[Congressional Record (Bound Edition), Volume 157 (2011), Part 4]
[Senate]
[Pages 4495-4500]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 250. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the bill, add the following:

     SEC. ___. POSTAL SERVICE POLICY.

       Section 101(b) of title 39, United States Code, is 
     amended--
       (1) in the first sentence, by striking ``a maximum degree 
     of''; and
       (2) in the second sentence, by striking ``No small'' and 
     all that follows through ``being'' and inserting ``It is''.
                                 ______
                                 
  SA 251. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the bill, add the following:

     SEC. ___. LIMITATION ON POSTAL SERVICE CONTRIBUTIONS FOR LIFE 
                   INSURANCE AND HEALTH INSURANCE BENEFITS.

       (a) In General.--If the Postmaster General does not submit 
     a certification described under subsection (b) to Congress 
     before fiscal year 2012 and each fiscal year thereafter--
       (1) no sums may be appropriated from the United States 
     Treasury to the United States Postal Service with respect to 
     that fiscal year; and
       (2) notwithstanding section 2005(a) of title 39, United 
     States Code, the United States Postal Service may not borrow 
     any money under that section with respect to that fiscal 
     year.
       (b) Certification.--A certification referred to under 
     subsection (a) is a certification that, with respect to the 
     applicable fiscal year, the contributions by the United 
     States Postal Service for employees for--
       (1) life insurance benefits shall not exceed the maximum 
     contribution provided for under section 8708 of title 5, 
     United States Code; and
       (2) health insurance benefits shall not exceed the maximum 
     contribution provided for under section 8906 of title 5, 
     United States Code.
                                 ______
                                 
  SA 252. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the bill, add the following:

     SEC. ___. LIMITATION ON PAY OF OFFICERS OF THE UNITED STATES 
                   POSTAL SERVICE.

       (a) Repeal of Exception to Compensation Limitation.--
     Section 3686 of title 39, United States Code, is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (b) Limitation on Pay.--Notwithstanding any other provision 
     of law, the total annual pay of the Postmaster General or any 
     other officer or employee of the Postal Service may not 
     exceed the total annual pay payable to the Vice President 
     under section 104 of title 3, United States Code, until the 
     Postal Service has paid--
       (1) any obligation and any borrowed money under section 
     2005 of title 39, United States Code; and
       (2) any other debt owed to the United States Treasury.

[[Page 4496]]


                                 ______
                                 
  SA 253. Ms. SNOWE (for herself, Ms. Landrieu, Mr. Brown of 
Massachusetts, Mr. Merkley, Mr. Enzi, Mrs. Hagan, and Mrs. McCaskill) 
submitted an amendment intended to be proposed by her to the bill S. 
493, to reauthorize and improve the SBIR and STTR programs, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

                 TITLE _--CONTRACTING FRAUD PREVENTION

     SECTION __1. SHORT TITLE.

       This title may be cited as the ``Small Business Contracting 
     Fraud Prevention Act of 2011''.

     SEC. __2. DEFINITIONS.

       In this title--
       (1) the term ``8(a) program'' means the program under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a));
       (2) the terms ``HUBZone'' and ``HUBZone small business 
     concern'' and ``HUBZone map'' have the meanings given those 
     terms in section 3(p) of the Small Business Act (15 U.S.C. 
     632(p)), as amended by this Act; and
       (3) the term ``recertification'' means a determination by 
     the Administrator that a business concern that was previously 
     determined to be a qualified HUBZone small business concern 
     is a qualified HUBZone small business concern under section 
     3(p)(5) of the Small Business Act (15 U.S.C. 632(p)(5)).

     SEC. __3. FRAUD DETERRENCE AT THE SMALL BUSINESS 
                   ADMINISTRATION.

