b) of title 31, 
     United States Code, with respect to any reportable 
     transaction (as defined in section 6707A(c) of the Internal 
     Revenue Code of 1986).
       (2) Any extension of the time for assessment of tax 
     enforced, or assessment of any amount under such an 
     extension, under paragraph (10) of section 6501(c) of the 
     Internal Revenue Code of 1986.
       (c) Date of Report.--The first report required under 
     subsection (a) shall be submitted not later than December 31, 
     2010.

                   Subtitle B--Additional Provisions

     SEC. 631. SUNSET OF TEMPORARY INCREASE IN BENEFITS UNDER THE 
                   SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

       Section 101(a) of title I of division A of Public Law 111-5 
     (123 Stat. 120) is amended--
       (1) in paragraph (1), by inserting before the period, ``, 
     if the value of such benefits and block grants would thereby 
     be greater than in the absence of this subsection''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Termination.--The authority provided by this 
     subsection shall terminate after May 31, 2014.''.

     SEC. 632. RESCISSIONS.

       (a) ARRA Rescissions.--There are hereby rescinded the 
     following amounts from the specified accounts:
       (1) $300,000,000, from unobligated balances under the 
     heading ``distance learning, telemedicine, and broadband 
     program'' under the heading ``Rural Utilities Service'' under 
     the heading ``DEPARTMENT OF AGRICULTURE'' in title I of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 118).
       (2) $300,000,000, from unobligated balances under the 
     heading ``broadband technology opportunities program'' under 
     the heading ``National Telecommunications and Information 
     Administration'' under the heading ``DEPARTMENT OF COMMERCE'' 
     in title II of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 128).
       (3) $55,000,000 from unobligated balances under the heading 
     ``Operation and Maintenance, Army'' under the heading 
     ``OPERATION AND MAINTENANCE'' in title III of division A of 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 132).
       (4) $55,000,000 from unobligated balances under the heading 
     ``Operation and Maintenance, Navy'' under the heading 
     ``OPERATION AND MAINTENANCE'' in title III of division A of 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 132).
       (5) $15,000,000 from unobligated balances under the heading 
     ``Operation and Maintenance, Air Force'' under the heading 
     ``OPERATION AND MAINTENANCE'' in title III of division A of 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 132).
       (6) $12,000,000 from unobligated balances under the heading 
     ``Operation and Maintenance, Army National Guard'' under the 
     heading ``OPERATION AND MAINTENANCE'' in title III of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 133).
       (7) $25,000,000 from unobligated balances under the heading 
     ``Defense Health Program'' under the heading ``OTHER 
     DEPARTMENT OF DEFENSE PROGRAMS'' in title III of division A 
     of the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 134).
       (8) $98,000,000 from unobligated balances, other than those 
     of the Energy Conservation Investment Program, under the 
     heading ``Military Construction, Defense-Wide'' under the 
     heading ``DEPARTMENT OF DEFENSE'' in title X of division A of 
     the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 192).
       (b) Additional Rescissions.--
       (1) Of the funds appropriated in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following accounts and programs in the specified 
     amounts:
       ``Other Procurement, Army, 2008/2010'', $75,000,000.
       ``Aircraft Procurement, Navy, 2008/2010'', $150,000,000.
       ``Aircraft Procurement, Air Force, 2008/2010'', 
     $100,000,000.
       ``Other Procurement, Air Force, 2008/2010'', $50,000,000.
       ``Research, Development, Test and Evaluation, Army, 2009/
     2010'', $75,000,000.
       ``Research, Development, Test and Evaluation, Air Force, 
     2009/2010'', $150,000,000.
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     2009/2010'', $125,000,000.
       (2) Of the funds appropriated under the heading 
     ``Procurement, Marine Corps'' under the heading 
     ``PROCUREMENT'' in title IX of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 122 Stat. 2401) 
     $100,000,000 are hereby rescinded.
       (3) Of the funds appropriated under the heading 
     ``Procurement, Marine Corps'' under the heading 
     ``PROCUREMENT'' in title III of the Supplemental 
     Appropriations Act, 2009 (Public Law 111-32; 123 Stat. 1866) 
     $75,000,000 are hereby rescinded.

       TITLE VII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Foreign-Held Debt 
     Transparency and Threat Assessment Act''.

     SEC. 702. DEFINITIONS.

       In this title:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the following:
       (A) The Committee on Armed Services, the Committee on 
     Foreign Relations, the Committee on Finance, and the 
     Committee on the Budget of the Senate.
       (B) The Committee on Armed Services, the Committee on 
     Foreign Affairs, the Committee on Ways and Means, and the 
     Committee on the Budget of the House of Representatives.
       (2) Debt instruments of the united states.--The term ``debt 
     instruments of the United States'' means all bills, notes, 
     and bonds issued or guaranteed by the United States or by an 
     entity of the United States Government, including any 
     Government-sponsored enterprise.

     SEC. 703. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the growing Federal debt of the United States has the 
     potential to jeopardize the national security and economic 
     stability of the United States;
       (2) the increasing dependence of the United States on 
     foreign creditors has the potential to make the United States 
     vulnerable to undue influence by certain foreign creditors in 
     national security and economic policymaking;
       (3) the People's Republic of China is the largest foreign 
     creditor of the United States, in terms of its overall 
     holdings of debt instruments of the United States;
       (4) the current level of transparency in the scope and 
     extent of foreign holdings of debt instruments of the United 
     States is inadequate and needs to be improved, particularly 
     regarding the holdings of the People's Republic of China;
       (5) through the People's Republic of China's large holdings 
     of debt instruments of the United States, China has become a 
     super creditor of the United States;
       (6) under certain circumstances, the holdings of the 
     People's Republic of China could give China a tool with which 
     China can try to manipulate the domestic and foreign 
     policymaking of the United States, including the United 
     States relationship with Taiwan;
       (7) under certain circumstances, if the People's Republic 
     of China were to be displeased with a given United States 
     policy or action, China could attempt to destabilize the 
     United States economy by rapidly divesting large portions of 
     China's holdings of debt instruments of the United States; 
     and
       (8) the People's Republic of China's expansive holdings of 
     such debt instruments of the United States could potentially 
     pose a direct threat to the United States economy and to 
     United States national security. This potential threat is a 
     significant issue that warrants further analysis and 
     evaluation.

     SEC. 704. QUARTERLY REPORT ON RISKS POSED BY FOREIGN HOLDINGS 
                   OF DEBT INSTRUMENTS OF THE UNITED STATES.

       (a) Quarterly Report.--Not later than March 31, June 30, 
     September 30, and December 31 of each year, the President 
     shall submit to the appropriate congressional committees a 
     report on the risks posed by foreign holdings of debt 
     instruments of the United States, in both classified and 
     unclassified form.
       (b) Matters To Be Included.--Each report submitted under 
     this section shall include the following:
       (1) The most recent data available on foreign holdings of 
     debt instruments of the United States, which data shall not 
     be older than the date that is 7 months preceding the date of 
     the report.
       (2) The country of domicile of all foreign creditors who 
     hold debt instruments of the United States.
       (3) The total amount of debt instruments of the United 
     States that are held by the foreign creditors, broken out by 
     the creditors' country of domicile and by public, quasi-
     public, and private creditors.
       (4) For each foreign country listed in paragraph (3)--
       (A) an analysis of the country's purpose in holding debt 
     instruments of the United States and long-term intentions 
     with regard to such debt instruments;
       (B) an analysis of the current and foreseeable risks to the 
     long-term national security

[[Page 11545]]

     and economic stability of the United States posed by each 
     country's holdings of debt instruments of the United States; 
     and
       (C) a specific determination of whether the level of risk 
     identified under subparagraph (B) is acceptable or 
     unacceptable.
       (c) Public Availability.--The President shall make each 
     report required by subsection (a) available, in its 
     unclassified form, to the public by posting it on the 
     Internet in a conspicuous manner and location.

     SEC. 705. ANNUAL REPORT ON RISKS POSED BY THE FEDERAL DEBT OF 
                   THE UNITED STATES.

       (a) In General.--Not later than December 31 of each year, 
     the Comptroller General of the United States shall submit to 
     the appropriate congressional committees a report on the 
     risks to the United States posed by the Federal debt of the 
     United States.
       (b) Content of Report.--Each report submitted under this 
     section shall include the following:
       (1) An analysis of the current and foreseeable risks to the 
     long-term national security and economic stability of the 
     United States posed by the Federal debt of the United States.
       (2) A specific determination of whether the levels of risk 
     identified under paragraph (1) are sustainable.
       (3) If the determination under paragraph (2) is that the 
     levels of risk are unsustainable, specific recommendations 
     for reducing the levels of risk to sustainable levels, in a 
     manner that results in a reduction in Federal spending.

     SEC. 706. CORRECTIVE ACTION TO ADDRESS UNACCEPTABLE AND 
                   UNSUSTAINABLE RISKS TO UNITED STATES NATIONAL 
                   SECURITY AND ECONOMIC STABILITY.

       In any case in which the President determines under section 
     704(b)(4)(C) that a foreign country's holdings of debt 
     instruments of the United States pose an unacceptable risk to 
     the long-term national security or economic stability of the 
     United States, the President shall, within 30 days of the 
     determination--
       (1) formulate a plan of action to reduce the risk level to 
     an acceptable and sustainable level, in a manner that results 
     in a reduction in Federal spending;
       (2) submit to the appropriate congressional committees a 
     report on the plan of action that includes a timeline for the 
     implementation of the plan and recommendations for any 
     legislative action that would be required to fully implement 
     the plan; and
       (3) move expeditiously to implement the plan in order to 
     protect the long-term national security and economic 
     stability of the United States.

      TITLE VIII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Foreign-Held Debt 
     Transparency and Threat Assessment Act''.

     SEC. 802. DEFINITIONS.

       In this title:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the following:
       (A) The Committee on Armed Services, the Committee on 
     Foreign Relations, the Committee on Finance, the Committee on 
     Banking, Housing, and Urban Affairs, and the Committee on the 
     Budget of the Senate.
       (B) The Committee on Armed Services, the Committee on 
     Foreign Affairs, the Committee on Ways and Means, the 
     Committee on Financial Services, and the Committee on the 
     Budget of the House of Representatives.
       (2) Debt instruments of the united states.--The term ``debt 
     instruments of the United States'' means all bills, notes, 
     and bonds held by the public and issued or guaranteed by the 
     United States or by an entity of the United States 
     Government.

     SEC. 803. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the growing Federal debt of the United States has the 
     potential to jeopardize the national security and economic 
     stability of the United States;
       (2) large foreign holdings of debt instruments of the 
     United States have the potential to make the United States 
     vulnerable to undue influence by foreign creditors in 
     national security and economic policymaking;
       (3) the People's Republic of China, Japan, and the United 
     Kingdom are the 3 largest foreign holders of debt instruments 
     of the United States; and
       (4) the current level of transparency in the scope and 
     extent of foreign holdings of debt instruments of the United 
     States is inadequate and needs to be improved.

     SEC. 804. ANNUAL REPORT ON RISKS POSED BY FOREIGN HOLDINGS OF 
                   DEBT INSTRUMENTS OF THE UNITED STATES.

       (a) Annual Report.--Not later than March 31 of each year, 
     the Secretary of the Treasury shall submit to the appropriate 
     congressional committees a report on the risks posed by 
     foreign holdings of debt instruments of the United States, in 
     both classified and unclassified form.
       (b) Matters To Be Included.--Each report submitted under 
     this section shall include the following:
       (1) The most recent data available on foreign holdings of 
     debt instruments of the United States, which data shall not 
     be older than the date that is 9 months preceding the date of 
     the report.
       (2) The total amount of debt instruments of the United 
     States that are held by foreign residents, broken out by the 
     residents' country of domicile and by public and private 
     residents.
       (3) An analysis of the current and foreseeable risks to the 
     long-term national security and economic stability of the 
     United States posed by foreign holdings of debt instruments 
     of the United States.
       (c) Public Availability.--The Secretary of the Treasury 
     shall make each report required by subsection (a) available, 
     in its unclassified form, to the public by posting it on the 
     Internet in a conspicuous manner and location.

     SEC. 805. ANNUAL REPORT ON RISKS POSED BY THE FEDERAL DEBT OF 
                   THE UNITED STATES.

       (a) In General.--Not later than March 31 of each year, the 
     Comptroller General of the United States shall submit to the 
     appropriate congressional committees a report on the risks to 
     the United States posed by the Federal debt of the United 
     States.
       (b) Content of Report.--Each report submitted under this 
     section shall include the following:
       (1) An analysis of the current and foreseeable risks to the 
     long-term national security and economic stability of the 
     United States posed by the Federal debt of the United States.
       (2) Specific recommendations for reducing the levels of 
     risk resulting from the Federal debt.

     SEC. 806. CORRECTIVE ACTION TO ADDRESS UNACCEPTABLE RISKS TO 
                   UNITED STATES NATIONAL SECURITY AND ECONOMIC 
                   STABILITY.

       If the President determines that foreign holdings of debt 
     instruments of the United States pose an unacceptable risk to 
     the long-term national security or economic stability of the 
     United States, the President shall, within 30 days of the 
     determination--
       (1) formulate a plan of action to reduce such risk;
       (2) submit to the appropriate congressional committees a 
     report on the plan of action that includes a timeline for the 
     implementation of the plan and recommendations for any 
     legislative action that would be required to fully implement 
     the plan; and
       (3) move expeditiously to implement the plan in order to 
     protect the long-term national security and economic 
     stability of the United States.

               TITLE IX--OFFICE OF THE HOMEOWNER ADVOCATE

     SEC. 901. OFFICE OF THE HOMEOWNER ADVOCATE.

       (a) Establishment.--There is established in the Department 
     of the Treasury an office to be known as the ``Office of the 
     Homeowner Advocate'' (in this title referred to as the 
     ``Office'').
       (b) Director.--
       (1) In general.--The Director of the Office of the 
     Homeowner Advocate (in this title referred to as the 
     ``Director'') shall report directly to the Assistant 
     Secretary of the Treasury for Financial Stability, and shall 
     be entitled to compensation at the same rate as the highest 
     rate of basic pay established for the Senior Executive 
     Service under section 5382 of title 5, United States Code.
       (2) Appointment.--The Director shall be appointed by the 
     Secretary, after consultation with the Secretary of the 
     Department of Housing and Urban Development, and without 
     regard to the provisions of title 5, United States Code, 
     relating to appointments in the competitive service or the 
     Senior Executive Service.
       (3) Qualifications.--An individual appointed under 
     paragraph (2) shall have--
       (A) experience as an advocate for homeowners; and
       (B) experience dealing with mortgage servicers.
       (4) Restriction on employment.--An individual may be 
     appointed as Director only if such individual was not an 
     officer or employee of either a mortgage servicer or the 
     Department of the Treasury during the 4-year period preceding 
     the date of such appointment.
       (5) Hiring authority.--The Director shall have the 
     authority to hire staff, obtain support by contract, and 
     manage the budget of the Office of the Homeowner Advocate.

     SEC. 902. FUNCTIONS OF THE OFFICE.

       (a) In General.--It shall be the function of the Office--
       (1) to assist homeowners, housing counselors, and housing 
     lawyers in resolving problems with the Home Affordable 
     Modification Program of the Making Home Affordable initiative 
     of the Secretary, authorized under the Emergency Economic 
     Stabilization Act of 2008 (in this title referred to as the 
     ``Home Affordable Modification Program'')
       (2) to identify areas, both individual and systematic, in 
     which homeowners, housing counselors, and housing lawyers 
     have problems in dealings with the Home Affordable 
     Modification Program;
       (3) to the extent possible, to propose changes in the 
     administrative practices of the Home Affordable Modification 
     Program, to mitigate problems identified under paragraph (2);

[[Page 11546]]

       (4) to identify potential legislative changes which may be 
     appropriate to mitigate such problems; and
       (5) to implement other programs and initiatives that the 
     Director deems important to assisting homeowners, housing 
     counselors, and housing lawyers in resolving problems with 
     the Home Affordable Modification Program, which may include--
       (A) running a triage hotline for homeowners at risk of 
     foreclosure;
       (B) providing homeowners with access to housing counseling 
     programs of the Department of Housing and Urban Development 
     at no cost to the homeowner;
       (C) developing Internet tools related to the Home 
     Affordable Modification Program; and
       (D) developing training and educational materials.
       (b) Authority.--
       (1) In general.--Staff designated by the Director shall 
     have the authority to implement servicer remedies, on a case-
     by-case basis, subject to the approval of the Assistant 
     Secretary of the Treasury for Financial Stability.
       (2) Resolution of homeowner concerns.--The Office shall, to 
     the extent possible, resolve all homeowner concerns not later 
     than 30 days after the opening of a case with such homeowner.
       (c) Commencement of Operations.--The Office shall commence 
     its operations, as required by this title, not later than 3 
     months after the date of enactment of this Act.
       (d) Sunset.--The Office shall cease operations as of the 
     date on which the Home Affordable Modification Program ceases 
     to operate.

     SEC. 903. RELATIONSHIP WITH EXISTING ENTITIES.

       (a) Transfer.--The Office shall coordinate and centralize 
     all complaint escalations relating to the Home Affordable 
     Modification Program.
       (b) Hotline.--The HOPE hotline (or any successor triage 
     hotline) shall reroute all complaints relating to the Home 
     Affordable Modification Program to the Office.
       (c) Coordination.--The Office shall coordinate with the 
     compliance office of the Office of Financial Stability of the 
     Department of the Treasury and the Homeownership Preservation 
     Office of the Department of the Treasury.

     SEC. 904. RULE OF CONSTRUCTION.

       Nothing in this section shall prohibit a mortgage servicer 
     from evaluating a homeowner for eligibility under the Home 
     Affordable Foreclosure Alternatives Program while a case is 
     still open with the Office of the Homeowner Advocate. Nothing 
     in this section may be construed to relieve any loan services 
     from otherwise applicable rules, directives, or similar 
     guidance under the Home Affordable Modification Program 
     relating to the continuation or completion of foreclosure 
     proceedings.

     SEC. 905. REPORTS TO CONGRESS.

       (a) Testimony.--The Director shall be available to testify 
     before the Committee on Banking, Housing, and Urban Affairs 
     of the Senate and the Committee on Financial Services of the 
     House of Representatives, not less frequently than 4 times a 
     year, or at any time at the request of the Chairs of either 
     committee.
       (b) Reports.--Once annually, the Director shall provide a 
     detailed report to Congress on the Home Affordable 
     Modification Program. Such report shall contain full and 
     substantive analysis, in addition to statistical information, 
     including, at a minimum--
       (1) data and analysis of the types and volume of complaints 
     received from homeowners, housing counselors, and housing 
     lawyers, broken down by category of servicer, except that 
     servicers may not be identified by name in the report;
       (2) a summary of not fewer than 20 of the most serious 
     problems encountered by Home Affordable Modification Program 
     participants, including a description of the nature of such 
     problems;
       (3) to the extent known, identification of the 10 most 
     litigated issues for Home Affordable Modification Program 
     participants, including recommendations for mitigating such 
     disputes;
       (4) data and analysis on the resolutions of the complaints 
     received from homeowners, housing counselors, and housing 
     lawyers;
       (5) identification of any programs or initiatives that the 
     Office has taken to improve the Home Affordable Modification 
     Program;
       (6) recommendations for such administrative and legislative 
     action as may be appropriate to resolve problems encountered 
     by Home Affordable Modification Program participants; and
       (7) such other information as the Director may deem 
     advisable.

     SEC. 906. FUNDING.

       Amounts made available for the costs of administration of 
     the Home Affordable Modification Program that are not 
     otherwise obligated shall be available to carry out the 
     duties of the Office. Funding shall be maintained at levels 
     adequate to reasonably carry out the functions of the Office.

