112TH CONGRESS 

1ST SESSION H. R. 3765 

AN ACT 

To extend the payroll tax holiday, unemployment compensation, Medicare physician payment, provide for the consideration of the Keystone XL pipeline, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Temporary Payroll Tax Cut Continuation Act of 2011’’. 

4 (b) TABLE OF CONTENTS.—The table of contents of 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—TEMPORARY PAYROLL TAX RELIEF 

Sec. 101. Extension of payroll tax holiday. 

TITLE II—TEMPORARY EXTENSION OF UNEMPLOYMENT 

COMPENSATION PROVISIONS 

Sec. 201. Temporary extension of unemployment compensation provisions. 

Sec. 202. Extended unemployment benefits under the Railroad Unemployment 

Insurance Act. 

TITLE III—TEMPORARY EXTENSION OF HEALTH PROVISIONS 

Sec. 301. Medicare physician payment update. 

Sec. 302. 2-month extension of MMA section 508 reclassifications. 

Sec. 303. Extension of Medicare work geographic adjustment floor. 

Sec. 304. Extension of exceptions process for Medicare therapy caps. 

Sec. 305. Extension of payment for technical component of certain physician 

pathology services. 

Sec. 306. Extension of ambulance add-ons. 

Sec. 307. Extension of physician fee schedule mental health add-on payment. 

Sec. 308. Extension of outpatient hold harmless provision. 

Sec. 309. Extending minimum payment for bone mass measurement. 

Sec. 310. Extension of the qualifying individual (QI) program. 

Sec. 311. Extension of Transitional Medical Assistance (TMA). 

Sec. 312. Extension of the temporary assistance for needy families program. 

TITLE IV—MORTGAGE FEES AND PREMIUMS 

Sec. 401. Guarantee Fees. 

Sec. 402. FHA guarantee fees. 

TITLE V—OTHER PROVISIONS 

Subtitle A—Keystone XL Pipeline 

Sec. 501. Permit for Keystone XL pipeline. 

Subtitle B—Budgetary Provisions 

Sec. 511. Senate point of order against an emergency designation. 

Sec. 512. PAYGO scorecard estimates. 
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1 TITLE I—TEMPORARY PAYROLL 

2 TAX RELIEF 

3 SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY. 

4 (a) IN GENERAL.—Subsection (c) of section 601 of 

5 the Tax Relief, Unemployment Insurance Reauthorization, 

6 and Job Creation Act of 2010 (26 U.S.C. 1401 note) is 

7 amended to read as follows: 

8 ‘‘(c) PAYROLL TAX HOLIDAY PERIOD.—The term 

9 ‘payroll tax holiday period’ means— 

10 ‘‘(1) in the case of the tax described in sub11 section (a)(1), calendar years 2011 and 2012, and 

12 ‘‘(2) in the case of the taxes described in sub13 section (a)(2), the period beginning January 1, 

14 2011, and ending February 29, 2012.’’. 

15 (b) SPECIAL RULES FOR 2012.—Section 601 of such 

16 Act (26 U.S.C. 1401 note) is amended by adding at the 

17 end the following new subsection: 

18 ‘‘(f) SPECIAL RULES FOR 2012.— 

19 ‘‘(1) LIMITATION ON SELF-EMPLOYMENT IN20 COME.—In the case of any taxable year beginning in 

21 2012, subsection (a)(1) shall only apply with respect 

22 to so much of the taxpayer’s self-employment income 

23 (as defined in section 1402(b) of the Internal Rev24 enue Code of 1986) as does not exceed the excess (if 

25 any) of— 
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1 ‘‘(A) $18,350, over 

2 ‘‘(B) the amount of wages and compensa3 tion received during the portion of the payroll 

4 tax holiday period occurring during 2012 sub5 ject to tax under section 3101(a) of such Code 

6 or section 3201(a) of such Code. 

7 ‘‘(2) COORDINATION WITH DEDUCTION FOR EM8 PLOYMENT TAXES.—In the case of a taxable year 

9 beginning in 2012, subparagraph (A) of subsection 

10 (b)(2) shall be applied as if it read as follows: 

11 ‘‘ ‘(A) the sum of— 

12 ‘‘ ‘(i) 59.6 percent of the portion of 

13 such taxes attributable to the tax imposed 

14 by section 1401(a) of such Code (deter15 mined after the application of this section) 

16 on so much of self-employment income (as 

17 defined in section 1402(b) of such Code) 

18 as does not exceed the amount of self-em19 ployment income described in paragraph 

20 (1), plus 

21 ‘‘ ‘(ii) one-half of the portion of such 

22 taxes attributable to the tax imposed by 

23 section 1401(a) of such Code (determined 

24 without regard to this section) on self-em-
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1 ployment income (as so defined) in excess 

2 of such amount, plus’.’’. 

