In the Senate of the United States, 

March 10, 2010. 

Resolved, That the bill from the House of Representatives (H.R. 4213) entitled ‘‘An Act to amend the Internal 

Revenue Code of 1986 to extend certain expiring provisions, 

and for other purposes.’’, do pass with the following 

AMENDMENT: 

Strike all after the enacting clause and insert the 

following: 

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

2 TABLE OF CONTENTS. 

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

4 ‘‘American Workers, State, and Business Relief Act of 

5 2010’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as otherwise 

7 expressly provided, whenever in this Act an amendment or 

8 repeal is expressed in terms of an amendment to, or repeal 

9 of, a section or other provision, the reference shall be consid-
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† HR 4213 EAS 

1 ered to be made to a section or other provision of the Inter2 nal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows: 

Sec. 1. Short title; amendment of 1986 Code; table of contents. 

TITLE I—EXTENSION OF EXPIRING PROVISIONS 

Subtitle A—Energy 

Sec. 101. Alternative motor vehicle credit for new qualified hybrid motor vehicles 

other than passenger automobiles and light trucks. 

Sec. 102. Incentives for biodiesel and renewable diesel. 

Sec. 103. Credit for electricity produced at certain open-loop biomass facilities. 

Sec. 104. Credit for refined coal facilities. 

Sec. 105. Credit for production of low sulfur diesel fuel. 

Sec. 106. Credit for producing fuel from coke or coke gas. 

Sec. 107. New energy efficient home credit. 

Sec. 108. Excise tax credits and outlay payments for alternative fuel and alternative fuel mixtures. 

Sec. 109. Special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities. 

Sec. 110. Suspension of limitation on percentage depletion for oil and gas from 

marginal wells. 

Subtitle B—Individual Tax Relief 

PART I—MISCELLANEOUS PROVISIONS

Sec. 111. Deduction for certain expenses of elementary and secondary school 

teachers. 

Sec. 112. Additional standard deduction for State and local real property taxes. 

Sec. 113. Deduction of State and local sales taxes. 

Sec. 114. Contributions of capital gain real property made for conservation purposes. 

Sec. 115. Above-the-line deduction for qualified tuition and related expenses. 

Sec. 116. Tax-free distributions from individual retirement plans for charitable 

purposes. 

Sec. 117. Look-thru of certain regulated investment company stock in determining gross estate of nonresidents. 

PART II—LOW-INCOME HOUSING CREDITS

Sec. 121. Election for refundable low-income housing credit for 2010. 

Subtitle C—Business Tax Relief 

Sec. 131. Research credit. 

Sec. 132. Indian employment tax credit. 

Sec. 133. New markets tax credit. 

Sec. 134. Railroad track maintenance credit. 

Sec. 135. Mine rescue team training credit. 
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† HR 4213 EAS 

Sec. 136. Employer wage credit for employees who are active duty members of the 

uniformed services. 

Sec. 137. 5-year depreciation for farming business machinery and equipment. 

Sec. 138. 15-year straight-line cost recovery for qualified leasehold improvements, 

qualified restaurant buildings and improvements, and qualified 

retail improvements. 

Sec. 139. 7-year recovery period for motorsports entertainment complexes. 

Sec. 140. Accelerated depreciation for business property on an Indian reservation. 

Sec. 141. Enhanced charitable deduction for contributions of food inventory. 

Sec. 142. Enhanced charitable deduction for contributions of book inventories to 

public schools. 

Sec. 143. Enhanced charitable deduction for corporate contributions of computer 

inventory for educational purposes. 

Sec. 144. Election to expense mine safety equipment. 

Sec. 145. Special expensing rules for certain film and television productions. 

Sec. 146. Expensing of environmental remediation costs. 

Sec. 147. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico. 

Sec. 148. Modification of tax treatment of certain payments to controlling exempt 

organizations. 

Sec. 149. Exclusion of gain or loss on sale or exchange of certain brownfield sites 

from unrelated business income. 

Sec. 150. Timber REIT modernization. 

Sec. 151. Treatment of certain dividends and assets of regulated investment companies. 

Sec. 152. RIC qualified investment entity treatment under FIRPTA. 

Sec. 153. Exceptions for active financing income. 

Sec. 154. Look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules. 

Sec. 155. Reduction in corporate rate for qualified timber gain. 

Sec. 156. Basis adjustment to stock of S corps making charitable contributions 

of property. 

Sec. 157. Empowerment zone tax incentives. 

Sec. 158. Tax incentives for investment in the District of Columbia. 

Sec. 159. Renewal community tax incentives. 

Sec. 160. Temporary increase in limit on cover over of rum excise taxes to Puerto 

Rico and the Virgin Islands. 

Sec. 161. American Samoa economic development credit. 

Subtitle D—Temporary Disaster Relief Provisions 

PART I—NATIONAL DISASTER RELIEF

Sec. 171. Waiver of certain mortgage revenue bond requirements. 

Sec. 172. Losses attributable to federally declared disasters. 

Sec. 173. Special depreciation allowance for qualified disaster property. 

Sec. 174. Net operating losses attributable to federally declared disasters. 

Sec. 175. Expensing of qualified disaster expenses. 

PART II—REGIONAL PROVISIONS

SUBPART A—NEW YORK LIBERTY ZONE

Sec. 181. Special depreciation allowance for nonresidential and residential real 

property. 

Sec. 182. Tax-exempt bond financing. 
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† HR 4213 EAS 

SUBPART B—GO ZONE

Sec. 183. Special depreciation allowance. 

Sec. 184. Increase in rehabilitation credit. 

Sec. 185. Work opportunity tax credit with respect to certain individuals affected 

by Hurricane Katrina for employers inside disaster areas. 

SUBPART C—MIDWESTERN DISASTER AREAS

Sec. 191. Special rules for use of retirement funds. 

Sec. 192. Exclusion of cancellation of mortgage indebtedness. 

TITLE II—UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER 

PROVISIONS 

Subtitle A—Unemployment Insurance 

Sec. 201. Extension of unemployment insurance provisions. 

Subtitle B—Health Provisions 

Sec. 211. Extension and improvement of premium assistance for COBRA benefits. 

Sec. 212. Extension of therapy caps exceptions process. 

Sec. 213. Treatment of pharmacies under durable medical equipment accreditation requirements. 

Sec. 214. Enhanced payment for mental health services. 

Sec. 215. Extension of ambulance add-ons. 