     SEC. 907. PROHIBITION ON PARTICIPATION IN MAKING HOME 
                   AFFORDABLE FOR BORROWERS WHO STRATEGICALLY 
                   DEFAULT.

       No mortgage may be modified under the Making Home 
     Affordable Program, or with any funds from the Troubled Asset 
     Relief Program, unless the servicer of the mortgage loan has 
     determined, in accordance with standards and requirements 
     established by the Secretary of the Treasury, that the 
     mortgagor cannot afford to make payments under the terms of 
     the existing mortgage loan. The Secretary of the Treasury, in 
     consultation with the Secretary of Housing and Urban 
     Development, shall issue rules to carry out this section not 
     later than 90 days after the date of enactment of this Act. 
     This section shall not apply to any refinancing or 
     modifications made under the ``FHA Program Adjustments to 
     Support Refinancings for Underwater Homeowners,'' announced 
     by the Department of the Treasury and the Department of 
     Housing and Urban Development on March 26, 2010, as long as 
     the program continues to be structured so that borrowers 
     participating in the FHA refinance program cannot be in 
     default on their primary mortgage at the time of refinance 
     and their eligibility in the program is not helped if they 
     are in default on their second mortgage, and thus lack a 
     strategic reason to go into default on either their first or 
     second mortgage to participate in the program.

     SEC. 908. PUBLIC AVAILABILITY OF INFORMATION.

       (a) Public Availability of Data.--The Secretary of the 
     Treasury shall revise the guidelines for the Home Affordable 
     Modification Program of the Making Home Affordable initiative 
     of the Secretary of the Treasury, authorized under the 
     Emergency Economic Stabilization Act of 2008 (Public Law 110-
     343), to establish that the data collected by the Secretary 
     of the Treasury from each mortgage servicer and lender 
     participating in the Program is made public in accordance 
     with subsection (b).
       (b) Content.--Not more than 60 days after each monthly 
     deadline for submission of data by mortgage servicers and 
     lender participating in the program, the Treasury shall make 
     all data tables available to the public at the individual 
     record level. This data shall include but not be limited to--
       (1) higher risk loans, including loans made in connection 
     with any program to provide expanded loan approvals, shall be 
     reported separately;
       (2) disclose--
       (A) the rate or pace at which such mortgages are becoming 
     seriously delinquent;
       (B) whether such rate or pace is increasing or decreasing;
       (C) if there are certain subsets within the loans covered 
     by this section that have greater or lesser rates or paces of 
     delinquency; and
       (D) if such subsets exist, the characteristics of such 
     subset of mortgages;
       (3) with respect to the loss mitigation efforts of the 
     loan--
       (A) the processes and practices that the reporter has in 
     effect to minimize losses on mortgages covered by this 
     section; and
       (B) the manner and methods by which such processes and 
     practices are being monitored for effectiveness;
       (4) disclose, with respect to loans that are or become 60 
     or more days past due, (provided that for purposes of 
     disclosure under this paragraph that each loan should have a 
     unique number that is not the same as any loan number the 
     borrower, originator, or servicer uses), the following 
     attributes--
       (A) the original loan amount;
       (B) the current loan amount;
       (C) the loan-to-value ratio and combined loan-to-value 
     ratio, both at origination and currently, and the number of 
     liens on the property;
       (D) the property valuation at the time of origination of 
     the loan, and all subsequent property valuations and the date 
     of each valuation;
       (E) each relevant credit score of each borrower obtained at 
     any time in connection with the loan, with the date of the 
     credit score, to the extent allowed by existing law;
       (F) whether the loan has any mortgage or other credit 
     insurance or guarantee;
       (G) the current interest rate on such loan;
       (H) any rate caps and floors if the loan is an adjustable 
     rate mortgage loan;
       (I) the adjustable rate mortgage index or indices for such 
     loan;
       (J) whether the loan is currently past due, and if so how 
     many days such loan is past due;
       (K) the total number of days the loan has been past due at 
     any time;
       (L) whether the loan is subject to a balloon payment;
       (M) the date of each modification of the loan;
       (N) whether any amounts of loan principal has been deferred 
     or written off, and if so, the date and amount of each 
     deferral and the date and amount of each writedown;
       (O) whether the interest rate was changed from a rate that 
     could adjust to a fixed rate, and if so, the period of time 
     for which the rate will be fixed;
       (P) the amount by which the interest rate on the loan was 
     reduced, and for what period of time it was reduced;
       (Q) if the interest rate was reduced or fixed for a period 
     of time less than the remaining loan term, on what dates, and 
     to what rates, could the rate potentially increase in the 
     future;
       (R) whether the loan term was modified, and if so, whether 
     it was extended or shortened, and by what amount of time;

[[Page 11547]]

       (S) whether the loan is in the process of foreclosure or 
     similar procedure, whether judicial or otherwise; and
       (T) whether a foreclosure or similar procedure, whether 
     judicial or otherwise, has been completed.
       (c) Guidelines and Regulations.--The Secretary of the 
     Treasury shall establish guidelines and regulations 
     necessary--
       (1) to ensure that the privacy of individual consumers is 
     appropriately protected in the reports under this section;
       (2) to make the data reported under this subsection 
     available on a public website with no cost to access the 
     data, in a consistent format;
       (3) to update the data no less frequently than monthly;
       (4) to establish procedures for disclosing such data to the 
     public on a public website with no cost to access the data; 
     and
       (5) to allow the Secretary to make such deletions as the 
     Secretary may determine to be appropriate to protect any 
     privacy interest of any loan modification applicant, 
     including the deletion or alteration of the applicant's name 
     and identification number.
       (d) Exception.--No data shall have to be disclosed if it 
     voids or violates existing contracts between the Secretary of 
     Treasury and mortgage servicers as part of the Making Home 
     Affordable Program.

                     TITLE X--BUDGETARY PROVISIONS

     SEC. 1001. BUDGETARY PROVISIONS.

       (a) Statutory Paygo.--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, jointly submitted for printing in the Congressional 
     Record by the Chairmen of the House and Senate Budget 
     Committees, provided that such statement has been submitted 
     prior to the vote on passage in the House acting first on 
     this conference report or amendment between the Houses.
       (b) Emergency Designations.--Section 501--
       (1) is designated as an emergency requirement pursuant to 
     section 4(g) of the Statutory Pay-As-You-Go Act of 2010 
     (Public Law 111-139; 2 U.S.C. 933(g));
       (2) in the House of Representatives, is designated as an 
     emergency for purposes of pay-as-you-go principles; and
       (3) in the Senate, is designated as an emergency 
     requirement pursuant to section 403(a) of S. Con. Res. 13 
     (111th Congress), the concurrent resolution on the budget for 
     fiscal year 2010.
                                 ______
                                 
  SA 4387. Mr. REID (for Mr. Baucus) proposed an amendment to amendment 
SA 4386 proposed by Mr. Reid (for 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 the amendment, insert the following:
       The provisions of this Act shall become effective 3 days 
     after enactment.
                                 ______
                                 
  SA 4388. Mr. REID proposed an amendment 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, insert the following:
       The Committee on Finance is requested to study the economic 
     impact of the delay in implementing the provisions of the Act 
     on jobs creation on a national and regional level.
                                 ______
                                 
  SA 4389. Mr. REID proposed an amendment to amendment SA 4388 proposed 
by Mr. Reid 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, insert the following:
       ``And include statistical data on the specific service 
     related positions created.''
                                 ______
                                 
  SA 4390. Mr. REID proposed an amendment to amendment SA 4389 proposed 
by Mr. Reid to the amendment SA 4388 proposed by Mr. Reid 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, insert the following:
       ``And the impact on the local economy.''
                                 ______
                                 
  SA 4391. Mr. DURBIN (for Mr. Dorgan (for himself, Mr. Baucus, Mr. 
Begich, Mr. Bennet, Ms. Cantwell, Mr. Kyl, Mr. McCain, Mr. Tester, Mr. 
Thune, Mr. Udall of New Mexico, and Mr. Udall of Colorado)) proposed an 
amendment to the bill H.R. 725, to protect Indian arts and crafts 
through the improvement of applicable criminal proceedings, and for 
other purposes; as follows:

       At the end, add the following:

                    DIVISION B--TRIBAL LAW AND ORDER

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Tribal Law 
     and Order Act of 2010''.
       (b) Table of Contents.--The table of contents of this 
     division is as follows:

                    DIVISION B--TRIBAL LAW AND ORDER

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purposes.
Sec. 3. Definitions.
Sec. 4. Severability.
Sec. 5. Jurisdiction of the State of Alaska.
Sec. 6. Effect.

            TITLE I--FEDERAL ACCOUNTABILITY AND COORDINATION

Sec. 101. Office of Justice Services responsibilities.
Sec. 102. Disposition reports.
Sec. 103. Prosecution of crimes in Indian country.
Sec. 104. Administration.

            TITLE II--STATE ACCOUNTABILITY AND COORDINATION

Sec. 201. State criminal jurisdiction and resources.
Sec. 202. State, tribal, and local law enforcement cooperation.

   TITLE III--EMPOWERING TRIBAL LAW ENFORCEMENT AGENCIES AND TRIBAL 
                              GOVERNMENTS

Sec. 301. Tribal police officers.
Sec. 302. Drug enforcement in Indian country.
Sec. 303. Access to national criminal information databases.
Sec. 304. Tribal court sentencing authority.
Sec. 305. Indian Law and Order Commission.
Sec. 306. Exemption for tribal display materials.

                    TITLE IV--TRIBAL JUSTICE SYSTEMS

Sec. 401. Indian alcohol and substance abuse.
Sec. 402. Indian tribal justice; technical and legal assistance.
Sec. 403. Tribal resources grant program.
Sec. 404. Tribal jails program.
Sec. 405. Tribal probation office liaison program.
Sec. 406. Tribal youth program.
Sec. 407. Improving public safety presence in rural Alaska.

 TITLE V--INDIAN COUNTRY CRIME DATA COLLECTION AND INFORMATION SHARING

Sec. 501. Tracking of crimes committed in Indian country.
Sec. 502. Criminal history record improvement program.

    TITLE VI--DOMESTIC VIOLENCE AND SEXUAL ASSAULT PROSECUTION AND 
                               PREVENTION

Sec. 601. Prisoner release and reentry.
Sec. 602. Domestic and sexual violence offense training.
Sec. 603. Testimony by Federal employees.
Sec. 604. Coordination of Federal agencies.
Sec. 605. Sexual assault protocol.
Sec. 606. Study of IHS sexual assault and domestic violence response 
              capabilities.

     SEC. 2. FINDINGS; PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the United States has distinct legal, treaty, and trust 
     obligations to provide for the public safety of Indian 
     country;
       (2) Congress and the President have acknowledged that--
       (A) tribal law enforcement officers are often the first 
     responders to crimes on Indian reservations; and
       (B) tribal justice systems are often the most appropriate 
     institutions for maintaining law and order in Indian country;
       (3) less than 3,000 tribal and Federal law enforcement 
     officers patrol more than 56,000,000 acres of Indian country, 
     which reflects less than \1/2\ of the law enforcement 
     presence in comparable rural communities nationwide;
       (4) the complicated jurisdictional scheme that exists in 
     Indian country--
       (A) has a significant negative impact on the ability to 
     provide public safety to Indian communities;
       (B) has been increasingly exploited by criminals; and
       (C) requires a high degree of commitment and cooperation 
     among tribal, Federal, and State law enforcement officials;
       (5)(A) domestic and sexual violence against American Indian 
     and Alaska Native women has reached epidemic proportions;
       (B) 34 percent of American Indian and Alaska Native women 
     will be raped in their lifetimes; and
       (C) 39 percent of American Indian and Alaska Native women 
     will be subject to domestic violence;
       (6) Indian tribes have faced significant increases in 
     instances of domestic violence, burglary, assault, and child 
     abuse as a direct result of increased methamphetamine use on 
     Indian reservations; and
       (7) crime data is a fundamental tool of law enforcement, 
     but for decades the Bureau of Indian Affairs and the 
     Department of Justice have not been able to coordinate or 
     consistently report crime and prosecution rates in tribal 
     communities.
       (b) Purposes.--The purposes of this division are--
       (1) to clarify the responsibilities of Federal, State, 
     tribal, and local governments with respect to crimes 
     committed in Indian country;

[[Page 11548]]

       (2) to increase coordination and communication among 
     Federal, State, tribal, and local law enforcement agencies;
       (3) to empower tribal governments with the authority, 
     resources, and information necessary to safely and 
     effectively provide public safety in Indian country;
       (4) to reduce the prevalence of violent crime in Indian 
     country and to combat sexual and domestic violence against 
     American Indian and Alaska Native women;
       (5) to prevent drug trafficking and reduce rates of alcohol 
     and drug addiction in Indian country; and
       (6) to increase and standardize the collection of criminal 
     data and the sharing of criminal history information among 
     Federal, State, and tribal officials responsible for 
     responding to and investigating crimes in Indian country.

     SEC. 3. DEFINITIONS.

       (a) In General.--In this division:
       (1) Indian country.--The term ``Indian country'' has the 
     meaning given the term in section 1151 of title 18, United 
     States Code.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 102 of the Federally 
     Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Tribal government.--The term ``tribal government'' 
     means the governing body of a federally recognized Indian 
     tribe.
       (b) Indian Law Enforcement Reform Act.--Section 2 of the 
     Indian Law Enforcement Reform Act (25 U.S.C. 2801) is amended 
     by adding at the end the following:
       ``(10) The term `tribal justice official' means--
       ``(A) a tribal prosecutor;
       ``(B) a tribal law enforcement officer; or
       ``(C) any other person responsible for investigating or 
     prosecuting an alleged criminal offense in tribal court.''.

     SEC. 4. SEVERABILITY.

       If any provision of this division, an amendment made by 
     this division, or the application of such a provision or 
     amendment to any individual, entity, or circumstance, is 
     determined by a court of competent jurisdiction to be 
     invalid, the remaining provisions of this division, the 
     remaining amendments made by this division, and the 
     application of those provisions and amendments to 
     individuals, entities, or circumstances other than the 
     affected individual, entity, or circumstance shall not be 
     affected.

     SEC. 5. JURISDICTION OF THE STATE OF ALASKA.

       Nothing in this Act limits, alters, expands, or diminishes 
     the civil or criminal jurisdiction of the State of Alaska, 
     any subdivision of the State of Alaska, or any Indian tribe 
     in that State.

     SEC. 6. EFFECT.

       Nothing in this Act confers on an Indian tribe criminal 
     jurisdiction over non-Indians.

            TITLE I--FEDERAL ACCOUNTABILITY AND COORDINATION

     SEC. 101. OFFICE OF JUSTICE SERVICES RESPONSIBILITIES.

       (a) Definitions.--Section 2 of the Indian Law Enforcement 
     Reform Act (25 U.S.C. 2801) is amended--
       (1) by striking paragraph (8);
       (2) by redesignating paragraphs (1) through (7) as 
     paragraphs (2) through (8), respectively;
       (3) by redesignating paragraph (9) as paragraph (1) and 
     moving the paragraphs so as to appear in numerical order; and
       (4) in paragraph (1) (as redesignated by paragraph (3)), by 
     striking ``Division of Law Enforcement Services'' and 
     inserting ``Office of Justice Services''.
       (b) Additional Responsibilities of Office.--Section 3 of 
     the Indian Law Enforcement Reform Act (25 U.S.C. 2802) is 
     amended--
       (1) in subsection (b), by striking ``(b) There is hereby 
     established within the Bureau a Division of Law Enforcement 
     Services which'' and inserting the following:
       ``(b) Office of Justice Services.--There is established in 
     the Bureau an office, to be known as the `Office of Justice 
     Services', that'';
       (2) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Division of Law Enforcement Services'' and inserting 
     ``Office of Justice Services'';
       (B) in paragraph (8), by striking ``and'' at the end;
       (C) in paragraph (9), by striking the period at the end and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(10) the development and provision of dispatch and 
     emergency and E-911 services;
       ``(11) communicating with tribal leaders, tribal community 
     and victims' advocates, tribal justice officials, indigent 
     defense representatives, and residents of Indian country on a 
     regular basis regarding public safety and justice concerns 
     facing tribal communities;
       ``(12) conducting meaningful and timely consultation with 
     tribal leaders and tribal justice officials in the 
     development of regulatory policies and other actions that 
     affect public safety and justice in Indian country;
       ``(13) providing technical assistance and training to 
     tribal law enforcement officials to gain access and input 
     authority to utilize the National Criminal Information Center 
     and other national crime information databases pursuant to 
     section 534 of title 28, United States Code;
       ``(14) in coordination with the Attorney General pursuant 
     to subsection (g) of section 302 of the Omnibus Crime Control 
     and Safe Streets Act of 1968 (42 U.S.C. 3732), collecting, 
     analyzing, and reporting data regarding Indian country crimes 
     on an annual basis;
       ``(15) on an annual basis, sharing with the Department of 
     Justice all relevant crime data, including Uniform Crime 
     Reports, that the Office of Justice Services prepares and 
     receives from tribal law enforcement agencies on a tribe-by-
     tribe basis to ensure that individual tribal governments 
     providing data are eligible for programs offered by the 
     Department of Justice;
       ``(16) submitting to the appropriate committees of 
     Congress, for each fiscal year, a detailed spending report 
     regarding tribal public safety and justice programs that 
     includes--
       ``(A)(i) the number of full-time employees of the Bureau 
     and tribal governments who serve as--
       ``(I) criminal investigators;
       ``(II) uniform police;
       ``(III) police and emergency dispatchers;
       ``(IV) detention officers;
       ``(V) executive personnel, including special agents in 
     charge, and directors and deputies of various offices in the 
     Office of Justice Services; and
       ``(VI) tribal court judges, prosecutors, public defenders, 
     appointed defense counsel, or related staff; and
       ``(ii) the amount of appropriations obligated for each 
     category described in clause (i) for each fiscal year;
       ``(B) a list of amounts dedicated to law enforcement and 
     corrections, vehicles, related transportation costs, 
     equipment, inmate transportation costs, inmate transfer 
     costs, replacement, improvement, and repair of facilities, 
     personnel transfers, detailees and costs related to their 
     details, emergency events, public safety and justice 
     communications and technology costs, and tribal court 
     personnel, facilities, indigent defense, and related program 
     costs;
       ``(C) a list of the unmet staffing needs of law 
     enforcement, corrections, and court personnel (including 
     indigent defense and prosecution staff) at tribal and Bureau 
     of Indian Affairs justice agencies, the replacement and 
     repair needs of tribal and Bureau corrections facilities, 
     needs for tribal police and court facilities, and public 
     safety and emergency communications and technology needs; and
       ``(D) the formula, priority list or other methodology used 
     to determine the method of disbursement of funds for the 
     public safety and justice programs administered by the Office 
     of Justice Services;
       ``(17) submitting to the appropriate committees of 
     Congress, for each fiscal year, a report summarizing the 
     technical assistance, training, and other support provided to 
     tribal law enforcement and corrections agencies that operate 
     relevant programs pursuant to self-determination contracts or 
     self-governance compacts with the Secretary; and
       ``(18) promulgating regulations to carry out this Act, and 
     routinely reviewing and updating, as necessary, the 
     regulations contained in subchapter B of title 25, Code of 
     Federal Regulations (or successor regulations).'';
       (3) in subsection (d)--
       (A) in paragraph (1), by striking ``Division of Law 
     Enforcement Services'' and inserting ``Office of Justice 
     Services''; and
       (B) in paragraph (4)(i), in the first sentence, by striking 
     ``Division'' and inserting ``Office of Justice Services'';
       (4) in subsection (e), by striking ``Division of Law 
     Enforcement Services'' each place it appears and inserting 
     ``Office of Justice Services''; and
       (5) by adding at the end the following:
       ``(f) Long-term Plan for Tribal Detention Programs.--Not 
     later than 1 year after the date of enactment of this 
     subsection, the Secretary, acting through the Bureau, in 
     coordination with the Department of Justice and in 
     consultation with tribal leaders, tribal courts, tribal law 
     enforcement officers, and tribal corrections officials, shall 
     submit to Congress a long-term plan to address incarceration 
     in Indian country, including--
       ``(1) a description of proposed activities for--
       ``(A) the construction, operation, and maintenance of 
     juvenile (in accordance with section 4220(a)(3) of the Indian 
     Alcohol and Substance Abuse Prevention and Treatment Act of 
     1986 (25 U.S.C. 2453(a)(3)) and adult detention facilities 
     (including regional facilities) in Indian country;
       ``(B) contracting with State and local detention centers, 
     upon approval of affected tribal governments; and
       ``(C) alternatives to incarceration, developed in 
     cooperation with tribal court systems;
       ``(2) an assessment and consideration of the construction 
     of Federal detention facilities in Indian country; and
       ``(3) any other alternatives as the Secretary, in 
     coordination with the Attorney General and in consultation 
     with Indian tribes, determines to be necessary.''.
       (c) Law Enforcement Authority.--Section 4 of the Indian Law 
     Enforcement Reform Act (25 U.S.C. 2803) is amended--

[[Page 11549]]

       (1) in paragraph (2)(A), by striking ``), or'' and 
     inserting ``or offenses processed by the Central Violations 
     Bureau); or''; and
       (2) in paragraph (3)--
       (A) in subparagraph (B), by striking ``, or'' at the end 
     and inserting a semicolon;
       (B) in subparagraphs (B) and (C), by striking ``reasonable 
     grounds'' each place it appears and inserting ``probable 
     cause'';
       (C) in subparagraph (C), by adding ``or'' at the end; and
       (D) by adding at the end the following:
       ``(D)(i) the offense involves--
       ``(I) a misdemeanor controlled substance offense in 
     violation of--

       ``(aa) the Controlled Substances Act (21 U.S.C. 801 et 
     seq.);
       ``(bb) title IX of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a et 
     seq.); or
       ``(cc) section 731 of the USA PATRIOT Improvement and 
     Reauthorization Act of 2005 (21 U.S.C. 865);

       ``(II) a misdemeanor firearms offense in violation of 
     chapter 44 of title 18, United States Code;
       ``(III) a misdemeanor assault in violation of chapter 7 of 
     title 18, United States Code; or
       ``(IV) a misdemeanor liquor trafficking offense in 
     violation of chapter 59 of title 18, United States Code; and
       ``(ii) the employee has probable cause to believe that the 
     individual to be arrested has committed, or is committing, 
     the crime;''.