3 (c) RECAPTURE OF EXCESS BENEFIT.—Section 601 

4 of such Act (26 U.S.C. 1401 note), as amended by sub5 section (b), is further amended by adding at the end the 

6 following new subsection: 

7 ‘‘(g) RECAPTURE OF EXCESS BENEFIT.— 

8 ‘‘(1) IN GENERAL.—There is hereby imposed on 

9 the income of every individual a tax equal to 2 per10 cent of the sum of wages (within the meaning of sec11 tion 3121(a)(1) of the Internal Revenue Code of 

12 1986) and compensation (to which section 3201(a) 

13 of such Code applies) received during the period be14 ginning January 1, 2012, and ending February 29, 

15 2012, to the extent the amount of such sum exceeds 

16 $18,350. 

17 ‘‘(2) REGULATIONS.—The Secretary of the 

18 Treasury or the Secretary’s delegate shall prescribe 

19 such regulations or other guidance as may be nec20 essary or appropriate to carry out this subsection, 

21 including guidance for payment by the employee of 

22 the tax imposed by paragraph (1).’’. 

23 (d) TECHNICAL AMENDMENTS.—Paragraph (2) of 

24 section 601(b) of such Act (26 U.S.C. 1401 note) is 

25 amended— 
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1 (1) by inserting ‘‘of such Code’’ after ‘‘164(f)’’; 

2 (2) by inserting ‘‘of such Code’’ after 

3 ‘‘1401(a)’’ in subparagraph (A); and 

4 (3) by inserting ‘‘of such Code’’ after 

5 ‘‘1401(b)’’ in subparagraph (B). 

6 (e) EFFECTIVE DATES.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section 

9 shall apply to remuneration received, and taxable 

10 years beginning, after December 31, 2011. 

11 (2) TECHNICAL AMENDMENTS.—The amend12 ments made by subsection (d) shall take effect as if 

13 included in the enactment of section 601 of the Tax 

14 Relief, Unemployment Insurance Reauthorization, 

15 and Job Creation Act of 2010. 

16 TITLE II—TEMPORARY EXTEN17 SION OF UNEMPLOYMENT 

18 COMPENSATION PROVISIONS 

19 SEC. 201. TEMPORARY EXTENSION OF UNEMPLOYMENT 

20 COMPENSATION PROVISIONS. 

21 (a) IN GENERAL.—(1) Section 4007 of the Supple22 mental Appropriations Act, 2008 (Public Law 110–252; 

23 26 U.S.C. 3304 note) is amended— 

24 (A) by striking ‘‘January 3, 2012’’ each place 

25 it appears and inserting ‘‘March 6, 2012’’; 
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1 (B) in the heading for subsection (b)(2), by 

2 striking ‘‘JANUARY 3, 2012’’ and inserting ‘‘MARCH 6, 

3 2012’’; and 

4 (C) in subsection (b)(3), by striking ‘‘June 9, 

5 2012’’ and inserting ‘‘August 15, 2012’’. 

6 (2) Section 2005 of the Assistance for Unemployed 

7 Workers and Struggling Families Act, as contained in 

8 Public Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), 

9 is amended— 

10 (A) by striking ‘‘January 4, 2012’’ each place 

11 it appears and inserting ‘‘March 7, 2012’’; and 

12 (B) in subsection (c), by striking ‘‘June 11, 

13 2012’’ and inserting ‘‘August 15, 2012’’. 

14 (3) Section 5 of the Unemployment Compensation 

15 Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 

16 3304 note) is amended by striking ‘‘June 10, 2012’’ and 

17 inserting ‘‘August 15, 2012’’. 

18 (4) Section 203 of the Federal-State Extended Un19 employment Compensation Act of 1970 (26 U.S.C. 3304 

20 note) is amended— 

21 (A) in subsection (d), in the second sentence of 

22 the flush matter following paragraph (2), by striking 

23 ‘‘December 31, 2011’’ and inserting ‘‘February 29, 

24 2012’’; and 
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1 (B) in subsection (f)(2), by striking ‘‘December 

2 31, 2011’’ and inserting ‘‘February 29, 2012’’. 

3 (b) FUNDING.—Section 4004(e)(1) of the Supple4 mental Appropriations Act, 2008 (Public Law 110–252; 

5 26 U.S.C. 3304 note) is amended— 

6 (1) in subparagraph (F), by striking ‘‘and’’ at 

7 the end; and 

8 (2) by inserting after subparagraph (G) the fol9 lowing: 

10 ‘‘(H) the amendments made by section 

11 201(a)(1) of the Temporary Payroll Tax Cut 

12 Continuation Act of 2011; and’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall take effect as if included in the enact15 ment of the Tax Relief, Unemployment Insurance Reau16 thorization, and Job Creation Act of 2010 (Public Law 

17 111–312). 

18 SEC. 202. EXTENDED UNEMPLOYMENT BENEFITS UNDER 

19 THE RAILROAD UNEMPLOYMENT INSURANCE 

20 ACT. 

21 (a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail22 road Unemployment Insurance Act, as added by section 

23 2006 of the American Recovery and Reinvestment Act of 

24 2009 (Public Law 111–5) and as amended by section 9 

25 of the Worker, Homeownership, and Business Assistance 
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1 Act of 2009 (Public Law 111–92) and section 505 of the 

2 Tax Relief, Unemployment Insurance Reauthorization, 

3 and Job Creation Act of 2010 (Public Law 111–312), is 

4 amended— 

5 (1) by striking ‘‘June 30, 2011’’ and inserting 

6 ‘‘August 31, 2011’’; and 

7 (2) by striking ‘‘December 31, 2011’’ and in8 serting ‘‘February 29, 2012’’. 