       Section 16 of the Small Business Act (15 U.S.C. 645) is 
     amended--
       (1) in subsection (d)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``Whoever'' and all that follows through ``oneself or 
     another'' and inserting the following: ``A person shall be 
     subject to the penalties and remedies described in paragraph 
     (2) if the person misrepresents the status of any concern or 
     person as a `small business concern', a `qualified HUBZone 
     small business concern', a `small business concern owned and 
     controlled by socially and economically disadvantaged 
     individuals', a `small business concern owned and controlled 
     by women', or a `small business concern owned and controlled 
     by service-disabled veterans', in order to obtain for any 
     person'';
       (ii) by amending subparagraph (A) to read as follows:
       ``(A) prime contract, subcontract, grant, or cooperative 
     agreement to be awarded under subsection (a) or (m) of 
     section 8, or section 9, 15, 31, or 36;'';
       (iii) by striking subparagraph (B);
       (iv) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively; and
       (v) in subparagraph (C), as so redesignated, by striking 
     ``, shall be'' and all that follows and inserting a period;
       (B) in paragraph (2)--
       (i) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (ii) by inserting after subparagraph (B) the following:
       ``(C) be subject to the civil remedies and penalties under 
     subchapter III of chapter 37 of title 31, United States Code 
     (commonly known as the `False Claims Act');''; and
       (C) by adding at the end the following:
       ``(3)(A) In the case of a violation of paragraph (1)(A), 
     (g), or (h), for purposes of a proceeding described in 
     subparagraph (A) or (C) of paragraph (2), the amount of the 
     loss to the Federal Government or the damages sustained by 
     the Federal Government, as applicable, shall be an amount 
     equal to the amount that the Federal Government paid to the 
     person that received a contract, grant, or cooperative 
     agreement described in paragraph (1)(A), (g), or (h), 
     respectively.
       ``(B) In the case of a violation of subparagraph (B) or (C) 
     of paragraph (1), for the purpose of a proceeding described 
     in subparagraph (A) or (C) of paragraph (2), the amount of 
     the loss to the Federal Government or the damages sustained 
     by the Federal Government, as applicable, shall be an amount 
     equal to the portion of any payment by the Federal Government 
     under a prime contract that was used for a subcontract 
     described in subparagraph (B) or (C) of paragraph (1), 
     respectively.
       ``(C) In a proceeding described in subparagraph (A) or (B), 
     no credit shall be applied against any loss or damages to the 
     Federal Government for the fair market value of the property 
     or services provided to the Federal Government.'';
       (2) by striking subsection (e) and inserting the following:
       ``(e) Any representation of the status of any concern or 
     person as a `small business concern', a `qualified HUBZone 
     small business concern', a `small business concern owned and 
     controlled by socially and economically disadvantaged 
     individuals', a `small business concern owned and controlled 
     by women', or a `small business concern owned and controlled 
     by service-disabled veterans', in order to obtain any prime 
     contract, subcontract, grant, or cooperative agreement 
     described in subsection (d)(1) shall be made in writing or 
     through the Online Representations and Certifications 
     Application process required under section 4.1201 of the 
     Federal Acquisition Regulation, or any successor thereto.''; 
     and
       (3) by adding at the end the following:
       ``(g) A person shall be subject to the penalties and 
     remedies described in subsection (d)(2) if the person 
     misrepresents the status of any concern or person as a `small 
     business concern', a `qualified HUBZone small business 
     concern', a `small business concern owned and controlled by 
     socially and economically disadvantaged individuals', a 
     `small business concern owned and controlled by women', or a 
     `small business concern owned and controlled by service-
     disabled veterans'--
       ``(1) in order to allow any person to participate in or be 
     admitted to any program of the Administration; or
       ``(2) in relation to a protest of a contract award or 
     proposed contract award made under regulations issued by the 
     Administration.
       ``(h)(1) A person that submits a request for payment on a 
     contract or subcontract that is awarded under subsection (a) 
     or (m) of section 8, or section 9, 15, 31, or 36, shall be 
     deemed to have submitted a certification that the person 
     complied with regulations issued by the Administration 
     governing the percentage of work that the person is required 
     to perform on the contract or subcontract, unless the person 
     states, in writing, that the person did not comply with the 
     regulations.
       ``(2) A person shall be subject to the penalties and 
     remedies described in subsection (d)(2) if the person--
       ``(A) uses the services of a business other than the 
     business awarded the contract or subcontract to perform a 
     greater percentage of work under a contract than is permitted 
     by regulations issued by the Administration; or
       ``(B) willfully participates in a scheme to circumvent 
     regulations issued by the Administration governing the 
     percentage of work that a contractor is required to perform 
     on a contract.''.

     SEC. __4. VETERANS INTEGRITY IN CONTRACTING.

