To create jobs by providing targeted tax relief to individuals and small businesses, curb frivolous lawsuits, and for other purposes.

Summary: Job Creation Act of 2010 - Amends the Internal Revenue Code to: (1) extend through 2010 the increased expensing allowance for depreciable business assets; (2) exclude from gross income in 2010 100% of the gain from the sale of small business stock; and (3) exclude from gross income in 2010 all unemployment compensation.

Amends the Emergency Economic Stabilization Act of 2008 (EESA) to require all amounts repaid under the Troubled Asset Relief Program (TARP) to reduce the program's purchase authority.

Amends Rule 11 of the Federal Rules of Civil Procedure (sanctions for filing a frivolous lawsuit) to: (1) require courts to award reasonable expenses, including attorney's fees, to a prevailing party in a Rule 11 proceeding (currently discretionary); and (2) eliminate the 21-day period allowed for withdrawing or correcting a claim deemed frivolous.

Requires state courts to apply Rule 11 to actions in state courts that substantially affect interstate commerce.

Limits venue for personal injury claims filed in state or federal courts to the county or district: (1) in which the plaintiff or defendant resides; (2) where the plaintiff resided at the time of the alleged injury; or (3) the district in which the defendant's principal place of business is located.

Imposes additional sanctions: (1) on attorneys who are found to violate Rule 11 three or more times; and (2) for willful and intentional destruction of documents relevant to a pending action in federal court. Establishes a rebuttable presumption of a Rule 11 violation if a plaintiff attempts to litigate a claim that has already been litigated and lost on the merits.

Prohibits a court in a Rule 11 proceeding from ordering the nondisclosure of the record of the proceeding unless the court makes a specific finding of fact that justifies such an order.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Job Creation Act of 2010''.

          TITLE I--GENERAL PROVISIONS AFFECTING SMALL BUSINESS

SEC. 101. EXTENSION OF INCREASED EXPENSING FOR SMALL BUSINESSES.

    (a) In General.--Paragraph (7) of section 179(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``or 2009'' and inserting ``2009, or 
        2010'', and
            (2) by striking ``and 2009'' in the heading thereof and 
        inserting ``2009, or 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 102. ONE YEAR ELIMINATION OF THE CAPITAL GAINS TAX FOR SMALL 
              BUSINESSES.

    (a) In General.--Subsection (a) of section 1202 of the Internal 
Revenue Code of 1986 (relating to partial exclusion for gain from 
certain small business stock) is amended by adding at the end the 
following new paragraph:
            ``(4) Special rule for 2010.--In the case of qualified 
        small business stock acquired after December 31, 2009, and 
        before January 1, 2011--
                    ``(A) paragraph (1) shall be applied by 
                substituting `100 percent' for `50 percent', and
                    ``(B) paragraph (2) shall not apply.''.
    (b) Conforming Amendments.--Section 1202(a)(3) of such Code is 
amended--
            (1) by striking ``2011'' and inserting ``2010'', and
            (2) by striking ``and 2010'' in the heading.
    (c) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2009.

SEC. 103. UNEMPLOYMENT BENEFITS EXCLUDED FROM INCOME TAX FOR 2010.

    (a) In General.--Section 85 of the Internal Revenue Code of 1986 
(relating to unemployment compensation) is amended by adding at the end 
the following new subsection:
    ``(d) Special Rule for 2009.--Subsection (a) shall not apply in the 
case of any taxable year beginning in 2010.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2009.

SEC. 104. REDUCTION IN TROUBLED ASSET PURCHASES THAT MAY BE OUTSTANDING 
              AS TARP FUNDS ARE REPAID.

    Section 106(d) of the Emergency Economic Stabilization Act of 2008 
is amended by adding at the end the following new sentence: ``The 
maximum amount of purchase authority for troubled assets that is 
authorized to be outstanding at any one time under section 115 shall be 
reduced by the amount of any payment into the Treasury under the 
preceding sentence after the date of the enactment of the Job Creation 
Act of 2010.''.