9 (b) CLARIFICATION ON AUTHORITY TO USE

10 FUNDS.—Funds appropriated under either the first or 

11 second sentence of clause (iv) of section 2(c)(2)(D) of the 

12 Railroad Unemployment Insurance Act shall be available 

13 to cover the cost of additional extended unemployment 

14 benefits provided under such section 2(c)(2)(D) by reason 

15 of the amendments made by subsection (a) as well as to 

16 cover the cost of such benefits provided under such section 

17 2(c)(2)(D), as in effect on the day before the date of the 

18 enactment of this Act. 

19 TITLE III—TEMPORARY EXTEN20 SION OF HEALTH PROVISIONS 

21 SEC. 301. MEDICARE PHYSICIAN PAYMENT UPDATE. 

22 Section 1848(d) of the Social Security Act (42 U.S.C. 

23 1395w–4(d)) is amended by adding at the end the fol24 lowing new paragraph: 
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1 ‘‘(13) UPDATE FOR FIRST TWO MONTHS OF

2 2012.— 

3 ‘‘(A) IN GENERAL.—Subject to paragraphs 

4 (7)(B), (8)(B), (9)(B), (10)(B), (11)(B), and 

5 (12)(B), in lieu of the update to the single con6 version factor established in paragraph (1)(C) 

7 that would otherwise apply for the period begin8 ning on January 1, 2012, and ending on Feb9 ruary 29, 2012, the update to the single conver10 sion factor shall be zero percent. 

11 ‘‘(B) NO EFFECT ON COMPUTATION OF

12 CONVERSION FACTOR FOR REMAINING PORTION

13 OF 2012 AND SUBSEQUENT YEARS.—The con14 version factor under this subsection shall be 

15 computed under paragraph (1)(A) for the pe16 riod beginning on March 1, 2012, and ending 

17 on December 31, 2012, and for 2013 and sub18 sequent years as if subparagraph (A) had never 

19 applied.’’. 

20 SEC. 302. 2-MONTH EXTENSION OF MMA SECTION 508 RE21 CLASSIFICATIONS. 

22 (a) IN GENERAL.—Section 106(a) of division B of 

23 the Tax Relief and Health Care Act of 2006 (42 U.S.C. 

24 1395 note), as amended by section 117 of the Medicare, 

25 Medicaid, and SCHIP Extension Act of 2007 (Public Law 
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1 110–173), section 124 of the Medicare Improvements for 

2 Patients and Providers Act of 2008 (Public Law 110– 

3 275), sections 3137(a) and 10317 of the Patient Protec4 tion and Affordable Care Act (Public Law 111–148), and 

5 section 102(a) of the Medicare and Medicaid Extenders 

6 Act of 2010 (Public Law 111–309), is amended by strik7 ing ‘‘September 30, 2011’’ and inserting ‘‘November 30, 

8 2011’’. 

9 (b) SPECIAL RULE FOR OCTOBER AND NOVEMBER

10 2011.— 

11 (1) IN GENERAL.—Subject to paragraph (2), 

12 for purposes of implementation of the amendment 

13 made by subsection (a), including for purposes of 

14 the implementation of paragraph (2) of section 

15 117(a) of the Medicare, Medicaid, and SCHIP Ex16 tension Act of 2007 (Public Law 110–173), for the 

17 period beginning on October 1, 2011, and ending on 

18 November 30, 2011, the Secretary of Health and 

19 Human Services shall use the hospital wage index 

20 that was promulgated by the Secretary of Health 

21 and Human Services in the Federal Register on Au22 gust 18, 2011 (76 Fed. Reg. 51476), and any subse23 quent corrections. 

24 (2) EXCEPTION.—In determining the wage 

25 index applicable to hospitals that qualify for wage 
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1 index reclassification, the Secretary shall, for the pe2 riod beginning on October 1, 2011, and ending on 

3 November 30, 2011, include the average hourly wage 

4 data of hospitals whose reclassification was extended 

5 pursuant to the amendment made by subsection (a) 

6 only if including such data results in a higher appli7 cable reclassified wage index. Any revision to hos8 pital wage indexes made as a result of this para9 graph shall not be effected in a budget neutral man10 ner. 

11 (c) TIMEFRAME FOR PAYMENTS.—The Secretary 

12 shall make payments required under subsections (a) and 

13 (b) by not later than December 31, 2012. 

14 SEC. 303. EXTENSION OF MEDICARE WORK GEOGRAPHIC 

15 ADJUSTMENT FLOOR. 

16 Section 1848(e)(1)(E) of the Social Security Act (42 

17 U.S.C. 1395w–4(e)(1)(E)) is amended by striking ‘‘before 

18 January 1, 2012’’ and inserting ‘‘before March 1, 2012’’. 

19 SEC. 304. EXTENSION OF EXCEPTIONS PROCESS FOR MEDI20 CARE THERAPY CAPS. 

21 Section 1833(g)(5) of the Social Security Act (42 

22 U.S.C. 1395l(g)(5)) is amended by striking ‘‘December 

23 31, 2011’’ and inserting ‘‘February 29, 2012’’. 
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1 SEC. 305. EXTENSION OF PAYMENT FOR TECHNICAL COM2 PONENT OF CERTAIN PHYSICIAN PATHOL3 OGY SERVICES. 