       (a) Definition.--Section 3(q)(1) of the Small Business Act 
     (15 U.S.C. 632(q)(1)) is amended by striking ``means a 
     veteran'' and all that follows and inserting the following: 
     ``means--
       ``(A) a veteran who possesses a disability rating letter 
     establishing a service-connected disability rated by the 
     Secretary of Veterans Affairs as zero percent or more 
     disabling; or
       ``(B) a former member of the Armed Forces with a service 
     connected disability who, under chapter 61 of title 10, 
     United States Code, is placed on the temporary disability 
     retired list, retired from service due to a physical 
     disability, or separated from service due to a physical 
     disability.''.
       (b) Veterans Contracting.--Section 4 of the Small Business 
     Act (15 U.S.C. 633) is amended by adding at the end the 
     following:
       ``(g) Veteran Status.--
       ``(1) In general.--A business concern seeking status as a 
     small business concern owned and controlled by service-
     disabled veterans shall--
       ``(A) submit an annual certification indicating that the 
     business concern is a small business concern owned and 
     controlled by service-disabled veterans by means of the 
     Online Representations and Certifications Application process 
     required under section 4.1201 of the Federal Acquisition 
     Regulation, or any successor thereto; and
       ``(B) register with--
       ``(i) the Central Contractor Registration database 
     maintained under subpart 4.11 of the Federal Acquisition 
     Regulation, or any successor thereto; and
       ``(ii) the VetBiz database of the Department of Veterans 
     Affairs, or any successor thereto.
       ``(2) Verification of status.--
       ``(A) Veterans affairs.--The Secretary of Veterans Affairs 
     shall determine whether a business concern registered with 
     the VetBiz database of the Department of Veterans Affairs, or 
     any successor thereto, as a small business concern owned and 
     controlled by veterans or a small business concern owned and 
     controlled by service-disabled veterans is owned and 
     controlled by a veteran or a service-disabled veteran, as the 
     case may be.
       ``(B) Federal agencies generally.--The head of each Federal 
     agency shall--
       ``(i) for a sole source contract awarded to a small 
     business concern owned and controlled by service-disabled 
     veterans or a contract awarded with competition restricted to 
     small business concerns owned and controlled by service-
     disabled veterans under section 36, determine whether a 
     business concern submitting a proposal for the contract is a 
     small business concern owned and controlled by service-
     disabled veterans; and
       ``(ii) use the VetBiz database of the Department of 
     Veterans Affairs, or any successor thereto, in determining 
     whether a business concern is a small business concern owned 
     and controlled by service-disabled veterans.
       ``(3) Debarment and suspension.--If the Administrator 
     determines that a business concern knowingly and willfully 
     misrepresented that the business concern is a small business 
     concern owned and controlled by

[[Page 4497]]

     service-disabled veterans, the Administrator may debar or 
     suspend the business concern from contracting with the United 
     States.''.
       (c) Integration of Databases.--Not later than 1 year after 
     the date of enactment of this Act, the Administrator for 
     Federal Procurement Policy and the Secretary of Veterans 
     Affairs shall ensure that data is shared on an ongoing basis 
     between the VetBiz database of the Department of Veterans 
     Affairs and the Central Contractor Registration database 
     maintained under subpart 4.11 of the Federal Acquisition 
     Regulation.

     SEC. __5. SECTION 8(A) PROGRAM IMPROVEMENTS.

       (a) Review of Effectiveness.--Section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)) is amended by adding at the 
     end the following:
       ``(22) Not later than 3 years after the date of enactment 
     of this paragraph, and every 3 years thereafter, the 
     Comptroller General of the United States shall--
       ``(A) conduct an evaluation of the effectiveness of the 
     program under this subsection, including an examination of--
       ``(i) the number and size of contracts applied for, as 
     compared to the number received by, small business concerns 
     after successfully completing the program;
       ``(ii) the percentage of small business concerns that 
     continue to operate during the 3-year period beginning on the 
     date on which the small business concerns successfully 
     complete the program;
       ``(iii) whether the business of small business concerns 
     increases during the 3-year period beginning on the date on 
     which the small business concerns successfully complete the 
     program; and
       ``(iv) the number of training sessions offered under the 
     program; and
       ``(B) submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     each evaluation under subparagraph (A).''.
       (b) Other Improvements.--
       (1) Improvements.--In order to improve the 8(a) program, 
     the Administrator shall--
       (A) not later than 90 days after the date of enactment of 
     this Act, begin to--
       (i) evaluate the feasibility of--

       (I) using additional third-party data sources;
       (II) making unannounced visits of sites that are selected 
     randomly or using risk-based criteria;
       (III) using fraud detection tools, including data-mining 
     techniques; and
       (IV) conducting financial and analytical training for the 
     business opportunity specialists of the Administration;

       (ii) evaluate the feasibility and advisability of 
     calculating the adjusted net worth or total assets of an 
     individual for purposes of the 8(a) program in a manner that 
     includes assets held by the spouse of the individual; and
       (iii) develop a more consistent enforcement strategy that 
     includes the suspension or debarment of contractors that 
     knowingly make misrepresentations in order to qualify for the 
     8(a) program; and
       (B) not later than 1 year after the date on which the 
     Comptroller General submits the report under section 
     8(a)(22)(B) of the Small Business Act, as added by subsection 
     (a), issue, in final form, proposed regulations of the 
     Administration that--
       (i) determine the economic disadvantage of a participant in 
     the 8(a) program based on the income and asset levels of the 
     participant at the time of application and annual 
     recertification for the 8(a) program; and
       (ii) require a small business concern to provide additional 
     certifications designed to prevent fraud in order to 
     participate in the 8(a) program if an immediate family member 
     of an owner of the small business concern is, or has been, a 
     participant in the 8(a) program, in the same industry.
       (2) Definition.--In this subsection, the term ``immediate 
     family member'' means a father, mother, husband, wife, son, 
     daughter, brother, sister, grandfather, grandmother, 
     grandson, granddaughter, father-in-law, and mother-in-law.