     SEC. 102. DISPOSITION REPORTS.

       Section 10 of the Indian Law Enforcement Reform Act (25 
     U.S.C. 2809) is amended by striking subsections (a) through 
     (d) and inserting the following:
       ``(a) Coordination and Data Collection.--
       ``(1) Investigative coordination.--Subject to subsection 
     (c), if a law enforcement officer or employee of any Federal 
     department or agency terminates an investigation of an 
     alleged violation of Federal criminal law in Indian country 
     without referral for prosecution, the officer or employee 
     shall coordinate with the appropriate tribal law enforcement 
     officials regarding the status of the investigation and the 
     use of evidence relevant to the case in a tribal court with 
     authority over the crime alleged.
       ``(2) Investigation data.--The Federal Bureau of 
     Investigation shall compile, on an annual basis and by Field 
     Division, information regarding decisions not to refer to an 
     appropriate prosecuting authority cases in which 
     investigations had been opened into an alleged crime in 
     Indian country, including--
       ``(A) the types of crimes alleged;
       ``(B) the statuses of the accused as Indians or non-
     Indians;
       ``(C) the statuses of the victims as Indians or non-
     Indians; and
       ``(D) the reasons for deciding against referring the 
     investigation for prosecution.
       ``(3) Prosecutorial coordination.--Subject to subsection 
     (c), if a United States Attorney declines to prosecute, or 
     acts to terminate prosecution of, an alleged violation of 
     Federal criminal law in Indian country, the United States 
     Attorney shall coordinate with the appropriate tribal justice 
     officials regarding the status of the investigation and the 
     use of evidence relevant to the case in a tribal court with 
     authority over the crime alleged.
       ``(4) Prosecution data.--The United States Attorney shall 
     submit to the Native American Issues Coordinator to compile, 
     on an annual basis and by Federal judicial district, 
     information regarding all declinations of alleged violations 
     of Federal criminal law that occurred in Indian country that 
     were referred for prosecution by law enforcement agencies, 
     including--
       ``(A) the types of crimes alleged;
       ``(B) the statuses of the accused as Indians or non-
     Indians;
       ``(C) the statuses of the victims as Indians or non-
     Indians; and
       ``(D) the reasons for deciding to decline or terminate the 
     prosecutions.
       ``(b) Annual Reports.--The Attorney General shall submit to 
     Congress annual reports containing, with respect to the 
     applicable calendar year, the information compiled under 
     paragraphs (2) and (4) of subsection (a)--
       ``(1) organized--
       ``(A) in the aggregate; and
       ``(B)(i) for the Federal Bureau of Investigation, by Field 
     Division; and
       ``(ii) for United States Attorneys, by Federal judicial 
     district; and
       ``(2) including any relevant explanatory statements.
       ``(c) Effect of Section.--
       ``(1) In general.--Nothing in this section requires any 
     Federal agency or official to transfer or disclose any 
     confidential, privileged, or statutorily protected 
     communication, information, or source to an official of any 
     Indian tribe.
       ``(2) Federal rules of criminal procedure.--Nothing in this 
     section affects or limits the requirements of Rule 6 of the 
     Federal Rules of Criminal Procedure.
       ``(3) Regulations.--The Attorney General shall establish, 
     by regulation, standards for the protection of the 
     confidential or privileged communications, information, and 
     sources described in this section.''.

     SEC. 103. PROSECUTION OF CRIMES IN INDIAN COUNTRY.

       (a) Appointment of Special Prosecutors.--
       (1) In general.--Section 543 of title 28, United States 
     Code, is amended--
       (A) in subsection (a), by inserting before the period at 
     the end the following: ``, including the appointment of 
     qualified tribal prosecutors and other qualified attorneys to 
     assist in prosecuting Federal offenses committed in Indian 
     country''; and
       (B) by adding at the end the following:
       ``(c) Indian Country.--In this section, the term `Indian 
     country' has the meaning given that term in section 1151 of 
     title 18.''.
       (2) Sense of congress regarding consultation.--It is the 
     sense of Congress that, in appointing attorneys under section 
     543 of title 28, United States Code, to serve as special 
     prosecutors in Indian country, the Attorney General should 
     consult with tribal justice officials of each Indian tribe 
     that would be affected by the appointment.
       (b) Tribal Liaisons.--
       (1) In general.--The Indian Law Enforcement Reform Act (25 
     U.S.C. 2801 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 13. ASSISTANT UNITED STATES ATTORNEY TRIBAL LIAISONS.

       ``(a) Appointment.--The United States Attorney for each 
     district that includes Indian country shall appoint not less 
     than 1 assistant United States Attorney to serve as a tribal 
     liaison for the district.
       ``(b) Duties.--The duties of a tribal liaison shall include 
     the following:
       ``(1) Coordinating the prosecution of Federal crimes that 
     occur in Indian country.
       ``(2) Developing multidisciplinary teams to combat child 
     abuse and domestic and sexual violence offenses against 
     Indians.
       ``(3) Consulting and coordinating with tribal justice 
     officials and victims' advocates to address any backlog in 
     the prosecution of major crimes in Indian country in the 
     district.
       ``(4) Developing working relationships and maintaining 
     communication with tribal leaders, tribal community and 
     victims' advocates, and tribal justice officials to gather 
     information from, and share appropriate information with, 
     tribal justice officials.
       ``(5) Coordinating with tribal prosecutors in cases in 
     which a tribal government has concurrent jurisdiction over an 
     alleged crime, in advance of the expiration of any applicable 
     statute of limitation.
       ``(6) Providing technical assistance and training regarding 
     evidence gathering techniques and strategies to address 
     victim and witness protection to tribal justice officials and 
     other individuals and entities that are instrumental to 
     responding to Indian country crimes.
       ``(7) Conducting training sessions and seminars to certify 
     special law enforcement commissions to tribal justice 
     officials and other individuals and entities responsible for 
     responding to Indian country crimes.
       ``(8) Coordinating with the Office of Tribal Justice, as 
     necessary.
       ``(9) Conducting such other activities to address and 
     prevent violent crime in Indian country as the applicable 
     United States Attorney determines to be appropriate.
       ``(c) Effect of Section.--Nothing in this section limits 
     the authority of any United States Attorney to determine the 
     duties of a tribal liaison officer to meet the needs of the 
     Indian tribes located within the relevant Federal district.
       ``(d) Enhanced Prosecution of Minor Crimes.--
       ``(1) In general.--Each United States Attorney serving a 
     district that includes Indian country is authorized and 
     encouraged--
       ``(A) to appoint Special Assistant United States Attorneys 
     pursuant to section 543(a) of title 28, United States Code, 
     to prosecute crimes in Indian country as necessary to improve 
     the administration of justice, and particularly when--
       ``(i) the crime rate exceeds the national average crime 
     rate; or
       ``(ii) the rate at which criminal offenses are declined to 
     be prosecuted exceeds the national average declination rate;
       ``(B) to coordinate with applicable United States district 
     courts regarding scheduling of Indian country matters and 
     holding trials or other proceedings in Indian country, as 
     appropriate;
       ``(C) to provide to appointed Special Assistant United 
     States Attorneys appropriate training, supervision, and staff 
     support; and
       ``(D) to provide technical and other assistance to tribal 
     governments and tribal court systems to ensure that the goals 
     of this subsection are achieved.
       ``(2) Sense of congress regarding consultation.--It is the 
     sense of Congress that, in appointing Special Assistant 
     United States Attorneys under this subsection, a United 
     States Attorney should consult with tribal justice officials 
     of each Indian tribe that would be affected by the 
     appointment.''.
       (2) Sense of congress regarding evaluations of tribal 
     liaisons.--
       (A) Findings.--Congress finds that--
       (i) many residents of Indian country rely solely on United 
     States Attorneys offices to prosecute felony and misdemeanor 
     crimes occurring on Indian land; and
       (ii) tribal liaisons have dual obligations of--

       (I) coordinating prosecutions of Indian country crime; and

[[Page 11550]]

       (II) developing relationships with residents of Indian 
     country and serving as a link between Indian country 
     residents and the Federal justice process.

       (B) Sense of congress.--It is the sense of Congress that 
     the Attorney General should--
       (i) take all appropriate actions to encourage the 
     aggressive prosecution of all Federal crimes committed in 
     Indian country; and
       (ii) when appropriate, take into consideration the dual 
     responsibilities of tribal liaisons described in subparagraph 
     (A)(ii) in evaluating the performance of the tribal liaisons.

     SEC. 104. ADMINISTRATION.

       (a) Office of Tribal Justice.--
       (1) Definitions.--Section 4 of the Indian Tribal Justice 
     Technical and Legal Assistance Act of 2000 (25 U.S.C. 3653) 
     is amended--
       (A) by redesignating paragraphs (2) through (7) as 
     paragraphs (3) through (8), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) Director.--The term `Director' means the Director of 
     the Office of Tribal Justice.''.
       (2) Status.--Title I of the Indian Tribal Justice Technical 
     and Legal Assistance Act of 2000 is amended--
       (A) by redesignating section 106 (25 U.S.C. 3666) as 
     section 107; and
       (B) by inserting after section 105 (25 U.S.C. 3665) the 
     following:

     ``SEC. 106. OFFICE OF TRIBAL JUSTICE.

       ``(a) In General.--Not later than 90 days after the date of 
     enactment of the Tribal Law and Order Act of 2010, the 
     Attorney General shall establish the Office of Tribal Justice 
     as a component of the Department.
       ``(b) Personnel and Funding.--The Attorney General shall 
     provide to the Office of Tribal Justice such personnel and 
     funds as are necessary to establish the Office of Tribal 
     Justice as a component of the Department under subsection 
     (a).
       ``(c) Duties.--The Office of Tribal Justice shall--
       ``(1) serve as the program and legal policy advisor to the 
     Attorney General with respect to the treaty and trust 
     relationship between the United States and Indian tribes;
       ``(2) serve as the point of contact for federally 
     recognized tribal governments and tribal organizations with 
     respect to questions and comments regarding policies and 
     programs of the Department and issues relating to public 
     safety and justice in Indian country; and
       ``(3) coordinate with other bureaus, agencies, offices, and 
     divisions within the Department of Justice to ensure that 
     each component has an accountable process to ensure 
     meaningful and timely consultation with tribal leaders in the 
     development of regulatory policies and other actions that 
     affect--
       ``(A) the trust responsibility of the United States to 
     Indian tribes;
       ``(B) any tribal treaty provision;
       ``(C) the status of Indian tribes as sovereign governments; 
     or
       ``(D) any other tribal interest.''.
       (b) Native American Issues Coordinator.--The Indian Law 
     Enforcement Reform Act (25 U.S.C. 2801 et seq.) (as amended 
     by section 103(b)) is amended by adding at the end the 
     following:

     ``SEC. 14. NATIVE AMERICAN ISSUES COORDINATOR.

       ``(a) Establishment.--There is established in the Executive 
     Office for United States Attorneys of the Department of 
     Justice a position to be known as the `Native American Issues 
     Coordinator'.
       ``(b) Duties.--The Native American Issues Coordinator 
     shall--
       ``(1) coordinate with the United States Attorneys that have 
     authority to prosecute crimes in Indian country;
       ``(2) coordinate prosecutions of crimes of national 
     significance in Indian country, as determined by the Attorney 
     General;
       ``(3) coordinate as necessary with other components of the 
     Department of Justice and any relevant advisory groups to the 
     Attorney General or the Deputy Attorney General; and
       ``(4) carry out such other duties as the Attorney General 
     may prescribe.''.

            TITLE II--STATE ACCOUNTABILITY AND COORDINATION

     SEC. 201. STATE CRIMINAL JURISDICTION AND RESOURCES.

       (a) Concurrent Authority of United States.--Section 401(a) 
     of the Indian Civil Rights Act of 1968 (25 U.S.C. 1321(a)) is 
     amended--
       (1) by striking the section designation and heading and all 
     that follows through ``The consent of the United States'' and 
     inserting the following:

     ``SEC. 401. ASSUMPTION BY STATE OF CRIMINAL JURISDICTION.

       ``(a) Consent of United States.--
       ``(1) In general.--The consent of the United States''; and
       (2) by adding at the end the following:
       ``(2) Concurrent jurisdiction.--At the request of an Indian 
     tribe, and after consultation with and consent by the 
     Attorney General, the United States shall accept concurrent 
     jurisdiction to prosecute violations of sections 1152 and 
     1153 of title 18, United States Code, within the Indian 
     country of the Indian tribe.''.
       (b) Applicable Law.--Section 1162 of title 18, United 
     States Code, is amended by adding at the end the following:
       ``(d) Notwithstanding subsection (c), at the request of an 
     Indian tribe, and after consultation with and consent by the 
     Attorney General--
       ``(1) sections 1152 and 1153 shall apply in the areas of 
     the Indian country of the Indian tribe; and
       ``(2) jurisdiction over those areas shall be concurrent 
     among the Federal Government, State governments, and, where 
     applicable, tribal governments.''.

     SEC. 202. STATE, TRIBAL, AND LOCAL LAW ENFORCEMENT 
                   COOPERATION.

       The Attorney General may provide technical and other 
     assistance to State, tribal, and local governments that enter 
     into cooperative agreements, including agreements relating to 
     mutual aid, hot pursuit of suspects, and cross-deputization 
     for the purposes of--
       (1) improving law enforcement effectiveness;
       (2) reducing crime in Indian country and nearby 
     communities; and
       (3) developing successful cooperative relationships that 
     effectively combat crime in Indian country and nearby 
     communities.

   TITLE III--EMPOWERING TRIBAL LAW ENFORCEMENT AGENCIES AND TRIBAL 
                              GOVERNMENTS

     SEC. 301. TRIBAL POLICE OFFICERS.

       (a) Flexibility in Training Law Enforcement Officers 
     Serving Indian Country.--Section 3(e) of the Indian Law 
     Enforcement Reform Act (25 U.S.C. 2802(e)) (as amended by 
     section 101(b)(4)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(e)(1) The Secretary'' and inserting the 
     following:
       ``(e) Standards of Education and Experience and 
     Classification of Positions.--
       ``(1) Standards of education and experience.--
       ``(A) In general.--The Secretary''; and
       (B) by adding at the end the following:
       ``(B) Requirements for training.--The training standards 
     established under subparagraph (A)--
       ``(i) shall be consistent with standards accepted by the 
     Federal Law Enforcement Training Accreditation commission for 
     law enforcement officers attending similar programs; and
       ``(ii) shall include, or be supplemented by, instruction 
     regarding Federal sources of authority and jurisdiction, 
     Federal crimes, Federal rules of criminal procedure, and 
     constitutional law to bridge the gap between State training 
     and Federal requirements.
       ``(C) Training at state, tribal, and local academies.--Law 
     enforcement personnel of the Office of Justice Services or an 
     Indian tribe may satisfy the training standards established 
     under subparagraph (A) through training at a State or tribal 
     police academy, a State, regional, local, or tribal college 
     or university, or other training academy (including any 
     program at a State, regional, local, or tribal college or 
     university) that meets the appropriate Peace Officer 
     Standards of Training.
       ``(D) Maximum age requirement.--Pursuant to section 3307(e) 
     of title 5, United States Code, the Secretary may employ as a 
     law enforcement officer under section 4 any individual under 
     the age of 47, if the individual meets all other applicable 
     hiring requirements for the applicable law enforcement 
     position.'';
       (2) in paragraph (3), by striking ``Agencies'' and 
     inserting ``agencies''; and
       (3) by adding at the end the following:
       ``(4) Background checks for tribal justice officials.--
       ``(A) In general.--The Office of Justice Services shall 
     develop standards and deadlines for the provision of 
     background checks to tribal law enforcement and corrections 
     officials.
       ``(B) Timing.--If a request for a background check is made 
     by an Indian tribe that has contracted or entered into a 
     compact for law enforcement or corrections services with the 
     Bureau of Indian Affairs pursuant to the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.), the Office of Justice Services shall complete the 
     check not later than 60 days after the date of receipt of the 
     request, unless an adequate reason for failure to respond by 
     that date is provided to the Indian tribe in writing.''.
       (b) Special Law Enforcement Commissions.--Section 5 of the 
     Indian Law Enforcement Reform Act (25 U.S.C. 2804) is 
     amended--
       (1) by striking ``(a) The Secretary may enter into an 
     agreement'' and inserting the following:
       ``(a) Agreements.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Tribal Law and Order Act of 2010, the 
     Secretary shall establish procedures to enter into memoranda 
     of agreement'';
       (2) in the second sentence, by striking ``The Secretary'' 
     and inserting the following:
       ``(2) Certain activities.--The Secretary''; and
       (3) by adding at the end the following:
       ``(3) Program enhancement.--
       ``(A) Training sessions in indian country.--

[[Page 11551]]

       ``(i) In general.--The procedures described in paragraph 
     (1) shall include the development of a plan to enhance the 
     certification and provision of special law enforcement 
     commissions to tribal law enforcement officials, and, subject 
     to subsection (d), State and local law enforcement officials, 
     pursuant to this section.
       ``(ii) Inclusions.--The plan under clause (i) shall include 
     the hosting of regional training sessions in Indian country, 
     not less frequently than biannually, to educate and certify 
     candidates for the special law enforcement commissions.
       ``(B) Memoranda of agreement.--
       ``(i) In general.--Not later than 180 days after the date 
     of enactment of the Tribal Law and Order Act of 2010, the 
     Secretary, in consultation with Indian tribes and tribal law 
     enforcement agencies, shall develop minimum requirements to 
     be included in special law enforcement commission agreements 
     pursuant to this section.
       ``(ii) Substance of agreements.--Each agreement entered 
     into pursuant to this section shall reflect the status of the 
     applicable certified individual as a Federal law enforcement 
     officer under subsection (f), acting within the scope of the 
     duties described in section 3(c).
       ``(iii) Agreement.--Not later than 60 days after the date 
     on which the Secretary determines that all applicable 
     requirements under clause (i) are met, the Secretary shall 
     offer to enter into a special law enforcement commission 
     agreement with the Indian tribe.''.
       (c) Indian Law Enforcement Foundation.--The Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.) is amended by adding at the end the following:

             ``TITLE VII--INDIAN LAW ENFORCEMENT FOUNDATION

     ``SEC. 701. DEFINITIONS.