Sec. 216. Extension of geographic floor for work. 

Sec. 217. Extension of payment for technical component of certain physician pathology services. 

Sec. 218. Extension of outpatient hold harmless provision. 

Sec. 219. EHR Clarification. 

Sec. 220. Extension of reimbursement for all Medicare part B services furnished 

by certain Indian hospitals and clinics. 

Sec. 221. Extension of certain payment rules for long-term care hospital services 

and of moratorium on the establishment of certain hospitals and 

facilities. 

Sec. 222. Extension of the Medicare rural hospital flexibility program. 

Sec. 223. Extension of section 508 hospital reclassifications. 

Sec. 224. Technical correction related to critical access hospital services. 

Sec. 225. Extension for specialized MA plans for special needs individuals. 

Sec. 226. Extension of reasonable cost contracts. 

Sec. 227. Extension of particular waiver policy for employer group plans. 

Sec. 228. Extension of continuing care retirement community program. 

Sec. 229. Funding outreach and assistance for low-income programs. 

Sec. 230. Family-to-family health information centers. 

Sec. 231. Implementation funding. 

Sec. 232. Extension of ARRA increase in FMAP. 

Sec. 233. Extension of gainsharing demonstration. 

Subtitle C—Other Provisions 

Sec. 241. Extension of use of 2009 poverty guidelines. 

Sec. 242. Refunds disregarded in the administration of Federal programs and 

federally assisted programs. 

Sec. 243. State court improvement program. 

Sec. 244. Extension of national flood insurance program. 
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† HR 4213 EAS 

Sec. 245. Emergency disaster assistance. 

Sec. 246. Small business loan guarantee enhancement extensions. 

TITLE III—PENSION FUNDING RELIEF 

Subtitle A—Single Employer Plans 

Sec. 301. Extended period for single-employer defined benefit plans to amortize 

certain shortfall amortization bases. 

Sec. 302. Application of extended amortization period to plans subject to prior 

law funding rules. 

Sec. 303. Lookback for certain benefit restrictions. 

Sec. 304. Lookback for credit balance rule for plans maintained by charities. 

Subtitle B—Multiemployer Plans 

Sec. 311. Adjustments to funding standard account rules. 

TITLE IV—OFFSET PROVISIONS 

Subtitle A—Black Liquor 

Sec. 401. Exclusion of unprocessed fuels from the cellulosic biofuel producer credit. 

Sec. 402. Prohibition on alternative fuel credit and alternative fuel mixture credit 

for black liquor. 

Subtitle B—Homebuyer Credit 

Sec. 411. Technical modifications to homebuyer credit. 

Subtitle C—Economic Substance 

Sec. 421. Codification of economic substance doctrine; penalties. 

Subtitle D—Additional Provisions 

Sec. 431. Revision to the Medicare Improvement Fund. 

TITLE V—SATELLITE TELEVISION EXTENSION 

Sec. 500. Short title. 

Subtitle A—Statutory Licenses 

Sec. 501. Reference. 

Sec. 502. Modifications to statutory license for satellite carriers. 

Sec. 503. Modifications to statutory license for satellite carriers in local markets. 

Sec. 504. Modifications to cable system secondary transmission rights under section 111. 

Sec. 505. Certain waivers granted to providers of local-into-local service for all 

DMAs. 

Sec. 506. Copyright Office fees. 

Sec. 507. Termination of license. 

Sec. 508. Construction. 

Subtitle B—Communications Provisions 

Sec. 521. Reference. 

Sec. 522. Extension of authority. 
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† HR 4213 EAS 

Sec. 523. Significantly viewed stations. 

Sec. 524. Digital television transition conforming amendments. 

Sec. 525. Application pending completion of rulemakings. 

Sec. 526. Process for issuing qualified carrier certification. 

Sec. 527. Nondiscrimination in carriage of high definition digital signals of noncommercial educational television stations. 

Sec. 528. Savings clause regarding definitions. 

Sec. 529. State public affairs broadcasts. 

Subtitle C—Reports and Savings Provision 

Sec. 531. Definition. 

Sec. 532. Report on market based alternatives to statutory licensing. 

Sec. 533. Report on communications implications of statutory licensing modifications. 

Sec. 534. Report on in-state broadcast programming. 

Sec. 535. Local network channel broadcast reports. 

Sec. 536. Savings provision regarding use of negotiated licenses. 

Sec. 537. Effective date; noninfringement of copyright. 

Subtitle D—Severability 

Sec. 541. Severability. 

TITLE VI—OTHER PROVISIONS 

Sec. 601. Increase in the Medicare physician payment update. 

Sec. 602. Election to temporarily utilize unused AMT credits determined by domestic investment. 

Sec. 603. Information reporting for rental property expense payments. 

Sec. 604. Extension of low-income housing credit rules for buildings in GO zones. 

Sec. 605. Increase in information return penalties. 

Sec. 606. Tax-exempt bond financing. 

Sec. 607. Application of levy to payments to Federal vendors relating to property. 

Sec. 608. Election for refundable low-income housing credit for 2010. 

Sec. 609. Low-income housing grant election. 

Sec. 610. Rollovers from elective deferral plans to Roth designated accounts. 

Sec. 611. Modification of standards for windows, doors, and skylights with respect 

to the credit for nonbusiness energy property. 

Sec. 612. Participants in government section 457 plans allowed to treat elective 

deferrals as Roth contributions. 

Sec. 613. Extension of special allowance for certain property. 

Sec. 614. Application of bad checks penalty to electronic payments. 

Sec. 615. Grants for energy efficient appliances in lieu of tax credit. 

Sec. 616. Budgetary effects of legislation passed by the Senate. 

Sec. 617. Senate spending disclosure. 

Sec. 618. Allocation of geothermal receipts. 

Sec. 619. Qualifying timber contract options. 

Sec. 620. ARRA planning and reporting. 

Sec. 621. GAO study. 

Sec. 622. Extension and modification of section 45 credit for refined coal from 

steel industry fuel. 

Sec. 623. Modifications to mine rescue team training credit and election to expense advanced mine safety equipment. 

Sec. 624. Application of continuous levy to employment tax liability of certain 

Federal contractors. 
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† HR 4213 EAS 

TITLE VII—DETERMINATION OF BUDGETARY EFFECTS 

Sec. 701. Determination of budgetary effects. 