     SEC. __6. HUBZONE IMPROVEMENTS.

       (a) Purpose.--The purpose of this section is to reform and 
     improve the HUBZone program of the Administration.
       (b) In General.--The Administrator shall--
       (1) ensure the HUBZone map is--
       (A) accurate and up-to-date; and
       (B) revised as new data is made available to maintain the 
     accuracy and currency of the HUBZone map;
       (2) implement policies for ensuring that only HUBZone small 
     business concerns determined to be qualified under section 
     3(p)(5) of the Small Business Act (15 U.S.C. 632(p)(5)) are 
     participating in the HUBZone program, including through the 
     appropriate use of technology to control costs and maximize, 
     among other benefits, uniformity, completeness, simplicity, 
     and efficiency;
       (3) submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     any application to be designated as a HUBZone small business 
     concern or for recertification for which the Administrator 
     has not made a determination as of the date that is 60 days 
     after the date on which the application was submitted or 
     initiated, which shall include a plan and timetable for 
     ensuring the timely processing of the applications; and
       (4) develop measures and implement plans to assess the 
     effectiveness of the HUBZone program that--
       (A) require the identification of a baseline point in time 
     to allow the assessment of economic development under the 
     HUBZone program, including creating additional jobs; and
       (B) take into account--
       (i) the economic characteristics of the HUBZone; and
       (ii) contracts being counted under multiple socioeconomic 
     subcategories.
       (c) Employment Percentage.--Section 3(p) of the Small 
     Business Act (15 U.S.C. 632(p)) is amended--
       (1) in paragraph (5), by adding at the end the following:
       ``(E) Employment percentage during interim period.--
       ``(i) Definition.--In this subparagraph, the term `interim 
     period' means the period beginning on the date on which the 
     Administrator determines that a HUBZone small business 
     concern is qualified under subparagraph (A) and ending on the 
     day before the date on which a contract under the HUBZone 
     program for which the HUBZone small business concern submits 
     a bid is awarded.
       ``(ii) Interim period.--During the interim period, the 
     Administrator may not determine that the HUBZone small 
     business is not qualified under subparagraph (A) based on a 
     failure to meet the applicable employment percentage under 
     subparagraph (A)(i)(I), unless the HUBZone small business 
     concern--

       ``(I) has not attempted to maintain the applicable 
     employment percentage under subparagraph (A)(i)(I); or
       ``(II) does not meet the applicable employment percentage--

       ``(aa) on the date on which the HUBZone small business 
     concern submits a bid for a contract under the HUBZone 
     program; or
       ``(bb) on the date on which the HUBZone small business 
     concern is awarded a contract under the HUBZone program.''; 
     and
       (2) by adding at the end the following:
       ``(8) Hubzone program.--The term `HUBZone program' means 
     the program established under section 31.
       ``(9) Hubzone map.--The term `HUBZone map' means the map 
     used by the Administration to identify HUBZones.''.
       (d) Redesignated Areas.--Section 3(p)(4)(C)(i) of the Small 
     Business Act (15 U.S.C. 632(p)(4)(C)(i)) is amended to read 
     as follows:
       ``(i) 3 years after the first date on which the 
     Administrator publishes a HUBZone map that is based on the 
     results from the 2010 decennial census; or''.

     SEC. __7. ANNUAL REPORT ON SUSPENSION, DEBARMENT, AND 
                   PROSECUTION.

       The Administrator shall submit an annual report to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives that contains--
       (1) the number of debarments from participation in programs 
     of the Administration issued by the Administrator during the 
     1-year period preceding the date of the report, including--
       (A) the number of debarments that were based on a 
     conviction; and
       (B) the number of debarments that were fact-based and did 
     not involve a conviction;
       (2) the number of suspensions from participation in 
     programs of the Administration issued by the Administrator 
     during the 1-year period preceding the date of the report, 
     including--
       (A) the number of suspensions issued that were based upon 
     indictments; and
       (B) the number of suspensions issued that were fact-based 
     and did not involve an indictment;
       (3) the number of suspension and debarments issued by the 
     Administrator during the 1-year period preceding the date of 
     the report that were based upon referrals from offices of the 
     Administration, other than the Office of Inspector General;
       (4) the number of suspension and debarments issued by the 
     Administrator during the 1-year period preceding the date of 
     the report based upon referrals from the Office of Inspector 
     General;
       (5) the number of persons that the Administrator declined 
     to debar or suspend after a referral described in paragraph 
     (4), and the reason for each such decision;
       (6) the number of investigations and reviews of potential 
     suspensions and debarments that were initiated by the 
     Administration; and
       (7) the number of investigations and reviews of potential 
     suspensions and debarments that were referred by the 
     Administration to other agencies.
                                 ______
                                 
  SA 254. Mr. KIRK submitted an amendment intended to be proposed by 
him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page _, between lines _ and _, insert the following:

[[Page 4498]]



     SEC. ___. PROHIBITING NEW MANDATORY SPENDING.