       ``In this title:
       ``(1) Board.--The term `Board' means the Board of Directors 
     of the Foundation.
       ``(2) Bureau.--The term `Bureau' means the Office of 
     Justice Services of the Bureau of Indian Affairs.
       ``(3) Committee.--The term `Committee' means the Committee 
     for the Establishment of the Indian Law Enforcement 
     Foundation established under section 702(e)(1).
       ``(4) Foundation.--The term `Foundation' means the Indian 
     Law Enforcement Foundation established under section 702.
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.

     ``SEC. 702. INDIAN LAW ENFORCEMENT FOUNDATION.

       ``(a) Establishment.--
       ``(1) In general.--As soon as practicable after the date of 
     enactment of this title, the Secretary shall establish, under 
     the laws of the District of Columbia and in accordance with 
     this title, a foundation, to be known as the `Indian Law 
     Enforcement Foundation'.
       ``(2) Funding determinations.--No funds, gift, property, or 
     other item of value (including any interest accrued on such 
     an item) acquired by the Foundation shall--
       ``(A) be taken into consideration for purposes of 
     determining Federal appropriations relating to the provision 
     of public safety or justice services to Indians; or
       ``(B) otherwise limit, diminish, or affect the Federal 
     responsibility for the provision of public safety or justice 
     services to Indians.
       ``(b) Nature of Corporation.--The Foundation--
       ``(1) shall be a charitable and nonprofit federally 
     chartered corporation; and
       ``(2) shall not be an agency or instrumentality of the 
     United States.
       ``(c) Place of Incorporation and Domicile.--The Foundation 
     shall be incorporated and domiciled in the District of 
     Columbia.
       ``(d) Duties.--The Foundation shall--
       ``(1) encourage, accept, and administer, in accordance with 
     the terms of each donation, private gifts of real and 
     personal property, and any income from or interest in such 
     gifts, for the benefit of, or in support of, public safety 
     and justice services in American Indian and Alaska Native 
     communities; and
       ``(2) assist the Office of Justice Services of the Bureau 
     of Indian Affairs and Indian tribal governments in funding 
     and conducting activities and providing education to advance 
     and support the provision of public safety and justice 
     services in American Indian and Alaska Native communities.
       ``(e) Committee for the Establishment of the Indian Law 
     Enforcement Foundation.--
       ``(1) In general.--The Secretary shall establish a 
     committee, to be known as the `Committee for the 
     Establishment of the Indian Law Enforcement Foundation', to 
     assist the Secretary in establishing the Foundation.
       ``(2) Duties.--Not later than 180 days after the date of 
     enactment of this section, the Committee shall--
       ``(A) carry out such activities as are necessary to 
     incorporate the Foundation under the laws of the District of 
     Columbia, including acting as incorporators of the 
     Foundation;
       ``(B) ensure that the Foundation qualifies for and 
     maintains the status required to carry out this section, 
     until the date on which the Board is established;
       ``(C) establish the constitution and initial bylaws of the 
     Foundation;
       ``(D) provide for the initial operation of the Foundation, 
     including providing for temporary or interim quarters, 
     equipment, and staff; and
       ``(E) appoint the initial members of the Board in 
     accordance with the constitution and initial bylaws of the 
     Foundation.
       ``(f) Board of Directors.--
       ``(1) In general.--The Board of Directors shall be the 
     governing body of the Foundation.
       ``(2) Powers.--The Board may exercise, or provide for the 
     exercise of, the powers of the Foundation.
       ``(3) Selection.--
       ``(A) In general.--Subject to subparagraph (B), the number 
     of members of the Board, the manner of selection of the 
     members (including the filling of vacancies), and the terms 
     of office of the members shall be as provided in the 
     constitution and bylaws of the Foundation.
       ``(B) Requirements.--
       ``(i) Number of members.--The Board shall be composed of 
     not less than 7 members.
       ``(ii) Initial voting members.--The initial voting members 
     of the Board--

       ``(I) shall be appointed by the Committee not later than 
     180 days after the date on which the Foundation is 
     established; and
       ``(II) shall serve for staggered terms.

       ``(iii) Qualification.--The members of the Board shall be 
     United States citizens with knowledge or experience regarding 
     public safety and justice in Indian and Alaska Native 
     communities.
       ``(C) Compensation.--A member of the Board shall not 
     receive compensation for service as a member, but shall be 
     reimbursed for actual and necessary travel and subsistence 
     expenses incurred in the performance of the duties of the 
     Foundation.
       ``(g) Officers.--
       ``(1) In general.--The officers of the Foundation shall 
     be--
       ``(A) a Secretary, elected from among the members of the 
     Board; and
       ``(B) any other officers provided for in the constitution 
     and bylaws of the Foundation.
       ``(2) Chief operating officer.--
       ``(A) Secretary.--Subject to subparagraph (B), the 
     Secretary of the Foundation may serve, at the direction of 
     the Board, as the chief operating officer of the Foundation.
       ``(B) Appointment.--The Board may appoint a chief operating 
     officer in lieu of the Secretary of the Foundation under 
     subparagraph (A), who shall serve at the direction of the 
     Board.
       ``(3) Election.--The manner of election, term of office, 
     and duties of the officers of the Foundation shall be as 
     provided in the constitution and bylaws of the Foundation.
       ``(h) Powers.--The Foundation--
       ``(1) shall adopt a constitution and bylaws for the 
     management of the property of the Foundation and the 
     regulation of the affairs of the Foundation;
       ``(2) may adopt and alter a corporate seal;
       ``(3) may enter into contracts;
       ``(4) may acquire (through gift or otherwise), own, lease, 
     encumber, and transfer real or personal property as necessary 
     or convenient to carry out the purposes of the Foundation;
       ``(5) may sue and be sued; and
       ``(6) may perform any other act necessary and proper to 
     carry out the purposes of the Foundation.
       ``(i) Principal Office.--
       ``(1) In general.--The principal office of the Foundation 
     shall be located in the District of Columbia.
       ``(2) Activities; offices.--The activities of the 
     Foundation may be conducted, and offices may be maintained, 
     throughout the United States in accordance with the 
     constitution and bylaws of the Foundation.
       ``(j) Service of Process.--The Foundation shall comply with 
     the law on service of process of each State in which the 
     Foundation is incorporated and of each State in which the 
     Foundation carries on activities.
       ``(k) Liability of Officers, Employees, and Agents.--
       ``(1) In general.--The Foundation shall be liable for the 
     acts of the officers, employees, and agents of the Foundation 
     acting within the scope of the authority of the officers, 
     employees, and agents.
       ``(2) Personal liability.--A member of the Board shall be 
     personally liable only for gross negligence in the 
     performance of the duties of the member.
       ``(l) Restrictions.--
       ``(1) Limitation on spending.--Beginning with the fiscal 
     year following the first full fiscal year during which the 
     Foundation is in operation, the administrative costs of the 
     Foundation shall not exceed the percentage described in 
     paragraph (2) of the sum of--
       ``(A) the amounts transferred to the Foundation under 
     subsection (n) during the preceding fiscal year; and
       ``(B) donations received from private sources during the 
     preceding fiscal year.
       ``(2) Percentages.--The percentages referred to in 
     paragraph (1) are--
       ``(A) for the first 2 fiscal years described in that 
     paragraph, 25 percent;
       ``(B) for the following fiscal year, 20 percent; and
       ``(C) for each fiscal year thereafter, 15 percent.
       ``(3) Appointment and hiring.--The appointment of officers 
     and employees of the

[[Page 11552]]

     Foundation shall be subject to the availability of funds.
       ``(4) Status.--A member of the Board or officer, employee, 
     or agent of the Foundation shall not by reason of association 
     with the Foundation be considered to be an officer, employee, 
     or agent of the United States.
       ``(m) Audits.--The Foundation shall comply with section 
     10101 of title 36, United States Code, as if the Foundation 
     were a corporation under part B of subtitle II of that title.
       ``(n) Funding.--For each of fiscal years 2011 through 2015, 
     out of any unobligated amounts available to the Secretary, 
     the Secretary may use to carry out this section not more than 
     $500,000.

     ``SEC. 703. ADMINISTRATIVE SERVICES AND SUPPORT.

       ``(a) Provision of Support by Secretary.--Subject to 
     subsection (b), during the 5-year period beginning on the 
     date on which the Foundation is established, the Secretary--
       ``(1) may provide personnel, facilities, and other 
     administrative support services to the Foundation;
       ``(2) may provide funds for initial operating costs and to 
     reimburse the travel expenses of the members of the Board; 
     and
       ``(3) shall require and accept reimbursements from the 
     Foundation for--
       ``(A) services provided under paragraph (1); and
       ``(B) funds provided under paragraph (2).
       ``(b) Reimbursement.--Reimbursements accepted under 
     subsection (a)(3)--
       ``(1) shall be deposited in the Treasury of the United 
     States to the credit of the applicable appropriations 
     account; and
       ``(2) shall be chargeable for the cost of providing 
     services described in subsection (a)(1) and travel expenses 
     described in subsection (a)(2).
       ``(c) Continuation of Certain Services.--The Secretary may 
     continue to provide facilities and necessary support services 
     to the Foundation after the termination of the 5-year period 
     specified in subsection (a) if the facilities and services 
     are--
       ``(1) available; and
       ``(2) provided on reimbursable cost basis.''.
       (d) Technical Amendments.--The Indian Self-Determination 
     and Education Assistance Act is amended--
       (1) by redesignating title V (25 U.S.C. 458bbb et seq.) as 
     title VIII and moving the title so as to appear at the end of 
     the Act;
       (2) by redesignating sections 501, 502, and 503 (25 U.S.C. 
     458bbb, 458bbb-1, 458bbb-2) as sections 801, 802, and 803, 
     respectively; and
       (3) in subsection (a)(2) of section 802 and paragraph (2) 
     of section 803 (as redesignated by paragraph (2)), by 
     striking ``section 501'' and inserting ``section 801''.
       (e) Acceptance and Assistance.--Section 5 of the Indian Law 
     Enforcement Reform Act (25 U.S.C. 2804) is amended by adding 
     at the end the following:
       ``(g) Acceptance of Assistance.--The Bureau may accept 
     reimbursement, resources, assistance, or funding from--
       ``(1) a Federal, tribal, State, or other government agency; 
     or
       ``(2) the Indian Law Enforcement Foundation established 
     under section 701(a) of the Indian Self-Determination and 
     Education Assistance Act.''.

     SEC. 302. DRUG ENFORCEMENT IN INDIAN COUNTRY.

       (a) Education and Research Programs.--Section 502 of the 
     Controlled Substances Act (21 U.S.C. 872) is amended in 
     subsections (a)(1) and (c), by inserting `` tribal,'' after 
     ``State,'' each place it appears.
       (b) Public-private Education Program.--Section 503 of the 
     Comprehensive Methamphetamine Control Act of 1996 (21 U.S.C. 
     872a) is amended--
       (1) in subsection (a), by inserting ``tribal,'' after 
     ``State,''; and
       (2) in subsection (b)(2), by inserting ``, tribal,'' after 
     ``State''.
       (c) Cooperative Arrangements.--Section 503 of the 
     Controlled Substances Act (21 U.S.C. 873) is amended--
       (1) in subsection (a)--
       (A) by inserting ``tribal,'' after ``State,'' each place it 
     appears; and
       (B) in paragraphs (6) and (7), by inserting ``, tribal,'' 
     after ``State'' each place it appears; and
       (2) in subsection (d)(1), by inserting ``, tribal,'' after 
     ``State''.
       (d) Powers of Enforcement Personnel.--Section 508(a) of the 
     Controlled Substances Act (21 U.S.C. 878(a)) is amended in 
     the matter preceding paragraph (1) by inserting ``, tribal,'' 
     after ``State''.
       (e) Effect of Grants.--Nothing in this section or any 
     amendment made by this section--
       (1) allows the grant to be made to, or used by, an entity 
     for law enforcement activities that the entity lacks 
     jurisdiction to perform; or
       (2) has any effect other than to authorize, award, or deny 
     a grant of funds to a federally recognized Indian tribe for 
     the purposes described in the relevant grant program.

     SEC. 303. ACCESS TO NATIONAL CRIMINAL INFORMATION DATABASES.

       (a) Access to National Criminal Information Databases.--
     Section 534 of title 28, United States Code, is amended--
       (1) in subsection (a)(4), by inserting ``Indian tribes,'' 
     after ``the States,'';
       (2) by striking subsection (d) and inserting the following:
       ``(d) Indian Law Enforcement Agencies.--The Attorney 
     General shall permit tribal and Bureau of Indian Affairs law 
     enforcement agencies--
       ``(1) to access and enter information into Federal criminal 
     information databases; and
       ``(2) to obtain information from the databases.'';
       (3) by redesignating the second subsection (e) as 
     subsection (f); and
       (4) in paragraph (2) of subsection (f) (as redesignated by 
     paragraph (3)), in the matter preceding subparagraph (A), by 
     inserting ``, tribal,'' after ``Federal''.
       (b) Requirement.--
       (1) In general.--The Attorney General shall ensure that 
     tribal law enforcement officials that meet applicable Federal 
     or State requirements be permitted access to national crime 
     information databases.
       (2) Sanctions.--For purpose of sanctions for noncompliance 
     with requirements of, or misuse of, national crime 
     information databases and information obtained from those 
     databases, a tribal law enforcement agency or official shall 
     be treated as Federal law enforcement agency or official.
       (3) NCIC.--Each tribal justice official serving an Indian 
     tribe with criminal jurisdiction over Indian country shall be 
     considered to be an authorized law enforcement official for 
     purposes of access to the National Crime Information Center 
     of the Federal Bureau of Investigation.

     SEC. 304. TRIBAL COURT SENTENCING AUTHORITY.

       (a) Individual Rights.--Section 202 of the Indian Civil 
     Rights Act of 1968 (25 U.S.C. 1302), is amended--
       (1) in the matter preceding paragraph (1), by striking ``No 
     Indian tribe'' and inserting the following:
       ``(a) In General.--No Indian tribe'';
       (2) in subsection (a) (as designated by paragraph (1))--
       (A) in paragraph (6) by inserting ``(except as provided in 
     subsection (b)) after ``assistance of counsel for his 
     defense''; and
       (B) by striking paragraph (7) and inserting the following:
       ``(7)(A) require excessive bail, impose excessive fines, or 
     inflict cruel and unusual punishments;
       ``(B) except as provided in subparagraph (C), impose for 
     conviction of any 1 offense any penalty or punishment greater 
     than imprisonment for a term of 1 year or a fine of $5,000, 
     or both;
       ``(C) subject to subsection (b), impose for conviction of 
     any 1 offense any penalty or punishment greater than 
     imprisonment for a term of 3 years or a fine of $15,000, or 
     both; or
       ``(D) impose on a person in a criminal proceeding a total 
     penalty or punishment greater than imprisonment for a term of 
     9 years;''; and
       (3) by adding at the end the following:
       ``(b) Offenses Subject to Greater Than 1-year Imprisonment 
     or a Fine Greater Than $5,000.--A tribal court may subject a 
     defendant to a term of imprisonment greater than 1 year but 
     not to exceed 3 years for any 1 offense, or a fine greater 
     than $5,000 but not to exceed $15,000, or both, if the 
     defendant is a person accused of a criminal offense who--
       ``(1) has been previously convicted of the same or a 
     comparable offense by any jurisdiction in the United States; 
     or
       ``(2) is being prosecuted for an offense comparable to an 
     offense that would be punishable by more than 1 year of 
     imprisonment if prosecuted by the United States or any of the 
     States.
       ``(c) Rights of Defendants.--In a criminal proceeding in 
     which an Indian tribe, in exercising powers of self-
     government, imposes a total term of imprisonment of more than 
     1 year on a defendant, the Indian tribe shall--
       ``(1) provide to the defendant the right to effective 
     assistance of counsel at least equal to that guaranteed by 
     the United States Constitution; and
       ``(2) at the expense of the tribal government, provide an 
     indigent defendant the assistance of a defense attorney 
     licensed to practice law by any jurisdiction in the United 
     States that applies appropriate professional licensing 
     standards and effectively ensures the competence and 
     professional responsibility of its licensed attorneys;
       ``(3) require that the judge presiding over the criminal 
     proceeding--
       ``(A) has sufficient legal training to preside over 
     criminal proceedings; and
       ``(B) is licensed to practice law by any jurisdiction in 
     the United States;
       ``(4) prior to charging the defendant, make publicly 
     available the criminal laws (including regulations and 
     interpretative documents), rules of evidence, and rules of 
     criminal procedure (including rules governing the recusal of 
     judges in appropriate circumstances) of the tribal 
     government; and
       ``(5) maintain a record of the criminal proceeding, 
     including an audio or other recording of the trial 
     proceeding.
       ``(d) Sentences.--In the case of a defendant sentenced in 
     accordance with subsections (b) and (c), a tribal court may 
     require the defendant--
       ``(1) to serve the sentence--
       ``(A) in a tribal correctional center that has been 
     approved by the Bureau of Indian

[[Page 11553]]

     Affairs for long-term incarceration, in accordance with 
     guidelines to be developed by the Bureau of Indian Affairs 
     (in consultation with Indian tribes) not later than 180 days 
     after the date of enactment of the Tribal Law and Order Act 
     of 2010;
       ``(B) in the nearest appropriate Federal facility, at the 
     expense of the United States pursuant to the Bureau of 
     Prisons tribal prisoner pilot program described in section 
     304(c) of the Tribal Law and Order Act of 2010;
       ``(C) in a State or local government-approved detention or 
     correctional center pursuant to an agreement between the 
     Indian tribe and the State or local government; or
       ``(D) in an alternative rehabilitation center of an Indian 
     tribe; or
       ``(2) to serve another alternative form of punishment, as 
     determined by the tribal court judge pursuant to tribal law.
       ``(e) Definition of Offense.--In this section, the term 
     `offense' means a violation of a criminal law.
       ``(f) Effect of Section.--Nothing in this section affects 
     the obligation of the United States, or any State government 
     that has been delegated authority by the United States, to 
     investigate and prosecute any criminal violation in Indian 
     country.''.
       (b) Report.--Not later than 4 years after the date of 
     enactment of this Act, the Attorney General, in coordination 
     with the Secretary of the Interior, shall submit a report to 
     the appropriate committees of Congress that includes--
       (1) a description of the effectiveness of enhanced tribal 
     court sentencing authority in curtailing violence and 
     improving the administration of justice on Indian lands; and
       (2) a recommendation of whether enhanced sentencing 
     authority should be discontinued, enhanced, or maintained at 
     the level authorized under this division.
       (c) Bureau of Prisons Tribal Prisoner Pilot Program.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this division, the Director of the Bureau of 
     Prisons shall establish a pilot program under which the 
     Bureau of Prisons shall accept offenders convicted in tribal 
     court pursuant to section 202 of the Indian Civil Rights Act 
     of 1968 (25 U.S.C. 1302) (as amended by this section), 
     subject to the conditions described in paragraph (2).
       (2) Conditions.--
       (A) In general.--As a condition of participation in the 
     pilot program described in paragraph (1), the tribal court 
     shall submit to the Attorney General a request for 
     confinement of the offender, for approval by the Attorney 
     General (or a designee) by not later than 30 days after the 
     date of submission.
       (B) Limitations.--Requests for confinement shall be limited 
     to offenders convicted of a violent crime (comparable to the 
     violent crimes described in section 1153(a) of title 18, 
     United States Code) for which the sentence includes a term of 
     imprisonment of 2 or more years.
       (C) Custody conditions.--The imprisonment by the Bureau of 
     Prisons shall be subject to the conditions described in 
     section 5003 of title 18, United States Code, regarding the 
     custody of State offenders, except that the offender shall be 
     placed in the nearest available and appropriate Federal 
     facility, and imprisoned at the expense of the United States.
       (D) Cap.--The Bureau of Prisons shall confine not more than 
     100 tribal offenders at any time.
       (3) Rescinding requests.--
       (A) In general.--The applicable tribal government shall 
     retain the authority to rescind the request for confinement 
     of a tribal offender by the Bureau of Prisons under this 
     paragraph at any time during the sentence of the offender.
       (B) Return to tribal custody.--On rescission of a request 
     under subparagraph (A), a tribal offender shall be returned 
     to tribal custody.
       (4) Reassessment.--If tribal court demand for participation 
     in this pilot program exceeds 100 tribal offenders, a 
     representative of the Bureau of Prisons shall notify 
     Congress.
       (5) Report.--Not later than 3 years after the date of 
     establishment of the pilot program, the Attorney General 
     shall submit to Congress a report describing the status of 
     the program, including recommendations regarding the future 
     of the program, if any.
       (6) Termination.--Except as otherwise provided by an Act of 
     Congress, the pilot program under this paragraph shall expire 
     on the date that is 4 years after the date on which the 
     program is established.
       (d) Grants and Contracts.--Section 1007(b) of the Economic 
     Opportunity Act of 1964 (42 U.S.C. 2996f(b)) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) to provide legal assistance with respect to any 
     criminal proceeding, except to provide assistance to a person 
     charged with an offense in an Indian tribal court;''.