1 TITLE I—EXTENSION OF 

2 EXPIRING PROVISIONS 

3 Subtitle A—Energy 

4 SEC. 101. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW 

5 QUALIFIED HYBRID MOTOR VEHICLES OTHER 

6 THAN PASSENGER AUTOMOBILES AND LIGHT 

7 TRUCKS. 

8 (a) IN GENERAL.—Paragraph (3) of section 30B(k) is 

9 amended by striking ‘‘December 31, 2009’’ and inserting 

10 ‘‘December 31, 2010’’. 

11 (b) EFFECTIVE DATE.—The amendment made by this 

12 section shall apply to property purchased after December 

13 31, 2009. 

14 SEC. 102. INCENTIVES FOR BIODIESEL AND RENEWABLE 

15 DIESEL. 

16 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE17 SEL USED AS FUEL.—Subsection (g) of section 40A is 

18 amended by striking ‘‘December 31, 2009’’ and inserting 

19 ‘‘December 31, 2010’’. 

20 (b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR

21 BIODIESEL AND RENEWABLE DIESEL FUEL MIXTURES.— 

22 (1) Paragraph (6) of section 6426(c) is amended 

23 by striking ‘‘December 31, 2009’’ and inserting ‘‘De24 cember 31, 2010’’. 
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† HR 4213 EAS 

1 (2) Subparagraph (B) of section 6427(e)(6) is 

2 amended by striking ‘‘December 31, 2009’’ and insert3 ing ‘‘December 31, 2010’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to fuel sold or used after December 31, 

6 2009. 

7 SEC. 103. CREDIT FOR ELECTRICITY PRODUCED AT CER8 TAIN OPEN-LOOP BIOMASS FACILITIES. 

9 (a) IN GENERAL.—Clause (ii) of section 45(b)(4)(B) 

10 is amended by striking ‘‘5-year period’’ and inserting ‘‘6- 

11 year period’’. 

12 (b) EFFECTIVE DATE.—The amendment made by this 

13 section shall apply to electricity produced and sold after 

14 December 31, 2009. 

15 SEC. 104. CREDIT FOR REFINED COAL FACILITIES. 

16 (a) IN GENERAL.—Subparagraphs (A) and (B) of sec17 tion 45(d)(8) are each amended by striking ‘‘January 1, 

18 2010’’ and inserting ‘‘January 1, 2011’’. 

19 (b) EFFECTIVE DATE.—The amendments made by this 

20 section shall apply to facilities placed in service after De21 cember 31, 2009. 
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† HR 4213 EAS 

1 SEC. 105. CREDIT FOR PRODUCTION OF LOW SULFUR DIE2 SEL FUEL. 

3 (a) APPLICABLE PERIOD.—Paragraph (4) of section 

4 45H(c) is amended by striking ‘‘December 31, 2009’’ and 

5 inserting ‘‘December 31, 2010’’. 

6 (b) EFFECTIVE DATE.—The amendment made by this 

7 section shall take effect as if included in section 339 of the 

8 American Jobs Creation Act of 2004. 

9 SEC. 106. CREDIT FOR PRODUCING FUEL FROM COKE OR 

10 COKE GAS. 

11 (a) IN GENERAL.—Paragraph (1) of section 45K(g) is 

12 amended by striking ‘‘January 1, 2010’’ and inserting 

13 ‘‘January 1, 2011’’. 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to facilities placed in service after De16 cember 31, 2009. 

17 SEC. 107. NEW ENERGY EFFICIENT HOME CREDIT. 

18 (a) IN GENERAL.—Subsection (g) of section 45L is 

19 amended by striking ‘‘December 31, 2009’’ and inserting 

20 ‘‘December 31, 2010’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply to homes acquired after December 31, 

23 2009. 
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† HR 4213 EAS 

1 SEC. 108. EXCISE TAX CREDITS AND OUTLAY PAYMENTS 

2 FOR ALTERNATIVE FUEL AND ALTERNATIVE 

3 FUEL MIXTURES. 

4 (a) IN GENERAL.—Sections 6426(d)(5), 6426(e)(3), 

5 and 6427(e)(6)(C) are each amended by striking ‘‘December 

6 31, 2009’’ and inserting ‘‘December 31, 2010’’. 

7 (b) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to fuel sold or used after December 31, 

9 2009. 

10 SEC. 109. SPECIAL RULE FOR SALES OR DISPOSITIONS TO 

11 IMPLEMENT FERC OR STATE ELECTRIC RE12 STRUCTURING POLICY FOR QUALIFIED ELEC13 TRIC UTILITIES. 

14 (a) IN GENERAL.—Paragraph (3) of section 451(i) is 

15 amended by striking ‘‘January 1, 2010’’ and inserting 

16 ‘‘January 1, 2011’’. 

17 (b) EFFECTIVE DATE.—The amendment made by this 

18 section shall apply to transactions after December 31, 2009. 

19 SEC. 110. SUSPENSION OF LIMITATION ON PERCENTAGE 

20 DEPLETION FOR OIL AND GAS FROM MAR21 GINAL WELLS. 

22 (a) IN GENERAL.—Clause (ii) of section 

23 613A(c)(6)(H) is amended by striking ‘‘January 1, 2010’’ 

24 and inserting ‘‘January 1, 2011’’. 
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† HR 4213 EAS 

1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2009. 

4 Subtitle B—Individual Tax Relief 

5 PART I—MISCELLANEOUS PROVISIONS 

6 SEC. 111. DEDUCTION FOR CERTAIN EXPENSES OF ELEMEN7 TARY AND SECONDARY SCHOOL TEACHERS. 

8 (a) IN GENERAL.—Subparagraph (D) of section 

9 62(a)(2) is amended by striking ‘‘or 2009’’ and inserting 

10 ‘‘2009, or 2010’’. 

11 (b) EFFECTIVE DATE.—The amendment made by this 

12 section shall apply to taxable years beginning after Decem13 ber 31, 2009. 

14 SEC. 112. ADDITIONAL STANDARD DEDUCTION FOR STATE 

15 AND LOCAL REAL PROPERTY TAXES. 

16 (a) IN GENERAL.—Subparagraph (C) of section 

17 63(c)(1) is amended by striking ‘‘or 2009’’ and inserting 

18 ‘‘2009, or 2010’’. 

19 (b) EFFECTIVE DATE.—The amendment made by this 

20 section shall apply to taxable years beginning after Decem21 ber 31, 2009. 