       Section 312 of the Congressional Budget Act of 1974 is 
     amended by adding at the end the following new subsection:
       ``(g) Prohibiting New Mandatory Spending.--
       ``(1) In general.--It shall not be in order in the House of 
     Representatives or the Senate to consider any bill, joint 
     resolution, amendment, or conference report that--
       ``(A) creates a new mandatory funding program; or
       ``(B) converts a discretionary funding program into a 
     mandatory funding program.
       ``(2) Supermajority waiver and appeals.--
       ``(A) Waiver.--This subsection may be waived or suspended 
     in the Senate only by the affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       ``(B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution. An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this subsection.''.
                                 ______
                                 
  SA 255. Mr. KIRK submitted an amendment intended to be proposed by 
him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. FEDERAL SPENDING CONTROL.

       (a) Short Title.--This section may be cited as the 
     ``Spending Control Act of 2011''.
       (b) Establishment.--There is established an independent 
     commission to be known as the ``Grace Commission II''.
       (c) Duties of Commission.--The duties of the Commission 
     shall be--
       (1) to conduct reviews in accordance with subsection (g); 
     and
       (2) to submit reports in accordance with subsection (h).
       (d) Membership.--
       (1) Number and appointment.--
       (A) In general.--The Commission shall be composed of eight 
     members appointed by the President, by and with the advice 
     and consent of the Senate.
       (B) Nominations.--Not later than 180 days after the date of 
     the enactment of this section, the President shall transmit 
     to the Senate nominations for appointment to the Commission.
       (C) Consultation.--In selecting individuals for nominations 
     for appointments to the Commission, the President shall 
     consult with--
       (i) the Speaker of the House of Representatives concerning 
     the appointment of three members;
       (ii) the majority leader of the Senate concerning the 
     appointment of three members;
       (iii) the minority leader of the House of Representatives 
     concerning the appointment of one member; and
       (iv) the minority leader of the Senate concerning the 
     appointment of one member.
       (2) Terms.--Each member shall be appointed for the life of 
     the Commission.
       (3) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (4) Chairman.--The Chairman of the Commission shall be 
     designated by the President at the time of nomination of 
     members of the Commission.
       (5) Basic pay.--
       (A) Rates of pay.--
       (i) In general.--Except as provided in subparagraph (B), 
     each member, other than the Chairman, shall be paid at a rate 
     equal to the daily equivalent of the minimum annual rate of 
     basic pay for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code, for each day 
     (including travel time) during which the member is engaged in 
     the actual performance of duties vested in the Commission.
       (ii) Chairman.--The Chairman shall be paid for each day 
     referred to in clause (i) at a rate equal to the daily 
     equivalent of the minimum annual rate of basic pay payable 
     for level III of the Executive Schedule under section 5314 of 
     title 5, United States Code.
       (iii) Travel expenses.--Each member shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with applicable provisions under subchapter I of 
     chapter 57 of title 5, United States Code.
       (B) Prohibition of compensation of federal employees.--
     Members of the Commission who are full-time officers or 
     employees of the United States or Members of Congress may not 
     receive additional pay, allowances, or benefits by reason of 
     their service on the Commission.
       (6) Quorum.--Five members of the Commission shall 
     constitute a quorum but a lesser number may hold hearings.
       (7) Meetings.--The Commission shall meet at the call of the 
     Chairman.
       (e) Director; Staff; Experts and Consultants.--
       (1) Director.--The Commission shall have a Director who 
     shall be appointed by the Commission. The Director shall be 
     paid at the rate of basic pay for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (2) Staff.--
       (A) In general.--With the approval of the Commission, the 
     Director may appoint and fix the pay of personnel as the 
     Director considers appropriate.
       (B) Applicability of certain civil service laws.--The 