     SEC. 305. INDIAN LAW AND ORDER COMMISSION.

       The Indian Law Enforcement Reform Act (25 U.S.C. 2801 et 
     seq.) (as amended by section 104(b)) is amended by adding at 
     the end the following:

     ``SEC. 15. INDIAN LAW AND ORDER COMMISSION.

       ``(a) Establishment.--There is established a commission to 
     be known as the Indian Law and Order Commission (referred to 
     in this section as the `Commission').
       ``(b) Membership.--
       ``(1) In general.--The Commission shall be composed of 9 
     members, of whom--
       ``(A) 3 shall be appointed by the President, in 
     consultation with--
       ``(i) the Attorney General; and
       ``(ii) the Secretary;
       ``(B) 2 shall be appointed by the Majority Leader of the 
     Senate, in consultation with the Chairpersons of the 
     Committees on Indian Affairs and the Judiciary of the Senate;
       ``(C) 1 shall be appointed by the Minority Leader of the 
     Senate, in consultation with the Vice Chairperson and Ranking 
     Member of the Committees on Indian Affairs and the Judiciary 
     of the Senate;
       ``(D) 2 shall be appointed by the Speaker of the House of 
     Representatives, in consultation with the Chairpersons of the 
     Committees on the Judiciary and Natural Resources of the 
     House of Representatives; and
       ``(E) 1 shall be appointed by the Minority Leader of the 
     House of Representatives, in consultation with the Ranking 
     Members of the Committees on the Judiciary and Natural 
     Resources of the House of Representatives.
       ``(2) Requirements for eligibility.--Each member of the 
     Commission shall have significant experience and expertise 
     in--
       ``(A) the Indian country criminal justice system; and
       ``(B) matters to be studied by the Commission.
       ``(3) Consultation required.--The President, the Speaker 
     and Minority Leader of the House of Representatives, and the 
     Majority Leader and Minority Leader of the Senate shall 
     consult before the appointment of members of the Commission 
     under paragraph (1) to achieve, to the maximum extent 
     practicable, fair and equitable representation of various 
     points of view with respect to the matters to be studied by 
     the Commission.
       ``(4) Term.--Each member shall be appointed for the life of 
     the Commission.
       ``(5) Time for initial appointments.--The appointment of 
     the members of the Commission shall be made not later than 60 
     days after the date of enactment of this Act.
       ``(6) Vacancies.--A vacancy in the Commission shall be 
     filled--
       ``(A) in the same manner in which the original appointment 
     was made; and
       ``(B) not later than 60 days after the date on which the 
     vacancy occurred.
       ``(c) Operation.--
       ``(1) Chairperson.--Not later than 15 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall select 1 member to serve as Chairperson 
     of the Commission.
       ``(2) Meetings.--
       ``(A) In general.--The Commission shall meet at the call of 
     the Chairperson.
       ``(B) Initial meeting.--The initial meeting shall take 
     place not later than 30 days after the date described in 
     paragraph (1).
       ``(3) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       ``(4) Rules.--The Commission may establish, by majority 
     vote, any rules for the conduct of Commission business, in 
     accordance with this Act and other applicable law.
       ``(d) Comprehensive Study of Criminal Justice System 
     Relating to Indian Country.--The Commission shall conduct a 
     comprehensive study of law enforcement and criminal justice 
     in tribal communities, including--
       ``(1) jurisdiction over crimes committed in Indian country 
     and the impact of that jurisdiction on--
       ``(A) the investigation and prosecution of Indian country 
     crimes; and
       ``(B) residents of Indian land;
       ``(2) the tribal jail and Federal prisons systems and the 
     effect of those systems with respect to--
       ``(A) reducing Indian country crime; and
       ``(B) rehabilitation of offenders;
       ``(3)(A) tribal juvenile justice systems and the Federal 
     juvenile justice system as relating to Indian country; and
       ``(B) the effect of those systems and related programs in 
     preventing juvenile crime, rehabilitating Indian youth in 
     custody, and reducing recidivism among Indian youth;
       ``(4) the impact of the Indian Civil Rights Act of 1968 (25 
     U.S.C. 1301 et seq.) on--
       ``(A) the authority of Indian tribes;
       ``(B) the rights of defendants subject to tribal government 
     authority; and
       ``(C) the fairness and effectiveness of tribal criminal 
     systems; and
       ``(5) studies of such other subjects as the Commission 
     determines relevant to achieve the purposes of the Tribal Law 
     and Order Act of 2010.
       ``(e) Recommendations.--Taking into consideration the 
     results of the study under paragraph (1), the Commission 
     shall develop recommendations on necessary modifications and 
     improvements to justice systems at the tribal, Federal, and 
     State levels, including consideration of--
       ``(1) simplifying jurisdiction in Indian country;
       ``(2) improving services and programs--
       ``(A) to prevent juvenile crime on Indian land;
       ``(B) to rehabilitate Indian youth in custody; and

[[Page 11554]]

       ``(C) to reduce recidivism among Indian youth;
       ``(3) adjustments to the penal authority of tribal courts 
     and exploring alternatives to incarceration;
       ``(4) the enhanced use of chapter 43 of title 28, United 
     States Code (commonly known as `the Federal Magistrates Act') 
     in Indian country;
       ``(5) effective means of protecting the rights of victims 
     and defendants in tribal criminal justice systems (including 
     defendants incarcerated for a period of less than 1 year);
       ``(6) changes to the tribal jails and Federal prison 
     systems; and
       ``(7) other issues that, as determined by the Commission, 
     would reduce violent crime in Indian country.
       ``(f) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Commission shall submit to the 
     President and Congress a report that contains--
       ``(1) a detailed statement of the findings and conclusions 
     of the Commission; and
       ``(2) the recommendations of the Commission for such 
     legislative and administrative actions as the Commission 
     considers to be appropriate.
       ``(g) Powers.--
       ``(1) Hearings.--
       ``(A) In general.--The Commission may hold such hearings, 
     meet and act at such times and places, take such testimony, 
     and receive such evidence as the Commission considers to be 
     advisable to carry out the duties of the Commission under 
     this section.
       ``(B) Public requirement.--The hearings of the Commission 
     under this paragraph shall be open to the public.
       ``(2) Witness expenses.--
       ``(A) In general.--A witness requested to appear before the 
     Commission shall be paid the same fees and allowances as are 
     paid to witnesses under section 1821 of title 28, United 
     States Code.
       ``(B) Per diem and mileage.--The fees and allowances for a 
     witness shall be paid from funds made available to the 
     Commission.
       ``(3) Information from federal, tribal, and state 
     agencies.--
       ``(A) In general.--The Commission may secure directly from 
     a Federal agency such information as the Commission considers 
     to be necessary to carry out this section.
       ``(B) Tribal and state agencies.--The Commission may 
     request the head of any tribal or State agency to provide to 
     the Commission such information as the Commission considers 
     to be necessary to carry out this section.
       ``(4) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       ``(5) Gifts.--The Commission may accept, use, and dispose 
     of gifts or donations of services or property.
       ``(h) Commission Personnel Matters.--
       ``(1) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       ``(2) Detail of federal employees.--On the affirmative vote 
     of \2/3\ of the members of the Commission and the approval of 
     the appropriate Federal agency head, an employee of the 
     Federal Government may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status, benefits, or privileges.
       ``(3) Procurement of temporary and intermittent services.--
     On request of the Commission, the Attorney General shall 
     provide to the Commission, on a reimbursable basis, 
     reasonable and appropriate office space, supplies, and 
     administrative assistance.
       ``(i) Contracts for Research.--
       ``(1) Researchers and experts.--
       ``(A) In general.--On an affirmative vote of \2/3\ of the 
     members of the Commission, the Commission may select 
     nongovernmental researchers and experts to assist the 
     Commission in carrying out the duties of the Commission under 
     this section.
       ``(B) National institute of justice.--The National 
     Institute of Justice may enter into a contract with the 
     researchers and experts selected by the Commission under 
     subparagraph (A) to provide funding in exchange for the 
     services of the researchers and experts.
       ``(2) Other organizations.--Nothing in this subsection 
     limits the ability of the Commission to enter into contracts 
     with any other entity or organization to carry out research 
     necessary to carry out the duties of the Commission under 
     this section.
       ``(j) Tribal Advisory Committee.--
       ``(1) Establishment.--The Commission shall establish a 
     committee, to be known as the `Tribal Advisory Committee'.
       ``(2) Membership.--
       ``(A) Composition.--The Tribal Advisory Committee shall 
     consist of 2 representatives of Indian tribes from each 
     region of the Bureau of Indian Affairs.
       ``(B) Qualifications.--Each member of the Tribal Advisory 
     Committee shall have experience relating to--
       ``(i) justice systems;
       ``(ii) crime prevention; or
       ``(iii) victim services.
       ``(3) Duties.--The Tribal Advisory Committee shall--
       ``(A) serve as an advisory body to the Commission; and
       ``(B) provide to the Commission advice and recommendations, 
     submit materials, documents, testimony, and such other 
     information as the Commission determines to be necessary to 
     carry out the duties of the Commission under this section.
       ``(k) Funding.--For the fiscal year after the date of 
     enactment of the Tribal Law and Order Act of 2010, out of any 
     unobligated amounts available to the Secretary of the 
     Interior or the Attorney General, the Secretary or the 
     Attorney General may use to carry out this section not more 
     than $2,000,000.
       ``(l) Termination of Commission.--The Commission shall 
     terminate 90 days after the date on which the Commission 
     submits the report of the Commission under subsection (f).
       ``(m) Nonapplicability of FACA.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the 
     Commission.''.

     SEC. 306. EXEMPTION FOR TRIBAL DISPLAY MATERIALS.

       (a) In General.--Section 845(a) of title 18, United States 
     Code is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``and''; and
       (3) by adding at the end the following:
       ``(7) the transportation, shipment, receipt, or importation 
     of display fireworks materials for delivery to a federally 
     recognized Indian tribe or tribal agency.''.
       (b) Definition of Indian Tribe.--Section 841 of title 18, 
     United States Code is amended by adding at the end the 
     following:
       ``(t) Indian Tribe.--The term `Indian tribe' has the 
     meaning given the term in section 102 of the Federally 
     Recognized Indian Tribe List Act of 1994 (25 U.S.C. 
     479a)).''.
       (c) Technical Amendments.--Section 845 of title 18, United 
     States Code is amended--
       (1) in subsection (a), by striking ``subsections'' in the 
     first place it appears and inserting ``subsection''; and
       (2) in subsection (b), by striking ``Secretary'' each place 
     it appears and inserting ``Attorney General''.

                    TITLE IV--TRIBAL JUSTICE SYSTEMS

     SEC. 401. INDIAN ALCOHOL AND SUBSTANCE ABUSE.

       (a) Correction of References.--
       (1) Inter-departmental memorandum of agreement.--Section 
     4205 of the Indian Alcohol and Substance Abuse Prevention and 
     Treatment Act of 1986 (25 U.S.C. 2411) is amended--
       (A) in subsection (a)--
       (i) in the matter preceding paragraph (1)--

       (I) by striking ``Not later than 120 days after the date of 
     enactment of this subtitle'' and inserting ``Not later than 1 
     year after the date of enactment of the Tribal Law and Order 
     Act of 2010''; and
       (II) by inserting ``, the Attorney General,'' after 
     ``Secretary of the Interior'';

       (ii) in paragraph (2)(A), by inserting ``, Office of 
     Justice Programs, Substance Abuse and Mental Health Services 
     Administration,'' after ``Bureau of Indian Affairs,'';
       (iii) in paragraph (4), by inserting ``, Department of 
     Justice, Substance Abuse and Mental Health Services 
     Administration,'' after ``Bureau of Indian Affairs'';
       (iv) in paragraph (5), by inserting ``, Department of 
     Justice, Substance Abuse and Mental Health Services 
     Administration,'' after ``Bureau of Indian Affairs'';
       (v) in paragraph (7), by inserting ``, the Attorney 
     General,'' after ``Secretary of the Interior'';
       (B) in subsection (c), by inserting ``, the Attorney 
     General,'' after ``Secretary of the Interior''; and
       (C) in subsection (d), by striking ``the date of enactment 
     of this subtitle'' and inserting ``the date of enactment of 
     the Tribal Law and Order Act of 2010''.
       (2) Tribal action plans.--Section 4206 of the Indian 
     Alcohol and Substance Abuse Prevention and Treatment Act of 
     1986 (25 U.S.C. 2412) is amended--
       (A) in subsection (b), in the first sentence, by inserting 
     ``, the Office of Justice Programs, the Substance Abuse and 
     Mental Health Services Administration,'' before ``and the 
     Indian Health Service service unit'';
       (B) in subsection (c)(1)(A)(i), by inserting ``, the Office 
     of Justice Programs, the Substance Abuse and Mental Health 
     Services Administration,'' before ``and the Indian Health 
     Service service unit'';
       (C) in subsection (d)(2), by striking ``fiscal year 1993 
     and such sums as are necessary for each of the fiscal years 
     1994, 1995, 1996, 1997, 1998, 1999, and 2000'' and inserting 
     ``the period of fiscal years 2011 through 2015'';
       (D) in subsection (e), in the first sentence, by inserting 
     ``, the Attorney General,'' after ``the Secretary of the 
     Interior''; and
       (E) in subsection (f)(3), by striking ``fiscal year 1993 
     and such sums as are necessary for each of the fiscal years 
     1994, 1995, 1996, 1997, 1998, 1999, and 2000'' and inserting 
     ``fiscal years 2011 through 2015''.

[[Page 11555]]

       (3) Departmental responsibility.--Section 4207 of the 
     Indian Alcohol and Substance Abuse Prevention and Treatment 
     Act of 1986 (25 U.S.C. 2413) is amended--
       (A) in subsection (a), by inserting ``, the Attorney 
     General'' after ``Bureau of Indian Affairs'';
       (B) in subsection (b)--
       (i) by striking paragraph (1) and inserting the following:
       ``(1) Establishment.--
       ``(A) In general.--To improve coordination among the 
     Federal agencies and departments carrying out this subtitle, 
     there is established within the Substance Abuse and Mental 
     Health Services Administration an office, to be known as the 
     `Office of Indian Alcohol and Substance Abuse' (referred to 
     in this section as the `Office').
       ``(B) Director.--The director of the Office shall be 
     appointed by the Administrator of the Substance Abuse and 
     Mental Health Services Administration--
       ``(i) on a permanent basis; and
       ``(ii) at a grade of not less than GS-15 of the General 
     Schedule.'';
       (ii) in paragraph (2)--

       (I) by striking ``(2) In addition'' and inserting the 
     following:

       ``(2) Responsibilities of office.--In addition'';

       (II) by striking subparagraph (A) and inserting the 
     following:

       ``(A) coordinating with other agencies to monitor the 
     performance and compliance of the relevant Federal programs 
     in achieving the goals and purposes of this subtitle and the 
     Memorandum of Agreement entered into under section 4205;'';

       (III) in subparagraph (B)--

       (aa) by striking ``within the Bureau of Indian Affairs''; 
     and
       (bb) by striking the period at the end and inserting ``; 
     and''; and

       (IV) by adding at the end the following:

       ``(C) not later than 1 year after the date of enactment of 
     the Tribal Law and Order Act of 2010, developing, in 
     coordination and consultation with tribal governments, a 
     framework for interagency and tribal coordination that--
       ``(i) establish the goals and other desired outcomes of 
     this Act;
       ``(ii) prioritizes outcomes that are aligned with the 
     purposes of affected agencies;
       ``(iii) provides guidelines for resource and information 
     sharing;
       ``(iv) provides technical assistance to the affected 
     agencies to establish effective and permanent interagency 
     communication and coordination; and
       ``(v) determines whether collaboration is feasible, cost-
     effective, and within agency capability.''; and
       (iii) by striking paragraph (3) and inserting the 
     following:
       ``(3) Appointment of employees.--The Administrator of the 
     Substance Abuse and Mental Health Services Administration 
     shall appoint such employees to work in the Office, and shall 
     provide such funding, services, and equipment, as may be 
     necessary to enable the Office to carry out the 
     responsibilities under this subsection.''; and
       (C) in subsection (c)--
       (i) by striking ``of Alcohol and Substance Abuse'' each 
     place it appears;
       (ii) in paragraph (1), in the second sentence, by striking 
     ``The Assistant Secretary of the Interior for Indian 
     Affairs'' and inserting ``The Administrator of the Substance 
     Abuse and Mental Health Services Administration''; and
       (iii) in paragraph (3)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``Youth'' and inserting ``youth''; and
       (II) by striking ``programs of the Bureau of Indian 
     Affairs'' and inserting ``the applicable Federal programs''.