4 Section 542(c) of the Medicare, Medicaid, and 

5 SCHIP Benefits Improvement and Protection Act of 2000 

6 (as enacted into law by section 1(a)(6) of Public Law 106– 

7 554), as amended by section 732 of the Medicare Prescrip8 tion Drug, Improvement, and Modernization Act of 2003 

9 (42 U.S.C. 1395w–4 note), section 104 of division B of 

10 the Tax Relief and Health Care Act of 2006 (42 U.S.C. 

11 1395w–4 note), section 104 of the Medicare, Medicaid, 

12 and SCHIP Extension Act of 2007 (Public Law 110– 

13 173), section 136 of the Medicare Improvements for Pa14 tients and Providers Act of 2008 (Public Law 110–275), 

15 section 3104 of the Patient Protection and Affordable 

16 Care Act (Public Law 111–148), and section 105 of the 

17 Medicare and Medicaid Extenders Act of 2010 (Public 

18 Law 111–309), is amended by striking ‘‘and 2011’’ and 

19 inserting ‘‘2011, and the first two months of 2012’’. 

20 SEC. 306. EXTENSION OF AMBULANCE ADD-ONS. 

21 (a) GROUND AMBULANCE.—Section 1834(l)(13)(A) 

22 of the Social Security Act (42 U.S.C. 1395m(l)(13)(A)) 

23 is amended— 

24 (1) in the matter preceding clause (i), by strik25 ing ‘‘January 1, 2012’’ and inserting ‘‘March 1, 

26 2012’’; and 
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1 (2) in each of clauses (i) and (ii), by striking 

2 ‘‘January 1, 2012’’ and inserting ‘‘March 1, 2012’’ 

3 each place it appears. 

4 (b) AIR AMBULANCE.—Section 146(b)(1) of the 

5 Medicare Improvements for Patients and Providers Act of 

6 2008 (Public Law 110–275), as amended by sections 

7 3105(b) and 10311(b) of Public Law 111–148 and section 

8 106(b) of the Medicare and Medicaid Extenders Act of 

9 2010 (Public Law 111–309), is amended by striking ‘‘De10 cember 31, 2011’’ and inserting ‘‘February 29, 2012’’. 

11 (c) SUPER RURAL AMBULANCE.—Section 

12 1834(l)(12)(A) of the Social Security Act (42 U.S.C. 

13 1395m(l)(12)(A)) is amended by striking ‘‘January 1, 

14 2012’’ and inserting ‘‘March 1, 2012’’. 

15 SEC. 307. EXTENSION OF PHYSICIAN FEE SCHEDULE MEN16 TAL HEALTH ADD-ON PAYMENT. 

17 Section 138(a)(1) of the Medicare Improvements for 

18 Patients and Providers Act of 2008 (Public Law 110– 

19 275), as amended by section 3107 of the Patient Protec20 tion and Affordable Care Act (Public Law 111–148) and 

21 section 107 of the Medicare and Medicaid Extenders Act 

22 of 2010 (Public Law 111–309), is amended by striking 

23 ‘‘December 31, 2011’’ and inserting ‘‘February 29, 

24 2012’’. 
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1 SEC. 308. EXTENSION OF OUTPATIENT HOLD HARMLESS 

2 PROVISION. 

3 Section 1833(t)(7)(D)(i) of the Social Security Act 

4 (42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 

5 3121(a) of the Patient Protection and Affordable Care Act 

6 (Public Law 111–148) and section 108 of the Medicare 

7 and Medicaid Extenders Act of 2010 (Public Law 111– 

8 309), is amended— 

9 (1) in subclause (II)— 

10 (A) in the first sentence, by striking ‘‘Jan11 uary 1, 2012’’ and inserting ‘‘March 1, 2012’’; 

12 and 

13 (B) in the second sentence, by striking ‘‘or 

14 2011’’ and inserting ‘‘2011, or the first two 

15 months of 2012’’; and 

16 (2) in subclause (III)— 

17 (A) in the first sentence, by striking 

18 ‘‘2009, and’’ and all that follows through ‘‘for 

19 which’’ and inserting ‘‘2009, and before March 

20 1, 2012, for which’’; and 

21 (B) in the second sentence, by striking 

22 ‘‘2010, and’’ and all that follows through ‘‘the 

23 preceding’’ and inserting ‘‘2010, and before 

24 March 1, 2012, the preceding’’. 
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1 SEC. 309. EXTENDING MINIMUM PAYMENT FOR BONE MASS 

2 MEASUREMENT. 

3 Section 1848 of the Social Security Act (42 U.S.C. 

4 1395w–4) is amended— 

5 (1) in subsection (b)— 

6 (A) in paragraph (4)(B), by striking ‘‘and 

7 2011’’ and inserting ‘‘, 2011, and the first 2 

8 months of 2012’’; and 

9 (B) in paragraph (6)— 

10 (i) in the matter preceding subpara11 graph (A), by striking ‘‘and 2011’’ and in12 serting ‘‘, 2011, and the first 2 months of 

13 2012’’; and 

14 (ii) in subparagraph (C), by striking 

15 ‘‘and 2011’’ and inserting ‘‘, 2011, and the 

16 first 2 months of 2012’’; and 

17 (2) in subsection (c)(2)(B)(iv)(IV), by striking 

18 ‘‘or 2011’’ and inserting ‘‘, 2011, or the first 2 

19 months of 2012’’. 