     Director may appoint the personnel of the Commission without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, and any 
     personnel so appointed may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     that title relating to classification and General Schedule 
     pay rates, except that an individual so appointed may not 
     receive pay in excess of the annual rate of basic pay for GS-
     18 of the General Schedule.
       (C) Staff of federal agencies.--Upon request of the 
     Director, the head of any Federal department or agency may 
     detail, on a reimbursable basis, any of the personnel of that 
     department or agency to the Commission to assist it in 
     carrying out its duties under this section.
       (3) Experts and consultants.--The Commission may procure by 
     contract temporary and intermittent services under section 
     3109(b) of title 5, United States Code.
       (f) Powers of Commission.--
       (1) Hearings and sessions.--The Commission may, for the 
     purpose of carrying out this section, hold hearings, sit and 
     act at times and places, take testimony, and receive evidence 
     as the Commission considers appropriate. The Commission may 
     administer oaths or affirmations to witnesses appearing 
     before it.
       (2) Powers of members and agents.--Any member or agent of 
     the Commission may, if authorized by the Commission, take any 
     action which the Commission is authorized to take by this 
     subsection.
       (3) Obtaining official data.--The Commission may secure 
     directly from any department or agency of the United States 
     information necessary to enable it to carry out this section. 
     Upon request of the Chairman, the head of that department or 
     agency shall furnish that information to the Commission.
       (4) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     departments and agencies of the United States.
       (5) Administrative support services.--Upon the request of 
     the Commission, the Administrator of the General Services 
     Administration shall provide to the Commission, on a 
     reimbursable basis, the administrative support services 
     necessary for the Commission to carry out its 
     responsibilities under this section.
       (6) Contract authority.--The Commission may contract with 
     and compensate Government and private agencies or persons for 
     products and services necessary for the Commission to carry 
     out its responsibilities under this section.
       (g) Cost Control Reviews.--
       (1) In general.--In preparation for submitting reports as 
     required under subsection (h), the Commission shall conduct, 
     every two years, a review of cost control in the Federal 
     Government with respect to improving management and reducing 
     costs.
       (2) Agency studies.--In conducting a review under this 
     subsection, the Commission shall conduct in-depth studies of 
     the operations of the Executive agencies as a basis for 
     evaluating potential improvements in agency operations.
       (3) Recommendations.--In conducting a review under this 
     subsection, the Commission shall develop recommendations in 
     the following areas:
       (A) Opportunities for increased efficiency and reduced 
     costs in the Federal Government that can be realized by 
     Executive action or legislation.
       (B) Areas where managerial accountability can be enhanced 
     and administrative control can be improved.
       (C) Opportunities for managerial improvements over both the 
     short- and long-term.
       (D) Specific areas where further study can be justified by 
     potential savings.
       (E) Ways to reduce governmental expenditures and 
     indebtedness and improve personnel management.
       (h) Reports.--
       (1) Interim reports.--Not later than 180 days before the 
     date on which the Commission is required to submit a final 
     report under paragraph (2), the Commission shall submit to 
     Congress and the President an interim report containing the 
     preliminary results of the review being conducted under 
     subsection (g) related to that final report.
       (2) Final reports.--
       (A) In general.--Not later than 18 months after the date of 
     the enactment of this section, and every two years thereafter 
     until the date on which the Commission submits its third 
     final report under this subparagraph, the Commission shall 
     submit to Congress and the President a final report 
     containing a detailed statement of the findings and 
     conclusions of the Commission based on the most recent review 
     conducted under subsection (g), together with its 
     recommendations for legislative and administrative actions, 
     and other matters the Commission considers appropriate.