22 SEC. 113. DEDUCTION OF STATE AND LOCAL SALES TAXES. 

23 (a) IN GENERAL.—Subparagraph (I) of section 

24 164(b)(5) is amended by striking ‘‘January 1, 2010’’ and 

25 inserting ‘‘January 1, 2011’’. 
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† HR 4213 EAS 

1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2009. 

4 SEC. 114. CONTRIBUTIONS OF CAPITAL GAIN REAL PROP5 ERTY MADE FOR CONSERVATION PURPOSES. 

6 (a) IN GENERAL.—Clause (vi) of section 170(b)(1)(E) 

7 is amended by striking ‘‘December 31, 2009’’ and inserting 

8 ‘‘December 31, 2010’’. 

9 (b) CONTRIBUTIONS BY CERTAIN CORPORATE FARM10 ERS AND RANCHERS.—Clause (iii) of section 170(b)(2)(B) 

11 is amended by striking ‘‘December 31, 2009’’ and inserting 

12 ‘‘December 31, 2010’’. 

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

14 section shall apply to contributions made in taxable years 

15 beginning after December 31, 2009. 

16 SEC. 115. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 

17 TUITION AND RELATED EXPENSES. 

18 (a) IN GENERAL.—Subsection (e) of section 222 is 

19 amended by striking ‘‘December 31, 2009’’ and inserting 

20 ‘‘December 31, 2010’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply to taxable years beginning after Decem23 ber 31, 2009. 
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† HR 4213 EAS 

1 SEC. 116. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE2 TIREMENT PLANS FOR CHARITABLE PUR3 POSES. 

4 (a) IN GENERAL.—Subparagraph (F) of section 

5 408(d)(8) is amended by striking ‘‘December 31, 2009’’ and 

6 inserting ‘‘December 31, 2010’’. 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to distributions made in taxable years 

9 beginning after December 31, 2009. 

10 SEC. 117. LOOK-THRU OF CERTAIN REGULATED INVEST11 MENT COMPANY STOCK IN DETERMINING 

12 GROSS ESTATE OF NONRESIDENTS. 

13 (a) IN GENERAL.—Paragraph (3) of section 2105(d) 

14 is amended by striking ‘‘December 31, 2009’’ and inserting 

15 ‘‘December 31, 2010’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to estates of decedents dying after De18 cember 31, 2009. 

19 PART II—LOW-INCOME HOUSING CREDITS 

20 SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUS21 ING CREDIT FOR 2010. 

22 (a) IN GENERAL.—Section 42 is amended by redesig23 nating subsection (n) as subsection (o) and by inserting 

24 after subsection (m) the following new subsection: 

25 ‘‘(n) ELECTION FOR REFUNDABLE CREDITS.— 
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† HR 4213 EAS 

1 ‘‘(1) IN GENERAL.—The housing credit agency of 

2 each State shall be allowed a credit in an amount 

3 equal to such State’s 2010 low-income housing refund4 able credit election amount, which shall be payable by 

5 the Secretary as provided in paragraph (5). 

6 ‘‘(2) 2010 LOW-INCOME HOUSING REFUNDABLE

7 CREDIT ELECTION AMOUNT.—For purposes of this 

8 subsection, the term ‘2010 low-income housing refund9 able credit election amount’ means, with respect to 

10 any State, such amount as the State may elect which 

11 does not exceed 85 percent of the product of— 

12 ‘‘(A) the sum of— 

13 ‘‘(i) 100 percent of the State housing 

14 credit ceiling for 2010 which is attributable 

15 to amounts described in clauses (i) and (iii) 

16 of subsection (h)(3)(C), and 

17 ‘‘(ii) 40 percent of the State housing 

18 credit ceiling for 2010 which is attributable 

19 to amounts described in clauses (ii) and 

20 (iv) of such subsection, multiplied by 

21 ‘‘(B) 10. 

22 ‘‘(3) COORDINATION WITH NON-REFUNDABLE

23 CREDIT.—For purposes of this section, the amounts 

24 described in clauses (i) through (iv) of subsection 

25 (h)(3)(C) with respect to any State for 2010 shall 
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† HR 4213 EAS 

1 each be reduced by so much of such amount as is 

2 taken into account in determining the amount of the 

3 credit allowed with respect to such State under para4 graph (1). 

5 ‘‘(4) SPECIAL RULE FOR BASIS.—Basis of a 

6 qualified low-income building shall not be reduced by 

7 the amount of any payment made under this sub8 section. 

9 ‘‘(5) PAYMENT OF CREDIT; USE TO FINANCE

10 LOW-INCOME BUILDINGS.—The Secretary shall pay to 

11 the housing credit agency of each State an amount 

12 equal to the credit allowed under paragraph (1). 

13 Rules similar to the rules of subsections (c) and (d) 

14 of section 1602 of the American Recovery and Rein15 vestment Tax Act of 2009 shall apply with respect to 

16 any payment made under this paragraph, except that 

17 such subsection (d) shall be applied by substituting 

18 ‘January 1, 2012’ for ‘January 1, 2011’.’’. 

19 (b) CONFORMING AMENDMENT.—Section 1324(b)(2) of 

20 title 31, United States Code, is amended by inserting 

21 ‘‘42(n),’’ after ‘‘36A,’’. 
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† HR 4213 EAS 

1 Subtitle C—Business Tax Relief 

2 SEC. 131. RESEARCH CREDIT. 

3 (a) IN GENERAL.—Subparagraph (B) of section 

4 41(h)(1) is amended by striking ‘‘December 31, 2009’’ and 

5 inserting ‘‘December 31, 2010’’. 

6 (b) CONFORMING AMENDMENT.—Subparagraph (D) of 

7 section 45C(b)(1) is amended by striking ‘‘December 31, 

8 2009’’ and inserting ‘‘December 31, 2010’’. 

9 (c) EFFECTIVE DATE.—The amendments made by this 

10 section shall apply to amounts paid or incurred after De11 cember 31, 2009. 

12 SEC. 132. INDIAN EMPLOYMENT TAX CREDIT. 

13 (a) IN GENERAL.—Subsection (f) of section 45A is 

14 amended by striking ‘‘December 31, 2009’’ and inserting 

15 ‘‘December 31, 2010’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to taxable years beginning after Decem18 ber 31, 2009. 

19 SEC. 133. NEW MARKETS TAX CREDIT. 

20 (a) IN GENERAL.—Subparagraph (F) of section 

21 45D(f)(1) is amended by inserting ‘‘and 2010’’ after 

22 ‘‘2009’’. 