20 SEC. 310. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) 

21 PROGRAM. 

22 (a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 

23 Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 

24 amended by striking ‘‘December 2011’’ and inserting 

25 ‘‘February 2012’’. 
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1 (b) EXTENDING TOTAL AMOUNT AVAILABLE FOR

2 ALLOCATION.—Section 1933(g) of such Act (42 U.S.C. 

3 1396u–3(g)) is amended— 

4 (1) in paragraph (2)— 

5 (A) by striking ‘‘and’’ at the end of sub6 paragraph (O); 

7 (B) in subparagraph (P), by striking the 

8 period at the end and inserting ‘‘; and’’; and 

9 (C) by adding at the end the following new 

10 subparagraph: 

11 ‘‘(Q) for the period that begins on January 

12 1, 2012, and ends on February 29, 2012, the 

13 total allocation amount is $150,000,000.’’. 

14 SEC. 311. EXTENSION OF TRANSITIONAL MEDICAL ASSIST15 ANCE (TMA). 

16 Sections 1902(e)(1)(B) and 1925(f) of the Social Se17 curity Act (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are 

18 each amended by striking ‘‘December 31, 2011’’ and in19 serting ‘‘February 29, 2012’’. 

20 SEC. 312. EXTENSION OF THE TEMPORARY ASSISTANCE 

21 FOR NEEDY FAMILIES PROGRAM. 

22 Activities authorized by part A of title IV and section 

23 1108(b) of the Social Security Act (other than under sub24 sections (a)(3) and (b) of section 403 of such Act) shall 

25 continue through February 29, 2012, in the manner au-
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1 thorized for fiscal year 2011, and out of any money in 

2 the Treasury of the United States not otherwise appro3 priated, there are hereby appropriated such sums as may 

4 be necessary for such purpose. Grants and payments may 

5 be made pursuant to this authority through the applicable 

6 portion of the second quarter of fiscal year 2012 at the 

7 pro rata portion of the level provided for such activities 

8 through the second quarter of fiscal year 2011. 

9 TITLE IV—MORTGAGE FEES AND 

10 PREMIUMS 

11 SEC. 401. GUARANTEE FEES. 

12 Subpart A of part 2 of subtitle A of title XIII of the 

13 Housing and Community Development Act of 1992 is 

14 amended by adding after section 1326 (12 U.S.C. 4546) 

15 the following new section: 

16 ‘‘SEC. 1327. ENTERPRISE GUARANTEE FEES. 

17 ‘‘(a) DEFINITIONS.—For purposes of this section, the 

18 following definitions shall apply: 

19 ‘‘(1) GUARANTEE FEE.—The term ‘guarantee 

20 fee’— 

21 ‘‘(A) means a fee described in subsection 

22 (b); and 

23 ‘‘(B) includes— 

24 ‘‘(i) the guaranty fee charged by the 

25 Federal National Mortgage Association 
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1 with respect to mortgage-backed securities; 

2 and 

3 ‘‘(ii) the management and guarantee 

4 fee charged by the Federal Home Loan 

5 Mortgage Corporation with respect to par6 ticipation certificates. 

7 ‘‘(2) AVERAGE FEES.—The term ‘average fees’ 

8 means the average contractual fee rate of single9 family guaranty arrangements by an enterprise en10 tered into during 2011, plus the recognition of any 

11 up-front cash payments over an estimated average 

12 life, expressed in terms of basis points. Such defini13 tion shall be interpreted in a manner consistent with 

14 the annual report on guarantee fees by the Federal 

15 Housing Finance Agency. 

16 ‘‘(b) INCREASE.— 

17 ‘‘(1) IN GENERAL.— 

18 ‘‘(A) PHASED INCREASE REQUIRED.—Sub19 ject to subsection (c), the Director shall require 

20 each enterprise to charge a guarantee fee in 

21 connection with any guarantee of the timely 

22 payment of principal and interest on securities, 

23 notes, and other obligations based on or backed 

24 by mortgages on residential real properties de25 signed principally for occupancy of from 1 to 4 
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1 families, consummated after the date of enact2 ment of this section. 

3 ‘‘(B) AMOUNT.—The amount of the in4 crease required under this section shall be de5 termined by the Director to appropriately re6 flect the risk of loss, as well the cost of capital 

7 allocated to similar assets held by other fully 

8 private regulated financial institutions, but such 

9 amount shall be not less than an average in10 crease of 10 basis points for each origination 

11 year or book year above the average fees im12 posed in 2011 for such guarantees. The Direc13 tor shall prohibit an enterprise from offsetting 

14 the cost of the fee to mortgage originators, bor15 rowers, and investors by decreasing other 

16 charges, fees, or premiums, or in any other 

17 manner. 