[[Page 4499]]

       (B) Proposed legislation.--The Commission shall include in 
     a final report submitted under subparagraph (A) proposed 
     legislation in the form of an implementation bill to carry 
     out recommendations developed under subsection (g)(3).
       (C) Limitation.--The Commission may include in a report 
     submitted under this section proposed legislation under 
     subparagraph (B) only if such proposed legislation is agreed 
     to by not fewer than five of the members of the Commission.
       (i) Congressional Consideration of Proposed Legislation.--
       (1) Introduction; referral; report or discharge.--
       (A) Introduction.--On the first calendar day on which both 
     Houses are in session on or immediately following the date on 
     which a final report is submitted to Congress under 
     subsection (h)(2), the implementation bill included in such 
     report shall be introduced (by request)--
       (i) in the Senate by the majority leader of the Senate, for 
     himself and the minority leader of the Senate, or by Members 
     of the Senate designated by the majority leader and minority 
     leader of the Senate; and
       (ii) in the House of Representatives by the majority leader 
     of the House of Representatives, for himself and the minority 
     leader of the House of Representatives, or by Members of the 
     House of Representatives designated by the majority leader 
     and minority leader of the House of Representatives.
       (B) Referral.--An implementation bill introduced under 
     subparagraph (A) shall be referred to any appropriate 
     committee of jurisdiction in the Senate and any appropriate 
     committee of jurisdiction in the House of Representatives. A 
     committee to which an implementation bill is referred under 
     this paragraph may report such bill to the respective House, 
     but only without amendment.
       (C) Report or discharge.--If a committee to which an 
     implementation bill is referred has not reported such bill by 
     the end of the 15th calendar day after the date of the 
     introduction of such bill, such committee shall be 
     immediately discharged from further consideration of such 
     bill, and upon being reported or discharged from the 
     committee, such bill shall be placed on the appropriate 
     calendar.
       (2) Floor consideration.--
       (A) In general.--When the committee to which an 
     implementation bill is referred has reported the bill, or has 
     been discharged from further consideration of the bill under 
     paragraph (1)(C), it is at any time thereafter in order (even 
     though a previous motion to the same effect has been 
     disagreed to) for any Member of the respective House to move 
     to proceed to the consideration of the implementation bill, 
     and all points of order against the implementation bill (and 
     against consideration of the implementation bill) are waived. 
     The motion is highly privileged in the House of 
     Representatives and is privileged in the Senate and is not 
     debatable. The motion is not subject to amendment, or to a 
     motion to postpone, or to a motion to proceed to the 
     consideration of other business. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to shall 
     not be in order. If a motion to proceed to the consideration 
     of the implementation bill is agreed to, the implementation 
     bill shall remain the unfinished business of the respective 
     House until disposed of.
       (B) Amendments.--An implementation bill may not be amended 
     in the Senate or the House of Representatives.
       (C) Debate.--Debate on the implementation bill, and on all 
     debatable motions and appeals in connection therewith, shall 
     be limited to not more than 10 hours, which shall be divided 
     equally between those favoring and those opposing the bill. A 
     motion further to limit debate is in order and not debatable. 
     An amendment to, or a motion to postpone, or a motion to 
     proceed to the consideration of other business, or a motion 
     to recommit the implementation bill is not in order. A motion 
     to reconsider the vote by which the implementation bill is 
     agreed to or disagreed to is not in order.
       (D) Vote on final passage.--Immediately following the 
     conclusion of the debate on an implementation bill, and a 
     single quorum call at the conclusion of the debate if 
     requested in accordance with the rules of the appropriate 
     House, the vote on final passage of the implementation bill 
     shall occur.
       (E) Rulings of the chair on procedure.--Appeals from the 
     decisions of the Chair relating to the application of the 
     rules of the Senate or the House of Representatives, as the 
     case may be, to the procedure relating to an implementation 
     bill shall be decided without debate.
       (3) Coordination with action by other house.--If, before 
     the passage by one House of an implementation bill of that 
     House, that House receives from the other House an 
     implementation bill, then the following procedures shall 
     apply:
       (A) Nonreferral.--The implementation bill of the other 
     House shall not be referred to a committee.
       (B) Vote on bill of other house.--With respect to an 
     implementation bill of the House receiving the implementation 
     bill--
       (i) the procedure in that House shall be the same as if no 
     implementation bill had been received from the other House; 
     but
       (ii) the vote on final passage shall be on the 
     implementation bill of the other House.
       (4) Rules of the senate and the house of representatives.--
     This subsection is enacted by Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of an implementation bill, and it 
     supersedes other rules only to the extent that it is 
     inconsistent with such rules; and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.
       (j) Termination.--The Commission shall terminate on the 
     date that is one day after the date on which it submits its 
     third final report under subsection (h)(2).
       (k) Definitions.--In this section, the following 
     definitions apply:
       (1) Calendar day.--The term ``calendar day'' means a 
     calendar day other than one on which either House is not in 
     session because of an adjournment of more than 3 days to a 
     date certain.
       (2) Commission.--The term ``Commission'' means the Grace 
     Commission II established by subsection (b).
       (3) Implementation bill.--The term ``implementation bill'' 
     means only a bill that is introduced as provided under 
     subsection (i)(1), and contains the proposed legislation 
     described in subsection (h)(2)(B), without modification.
       (4) Member.--The term ``member'' means a member of the 
     Commission appointed under subsection (d)(1)(A).
                                 ______
                                 
  SA 256. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. ___. MAXIMUM PURCHASE LIMIT UNDER THE SMALL BUSINESS 
                   LENDING FUND PROGRAM.

       Section 4103(b)(2) of the Small Business Jobs Act of 2010 
     (12 U.S.C. 4741 note) is amended by striking 
     ``$30,000,000,000'' and inserting ``$18,000,000,000''.
                                 ______
                                 
  SA 257. Mr. WHITEHOUSE submitted an amendment intended to be proposed 
by him to the bill S. 493, to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of title V, add the following:

     SEC. 504. TAXATION OF INCOME OF CONTROLLED FOREIGN 
                   CORPORATIONS ATTRIBUTABLE TO IMPORTED PROPERTY.