23 (b) CONFORMING AMENDMENT.—Paragraph (3) of sec24 tion 45D(f) is amended by striking ‘‘2014’’ and inserting 

25 ‘‘2015’’. 
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† HR 4213 EAS 

1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to calendar years beginning after 2009. 

3 SEC. 134. RAILROAD TRACK MAINTENANCE CREDIT. 

4 (a) IN GENERAL.—Subsection (f) of section 45G is 

5 amended by striking ‘‘January 1, 2010’’ and inserting 

6 ‘‘January 1, 2011’’. 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to expenditures paid or incurred in tax9 able years beginning after December 31, 2009. 

10 SEC. 135. MINE RESCUE TEAM TRAINING CREDIT. 

11 (a) IN GENERAL.—Subsection (e) of section 45N is 

12 amended by striking ‘‘December 31, 2009’’ and inserting 

13 ‘‘December 31, 2010’’. 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to taxable years beginning after Decem16 ber 31, 2009. 

17 SEC. 136. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO 

18 ARE ACTIVE DUTY MEMBERS OF THE UNI19 FORMED SERVICES. 

20 (a) IN GENERAL.—Subsection (f) of section 45P is 

21 amended by striking ‘‘December 31, 2009’’ and inserting 

22 ‘‘December 31, 2010’’. 

23 (b) EFFECTIVE DATE.—The amendment made by this 

24 section shall apply to payments made after December 31, 

25 2009. 
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† HR 4213 EAS 

1 SEC. 137. 5-YEAR DEPRECIATION FOR FARMING BUSINESS 

2 MACHINERY AND EQUIPMENT. 

3 (a) IN GENERAL.—Clause (vii) of section 168(e)(3)(B) 

4 is amended by striking ‘‘January 1, 2010’’ and inserting 

5 ‘‘January 1, 2011’’. 

6 (b) EFFECTIVE DATE.—The amendment made by this 

7 section shall apply to property placed in service after De8 cember 31, 2009. 

9 SEC. 138. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 

10 QUALIFIED LEASEHOLD IMPROVEMENTS, 

11 QUALIFIED RESTAURANT BUILDINGS AND IM12 PROVEMENTS, AND QUALIFIED RETAIL IM13 PROVEMENTS. 

14 (a) IN GENERAL.—Clauses (iv), (v), and (ix) of section 

15 168(e)(3)(E) are each amended by striking ‘‘January 1, 

16 2010’’ and inserting ‘‘January 1, 2011’’. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Clause (i) of section 168(e)(7)(A) is amended 

19 by striking ‘‘if such building is placed in service after 

20 December 31, 2008, and before January 1, 2010,’’. 

21 (2) Paragraph (8) of section 168(e) is amended 

22 by striking subparagraph (E). 

23 (c) EFFECTIVE DATE.—The amendments made by this 

24 section shall apply to property placed in service after De25 cember 31, 2009. 
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† HR 4213 EAS 

1 SEC. 139. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 

2 ENTERTAINMENT COMPLEXES. 

3 (a) IN GENERAL.—Subparagraph (D) of section 

4 168(i)(15) is amended by striking ‘‘December 31, 2009’’ and 

5 inserting ‘‘December 31, 2010’’. 

6 (b) EFFECTIVE DATE.—The amendment made by this 

7 section shall apply to property placed in service after De8 cember 31, 2009. 

9 SEC. 140. ACCELERATED DEPRECIATION FOR BUSINESS 

10 PROPERTY ON AN INDIAN RESERVATION. 

11 (a) IN GENERAL.—Paragraph (8) of section 168(j) is 

12 amended by striking ‘‘December 31, 2009’’ and inserting 

13 ‘‘December 31, 2010’’. 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to property placed in service after De16 cember 31, 2009. 

17 SEC. 141. ENHANCED CHARITABLE DEDUCTION FOR CON18 TRIBUTIONS OF FOOD INVENTORY. 

19 (a) IN GENERAL.—Clause (iv) of section 170(e)(3)(C) 

20 is amended by striking ‘‘December 31, 2009’’ and inserting 

21 ‘‘December 31, 2010’’. 

22 (b) EFFECTIVE DATE.—The amendment made by this 

23 section shall apply to contributions made after December 

24 31, 2009. 
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† HR 4213 EAS 

1 SEC. 142. ENHANCED CHARITABLE DEDUCTION FOR CON2 TRIBUTIONS OF BOOK INVENTORIES TO PUB3 LIC SCHOOLS. 

4 (a) IN GENERAL.—Clause (iv) of section 170(e)(3)(D) 

5 is amended by striking ‘‘December 31, 2009’’ and inserting 

6 ‘‘December 31, 2010’’. 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to contributions made after December 

9 31, 2009. 

10 SEC. 143. ENHANCED CHARITABLE DEDUCTION FOR COR11 PORATE CONTRIBUTIONS OF COMPUTER IN12 VENTORY FOR EDUCATIONAL PURPOSES. 

13 (a) IN GENERAL.—Subparagraph (G) of section 

14 170(e)(6) is amended by striking ‘‘December 31, 2009’’ and 

15 inserting ‘‘December 31, 2010’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to contributions made in taxable years 

18 beginning after December 31, 2009. 

19 SEC. 144. ELECTION TO EXPENSE MINE SAFETY EQUIP20 MENT. 

21 (a) IN GENERAL.—Subsection (g) of section 179E is 

22 amended by striking ‘‘December 31, 2009’’ and inserting 

23 ‘‘December 31, 2010’’. 

24 (b) EFFECTIVE DATE.—The amendment made by this 

25 section shall apply to property placed in service after De26 cember 31, 2009. 
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1 SEC. 145. SPECIAL EXPENSING RULES FOR CERTAIN FILM 

2 AND TELEVISION PRODUCTIONS. 

3 (a) IN GENERAL.—Subsection (f) of section 181 is 

4 amended by striking ‘‘December 31, 2009’’ and inserting 

5 ‘‘December 31, 2010’’. 

6 (b) EFFECTIVE DATE.—The amendment made by this 

7 section shall apply to productions commencing after Decem8 ber 31, 2009. 

9 SEC. 146. EXPENSING OF ENVIRONMENTAL REMEDIATION 

10 COSTS. 

11 (a) IN GENERAL.—Subsection (h) of section 198 is 

12 amended by striking ‘‘December 31, 2009’’ and inserting 

13 ‘‘December 31, 2010’’. 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to expenditures paid or incurred after 

16 December 31, 2009. 

17 SEC. 147. DEDUCTION ALLOWABLE WITH RESPECT TO IN18 COME ATTRIBUTABLE TO DOMESTIC PRODUC19 TION ACTIVITIES IN PUERTO RICO. 