       (4) Review of programs.--Section 4208a(a) of the Indian 
     Alcohol and Substance Abuse Prevention and Treatment Act of 
     1986 (25 U.S.C. 2414a(a)) is amended in the matter preceding 
     paragraph (1) by inserting ``, the Attorney General,'' after 
     ``the Secretary of the Interior''.
       (5) Federal facilities, property, and equipment.--Section 
     4209 of the Indian Alcohol and Substance Abuse Prevention and 
     Treatment Act of 1986 (25 U.S.C. 2415) is amended--
       (A) in subsection (a), by inserting ``, the Attorney 
     General,'' after ``the Secretary of the Interior'';
       (B) in subsection (b)--
       (i) in the first sentence, by inserting ``, the Attorney 
     General,'' after ``the Secretary of the Interior'';
       (ii) in the second sentence, by inserting ``, nor the 
     Attorney General,'' after ``the Secretary of the Interior''; 
     and
       (iii) in the third sentence, by inserting ``, the 
     Department of Justice,'' after ``the Department of the 
     Interior''; and
       (C) in subsection (c)(1), by inserting ``, the Attorney 
     General,'' after ``the Secretary of the Interior''.
       (6) Review.--Section 4211(a) of the Indian Alcohol and 
     Substance Abuse Prevention and Treatment Act of 1986 (25 
     U.S.C. 2431(a)) is amended in the matter preceding paragraph 
     (1) by inserting ``, the Attorney General,'' after ``the 
     Secretary of the Interior''.
       (b) Indian Education Programs.--Section 4212 of the Indian 
     Alcohol and Substance Abuse Prevention Act of 1986 (25 U.S.C. 
     2432) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Summer Youth Programs.--
       ``(1) In general.--The head of the Indian Alcohol and 
     Substance Abuse Program, in coordination with the Assistant 
     Secretary for Indian Affairs, shall develop and implement 
     programs in tribal schools and schools funded by the Bureau 
     of Indian Education (subject to the approval of the local 
     school board or contract school board) to determine the 
     effectiveness of summer youth programs in advancing the 
     purposes and goals of this Act.
       ``(2) Costs.--The head of the Indian Alcohol and Substance 
     Abuse Program and the Assistant Secretary shall defray all 
     costs associated with the actual operation and support of the 
     summer youth programs in a school from funds appropriated to 
     carry out this subsection.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out the programs under 
     this subsection $5,000,000 for each of fiscal years 2011 
     through 2015.''.
       (c) Emergency Shelters.--Section 4213(e) of the Indian 
     Alcohol and Substance Abuse Prevention and Treatment Act of 
     1986 (25 U.S.C. 2433(e)) is amended--
       (1) in paragraph (1), by striking ``fiscal year 1993 and 
     such sums as may be necessary for each of the fiscal years 
     1994, 1995, 1996, 1997, 1998, 1999, and 2000.'' and inserting 
     ``each of fiscal years 2011 through 2015.'';
       (2) in paragraph (2), by striking ``each of the fiscal 
     years 1994, 1995, 1996, 1997, 1998, 1999, and 2000.'' and 
     inserting ``each of fiscal years 2011 through 2015.''; and
       (3) by indenting paragraphs (4) and (5) appropriately.
       (d) Review of Programs.--Section 4215(a) of the Indian 
     Alcohol and Substance Abuse Prevention and Treatment Act of 
     1986 (25 U.S.C. 2441(a)) is amended by inserting ``, the 
     Attorney General,'' after ``the Secretary of the Interior''.
       (e) Illegal Narcotics Trafficking; Source Eradication.--
     Section 4216 of the Indian Alcohol and Substance Abuse 
     Prevention and Treatment Act of 1986 (25 U.S.C. 2442) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking the comma at the end 
     and inserting a semicolon;
       (ii) in subparagraph (B), by striking ``, and'' at the end 
     and inserting a semicolon;
       (iii) in subparagraph (C), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(D) the Blackfeet Nation of Montana for the investigation 
     and control of illegal narcotics traffic on the Blackfeet 
     Indian Reservation along the border with Canada.'';
       (B) in paragraph (2), by striking ``United States Custom 
     Service'' and inserting ``United States Customs and Border 
     Protection, the Bureau of Immigration and Customs 
     Enforcement, and the Drug Enforcement Administration''; and
       (C) by striking paragraph (3) and inserting the following:
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $2,000,000 
     for each of fiscal years 2011 through 2015.''; and
       (2) in subsection (b)(2), by striking ``for the fiscal year 
     1993 and such sums as may be necessary for each of the fiscal 
     years 1994, 1995, 1996, 1997, 1998, 1999, and 2000'' and 
     ``for each of fiscal years 2011 through 2015.''.
       (f) Law Enforcement and Judicial Training.--Section 4218 of 
     the Indian Alcohol and Substance Abuse Prevention and 
     Treatment Act of 1986 (25 U.S.C. 2451) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Training Programs.--
       ``(1) In general.--The Secretary of the Interior, in 
     coordination with the Attorney General, the Administrator of 
     the Drug Enforcement Administration, and the Director of the 
     Federal Bureau of Investigation, shall ensure, through the 
     establishment of a new training program or by supplementing 
     existing training programs, that all Bureau of Indian Affairs 
     and tribal law enforcement and judicial personnel have access 
     to training regarding--
       ``(A) the investigation and prosecution of offenses 
     relating to illegal narcotics; and
       ``(B) alcohol and substance abuse prevention and treatment.
       ``(2) Youth-related training.--Any training provided to 
     Bureau of Indian Affairs or tribal law enforcement or 
     judicial personnel under paragraph (1) shall include training 
     in issues relating to youth alcohol and substance abuse 
     prevention and treatment.''; and
       (2) in subsection (b), by striking ``as may be necessary'' 
     and all that follows through the end of the subsection and 
     inserting ``as are necessary for each of fiscal years 2011 
     through 2015.''.
       (g) Juvenile Detention Centers.--Section 4220 of the Indian 
     Alcohol and Substance Abuse Prevention and Treatment Act of 
     1986 (25 U.S.C. 2453) is amended--
       (1) in subsection (a)--
       (A) by striking ``The Secretary'' the first place it 
     appears and inserting the following:
       ``(1) In general.--The Secretary'';

[[Page 11556]]

       (B) in the second sentence, by striking ``The Secretary 
     shall'' and inserting the following:
       ``(2) Construction and operation.--The Secretary shall''; 
     and
       (C) by adding at the end the following:
       ``(3) Development of plan.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Secretary and the Attorney 
     General, in consultation with tribal leaders and tribal 
     justice officials, shall develop a long-term plan for the 
     construction, renovation, and operation of Indian juvenile 
     detention and treatment centers and alternatives to detention 
     for juvenile offenders.
       ``(B) Coordination.--The plan under subparagraph (A) shall 
     require the Bureau of Indian Education and the Indian Health 
     Service to coordinate with tribal and Bureau of Indian 
     Affairs juvenile detention centers to provide services to 
     those centers.''; and
       (2) in paragraphs (1) and (2) of subsection (b)--
       (A) by striking ``for fiscal year 1993 and such sums as may 
     be necessary for each of the fiscal years 1994, 1995, 1996, 
     1997, 1998, 1999, and 2000'' each place it appears and 
     inserting ``for each of fiscal years 2011 through 2015''; and
       (B) by indenting paragraph (2) appropriately.

     SEC. 402. INDIAN TRIBAL JUSTICE; TECHNICAL AND LEGAL 
                   ASSISTANCE.

       (a) Indian Tribal Justice.--
       (1) Base support funding.--Section 103(b) of the Indian 
     Tribal Justice Act (25 U.S.C. 3613(b)) is amended by striking 
     paragraph (2) and inserting the following:
       ``(2) the employment of tribal court personnel, including 
     tribal court judges, prosecutors, public defenders, appointed 
     defense counsel, guardians ad litem, and court-appointed 
     special advocates for children and juveniles;''.
       (2) Tribal justice systems.--Section 201 of the Indian 
     Tribal Justice Act (25 U.S.C. 3621) is amended--
       (A) in subsection (a)--
       (i) by striking ``the provisions of sections 101 and 102 of 
     this Act'' and inserting ``sections 101 and 102''; and
       (ii) by striking ``the fiscal years 2000 through 2007'' and 
     inserting ``fiscal years 2011 through 2015'';
       (B) in subsection (b)--
       (i) by striking ``the provisions of section 103 of this 
     Act'' and inserting ``section 103''; and
       (ii) by striking ``the fiscal years 2000 through 2007'' and 
     inserting ``fiscal years 2011 through 2015'';
       (C) in subsection (c), by striking ``the fiscal years 2000 
     through 2007'' and inserting ``fiscal years 2011 through 
     2015''; and
       (D) in subsection (d), by striking ``the fiscal years 2000 
     through 2007'' and inserting ``fiscal years 2011 through 
     2015''.
       (b) Technical and Legal Assistance.--
       (1) Tribal civil legal assistance grants.--Section 102 of 
     the Indian Tribal Justice Technical and Legal Assistance Act 
     of 2000 (25 U.S.C. 3662) is amended by inserting ``(including 
     guardians ad litem and court-appointed special advocates for 
     children and juveniles)'' after ``civil legal assistance''.
       (2) Tribal criminal legal assistance grants.--Section 103 
     of the Indian Tribal Justice Technical and Legal Assistance 
     Act of 2000 (25 U.S.C. 3663) is amended by striking 
     ``criminal legal assistance to members of Indian tribes and 
     tribal justice systems'' and inserting ``defense counsel 
     services to all defendants in tribal court criminal 
     proceedings and prosecution and judicial services for tribal 
     courts''.
       (3) Funding.--The Indian Tribal Justice Technical and Legal 
     Assistance Act of 2000 is amended--
       (A) in section 107 (as redesignated by section 
     104(a)(2)(A)), by striking ``2000 through 2004'' and 
     inserting ``2011 through 2015''; and
       (B) in section 201(d) (25 U.S.C. 3681(d)), by striking 
     ``2000 through 2004'' and inserting ``2011 through 2015''.

     SEC. 403. TRIBAL RESOURCES GRANT PROGRAM.

       Section 1701 of the Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3796dd) is amended--
       (1) in subsection (b)--
       (A) in each of paragraphs (1) through (4) and (6) through 
     (17), by inserting ``to'' after the paragraph designation;
       (B) in paragraph (1), by striking ``State and'' and 
     inserting ``State, tribal, or'';
       (C) in paragraphs (9) and (10), by inserting ``, tribal,'' 
     after ``State'' each place it appears;
       (D) in paragraph (15)--
       (i) by striking ``a State in'' and inserting ``a State or 
     Indian tribe in'';
       (ii) by striking ``the State which'' and inserting ``the 
     State or tribal community that''; and
       (iii) by striking ``a State or'' and inserting ``a State, 
     tribal, or'';
       (E) in paragraph (16), by striking ``and'' at the end
       (F) in paragraph (17), by striking the period at the end 
     and inserting ``; and'';
       (G) by redesignating paragraphs (6) through (17) as 
     paragraphs (5) through (16), respectively; and
       (H) by adding at the end the following:
       ``(17) to permit tribal governments receiving direct law 
     enforcement services from the Bureau of Indian Affairs to 
     access the program under this section for use in accordance 
     with paragraphs (1) through (16).''.
       (2) in subsection (i), by striking ``The authority'' and 
     inserting ``Except as provided in subsection (j), the 
     authority''; and
       (3) by adding at the end the following:
       ``(j) Grants to Indian Tribes.--
       ``(1) In general.--Notwithstanding subsection (i) and 
     section 1703, and in acknowledgment of the Federal nexus and 
     distinct Federal responsibility to address and prevent crime 
     in Indian country, the Attorney General shall provide grants 
     under this section to Indian tribal governments, for fiscal 
     year 2011 and any fiscal year thereafter, for such period as 
     the Attorney General determines to be appropriate to assist 
     the Indian tribal governments in carrying out the purposes 
     described in subsection (b).
       ``(2) Priority of funding.--In providing grants to Indian 
     tribal governments under this subsection, the Attorney 
     General shall take into consideration reservation crime rates 
     and tribal law enforcement staffing needs of each Indian 
     tribal government.
       ``(3) Federal share.--Because of the Federal nature and 
     responsibility for providing public safety on Indian land, 
     the Federal share of the cost of any activity carried out 
     using a grant under this subsection--
       ``(A) shall be 100 percent; and
       ``(B) may be used to cover indirect costs.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $40,000,000 
     for each of fiscal years 2011 through 2015.
       ``(k) Report.--Not later than 180 days after the date of 
     enactment of this subsection, the Attorney General shall 
     submit to Congress a report describing the extent and 
     effectiveness of the Community Oriented Policing (COPS) 
     initiative as applied in Indian country, including particular 
     references to--
       ``(1) the problem of intermittent funding;
       ``(2) the integration of COPS personnel with existing law 
     enforcement authorities; and
       ``(3) an explanation of how the practice of community 
     policing and the broken windows theory can most effectively 
     be applied in remote tribal locations.''.

     SEC. 404. TRIBAL JAILS PROGRAM.

       (a) In General.--Section 20109 of the Violent Crime Control 
     and Law Enforcement Act of 1994 (42 U.S.C. 13709) is amended 
     by striking subsection (a) and inserting the following:
       ``(a) Reservation of Funds.--Notwithstanding any other 
     provision of this part, of amounts made available to the 
     Attorney General to carry out programs relating to offender 
     incarceration, the Attorney General shall reserve $35,000,000 
     for each of fiscal years 2011 through 2015 to carry out this 
     section.''.
       (b) Regional Detention Centers.--
       (1) In general.--Section 20109 of the Violent Crime Control 
     and Law Enforcement Act of 1994 (42 U.S.C. 13709) is amended 
     by striking subsection (b) and inserting the following:
       ``(b) Grants to Indian Tribes.--
       ``(1) In general.--From the amounts reserved under 
     subsection (a), the Attorney General shall provide grants--
       ``(A) to Indian tribes for purposes of--
       ``(i) construction and maintenance of jails on Indian land 
     for the incarceration of offenders subject to tribal 
     jurisdiction;
       ``(ii) entering into contracts with private entities to 
     increase the efficiency of the construction of tribal jails; 
     and
       ``(iii) developing and implementing alternatives to 
     incarceration in tribal jails;
       ``(B) to Indian tribes for the construction of tribal 
     justice centers that combine tribal police, courts, and 
     corrections services to address violations of tribal civil 
     and criminal laws;
       ``(C) to consortia of Indian tribes for purposes of 
     constructing and operating regional detention centers on 
     Indian land for long-term incarceration of offenders subject 
     to tribal jurisdiction, as the applicable consortium 
     determines to be appropriate.
       ``(2) Priority of funding.--in providing grants under this 
     subsection, the Attorney General shall take into 
     consideration applicable--
       ``(A) reservation crime rates;
       ``(B) annual tribal court convictions; and
       ``(C) bed space needs.
       ``(3) Federal share.--Because of the Federal nature and 
     responsibility for providing public safety on Indian land, 
     the Federal share of the cost of any activity carried out 
     using a grant under this subsection shall be 100 percent.''.
       (2) Conforming amendment.--Section 20109(c) of the Violent 
     Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 
     13709(c)) is amended by inserting ``or consortium of Indian 
     tribes, as applicable,'' after ``Indian tribe''.
       (3) Long-term plan.--Section 20109 of the Violent Crime 
     Control and Law Enforcement Act of 1994 (42 U.S.C. 13709) is 
     amended by adding at the end the following:
       ``(d) Long-term Plan.--Not later than 1 year after the date 
     of enactment of this subsection, the Attorney General, in 
     coordination with the Bureau of Indian Affairs and in 
     consultation with tribal leaders, tribal law enforcement 
     officers, and tribal corrections

[[Page 11557]]

     officials, shall submit to Congress a long-term plan to 
     address incarceration in Indian country, including--
       ``(1) a description of proposed activities for--
       ``(A) construction, operation, and maintenance of juvenile 
     (in accordance with section 4220(a)(3) of the Indian Alcohol 
     and Substance Abuse Prevention and Treatment Act of 1986 (25 
     U.S.C. 2453(a)(3)) and adult detention facilities (including 
     regional facilities) in Indian country;
       ``(B) contracting with State and local detention centers, 
     on approval of the affected tribal governments; and
       ``(C) alternatives to incarceration, developed in 
     cooperation with tribal court systems;
       ``(2) an assessment and consideration of the construction 
     of Federal detention facilities in Indian country; and
       ``(3) any other alternatives as the Attorney General, in 
     coordination with the Bureau of Indian Affairs and in 
     consultation with Indian tribes, determines to be 
     necessary.''.

     SEC. 405. TRIBAL PROBATION OFFICE LIAISON PROGRAM.

       Title II of the Indian Tribal Justice Technical and Legal 
     Assistance Act of 2000 (25 U.S.C. 3681 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 203. ASSISTANT PROBATION OFFICERS.

       ``To the maximum extent practicable, the chief judge or 
     chief probation or pretrial services officer of each judicial 
     district, in coordination with the Office of Tribal Justice 
     and the Office of Justice Services, shall--
       ``(1) appoint individuals residing in Indian country to 
     serve as probation or pretrial services officers or 
     assistants for purposes of monitoring and providing services 
     to Federal prisoners residing in Indian country; and
       ``(2) provide substance abuse, mental health, and other 
     related treatment services to offenders residing on Indian 
     land.''.

     SEC. 406. TRIBAL YOUTH PROGRAM.

       (a) Incentive Grants for Local Delinquency Prevention 
     Programs.--Section 504 of the Juvenile Justice and 
     Delinquency Prevention Act of 1974 (42 U.S.C. 5783) is 
     amended--
       (1) in subsection (a), by inserting ``, or to federally 
     recognized Indian tribe or consortia of federally recognized 
     Indian tribes under subsection (d)'' after ``subsection 
     (b)''; and
       (2) by adding at the end the following:
       ``(d) Grants for Tribal Delinquency Prevention and Response 
     Programs.--
       ``(1) In general.--The Administrator shall make grants 
     under this section, on a competitive basis, to eligible 
     Indian tribes or consortia of Indian tribes, as described in 
     paragraph (2)--
       ``(A) to support and enhance--
       ``(i) tribal juvenile delinquency prevention services; and
       ``(ii) the ability of Indian tribes to respond to, and care 
     for, juvenile offenders; and
       ``(B) to encourage accountability of Indian tribal 
     governments with respect to preventing juvenile delinquency 
     and responding to, and caring for, juvenile offenders.
       ``(2) Eligible indian tribes.--To be eligible to receive a 
     grant under this subsection, an Indian tribe or consortium of 
     Indian tribes shall submit to the Administrator an 
     application in such form and containing such information as 
     the Administrator may require.
       ``(3) Considerations.--In providing grants under this 
     subsection, the Administrator shall take into consideration, 
     with respect to the Indian tribe to be served, the--
       ``(A) juvenile crime rates;
       ``(B) dropout rates; and
       ``(C) number of at-risk youth.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated $25,000,000 for each of fiscal years 2011 
     through 2015.''.
       (b) Coordinating Council on Juvenile Justice and 
     Delinquency Prevention.--Section 206(a)(2) of the Juvenile 
     Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 
     5616(a)(2)) is amended--
       (1) in subparagraph (A), by striking ``Nine'' and inserting 
     ``Ten''; and
       (2) in subparagraph (B), by adding at the end the 
     following:
       ``(iv) One member shall be appointed by the Chairman of the 
     Committee on Indian Affairs of the Senate, in consultation 
     with the Vice Chairman of that Committee and the Chairman and 
     Ranking Member of the Committee on Natural Resources of the 
     House of Representatives.''.

     SEC. 407. IMPROVING PUBLIC SAFETY PRESENCE IN RURAL ALASKA.