       (a) General Rule.--Subsection (a) of section 954 of the 
     Internal Revenue Code of 1986 is amended by striking the 
     period at the end of paragraph (5) and inserting ``, and'', 
     by redesignating paragraph (5) as paragraph (4), and by 
     adding at the end the following new paragraph:
       ``(5) imported property income for the taxable year 
     (determined under subsection (j) and reduced as provided in 
     subsection (b)(5)).''.
       (b) Definition of Imported Property Income.--Section 954 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new subsection:
       ``(j) Imported Property Income.--
       ``(1) In general.--For purposes of subsection (a)(5), the 
     term `imported property income' means income (whether in the 
     form of profits, commissions, fees, or otherwise) derived in 
     connection with--
       ``(A) manufacturing, producing, growing, or extracting 
     imported property;
       ``(B) the sale, exchange, or other disposition of imported 
     property; or
       ``(C) the lease, rental, or licensing of imported property.

     Such term shall not include any foreign oil and gas 
     extraction income (within the meaning of section 907(c)) or 
     any foreign oil related income (within the meaning of section 
     907(c)).
       ``(2) Imported property.--For purposes of this subsection--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `imported property' means property which 
     is imported into the United States by the controlled foreign 
     corporation or a related person.
       ``(B) Imported property includes certain property imported 
     by unrelated persons.--The term `imported property' includes 
     any property imported into the United States by an unrelated 
     person if, when such property was sold to the unrelated 
     person by the controlled foreign corporation (or a related 
     person), it was reasonable to expect that--
       ``(i) such property would be imported into the United 
     States; or
       ``(ii) such property would be used as a component in other 
     property which would be imported into the United States.
       ``(C) Exception for property subsequently exported.--The 
     term `imported

[[Page 4500]]

     property' does not include any property which is imported 
     into the United States and which--
       ``(i) before substantial use in the United States, is sold, 
     leased, or rented by the controlled foreign corporation or a 
     related person for direct use, consumption, or disposition 
     outside the United States; or
       ``(ii) is used by the controlled foreign corporation or a 
     related person as a component in other property which is so 
     sold, leased, or rented.
       ``(D) Exception for certain agricultural commodities.--The 
     term `imported property' does not include any agricultural 
     commodity which is not grown in the United States in 
     commercially marketable quantities.
       ``(3) Definitions and special rules.--
       ``(A) Import.--For purposes of this subsection, the term 
     `import' means entering, or withdrawal from warehouse, for 
     consumption or use. Such term includes any grant of the right 
     to use intangible property (as defined in section 
     936(h)(3)(B)) in the United States.
       ``(B) United states.--For purposes of this subsection, the 
     term `United States' includes the Commonwealth of Puerto 
     Rico, the Virgin Islands of the United States, Guam, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands.
       ``(C) Unrelated person.--For purposes of this subsection, 
     the term `unrelated person' means any person who is not a 
     related person with respect to the controlled foreign 
     corporation.
       ``(D) Coordination with foreign base company sales 
     income.--For purposes of this section, the term `foreign base 
     company sales income' shall not include any imported property 
     income.''.
       (c) Separate Application of Limitations on Foreign Tax 
     Credit for Imported Property Income.--
       (1) In general.--Paragraph (1) of section 904(d) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of subparagraph (A), by redesignating subparagraph 
     (B) as subparagraph (C), and by inserting after subparagraph 
     (A) the following new subparagraph:
       ``(B) imported property income, and''.
       (2) Imported property income defined.--Paragraph (2) of 
     section 904(d) of such Code is amended by redesignating 
     subparagraphs (I), (J), and (K) as subparagraphs (J), (K), 
     and (L), respectively, and by inserting after subparagraph 
     (H) the following new subparagraph:
       ``(I) Imported property income.--The term `imported 
     property income' means any income received or accrued by any 
     person which is of a kind which would be imported property 
     income (as defined in section 954(j)).''.
       (3) Conforming amendment.--Clause (ii) of section 
     904(d)(2)(A) of such Code is amended by inserting ``or 
     imported property income'' after ``passive category income''.
       (d) Technical Amendments.--
       (1) Clause (iii) of section 952(c)(1)(B) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by redesignating subclauses (II), (III), (IV), and (V) 
     as subclauses (III), (IV), (V), and (VI), and
       (B) by inserting after subclause (I) the following new 
     subclause:

       ``(II) imported property income,''.

       (2) The last sentence of paragraph (4) of section 954(b) of 
     such Code is amended by striking ``subsection (a)(5)'' and 
     inserting ``subsection (a)(4)''.
       (3) Paragraph (5) of section 954(b) of such Code is amended 
     by striking ``and the foreign base company oil related 
     income'' and inserting ``the foreign base company oil related 
     income, and the imported property income''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after the date of the enactment of this Act, and to 
     taxable years of United States shareholders within which or 
     with which such taxable years of such foreign corporations 
     end.

                          ____________________