20 (a) IN GENERAL.—Subparagraph (C) of section 

21 199(d)(8) is amended— 

22 (1) by striking ‘‘first 4 taxable years’’ and in23 serting ‘‘first 5 taxable years’’, and 

24 (2) by striking ‘‘January 1, 2010’’ and inserting 

25 ‘‘January 1, 2011’’. 
22 

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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2009. 

4 SEC. 148. MODIFICATION OF TAX TREATMENT OF CERTAIN 

5 PAYMENTS TO CONTROLLING EXEMPT ORGA6 NIZATIONS. 

7 (a) IN GENERAL.—Clause (iv) of section 512(b)(13)(E) 

8 is amended by striking ‘‘December 31, 2009’’ and inserting 

9 ‘‘December 31, 2010’’. 

10 (b) EFFECTIVE DATE.—The amendment made by this 

11 section shall apply to payments received or accrued after 

12 December 31, 2009. 

13 SEC. 149. EXCLUSION OF GAIN OR LOSS ON SALE OR EX14 CHANGE OF CERTAIN BROWNFIELD SITES 

15 FROM UNRELATED BUSINESS INCOME. 

16 (a) IN GENERAL.—Subparagraph (K) of section 

17 512(b)(19) is amended by striking ‘‘December 31, 2009’’ 

18 and inserting ‘‘December 31, 2010’’. 

19 (b) EFFECTIVE DATE.—The amendment made by this 

20 section shall apply to property acquired after December 31, 

21 2009. 

22 SEC. 150. TIMBER REIT MODERNIZATION. 

23 (a) IN GENERAL.—Paragraph (8) of section 856(c) is 

24 amended by striking ‘‘means’’ and all that follows and in25 serting ‘‘means December 31, 2010.’’. 
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† HR 4213 EAS 

1 (b) CONFORMING AMENDMENTS.— 

2 (1) Subparagraph (I) of section 856(c)(2) is 

3 amended by striking ‘‘the first taxable year beginning 

4 after the date of the enactment of this subparagraph’’ 

5 and inserting ‘‘in a taxable year beginning on or be6 fore the termination date’’. 

7 (2) Clause (iii) of section 856(c)(5)(H) is 

8 amended by inserting ‘‘in taxable years beginning’’ 

9 after ‘‘dispositions’’. 

10 (3) Clause (v) of section 857(b)(6)(D) is amended 

11 by inserting ‘‘in a taxable year beginning’’ after 

12 ‘‘sale’’. 

13 (4) Subparagraph (G) of section 857(b)(6) is 

14 amended by inserting ‘‘in a taxable year beginning’’ 

15 after ‘‘In the case of a sale’’. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to taxable years ending after May 22, 

18 2009. 

19 SEC. 151. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS 

20 OF REGULATED INVESTMENT COMPANIES. 

21 (a) IN GENERAL.—Paragraphs (1)(C) and (2)(C) of 

22 section 871(k) are each amended by striking ‘‘December 31, 

23 2009’’ and inserting ‘‘December 31, 2010’’. 
24 

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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2009. 

4 SEC. 152. RIC QUALIFIED INVESTMENT ENTITY TREATMENT 

5 UNDER FIRPTA. 

6 (a) IN GENERAL.—Clause (ii) of section 897(h)(4)(A) 

7 is amended by striking ‘‘December 31, 2009’’ and inserting 

8 ‘‘December 31, 2010’’. 

9 (b) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—The amendment made by sub11 section (a) shall take effect on January 1, 2010. Not12 withstanding the preceding sentence, such amendment 

13 shall not apply with respect to the withholding re14 quirement under section 1445 of the Internal Revenue 

15 Code of 1986 for any payment made before the date 

16 of the enactment of this Act. 

17 (2) AMOUNTS WITHHELD ON OR BEFORE DATE

18 OF ENACTMENT.—In the case of a regulated invest19 ment company— 

20 (A) which makes a distribution after De21 cember 31, 2009, and before the date of the enact22 ment of this Act, and 

23 (B) which would (but for the second sen24 tence of paragraph (1)) have been required to 
25 

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1 withhold with respect to such distribution under 

2 section 1445 of such Code, 

3 such investment company shall not be liable to any 

4 person to whom such distribution was made for any 

5 amount so withheld and paid over to the Secretary of 

6 the Treasury. 

7 SEC. 153. EXCEPTIONS FOR ACTIVE FINANCING INCOME. 

8 (a) IN GENERAL.—Sections 953(e)(10) and 954(h)(9) 

9 are each amended by striking ‘‘January 1, 2010’’ and in10 serting ‘‘January 1, 2011’’. 

11 (b) CONFORMING AMENDMENT.—Section 953(e)(10) is 

12 amended by striking ‘‘December 31, 2009’’ and inserting 

13 ‘‘December 31, 2010’’. 

14 (c) EFFECTIVE DATE.—The amendments made by this 

15 section shall apply to taxable years of foreign corporations 

16 beginning after December 31, 2009, and to taxable years 

17 of United States shareholders with or within which any 

18 such taxable year of such foreign corporation ends. 

19 SEC. 154. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN 

20 RELATED CONTROLLED FOREIGN CORPORA21 TIONS UNDER FOREIGN PERSONAL HOLDING 

22 COMPANY RULES. 

23 (a) IN GENERAL.—Subparagraph (C) of section 

24 954(c)(6) is amended by striking ‘‘January 1, 2010’’ and 

25 inserting ‘‘January 1, 2011’’. 
26 

† HR 4213 EAS 

1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to taxable years of foreign corporations 

3 beginning after December 31, 2009, and to taxable years 

4 of United States shareholders with or within which any 

5 such taxable year of such foreign corporation ends. 

6 SEC. 155. REDUCTION IN CORPORATE RATE FOR QUALIFIED 

7 TIMBER GAIN. 

8 (a) IN GENERAL.—Paragraph (1) of section 1201(b) 

9 is amended by striking ‘‘ending’’ and all that follows 

10 through ‘‘such date’’. 