18 ‘‘(2) AUTHORITY TO LIMIT OFFER OF GUAR19 ANTEE.—The Director shall prohibit an enterprise 

20 from consummating any offer for a guarantee to a 

21 lender for mortgage-backed securities, if— 

22 ‘‘(A) the guarantee is inconsistent with the 

23 requirements of this section; or 

24 ‘‘(B) the risk of loss is allowed to increase, 

25 through lowering of the underwriting standards 
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1 or other means, for the primary purpose of 

2 meeting the requirements of this section. 

3 ‘‘(3) DEPOSIT IN TREASURY.—Amounts re4 ceived from fee increases imposed under this section 

5 shall be deposited directly into the United States 

6 Treasury, and shall be available only to the extent 

7 provided in subsequent appropriations Acts. The fees 

8 charged pursuant to this section shall not be consid9 ered a reimbursement to the Federal Government 

10 for the costs or subsidy provided to an enterprise. 

11 ‘‘(c) PHASE-IN.— 

12 ‘‘(1) IN GENERAL.—The Director may provide 

13 for compliance with subsection (b) by allowing each 

14 enterprise to increase the guarantee fee charged by 

15 the enterprise gradually over the 2-year period be16 ginning on the date of enactment of this section, in 

17 a manner sufficient to comply with this section. In 

18 determining a schedule for such increases, the Direc19 tor shall— 

20 ‘‘(A) provide for uniform pricing among 

21 lenders; 

22 ‘‘(B) provide for adjustments in pricing 

23 based on risk levels; and 

24 ‘‘(C) take into consideration conditions in 

25 financial markets. 
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1 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

2 this subsection shall be interpreted to undermine the 

3 minimum increase required by subsection (b). 

4 ‘‘(d) INFORMATION COLLECTION AND ANNUAL

5 ANALYSIS.—The Director shall require each enterprise to 

6 provide to the Director, as part of its annual report sub7 mitted to Congress— 

8 ‘‘(1) a description of— 

9 ‘‘(A) changes made to up-front fees and 

10 annual fees as part of the guarantee fees nego11 tiated with lenders; 

12 ‘‘(B) changes to the riskiness of the new 

13 borrowers compared to previous origination 

14 years or book years; and 

15 ‘‘(C) any adjustments required to improve 

16 for future origination years or book years, in 

17 order to be in complete compliance with sub18 section (b); and 

19 ‘‘(2) an assessment of how the changes in the 

20 guarantee fees described in paragraph (1) met the 

21 requirements of subsection (b). 

22 ‘‘(e) ENFORCEMENT.— 

23 ‘‘(1) REQUIRED ADJUSTMENTS.—Based on the 

24 information from subsection (d) and any other infor25 mation the Director deems necessary, the Director 
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1 shall require an enterprise to make adjustments in 

2 its guarantee fee in order to be in compliance with 

3 subsection (b). 

4 ‘‘(2) NONCOMPLIANCE PENALTY.—An enter5 prise that has been found to be out of compliance 

6 with subsection (b) for any 2 consecutive years shall 

7 be precluded from providing any guarantee for a pe8 riod, determined by rule of the Director, but in no 

9 case less than 1 year. 

10 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

11 this subsection shall be interpreted as preventing the 

12 Director from initiating and implementing an en13 forcement action against an enterprise, at a time the 

14 Director deems necessary, under other existing en15 forcement authority. 

16 ‘‘(f) EXPIRATION.—The provisions of this section 

17 shall expire on October 1, 2021.’’. 

18 SEC. 402. FHA GUARANTEE FEES. 

19 (a) AMENDMENT.—Section 203(c)(2) of the National 

20 Housing Act (12 U.S.C. 1709(c)(2)) is amended by adding 

21 at the end the following: 

22 ‘‘(C)(i) In addition to the premiums under sub23 paragraphs (A) and (B), the Secretary shall estab24 lish and collect annual premium payments for any 

25 mortgage for which the Secretary collects an annual 
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1 premium payment under subparagraph (B), in an 

2 amount described in clause (ii). 

3 ‘‘(ii)(I) Subject to subclause (II), with respect 

4 to a mortgage, the amount described in this clause 

5 is 10 basis points of the remaining insured principal 

6 balance (excluding the portion of the remaining bal7 ance attributable to the premium collected under 

8 subparagraph (A) and without taking into account 

9 delinquent payments or prepayments). 

10 ‘‘(II) During the 2-year period beginning on the 

11 date of enactment of this subparagraph, the Sec12 retary shall increase the number of basis points of 

13 the annual premium payment collected under this 

14 subparagraph incrementally, as determined appro15 priate by the Secretary, until the number of basis 

16 points of the annual premium payment collected 

17 under this subparagraph is equal to the number de18 scribed in subclause (I).’’. 

19 (b) PROSPECTIVE REPEAL.—Section 203(c)(2) of the 

20 National Housing Act (12 U.S.C. 1709(c)(2)) is amended 

21 by striking subparagraph (C), as added by subsection (a), 

22 effective on October 1, 2021. 