        TITLE II--FEDERAL RULES OF CIVIL PROCEDURE IMPROVEMENTS

SEC. 201. ATTORNEY ACCOUNTABILITY.

    Rule 11(c) of the Federal Rules of Civil Procedure is amended--
            (1) by amending the first sentence to read as follows: ``If 
        a pleading, motion, or other paper is signed in violation of 
        this rule, the court, upon motion or upon its own initiative, 
        shall impose upon the attorney, law firm, or parties that have 
        violated this subdivision or are responsible for the violation, 
        an appropriate sanction, which may include an order to pay the 
        other party or parties for the reasonable expenses incurred as 
        a direct result of the filing of the pleading, motion, or other 
        paper, that is the subject of the violation, including a 
        reasonable attorney's fee.'';
            (2) in paragraph (1)(A)--
                    (A) by striking ``Rule 5'' and all that follows 
                through ``corrected.'' and inserting ``Rule 5.''; and
                    (B) by striking ``the court may award'' and 
                inserting ``the court shall award''; and
            (3) in paragraph (2), by striking ``shall be limited to 
        what is sufficient'' and all that follows through the end of 
        the paragraph (including subparagraphs (A) and (B)) and 
        inserting ``shall be sufficient to deter repetition of such 
        conduct or comparable conduct by others similarly situated, and 
        to compensate the parties that were injured by such conduct. 
        The sanction may consist of an order to pay to the party or 
        parties the amount of the reasonable expenses incurred as a 
        direct result of the filing of the pleading, motion, or other 
        paper that is the subject of the violation, including a 
        reasonable attorney's fee.''.

SEC. 202. APPLICABILITY OF RULE 11 TO STATE CASES AFFECTING INTERSTATE 
              COMMERCE.

    In any civil action in State court, the court, upon motion, shall 
determine within 30 days after the filing of such motion whether the 
action substantially affects interstate commerce. Such court shall make 
such determination based on an assessment of the costs to the 
interstate economy, including the loss of jobs, were the relief 
requested granted. If the court determines such action substantially 
affects interstate commerce, the provisions of Rule 11 of the Federal 
Rules of Civil Procedure shall apply to such action.

SEC. 203. PREVENTION OF FORUM-SHOPPING.

    (a) In General.--Subject to subsection (b), a personal injury claim 
filed in State or Federal court may be filed only in the State and, 
within that State, in the county (or if there is no State court in the 
county, the nearest county where a court of general jurisdiction is 
located), or Federal district in which--
            (1) the person bringing the claim, including an estate in 
        the case of a decedent and a parent or guardian in the case of 
        a minor or incompetent--
                    (A) resides at the time of filing; or
                    (B) resided at the time of the alleged injury;
            (2) the alleged injury or circumstances giving rise to the 
        personal injury claim allegedly occurred;
            (3) the defendant's principal place of business is located, 
        if the defendant is a corporation; or
            (4) the defendant resides, if the defendant is an 
        individual.
    (b) Determination of Most Appropriate Forum.--If a person alleges 
that the injury or circumstances giving rise to the personal injury 
claim occurred in more than one county (or Federal district), the trial 
court shall determine which State and county (or Federal district) is 
the most appropriate forum for the claim. If the court determines that 
another forum would be the most appropriate forum for a claim, the 
court shall dismiss the claim. Any otherwise applicable statute of 
limitations shall be tolled beginning on the date the claim was filed 
and ending on the date the claim is dismissed under this subsection.
    (c) Definitions.--In this section:
            (1) The term ``personal injury claim''--
                    (A) means a civil action brought under State law by 
                any person to recover for a person's personal injury, 
                illness, disease, death, mental or emotional injury, 
                risk of disease, or other injury, or the costs of 
                medical monitoring or surveillance (to the extent such 
                claims are recognized under State law), including any 
                derivative action brought on behalf of any person on 
                whose injury or risk of injury the action is based by 
                any representative party, including a spouse, parent, 
                child, or other relative of such person, a guardian, or 
                an estate;
                    (B) does not include a claim brought as a class 
                action; and
                    (C) does not include a claim against a debtor in a 
                case pending under title 11 of the United States Code 
                that is a personal injury tort or wrongful death claim 
                within the meaning of section 157(b)(5) of title 28, 
                United States Code.
            (2) The term ``person'' means any individual, corporation, 
        company, association, firm, partnership, society, joint stock 
        company, or any other entity, but not any governmental entity.
            (3) The term ``State'' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, and any other territory or possession of the 
        United States.
    (d) Applicability.--This section applies to any personal injury 
claim filed in Federal or State court on or after the date of the 
enactment of this Act.