11 (b) CONFORMING AMENDMENT.—Paragraph (3) of sec12 tion 1201(b) is amended to read as follows: 

13 ‘‘(3) APPLICATION OF SUBSECTION.—The quali14 fied timber gain for any taxable year shall not exceed 

15 the qualified timber gain which would be determined 

16 by not taking into account any portion of such tax17 able year after December 31, 2010.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to taxable years ending after May 22, 

20 2009. 
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1 SEC. 156. BASIS ADJUSTMENT TO STOCK OF S CORPS MAK2 ING CHARITABLE CONTRIBUTIONS OF PROP3 ERTY. 

4 (a) IN GENERAL.—Paragraph (2) of section 1367(a) 

5 is amended by striking ‘‘December 31, 2009’’ and inserting 

6 ‘‘December 31, 2010’’. 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to contributions made in taxable years 

9 beginning after December 31, 2009. 

10 SEC. 157. EMPOWERMENT ZONE TAX INCENTIVES. 

11 (a) IN GENERAL.—Section 1391 is amended— 

12 (1) by striking ‘‘December 31, 2009’’ in sub13 section (d)(1)(A)(i) and inserting ‘‘December 31, 

14 2010’’, and 

15 (2) by striking the last sentence of subsection 

16 (h)(2). 

17 (b) INCREASED EXCLUSION OF GAIN ON STOCK OF EM18 POWERMENT ZONE BUSINESSES.—Subparagraph (C) of 

19 section 1202(a)(2) is amended— 

20 (1) by striking ‘‘December 31, 2014’’ and insert21 ing ‘‘December 31, 2015’’, and 

22 (2) by striking ‘‘2014’’ in the heading and insert23 ing ‘‘2015’’. 

24 (c) TREATMENT OF CERTAIN TERMINATION DATES

25 SPECIFIED IN NOMINATIONS.—In the case of a designation 

26 of an empowerment zone the nomination for which included 
28 

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1 a termination date which is contemporaneous with the date 

2 specified in subparagraph (A)(i) of section 1391(d)(1) of 

3 the Internal Revenue Code of 1986 (as in effect before the 

4 enactment of this Act), subparagraph (B) of such section 

5 shall not apply with respect to such designation unless, 

6 after the date of the enactment of this section, the entity 

7 which made such nomination reconfirms such termination 

8 date, or amends the nomination to provide for a new termi9 nation date, in such manner as the Secretary of the Treas10 ury (or the Secretary’s designee) may provide. 

11 (d) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to periods after December 31, 2009. 

13 SEC. 158. TAX INCENTIVES FOR INVESTMENT IN THE DIS14 TRICT OF COLUMBIA. 

15 (a) IN GENERAL.—Subsection (f) of section 1400 is 

16 amended by striking ‘‘December 31, 2009’’ each place it ap17 pears and inserting ‘‘December 31, 2010’’. 

18 (b) TAX-EXEMPT DC EMPOWERMENT ZONE BONDS.— 

19 Subsection (b) of section 1400A is amended by striking ‘‘De20 cember 31, 2009’’ and inserting ‘‘December 31, 2010’’. 

21 (c) ZERO-PERCENT CAPITAL GAINS RATE.— 

22 (1) ACQUISITION DATE.—Paragraphs (2)(A)(i), 

23 (3)(A), (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) 

24 are each amended by striking ‘‘January 1, 2010’’ and 

25 inserting ‘‘January 1, 2011’’. 
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1 (2) LIMITATION ON PERIOD OF GAINS.— 

2 (A) IN GENERAL.—Paragraph (2) of section 

3 1400B(e) is amended— 

4 (i) by striking ‘‘December 31, 2014’’ 

5 and inserting ‘‘December 31, 2015’’, and 

6 (ii) by striking ‘‘2014’’ in the heading 

7 and inserting ‘‘2015’’. 

8 (B) PARTNERSHIPS AND S-CORPS.—Para9 graph (2) of section 1400B(g) is amended by 

10 striking ‘‘December 31, 2014’’ and inserting ‘‘De11 cember 31, 2015’’. 

12 (d) FIRST-TIME HOMEBUYER CREDIT.—Subsection (i) 

13 of section 1400C is amended by striking ‘‘January 1, 2010’’ 

14 and inserting ‘‘January 1, 2011’’. 

15 (e) EFFECTIVE DATES.— 

16 (1) IN GENERAL.—Except as otherwise provided 

17 in this subsection, the amendments made by this sec18 tion shall apply to periods after December 31, 2009. 

19 (2) TAX-EXEMPT DC EMPOWERMENT ZONE

20 BONDS.—The amendment made by subsection (b) 

21 shall apply to bonds issued after December 31, 2009. 

22 (3) ACQUISITION DATES FOR ZERO-PERCENT

23 CAPITAL GAINS RATE.—The amendments made by 

24 subsection (c) shall apply to property acquired or sub25 stantially improved after December 31, 2009. 
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1 (4) HOMEBUYER CREDIT.—The amendment 

2 made by subsection (d) shall apply to homes pur3 chased after December 31, 2009. 

4 SEC. 159. RENEWAL COMMUNITY TAX INCENTIVES. 

5 (a) IN GENERAL.—Subsection (b) of section 1400E is 

6 amended— 

7 (1) by striking ‘‘December 31, 2009’’ in para8 graphs (1)(A) and (3) and inserting ‘‘December 31, 

9 2010’’, and 

10 (2) by striking ‘‘January 1, 2010’’ in paragraph 

11 (3) and inserting ‘‘January 1, 2011’’. 

12 (b) ZERO-PERCENT CAPITAL GAINS RATE.— 

13 (1) ACQUISITION DATE.—Paragraphs (2)(A)(i), 

14 (3)(A), (4)(A)(i), and (4)(B)(i) of section 1400F(b) 

15 are each amended by striking ‘‘January 1, 2010’’ and 

16 inserting ‘‘January 1, 2011’’. 

17 (2) LIMITATION ON PERIOD OF GAINS.—Para18 graph (2) of section 1400F(c) is amended— 

19 (A) by striking ‘‘December 31, 2014’’ and 

20 inserting ‘‘December 31, 2015’’, and 

21 (B) by striking ‘‘2014’’ in the heading and 

22 inserting ‘‘2015’’. 

23 (3) CLERICAL AMENDMENT.—Subsection (d) of 

24 section 1400F is amended by striking ‘‘and ‘December 

25 31, 2014’ for ‘December 31, 2014’ ’’. 
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1 (c) COMMERCIAL REVITALIZATION DEDUCTION.— 

2 (1) IN GENERAL.—Subsection (g) of section 

3 1400I is amended by striking ‘‘December 31, 2009’’ 

4 and inserting ‘‘December 31, 2010’’. 