23 (c) REPORT REQUIRED.—Not later than 30 days be24 fore the date on which the Secretary of Housing and 

25 Urban Development makes a determination under sub-
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1 section (b)(2), the Secretary shall submit to the Com2 mittee on Banking, Housing, and Urban Affairs of the 

3 Senate and the Committee on Financial Services of the 

4 House of Representatives a report that— 

5 (1) explains the basis for the determination; 

6 and 

7 (2) identifies the date on which the Secretary 

8 plans to make the determination. 

9 TITLE V—OTHER PROVISIONS 

10 Subtitle A—Keystone XL Pipeline 

11 SEC. 501. PERMIT FOR KEYSTONE XL PIPELINE. 

12 (a) IN GENERAL.—Except as provided in subsection 

13 (b), not later than 60 days after the date of enactment 

14 of this Act, the President, acting through the Secretary 

15 of State, shall grant a permit under Executive Order No. 

16 13337 (3 U.S.C. 301 note; relating to issuance of permits 

17 with respect to certain energy-related facilities and land 

18 transportation crossings on the international boundaries 

19 of the United States) for the Keystone XL pipeline project 

20 application filed on September 19, 2008 (including amend21 ments). 

22 (b) EXCEPTION.— 

23 (1) IN GENERAL.—The President shall not be 

24 required to grant the permit under subsection (a) if 
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1 the President determines that the Keystone XL 

2 pipeline would not serve the national interest. 

3 (2) REPORT.—If the President determines that 

4 the Keystone XL pipeline is not in the national in5 terest under paragraph (1), the President shall, not 

6 later than 15 days after the date of the determina7 tion, submit to the Committee on Foreign Relations 

8 of the Senate, the Committee on Foreign Affairs of 

9 the House of Representatives, the majority leader of 

10 the Senate, the minority leader of the Senate, the 

11 Speaker of the House of Representatives, and the 

12 minority leader of the House of Representatives a 

13 report that provides a justification for determina14 tion, including consideration of economic, employ15 ment, energy security, foreign policy, trade, and en16 vironmental factors. 

17 (3) EFFECT OF NO FINDING OR ACTION.—If a 

18 determination is not made under paragraph (1) and 

19 no action is taken by the President under subsection 

20 (a) not later than 60 days after the date of enact21 ment of this Act, the permit for the Keystone XL 

22 pipeline described in subsection (a) that meets the 

23 requirements of subsections (c) and (d) shall be in 

24 effect by operation of law. 
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1 (c) REQUIREMENTS.—The permit granted under sub2 section (a) shall require the following: 

3 (1) The permittee shall comply with all applica4 ble Federal and State laws (including regulations) 

5 and all applicable industrial codes regarding the con6 struction, connection, operation, and maintenance of 

7 the United States facilities. 

8 (2) The permittee shall obtain all requisite per9 mits from Canadian authorities and relevant Fed10 eral, State, and local governmental agencies. 

11 (3) The permittee shall take all appropriate 

12 measures to prevent or mitigate any adverse envi13 ronmental impact or disruption of historic properties 

14 in connection with the construction, operation, and 

15 maintenance of the United States facilities. 

16 (4) For the purpose of the permit issued under 

17 subsection (a) (regardless of any modifications under 

18 subsection (d))— 

19 (A) the final environmental impact state20 ment issued by the Secretary of State on Au21 gust 26, 2011, satisfies all requirements of the 

22 National Environmental Policy Act of 1969 (42 

23 U.S.C. 4321 et seq.) and section 106 of the Na24 tional Historic Preservation Act (16 U.S.C. 

25 470f); 
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1 (B) any modification required by the Sec2 retary of State to the Plan described in para3 graph (5)(A) shall not require supplementation 

4 of the final environmental impact statement de5 scribed in that paragraph; and 

6 (C) no further Federal environmental re7 view shall be required. 

8 (5) The construction, operation, and mainte9 nance of the facilities shall be in all material re10 spects similar to that described in the application 

11 described in subsection (a) and in accordance with— 

12 (A) the construction, mitigation, and rec13 lamation measures agreed to by the permittee 

14 in the Construction Mitigation and Reclamation 

15 Plan found in appendix B of the final environ16 mental impact statement issued by the Sec17 retary of State on August 26, 2011, subject to 

18 the modification described in subsection (d); 

19 (B) the special conditions agreed to be20 tween the permittee and the Administrator of 

21 the Pipeline Hazardous Materials Safety Ad22 ministration of the Department of Transpor23 tation found in appendix U of the final environ24 mental impact statement described in subpara25 graph (A); 
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1 (C) if the modified route submitted by the 

2 Governor of Nebraska under subsection 

3 (d)(3)(B) crosses the Sand Hills region, the 

4 measures agreed to by the permittee for the 

5 Sand Hills region found in appendix H of the 

6 final environmental impact statement described 

7 in subparagraph (A); and 

8 (D) the stipulations identified in appendix 

9 S of the final environmental impact statement 

10 described in subparagraph (A). 

11 (6) Other requirements that are standard in12 dustry practice or commonly included in Federal 

13 permits that are similar to a permit issued under 

14 subsection (a). 