       (a) Definitions.--In this section:
       (1) State.--
       (A) In general.--The term ``State'' means the State of 
     Alaska.
       (B) Inclusion.--The term ``State'' includes any political 
     subdivision of the State of Alaska.
       (2) Village public safety officer.--The term ``village 
     public safety officer'' means an individual employed as a 
     village public safety officer under the program established 
     by the State pursuant to Alaska Statute 18.65.670.
       (3) Tribal organization.--The term ``tribal organization'' 
     has the meaning given that term in section 4 of the Indian 
     Self-Determination and Educational Assistance Act (25 U.S.C. 
     450b(l)).
       (b) COPS Grants.--The State and any Indian tribe or tribal 
     organization in the State that employs a village public 
     safety officer shall be eligible to apply for a grant under 
     section 1701 of the Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3796dd) (provided that only an Indian 
     tribe or tribal organization may receive a grant under the 
     tribal resources grant program under subsection (j) of that 
     section) on an equal basis with other eligible applicants for 
     funding under that section.
       (c) Staffing for Adequate Fire and Emergency Response 
     Grants.--The State and any Indian tribe or tribal 
     organization in the State that employs a village public 
     safety officer shall be eligible to apply for a grant under 
     the Staffing for Adequate Fire and Emergency Response program 
     under section 34 of the Federal Fire Prevention and Control 
     Act of 1974 (15 U.S.C. 2229a) on an equal basis with other 
     eligible applicants for funding under that program.
       (d) Training for Village Public Safety Officers and Tribal 
     Law Enforcement Positions Funded Under COPS Program.--
       (1) In general.--Any village public safety officer or 
     tribal law enforcement officer in the State shall be eligible 
     to participate in any training program offered at the Indian 
     Police Academy of the Federal Law Enforcement Training 
     Center.
       (2) Funding.--Funding received pursuant to grants approved 
     under section 1701 of the Omnibus Crime Control and Safe 
     Streets Act of 1968 (42 U.S.C. 3796dd) may be used for 
     training of officers at programs described in paragraph (1) 
     or at a police academy in the State certified by the Alaska 
     Police Standards Council.
       (e) Funds for Courts of Law Enforcement Officers.--Section 
     112(a) of the Consolidated Appropriations Act, 2004 (Public 
     Law 108-199; 118 Stat. 62) is amended--
       (1) by striking paragraph (1);
       (2) by redesignating subparagraphs (A) and (B) of paragraph 
     (2) as paragraphs (1) and (2), respectively, and indenting 
     appropriately; and
       (3) by redesignating clauses (i) through (iv) of paragraph 
     (2) (as so redesignated) as subparagraphs (A) through (D), 
     respectively, and indenting appropriately.

 TITLE V--INDIAN COUNTRY CRIME DATA COLLECTION AND INFORMATION SHARING

     SEC. 501. TRACKING OF CRIMES COMMITTED IN INDIAN COUNTRY.

       (a) Gang Violence.--Section 1107 of the Violence Against 
     Women and Department of Justice Reauthorization Act of 2005 
     (28 U.S.C. 534 note; Public Law 109-162) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (8) through (12) as 
     paragraphs (9) through (13), respectively;
       (B) by inserting after paragraph (7) the following:
       ``(8) the Office of Justice Services of the Bureau of 
     Indian Affairs;'';
       (C) in paragraph (9) (as redesignated by subparagraph (A)), 
     by striking ``State'' and inserting ``tribal, State,''; and
       (D) in paragraphs (10) through (12) (as redesignated by 
     subparagraph (A)), by inserting ``tribal,'' before ``State,'' 
     each place it appears; and
       (2) in subsection (b), by inserting ``tribal,'' before 
     ``State,'' each place it appears.
       (b) Bureau of Justice Statistics.--Section 302 of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3732) is amended--
       (1) in subsection (c)--
       (A) in each of paragraphs (3) through (6), by inserting 
     ``tribal,'' after ``State,'' each place it appears;
       (B) in paragraph (7), by inserting ``and in Indian 
     country'' after ``States'';
       (C) in paragraph (9), by striking ``Federal and State 
     Governments'' and inserting ``Federal Government and State 
     and tribal governments'';
       (D) in each of paragraphs (10) and (11), by inserting ``, 
     tribal,'' after ``State'' each place it appears;
       (E) in paragraph (13), by inserting ``, Indian tribes,'' 
     after ``States'';
       (F) in paragraph (17)--
       (i) by striking ``State and local'' and inserting ``State, 
     tribal, and local''; and
       (ii) by striking ``State, and local'' and inserting 
     ``State, tribal, and local'';
       (G) in paragraph (18), by striking ``State and local'' and 
     inserting ``State, tribal, and local'';
       (H) in paragraph (19), by inserting ``and tribal'' after 
     ``State'' each place it appears;
       (I) in paragraph (20), by inserting ``, tribal,'' after 
     ``State''; and
       (J) in paragraph (22), by inserting ``, tribal,'' after 
     ``Federal'';
       (2) in subsection (d)--
       (A) by redesignating paragraphs (1) through (6) as 
     subparagraphs (A) through (F), respectively, and indenting 
     the subparagraphs appropriately;
       (B) by striking ``To insure'' and inserting the following:
       ``(1) In general.--To ensure''; and
       (C) by adding at the end the following:
       ``(2) Consultation with indian tribes.--The Director, 
     acting jointly with the Assistant Secretary for Indian 
     Affairs (acting through the Office of Justice Services) and

[[Page 11558]]

     the Director of the Federal Bureau of Investigation, shall 
     work with Indian tribes and tribal law enforcement agencies 
     to establish and implement such tribal data collection 
     systems as the Director determines to be necessary to achieve 
     the purposes of this section.'';
       (3) in subsection (e), by striking ``subsection (d)(3)'' 
     and inserting ``subsection (d)(1)(C)'';
       (4) in subsection (f)--
       (A) in the subsection heading, by inserting ``, Tribal,'' 
     after ``State''; and
       (B) by inserting ``, tribal,'' after ``State''; and
       (5) by adding at the end the following:
       ``(g) Reports.--Not later than 1 year after the date of 
     enactment of this subsection, and annually thereafter, the 
     Director shall submit to Congress a report describing the 
     data collected and analyzed under this section relating to 
     crimes in Indian country.''.
       (c) Effect of Grants.--Nothing in this section or any 
     amendment made by this section--
       (1) allows the grant to be made to, or used by, an entity 
     for law enforcement activities that the entity lacks 
     jurisdiction to perform; or
       (2) has any effect other than to authorize, award, or deny 
     a grant of funds to a federally recognized Indian tribe for 
     the purposes described in the relevant grant program.

     SEC. 502. CRIMINAL HISTORY RECORD IMPROVEMENT PROGRAM.

       (a) In General.--Section 1301(a) of the Omnibus Crime 
     Control and Safe Streets Act of 1968 (42 U.S.C. 3796h(a)) is 
     amended by inserting ``, tribal,'' after ``State''.
       (b) Effect of Grants.--Nothing in this section or any 
     amendment made by this section--
       (1) allows the grant to be made to, or used by, an entity 
     for law enforcement activities that the entity lacks 
     jurisdiction to perform; or
       (2) has any effect other than to authorize, award, or deny 
     a grant of funds to a federally recognized Indian tribe for 
     the purposes described in the relevant grant program.

    TITLE VI--DOMESTIC VIOLENCE AND SEXUAL ASSAULT PROSECUTION AND 
                               PREVENTION

     SEC. 601. PRISONER RELEASE AND REENTRY.

       (a) Duties of Bureau of Prisons.--Section 4042 of title 18, 
     United States Code, is amended--
       (1) in subsection (a)(4), by inserting ``, tribal,'' after 
     ``State'';
       (2) in subsection (b)(1), in the first sentence, by 
     striking ``officer of the State and of the local 
     jurisdiction'' and inserting ``officers of each State, 
     tribal, and local jurisdiction''; and
       (3) in subsection (c)(1)--
       (A) in subparagraph (A), by striking ``officer of the State 
     and of the local jurisdiction'' and inserting ``officer of 
     each State, tribal, and local jurisdiction''; and
       (B) in subparagraph (B), by inserting ``, tribal,'' after 
     ``State'' each place it appears.
       (b) Authority of Institute; Time; Records of Recipients; 
     Access; Scope of Section.--Section 4352(a) of title 18, 
     United States Code, is amended--
       (1) in paragraphs (1), (3), (4), and (8), by inserting 
     ``tribal,'' after ``State,'' each place it appears;
       (2) in paragraph (6)--
       (A) by inserting ``and tribal communities,'' after 
     ``States''; and
       (B) by inserting ``, tribal,'' after ``State''; and
       (3) in paragraph (12) by inserting ``, tribal,'' after 
     ``State''.

     SEC. 602. DOMESTIC AND SEXUAL VIOLENCE OFFENSE TRAINING.

       Section 3(c)(9) of the Indian Law Enforcement Reform Act 
     (25 U.S.C. 2802(c)(9)) (as amended by section 101(a)(2)) is 
     amended by inserting before the semicolon at the end the 
     following: ``, including training to properly interview 
     victims of domestic and sexual violence and to collect, 
     preserve, and present evidence to Federal and tribal 
     prosecutors to increase the conviction rate for domestic and 
     sexual violence offenses for purposes of addressing and 
     preventing domestic and sexual violent offenses''.

     SEC. 603. TESTIMONY BY FEDERAL EMPLOYEES.

       The Indian Law Enforcement Reform Act (25 U.S.C. 2801 et 
     seq.) (as amended by section 305) is amended by adding at the 
     end the following:

     ``SEC. 16. TESTIMONY BY FEDERAL EMPLOYEES.

       ``(a) Approval of Employee Testimony or Documents.--
       ``(1) In general.--The Director of the Office of Justice 
     Services or the Director of the Indian Health Service, as 
     appropriate (referred to in this section as the `Director 
     concerned'), shall approve or disapprove, in writing, any 
     request or subpoena from a tribal or State court for a law 
     enforcement officer, sexual assault nurse examiner, or other 
     employee under the supervision of the Director concerned to 
     provide documents or testimony in a deposition, trial, or 
     other similar criminal proceeding regarding information 
     obtained in carrying out the official duties of the employee.
       ``(2) Deadline.--The court issuing a subpoena under 
     paragraph (1) shall provide to the appropriate Federal 
     employee (or agency in the case of a document request) notice 
     regarding the request to provide testimony (or release a 
     document) by not less than 30 days before the date on which 
     the testimony will be provided.
       ``(b) Approval.--
       ``(1) In general.--The Director concerned shall approve a 
     request or subpoena under subsection (a) if the request or 
     subpoena does not violate the policy of the Department to 
     maintain impartiality.
       ``(2) Failure to approve.--If the Director concerned fails 
     to approve or disapprove a request or subpoena for testimony 
     or release of a document by the date that is 30 days after 
     the date of receipt of notice of the request or subpoena, the 
     request or subpoena shall be considered to be approved for 
     purposes of this section.''.

     SEC. 604. COORDINATION OF FEDERAL AGENCIES.

       Any report of the Secretary of Health and Human Services to 
     Congress on the development of Indian victim services and 
     victim advocate training programs shall include any 
     recommendations that the Secretary determines to be necessary 
     to prevent the sex trafficking of Indian women.

     SEC. 605. SEXUAL ASSAULT PROTOCOL.

       The Indian Law Enforcement Reform Act (25 U.S.C. 2801 et 
     seq.) (as amended by section 603) is amended by adding at the 
     end the following:

     ``SEC. 17. POLICIES AND PROTOCOL.

       ``The Director of the Indian Health Service, in 
     coordination with the Director of the Office of Justice 
     Services and the Director of the Office on Violence Against 
     Women of the Department of Justice, in consultation with 
     Indian Tribes and Tribal Organizations, and in conference 
     with Urban Indian Organizations, shall develop standardized 
     sexual assault policies and protocol for the facilities of 
     the Service, based on similar protocol that has been 
     established by the Department of Justice.''.

     SEC. 606. STUDY OF IHS SEXUAL ASSAULT AND DOMESTIC VIOLENCE 
                   RESPONSE CAPABILITIES.

       (a) Study.--The Comptroller General of the United States 
     shall--
       (1) conduct a study of the capability of Indian Health 
     Service facilities in remote Indian reservations and Alaska 
     Native villages, including facilities operated pursuant to 
     contracts or compacts under the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b et seq.), to 
     collect, maintain, and secure evidence of sexual assaults and 
     domestic violence incidents required for criminal 
     prosecution; and
       (2) develop recommendations for improving those 
     capabilities.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Indian Affairs of the Senate and the 
     Committee on Natural Resources of the House of 
     Representatives a report describing the results of the study 
     under subsection (a), including the recommendations developed 
     under that subsection, if any.
                                 ______
                                 
  SA 4392. Mr. DURBIN (for Mr. Carper) proposed an amendment to the 
bill S. 1508, to amend the Improper Payments Information Act of 2002 
(31 U.S.C. 3321 note) in order to prevent the loss of billions in 
taxpayer dollars; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Improper Payments 
     Elimination and Recovery Act of 2010''.

     SEC. 2. IMPROPER PAYMENTS ELIMINATION AND RECOVERY.

       (a) Susceptible Programs and Activities.--Section 2 of the 
     Improper Payments Information Act of 2002 (31 U.S.C. 3321 
     note) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Identification of Susceptible Programs and 
     Activities.--
       ``(1) In general.--The head of each agency shall, in 
     accordance with guidance prescribed by the Director of the 
     Office of Management and Budget, periodically review all 
     programs and activities that the relevant agency head 
     administers and identify all programs and activities that may 
     be susceptible to significant improper payments.
       ``(2) Frequency.--Reviews under paragraph (1) shall be 
     performed for each program and activity that the relevant 
     agency head administers during the year after which the 
     Improper Payments Elimination and Recovery Act of 2010 is 
     enacted and at least once every 3 fiscal years thereafter. 
     For those agencies already performing a risk assessment every 
     3 years, agencies may apply to the Director of the Office of 
     Management and Budget for a waiver from the requirement of 
     the preceding sentence and continue their 3-year risk 
     assessment cycle.
       ``(3) Risk assessments.--
       ``(A) Definition.--In this subsection the term 
     `significant' means--
       ``(i) except as provided under clause (ii), that improper 
     payments in the program or activity in the preceding fiscal 
     year may have exceeded--

       ``(I) $10,000,000 of all program or activity payments made 
     during that fiscal year reported and 2.5 percent of program 
     outlays; or
       ``(II) $100,000,000; and

[[Page 11559]]

       ``(ii) with respect to fiscal years following September 
     30th of a fiscal year beginning before fiscal year 2013 as 
     determined by the Office of Management and Budget, that 
     improper payments in the program or activity in the preceding 
     fiscal year may have exceeded--

       ``(I) $10,000,000 of all program or activity payments made 
     during that fiscal year reported and 1.5 percent of program 
     outlays; or
       ``(II) $100,000,000.

       ``(B) Scope.--In conducting the reviews under paragraph 
     (1), the head of each agency shall take into account those 
     risk factors that are likely to contribute to a 
     susceptibility to significant improper payments, such as--
       ``(i) whether the program or activity reviewed is new to 
     the agency;
       ``(ii) the complexity of the program or activity reviewed;
       ``(iii) the volume of payments made through the program or 
     activity reviewed;
       ``(iv) whether payments or payment eligibility decisions 
     are made outside of the agency, such as by a State or local 
     government;
       ``(v) recent major changes in program funding, authorities, 
     practices, or procedures;
       ``(vi) the level, experience, and quality of training for 
     personnel responsible for making program eligibility 
     determinations or certifying that payments are accurate; and
       ``(vii) significant deficiencies in the audit report of the 
     agency or other relevant management findings that might 
     hinder accurate payment certification.''.
       (b) Estimation of Improper Payments.--Section 2 of the 
     Improper Payments Information Act of 2002 (31 U.S.C. 3321 
     note) is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Estimation of Improper Payments.--With respect to 
     each program and activity identified under subsection (a), 
     the head of the relevant agency shall--
       ``(1) produce a statistically valid estimate, or an 
     estimate that is otherwise appropriate using a methodology 
     approved by the Director of the Office of Management and 
     Budget, of the improper payments made by each program and 
     activity; and
       ``(2) include those estimates in the accompanying materials 
     to the annual financial statement of the agency required 
     under section 3515 of title 31, United States Code, or 
     similar provision of law and applicable guidance of the 
     Office of Management and Budget.''.
       (c) Reports on Actions to Reduce Improper Payments.--
     Section 2 of the Improper Payments Information Act of 2002 
     (31 U.S.C. 3321 note) is amended by striking subsection (c) 
     and inserting the following:
       ``(c) Reports on Actions to Reduce Improper Payments.--With 
     respect to any program or activity of an agency with 
     estimated improper payments under subsection (b), the head of 
     the agency shall provide with the estimate under subsection 
     (b) a report on what actions the agency is taking to reduce 
     improper payments, including--
       ``(1) a description of the causes of the improper payments, 
     actions planned or taken to correct those causes, and the 
     planned or actual completion date of the actions taken to 
     address those causes;
       ``(2) in order to reduce improper payments to a level below 
     which further expenditures to reduce improper payments would 
     cost more than the amount such expenditures would save in 
     prevented or recovered improper payments, a statement of 
     whether the agency has what is needed with respect to--
       ``(A) internal controls;
       ``(B) human capital; and
       ``(C) information systems and other infrastructure;
       ``(3) if the agency does not have sufficient resources to 
     establish and maintain effective internal controls under 
     paragraph (2)(A), a description of the resources the agency 
     has requested in its budget submission to establish and 
     maintain such internal controls;
       ``(4) program-specific and activity-specific improper 
     payments reduction targets that have been approved by the 
     Director of the Office of Management and Budget; and
       ``(5) a description of the steps the agency has taken to 
     ensure that agency managers, programs, and, where 
     appropriate, States and localities are held accountable 
     through annual performance appraisal criteria for--
       ``(A) meeting applicable improper payments reduction 
     targets; and
       ``(B) establishing and maintaining sufficient internal 
     controls, including an appropriate control environment, that 
     effectively--
       ``(i) prevent improper payments from being made; and
       ``(ii) promptly detect and recover improper payments that 
     are made.''.
       (d) Reports on Actions to Recover Improper Payments.--
     Section 2 of the Improper Payments Information Act of 2002 
     (31 U.S.C. 3321 note) is amended--
       (1) by striking subsection (e);
       (2) by redesignating subsections (d) and (f) as subsections 
     (f) and (g), respectively; and
       (3) by inserting after subsection (c) the following:
       ``(d) Reports on Actions to Recover Improper Payments.--
     With respect to any improper payments identified in recovery 
     audits conducted under section 2(h) of the Improper Payments 
     Elimination and Recovery Act of 2010 (31 U.S.C. 3321 note), 
     the head of the agency shall provide with the estimate under 
     subsection (b) a report on all actions the agency is taking 
     to recover improper payments, including--
       ``(1) a discussion of the methods used by the agency to 
     recover overpayments;
       ``(2) the amounts recovered, outstanding, and determined to 
     not be collectable, including the percent such amounts 
     represent of the total overpayments of the agency;
       ``(3) if a determination has been made that certain 
     overpayments are not collectable, a justification of that 
     determination;
       ``(4) an aging schedule of the amounts outstanding;
       ``(5) a summary of how recovered amounts have been disposed 
     of;
       ``(6) a discussion of any conditions giving rise to 
     improper payments and how those conditions are being 
     resolved; and
       ``(7) if the agency has determined under section 2(h) of 
     the Improper Payments Elimination and Recovery Act of 2010 
     (31 U.S.C. 3321 note) that performing recovery audits for any 
     applicable program or activity is not cost-effective, a 
     justification for that determination.
       ``(e) Governmentwide Reporting of Improper Payments and 
     Actions to Recover Improper Payments.--
       ``(1) Report.--Each fiscal year the Director of the Office 
     of Management and Budget shall submit a report with respect 
     to the preceding fiscal year on actions agencies have taken 
     to report information regarding improper payments and actions 
     to recover improper overpayments to--
       ``(A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       ``(B) the Committee on Oversight and Government Reform of 
     the House of Representatives.
       ``(2) Contents.--Each report under this subsection shall 
     include--
       ``(A) a summary of the reports of each agency on improper 
     payments and recovery actions submitted under this section;
       ``(B) an identification of the compliance status of each 
     agency to which this Act applies;
       ``(C) governmentwide improper payment reduction targets; 
     and
       ``(D) a discussion of progress made towards meeting 
     governmentwide improper payment reduction targets.''.
       (e) Definitions.--Section 2 of the Improper Payments 
     Information Act of 2002 (31 U.S.C. 3321 note) is amended by 
     striking subsections (f) (as redesignated by this section) 
     and inserting the following:
       ``(f) Definitions.--In this section:
       ``(1) Agency.--The term `agency' means an executive agency, 
     as that term is defined in section 102 of title 31, United 
     States Code.
       ``(2) Improper payment.--The term `improper payment'--
       ``(A) means any payment that should not have been made or 
     that was made in an incorrect amount (including overpayments 
     and underpayments) under statutory, contractual, 
     administrative, or other legally applicable requirements; and
       ``(B) includes any payment to an ineligible recipient, any 
     payment for an ineligible good or service, any duplicate 
     payment, any payment for a good or service not received 
     (except for such payments where authorized by law), and any 
     payment that does not account for credit for applicable 
     discounts.
       ``(3) Payment.--The term `payment' means any transfer or 
     commitment for future transfer of Federal funds such as cash, 
     securities, loans, loan guarantees, and insurance subsidies 
     to any non-Federal person or entity, that is made by a 
     Federal agency, a Federal contractor, a Federal grantee, or a 
     governmental or other organization administering a Federal 
     program or activity.
       ``(4) Payment for an ineligible good or service.--The term 
     `payment for an ineligible good or service' shall include a 
     payment for any good or service that is rejected under any 
     provision of any contract, grant, lease, cooperative 
     agreement, or any other funding mechanism.''.
       (f) Guidance by the Office of Management and Budget.--
     Section 2 of the Improper Payments Information Act of 2002 
     (31 U.S.C. 3321 note) is amended by striking subsection (g) 
     (as redesignated by this section) and inserting the 
     following:
       ``(g) Guidance by the Office of Management and Budget.--
       ``(1) In general.--Not later than 6 months after the date 
     of enactment of the Improper Payments Elimination and 
     Recovery Act of 2010, the Director of the Office of 
     Management and Budget shall prescribe guidance for agencies 
     to implement the requirements of this section. The guidance 
     shall not include any exemptions to such requirements not 
     specifically authorized by this section.
       ``(2) Contents.--The guidance under paragraph (1) shall 
     prescribe--
       ``(A) the form of the reports on actions to reduce improper 
     payments, recovery actions, and governmentwide reporting; and
       ``(B) strategies for addressing risks and establishing 
     appropriate prepayment and postpayment internal controls.''.
       (g) Determinations of Agency Readiness for Opinion on 
     Internal Control.--Not later than 1 year after the date of 
     enactment