SEC. 204. RULE OF CONSTRUCTION.

    Nothing in section 202 or in the amendments made by section 201 
shall be construed to bar or impede the assertion or development of new 
claims or remedies under Federal, State, or local civil rights law.

SEC. 205. THREE-STRIKES RULE FOR SUSPENDING ATTORNEYS WHO COMMIT 
              MULTIPLE RULE 11 VIOLATIONS.

    (a) Mandatory Suspension.--Whenever a Federal district court 
determines that an attorney has violated Rule 11 of the Federal Rules 
of Civil Procedure, the court shall determine the number of times that 
the attorney has violated that rule in that Federal district court 
during that attorney's career. If the court determines that the number 
is three or more, the Federal district court--
            (1) shall suspend that attorney from the practice of law in 
        that Federal district court for one year; and
            (2) may suspend that attorney from the practice of law in 
        that Federal district court for any additional period that the 
        court considers appropriate.
    (b) Appeal; Stay.--An attorney has the right to appeal a suspension 
under subsection (a). While such an appeal is pending, the suspension 
shall be stayed.
    (c) Reinstatement.--To be reinstated to the practice of law in a 
Federal district court after completion of a suspension under 
subsection (a), the attorney involved must first petition the court for 
reinstatement under such procedures and conditions as the court may 
prescribe.

SEC. 206. PRESUMPTION OF RULE 11 VIOLATION FOR REPEATEDLY RELITIGATING 
              SAME ISSUE.

    Whenever a party presents to a Federal court a pleading, written 
motion, or other paper, that includes a claim or defense that the party 
has already litigated and lost on the merits in any forum in final 
decisions not subject to appeal on three consecutive occasions, and the 
claim or defense, respectively, involves the same plaintiff and the 
same defendant on each occasion, there shall be a rebuttable 
presumption that the presentation of such paper is in violation of Rule 
11 of the Federal Rules of Civil Procedure.

SEC. 207. ENHANCED SANCTIONS FOR DOCUMENT DESTRUCTION IN PENDING 
              FEDERAL COURT PROCEEDINGS.

    Whoever willfully and intentionally influences, obstructs, or 
impedes, or attempts to influence, or obstruct, or impede, a pending 
Federal court proceeding through the willful and intentional 
destruction of documents sought pursuant to the rules of such Federal 
court proceeding and highly relevant to that proceeding--
            (1) shall be punished with mandatory civil sanctions of a 
        degree commensurate with the civil sanctions available under 
        Rule 11 of the Federal Rules of Civil Procedure, in addition to 
        any other civil sanctions that otherwise apply; and
            (2) shall be held in contempt of court; and if an attorney, 
        referred to one or more appropriate State bar associations for 
        disciplinary proceedings.

SEC. 208. BAN ON CONCEALMENT OF UNLAWFUL CONDUCT.

    (a) In General.--In any Rule 11 of the Federal Rules of Civil 
Procedure proceeding, a court may not order that a court record not be 
disclosed unless the court makes a finding of fact that identifies the 
interest that justifies the order and determines that interest 
outweighs any interest in the public health and safety that the court 
determines would be served by disclosing the court record.
    (b) Applicability.--This section applies to any record formally 
filed with a court, but shall not include any records subject to--
            (1) the attorney-client privilege or any other privilege 
        recognized under Federal or State law that grants the right to 
        prevent disclosure of certain information unless the privilege 
        has been waived; or
            (2) applicable State or Federal laws that protect the 
        confidentiality of crime victims, including victims of sexual 
        abuse.