15 (d) MODIFICATION.—The permit issued under sub16 section (a) shall require— 

17 (1) the reconsideration of routing of the Key18 stone XL pipeline within the State of Nebraska; 

19 (2) a review period during which routing within 

20 the State of Nebraska may be reconsidered and the 

21 route of the Keystone XL pipeline through the State 

22 altered with any accompanying modification to the 

23 Plan described in subsection (c)(5)(A); and 

24 (3) the President— 
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1 (A) to coordinate review with the State of 

2 Nebraska and provide any necessary data and 

3 reasonable technical assistance material to the 

4 review process required under this subsection; 

5 and 

6 (B) to approve the route within the State 

7 of Nebraska that has been submitted to the 

8 Secretary of State by the Governor of Ne9 braska. 

10 (e) EFFECT OF NO APPROVAL.—If the President 

11 does not approve the route within the State of Nebraska 

12 submitted by the Governor of Nebraska under subsection 

13 (d)(3)(B) not later than 10 days after the date of submis14 sion, the route submitted by the Governor of Nebraska 

15 under subsection (d)(3)(B) shall be considered approved, 

16 pursuant to the terms of the permit described in sub17 section (a) that meets the requirements of subsection (c) 

18 and this subsection, by operation of law. 

19 (f) PRIVATE PROPERTY SAVINGS CLAUSE.—Nothing 

20 in this section alters the Federal, State, or local processes 

21 or conditions in effect on the date of enactment of this 

22 Act that are necessary to secure access from private prop23 erty owners to construct the Keystone XL pipeline. 
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1 Subtitle B—Budgetary Provisions 

2 SEC. 511. SENATE POINT OF ORDER AGAINST AN EMER3 GENCY DESIGNATION. 

4 Section 314 of the Congressional Budget Act of 1974 

5 is amended by— 

6 (1) redesignating subsection (e) as subsection 

7 (f); and 

8 (2) inserting after subsection (d) the following: 

9 ‘‘(e) SENATE POINT OF ORDER AGAINST AN EMER10 GENCY DESIGNATION.— 

11 ‘‘(1) IN GENERAL.—When the Senate is consid12 ering a bill, resolution, amendment, motion, amend13 ment between the Houses, or conference report, if a 

14 point of order is made by a Senator against an 

15 emergency designation in that measure, that provi16 sion making such a designation shall be stricken 

17 from the measure and may not be offered as an 

18 amendment from the floor. 

19 ‘‘(2) SUPERMAJORITY WAIVER AND APPEALS.— 

20 ‘‘(A) WAIVER.—Paragraph (1) may be 

21 waived or suspended in the Senate only by an 

22 affirmative vote of three-fifths of the Members, 

23 duly chosen and sworn. 

24 ‘‘(B) APPEALS.—Appeals in the Senate 

25 from the decisions of the Chair relating to any 
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1 provision of this subsection shall be limited to 

2 1 hour, to be equally divided between, and con3 trolled by, the appellant and the manager of the 

4 bill or joint resolution, as the case may be. An 

5 affirmative vote of three-fifths of the Members 

6 of the Senate, duly chosen and sworn, shall be 

7 required to sustain an appeal of the ruling of 

8 the Chair on a point of order raised under this 

9 subsection. 

10 ‘‘(3) DEFINITION OF AN EMERGENCY DESIGNA11 TION.—For purposes of paragraph (1), a provision 

12 shall be considered an emergency designation if it 

13 designates any item pursuant to section 

14 251(b)(2)(A)(i) of the Balanced Budget and Emer15 gency Deficit Control Act of 1985. 

16 ‘‘(4) FORM OF THE POINT OF ORDER.—A point 

17 of order under paragraph (1) may be raised by a 

18 Senator as provided in section 313(e) of the Con19 gressional Budget Act of 1974. 

20 ‘‘(5) CONFERENCE REPORTS.—When the Sen21 ate is considering a conference report on, or an 

22 amendment between the Houses in relation to, a bill, 

23 upon a point of order being made by any Senator 

24 pursuant to this section, and such point of order 

25 being sustained, such material contained in such 
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1 conference report shall be deemed stricken, and the 

2 Senate shall proceed to consider the question of 

3 whether the Senate shall recede from its amendment 

4 and concur with a further amendment, or concur in 

5 the House amendment with a further amendment, 

6 as the case may be, which further amendment shall 

7 consist of only that portion of the conference report 

8 or House amendment, as the case may be, not so 

9 stricken. Any such motion in the Senate shall be de10 batable. In any case in which such point of order is 

11 sustained against a conference report (or Senate 

12 amendment derived from such conference report by 

13 operation of this subsection), no further amendment 

14 shall be in order.’’. 

15 SEC. 512. PAYGO SCORECARD ESTIMATES. 

16 The budgetary effects of this Act shall not be entered 

17 on either PAYGO scorecard maintained pursuant to sec18 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

Passed the House of Representatives December 23, 

2011. 

Attest: 

Clerk. 
112TH CONGRESS 

1ST SESSION H. R. 3765 

AN ACT 

To extend the payroll tax holiday, unemployment 

pipeline, and for other purposes. vide for the consideration of the Keystone XL compensation, Medicare physician payment, pro-