[[Page 11560]]

     of this Act, the Director of the Office of Management and 
     Budget shall develop--
       (1) specific criteria as to when an agency should initially 
     be required to obtain an opinion on internal control over 
     improper payments; and
       (2) criteria for an agency that has demonstrated a 
     stabilized, effective system of internal control over 
     improper payments, whereby the agency would qualify for a 
     multiyear cycle for obtaining an audit opinion on internal 
     control over improper payments, rather than an annual cycle.
       (h) Recovery Audits.--
       (1) Definition.--In this subsection, the term ``agency'' 
     has the meaning given under section 2(f) of the Improper 
     Payments Information Act of 2002 (31 U.S.C. 3321 note) as 
     redesignated by this Act.
       (2) In general.--
       (A) Conduct of audits.--Except as provided under paragraph 
     (4) and if not prohibited under any other provision of law, 
     the head of each agency shall conduct recovery audits with 
     respect to each program and activity of the agency that 
     expends $1,000,000 or more annually if conducting such audits 
     would be cost-effective.
       (B) Procedures.--In conducting recovery audits under this 
     subsection, the head of an agency--
       (i) shall give priority to the most recent payments and to 
     payments made in any program or programs identified as 
     susceptible to significant improper payments under section 
     2(a) of the Improper Payments Information Act of 2002 (31 
     U.S.C. 3321 note);
       (ii) shall implement this subsection in a manner designed 
     to ensure the greatest financial benefit to the Government; 
     and
       (iii) may conduct recovery audits directly, by using other 
     departments and agencies of the United States, or by 
     procuring performance of recovery audits by private sector 
     sources by contract (subject to the availability of 
     appropriations), or by any combination thereof.
       (C) Recovery audit contracts.--With respect to recovery 
     audits procured by an agency by contract--
       (i) subject to subparagraph (B)(iii), and except to the 
     extent such actions are outside the agency's authority, as 
     defined by section 605(a) of the Contract Disputes Act of 
     1978 (41 U.S.C. 605(a)), the head of the agency may authorize 
     the contractor to notify entities (including persons) of 
     potential overpayments made to such entities, respond to 
     questions concerning potential overpayments, and take other 
     administrative actions with respect to overpayment claims 
     made or to be made by the agency; and
       (ii) such contractor shall have no authority to make final 
     determinations relating to whether any overpayment occurred 
     and whether to compromise, settle, or terminate overpayment 
     claims.
       (D) Contract terms and conditions.--
       (i) In general.--The agency shall include in each contract 
     for procurement of performance of a recovery audit a 
     requirement that the contractor shall--

       (I) provide to the agency periodic reports on conditions 
     giving rise to overpayments identified by the contractor and 
     any recommendations on how to mitigate such conditions;
       (II) notify the agency of any overpayments identified by 
     the contractor pertaining to the agency or to any other 
     agency or agencies that are beyond the scope of the contract; 
     and
       (III) report to the agency credible evidence of fraud or 
     vulnerabilities to fraud, and conduct appropriate training of 
     personnel of the contractor on identification of fraud.

       (ii) Reports on actions taken .--Not later than November 1 
     of each year, each agency shall submit a report on actions 
     taken by the agency during the preceding fiscal year to 
     address the recommendations described under clause (i)(I) 
     to--

       (I) the Office of Management and Budget; and
       (II) Congress.

       (E) Agency action following notification.--An agency shall 
     take prompt and appropriate action in response to a report or 
     notification by a contractor under subparagraph (D)(i)(I) or 
     (II), to collect overpayments and shall forward to other 
     agencies any information that applies to such agencies.
       (3) Disposition of amounts recovered.--
       (A) In general.--Amounts collected by agencies each fiscal 
     year through recovery audits conducted under this subsection 
     shall be treated in accordance with this paragraph. The 
     agency head shall determine the distribution of collected 
     amounts, less amounts needed to fulfill the purposes of 
     section 3562(a) of title 31, United States Code, in 
     accordance with subparagraphs (B), (C), and (D).
       (B) Use for financial management improvement program.--Not 
     more than 25 percent of the amounts collected by an agency 
     through recovery audits--
       (i) shall be available to the head of the agency to carry 
     out the financial management improvement program of the 
     agency under paragraph (4);
       (ii) may be credited, if applicable, for that purpose by 
     the head of an agency to any agency appropriations and funds 
     that are available for obligation at the time of collection; 
     and
       (iii) shall be used to supplement and not supplant any 
     other amounts available for that purpose and shall remain 
     available until expended.
       (C) Use for original purpose.--Not more than 25 percent of 
     the amounts collected by an agency--
       (i) shall be credited to the appropriation or fund, if any, 
     available for obligation at the time of collection for the 
     same general purposes as the appropriation or fund from which 
     the overpayment was made;
       (ii) shall remain available for the same period and 
     purposes as the appropriation or fund to which credited; and
       (iii) if the appropriation from which the overpayment was 
     made has expired, shall be newly available for the same time 
     period as the funds were originally available for obligation, 
     except that any amounts that are recovered more than five 
     fiscal years from the last fiscal year in which the funds 
     were available for obligation shall be deposited in the 
     Treasury as miscellaneous receipts, except that in the case 
     of recoveries of overpayments that are made from trust or 
     special fund accounts, such amounts shall revert to those 
     accounts.
       (D) Use for inspector general activities.--Not more than 5 
     percent of the amounts collected by an agency shall be 
     available to the Inspector General of that agency--
       (i) for--

       (I) the Inspector General to carry out this Act; or
       (II) any other activities of the Inspector General relating 
     to investigating improper payments or auditing internal 
     controls associated with payments; and

       (ii) shall remain available for the same period and 
     purposes as the appropriation or fund to which credited.
       (E) Remainder.--Amounts collected that are not applied in 
     accordance with subparagraph (A), (B), (C), or (D) shall be 
     deposited in the Treasury as miscellaneous receipts, except 
     that in the case of recoveries of overpayments that are made 
     from trust or special fund accounts, such amounts shall 
     revert to those accounts.
       (F) Discretionary amounts.--This paragraph shall apply only 
     to recoveries of overpayments that are made from 
     discretionary appropriations (as that term is defined by 
     paragraph 7 of section 250 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985) and shall not apply to 
     recoveries of overpayments that are made from discretionary 
     amounts that were appropriated prior to enactment of this 
     Act.
       (G) Application.--This paragraph shall not apply to 
     recoveries of overpayments if the appropriation from which 
     the overpayment was made has not expired.
       (4) Financial management improvement program.--
       (A) Requirement.--The head of each agency shall conduct a 
     financial management improvement program, consistent with 
     rules prescribed by the Director of the Office of Management 
     and Budget.
       (B) Program features.--In conducting the program, the head 
     of the agency--
       (i) shall, as the first priority of the program, address 
     problems that contribute directly to agency improper 
     payments; and
       (ii) may seek to reduce errors and waste in other agency 
     programs and operations.
       (5) Privacy protections.--Any nongovernmental entity that, 
     in the course of recovery auditing or recovery activity under 
     this subsection, obtains information that identifies an 
     individual or with respect to which there is a reasonable 
     basis to believe that the information can be used to identify 
     an individual, may not disclose the information for any 
     purpose other than such recovery auditing or recovery 
     activity and governmental oversight of such activity, unless 
     disclosure for that other purpose is authorized by the 
     individual to the executive agency that contracted for the 
     performance of the recovery auditing or recovery activity.
       (6) Other recovery audit requirements.--
       (A) In general.--(i) Except as provided in clause (ii), 
     subchapter VI of chapter 35 of title 31, United States Code, 
     is repealed.
       (ii) Section 3562(a) of title 31, United States Code, shall 
     continue in effect, except that references in such section 
     3562(a) to programs carried out under section 3561 of such 
     title, shall be interpreted to mean programs carried out 
     under section 2(h) of this Act.
       (B) Technical and conforming amendments.--
       (i) Table of sections.--The table of sections for chapter 
     35 of title 31, United States Code, is amended by striking 
     the matter relating to subchapter VI.
       (ii) Definition.--Section 3501 of title 31, United States 
     Code, is amended by striking ``and subchapter VI of this 
     title''.
       (iii) Homeland security grants.--Section 2022(a)(6) of the 
     Homeland Security Act of 2002 (6 U.S.C. 612(a)(6)) is amended 
     by striking ``(as that term is defined by the Director of the 
     Office of Management and Budget under section 3561 of title 
     31, United States Code)'' and inserting ``under section 2(h) 
     of the Improper Payments Elimination and Recovery Act of 2010 
     (31 U.S.C. 3321 note)''.
       (7) Rule of construction.--Except as provided under 
     paragraph (5), nothing in this

[[Page 11561]]

     section shall be construed as terminating or in any way 
     limiting authorities that are otherwise available to agencies 
     under existing provisions of law to recover improper payments 
     and use recovered amounts.
       (i) Report on Recovery Auditing.--Not later than 2 years 
     after the date of the enactment of this Act, the Chief 
     Financial Officers Council established under section 302 of 
     the Chief Financial Officers Act of 1990 (31 U.S.C. 901 
     note), in consultation with the Council of Inspectors General 
     on Integrity and Efficiency established under section 7 of 
     the Inspector General Reform Act of 2009 (Public Law 110-409) 
     and recovery audit experts, shall conduct a study of--
       (1) the implementation of subsection (h);
       (2) the costs and benefits of agency recovery audit 
     activities, including--
       (A) those activities under subsection (h); and
       (B) the effectiveness of using the services of--
       (i) private contractors;
       (ii) agency employees;
       (iii) cross-servicing from other agencies; or
       (iv) any combination of the provision of services described 
     under clauses (i) through (iii); and
       (3) submit a report on the results of the study to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (B) the Committee on Oversight and Government Reform of the 
     House of Representatives; and
       (C) the Comptroller General.

     SEC. 3. COMPLIANCE.

       (a) Definitions.--In this section:
       (1) Agency.--The term ``agency'' has the meaning given 
     under section 2(f) of the Improper Payments Information Act 
     of 2002 (31 U.S.C. 3321 note) as redesignated by this Act.
       (2) Annual financial statement.--The term ``annual 
     financial statement'' means the annual financial statement 
     required under section 3515 of title 31, United States Code, 
     or similar provision of law.
       (3) Compliance.--The term ``compliance'' means that the 
     agency--
       (A) has published an annual financial statement for the 
     most recent fiscal year and posted that report and any 
     accompanying materials required under guidance of the Office 
     of Management and Budget on the agency website;
       (B) if required, has conducted a program specific risk 
     assessment for each program or activity that conforms with 
     section 2(a) the Improper Payments Information Act of 2002 
     (31 U.S.C. 3321 note); and
       (C) if required, publishes improper payments estimates for 
     all programs and activities identified under section 2(b) of 
     the Improper Payments Information Act of 2002 (31 U.S.C. 3321 
     note) in the accompanying materials to the annual financial 
     statement;
       (D) publishes programmatic corrective action plans prepared 
     under section 2(c) of the Improper Payments Information Act 
     of 2002 (31 U.S.C. 3321 note) that the agency may have in the 
     accompanying materials to the annual financial statement;
       (E) publishes improper payments reduction targets 
     established under section 2(c) of the Improper Payments 
     Information Act of 2002 (31 U.S.C. 3321 note) that the agency 
     may have in the accompanying materials to the annual 
     financial statement for each program assessed to be at risk, 
     and is meeting such targets; and
       (F) has reported an improper payment rate of less than 10 
     percent for each program and activity for which an estimate 
     was published under section 2(b) of the Improper Payments 
     Information Act of 2002 (31 U.S.C. 3321 note).
       (b) Annual Compliance Report by Inspectors General of 
     Agencies.--Each fiscal year, the Inspector General of each 
     agency shall determine whether the agency is in compliance 
     and submit a report on that determination to--
       (1) the head of the agency;
       (2) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (3) the Committee on Oversight and Governmental Reform of 
     the House of Representatives; and
       (4) the Comptroller General.
       (c) Remediation.--
       (1) Noncompliance.--
       (A) In general.--If an agency is determined by the 
     Inspector General of that agency not to be in compliance 
     under subsection (b) in a fiscal year, the head of the agency 
     shall submit a plan to Congress describing the actions that 
     the agency will take to come into compliance.
       (B) Plan.--The plan described under subparagraph (A) shall 
     include--
       (i) measurable milestones to be accomplished in order to 
     achieve compliance for each program or activity;
       (ii) the designation of a senior agency official who shall 
     be accountable for the progress of the agency in coming into 
     compliance for each program or activity; and
       (iii) the establishment of an accountability mechanism, 
     such as a performance agreement, with appropriate incentives 
     and consequences tied to the success of the official 
     designated under clause (ii) in leading the efforts of the 
     agency to come into compliance for each program and activity.
       (2) Noncompliance for 2 fiscal years.--
       (A) In general.--If an agency is determined by the 
     Inspector General of that agency not to be in compliance 
     under subsection (b) for 2 consecutive fiscal years for the 
     same program or activity, and the Director of the Office of 
     Management and Budget determines that additional funding 
     would help the agency come into compliance, the head of the 
     agency shall obligate additional funding, in an amount 
     determined by the Director, to intensified compliance 
     efforts.
       (B) Funding.--In providing additional funding described 
     under subparagraph (A), the head of an agency shall use any 
     reprogramming or transfer authority available to the agency. 
     If after exercising that reprogramming or transfer authority 
     additional funding is necessary to obligate the full level of 
     funding determined by the Director of the Office of 
     Management and Budget under subparagraph (A), the agency 
     shall submit a request to Congress for additional 
     reprogramming or transfer authority.
       (3) Reauthorization and statutory proposals.--If an agency 
     is determined by the Inspector General of that agency not to 
     be in compliance under subsection (b) for more than 3 
     consecutive fiscal years for the same program or activity, 
     the head of the agency shall, not later than 30 days after 
     such determination, submit to Congress--
       (A) reauthorization proposals for each program or activity 
     that has not been in compliance for 3 or more consecutive 
     fiscal years; or
       (B) proposed statutory changes necessary to bring the 
     program or activity into compliance.
       (d) Compliance Enforcement Pilot Programs.--
       (1) In general.--The Director of the Office of Management 
     and Budget may establish 1 or more pilot programs which shall 
     test potential accountability mechanisms with appropriate 
     incentives and consequences tied to success in ensuring 
     compliance with this Act and eliminating improper payments.
       (2) Report.--Not later than 5 years after the date of 
     enactment of this Act, the Director of the Office of 
     Management and Budget shall submit a report to Congress on 
     the findings associated with any pilot programs conducted 
     under paragraph (1). The report shall include any legislative 
     or other recommendations that the Director determines 
     necessary.
       (e) Report on Chief Financial Officers Act of 1990.--Not 
     later than 1 year after the date of the enactment of this 
     Act, the Chief Financial Officers Council established under 
     section 302 of the Chief Financial Officers Act of 1990 (31 
     U.S.C. 901 note) and the Council of Inspectors General on 
     Integrity and Efficiency established under section 7 of the 
     Inspector General Reform Act of 2009 (Public Law 110-409), in 
     consultation with a broad cross-section of experts and 
     stakeholders in Government accounting and financial 
     management shall--
       (1) jointly examine the lessons learned during the first 20 
     years of implementing the Chief Financial Officers Act of 
     1990 (31 U.S.C. 901) and identify reforms or improvements, if 
     any, to the legislative and regulatory compliance framework 
     for Federal financial management that will optimize Federal 
     agency efforts to--
       (A) publish relevant, timely, and reliable reports on 
     Government finances; and
       (B) implement internal controls that mitigate the risk for 
     fraud, waste, and error in Government programs; and
       (2) jointly submit a report on the results of the 
     examination to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (B) the Committee on Oversight and Government Reform of the 
     House of Representatives; and
       (C) the Comptroller General.
                                 ______
                                 
  SA 4393. Mr. DURBIN (for Mr. Conrad) proposed an amendment to the 
resolution S. Res. 541, designating June 27, 2010, as ``National Post-
Traumatic Stress Disorder Awareness Day''; as follows:

       Strike the preamble and insert the following:
       Whereas the brave men and women of the United States Armed 
     Forces, who proudly serve the United States, risk their lives 
     to protect the freedom of the United States and deserve the 
     investment of every reasonable resource to ensure their 
     lasting physical, mental, and emotional well-being;
       Whereas up to 15 percent of Operation Iraqi Freedom and 
     Operation Enduring Freedom veterans, 10 percent of Operation 
     Desert Storm veterans, 30 percent of Vietnam veterans, and 8 
     percent of the general population of the United States suffer 
     or have suffered from Post Traumatic Stress Disorder 
     (referred to in this preamble as ``PTSD'');
       Whereas the incidence of PTSD in members of the military is 
     rising as the United States Armed Forces conducts 2 wars, 
     exposing hundreds of thousands of soldiers to traumatic life-
     threatening events;
       Whereas from 2000 to 2009, approximately 76,000 Department 
     of Defense patients were diagnosed with PTSD;
       Whereas the Department of Defense patients--
       (1) were hospitalized more than 5,300 times with a primary 
     diagnosis of PTSD; and

[[Page 11562]]

       (2) had more than 578,000 outpatient visits in which PTSD 
     was the primary diagnosis;
       Whereas PTSD significantly increases the risk of 
     depression, suicide, and drug and alcohol related disorders 
     and deaths;
       Whereas the Departments of Defense and Veterans Affairs 
     have made significant advances in the prevention, diagnosis, 
     and treatment of PTSD and the symptoms of PTSD, but many 
     challenges remain; and
       Whereas the establishment of a National Post-Traumatic 
     Stress Disorder Awareness Day will raise public awareness 
     about issues related to PTSD: Now, therefore, be it

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