5 (2) CONFORMING AMENDMENT.—Subparagraph 

6 (A) of section 1400I(d)(2) is amended by striking 

7 ‘‘after 2001 and before 2010’’ and inserting ‘‘which 

8 begins after 2001 and before the date referred to in 

9 subsection (g)’’. 

10 (d) INCREASED EXPENSING UNDER SECTION 179.— 

11 Subparagraph (A) of section 1400J(b)(1) is amended by 

12 striking ‘‘January 1, 2010’’ and inserting ‘‘January 1, 

13 2011’’. 

14 (e) TREATMENT OF CERTAIN TERMINATION DATES

15 SPECIFIED IN NOMINATIONS.—In the case of a designation 

16 of a renewal community the nomination for which included 

17 a termination date which is contemporaneous with the date 

18 specified in subparagraph (A) of section 1400E(b)(1) of the 

19 Internal Revenue Code of 1986 (as in effect before the enact20 ment of this Act), subparagraph (B) of such section shall 

21 not apply with respect to such designation unless, after the 

22 date of the enactment of this section, the entity which made 

23 such nomination reconfirms such termination date, or 

24 amends the nomination to provide for a new termination 
32 

† HR 4213 EAS 

1 date, in such manner as the Secretary of the Treasury (or 

2 the Secretary’s designee) may provide. 

3 (f) EFFECTIVE DATES.— 

4 (1) IN GENERAL.—Except as otherwise provided 

5 in this subsection, the amendments made by this sec6 tion shall apply to periods after December 31, 2009. 

7 (2) ACQUISITIONS.—The amendments made by 

8 subsections (b)(1) and (d) shall apply to acquisitions 

9 after December 31, 2009. 

10 (3) COMMERCIAL REVITALIZATION DEDUCTION.— 

11 (A) IN GENERAL.—The amendment made 

12 by subsection (c)(1) shall apply to buildings 

13 placed in service after December 31, 2009. 

14 (B) CONFORMING AMENDMENT.—The 

15 amendment made by subsection (c)(2) shall 

16 apply to calendar years beginning after Decem17 ber 31, 2009. 

18 SEC. 160. TEMPORARY INCREASE IN LIMIT ON COVER OVER 

19 OF RUM EXCISE TAXES TO PUERTO RICO AND 

20 THE VIRGIN ISLANDS. 

21 (a) IN GENERAL.—Paragraph (1) of section 7652(f) is 

22 amended by striking ‘‘January 1, 2010’’ and inserting 

23 ‘‘January 1, 2011’’. 
33 

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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to distilled spirits brought into the 

3 United States after December 31, 2009. 

4 SEC. 161. AMERICAN SAMOA ECONOMIC DEVELOPMENT 

5 CREDIT. 

6 (a) IN GENERAL.—Subsection (d) of section 119 of di7 vision A of the Tax Relief and Health Care Act of 2006 

8 is amended— 

9 (1) by striking ‘‘first 4 taxable years’’ and in10 serting ‘‘first 5 taxable years’’, and 

11 (2) by striking ‘‘January 1, 2010’’ and inserting 

12 ‘‘January 1, 2011’’. 

13 (b) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to taxable years beginning after Decem15 ber 31, 2009. 

16 Subtitle D—Temporary Disaster 

17 Relief Provisions 

18 PART I—NATIONAL DISASTER RELIEF 

19 SEC. 171. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 

20 REQUIREMENTS. 

21 (a) IN GENERAL.—Paragraph (11) of section 143(k) 

22 is amended by striking ‘‘January 1, 2010’’ and inserting 

23 ‘‘January 1, 2011’’. 

24 (b) SPECIAL RULE FOR RESIDENCES DESTROYED IN

25 FEDERALLY DECLARED DISASTERS.—Paragraph (13) of 
34 

† HR 4213 EAS 

1 section 143(k), as redesignated by subsection (c), is amended 

2 by striking ‘‘January 1, 2010’’ in subparagraphs (A)(i) and 

3 (B)(i) and inserting ‘‘January 1, 2011’’. 

4 (c) TECHNICAL AMENDMENT.—Subsection (k) of sec5 tion 143 is amended by redesignating the second paragraph 

6 (12) (relating to special rules for residences destroyed in 

7 federally declared disasters) as paragraph (13). 

8 (d) EFFECTIVE DATES.— 

9 (1) IN GENERAL.—Except as otherwise provided 

10 in this subsection, the amendment made by this sec11 tion shall apply to bonds issued after December 31, 

12 2009. 

13 (2) RESIDENCES DESTROYED IN FEDERALLY DE14 CLARED DISASTERS.—The amendments made by sub15 section (b) shall apply with respect to disasters occur16 ring after December 31, 2009. 

17 (3) TECHNICAL AMENDMENT.—The amendment 

18 made by subsection (c) shall take effect as if included 

19 in section 709 of the Tax Extenders and Alternative 

20 Minimum Tax Relief Act of 2008. 

21 SEC. 172. LOSSES ATTRIBUTABLE TO FEDERALLY DE22 CLARED DISASTERS. 

23 (a) IN GENERAL.—Subclause (I) of section 

24 165(h)(3)(B)(i) is amended by striking ‘‘January 1, 2010’’ 

25 and inserting ‘‘January 1, 2011’’. 
35 

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1 (b) $500 LIMITATION.—Paragraph (1) of section 

2 165(h) is amended by striking ‘‘December 31, 2009’’ and 

3 inserting ‘‘December 31, 2010’’. 

4 (c) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—The amendment made by sub6 section (a) shall apply to federally declared disasters 

7 occurring after December 31, 2009. 

8 (2) $500 LIMITATION.—The amendment made by 

9 subsection (b) shall apply to taxable years beginning 

10 after December 31, 2009. 

11 SEC. 173. SPECIAL DEPRECIATION ALLOWANCE FOR QUALI12 FIED DISASTER PROPERTY. 

13 (a) IN GENERAL.—Subclause (I) of section 

14 168(n)(2)(A)(ii) is amended by striking ‘‘January 1, 2010’’ 

15 and inserting ‘‘January 1, 2011’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to disasters occurring after December 31, 

18 2009. 

19 SEC. 174. NET OPERATING LOSSES ATTRIBUTABLE TO FED20 ERALLY DECLARED DISASTERS. 

21 (a) IN GENERAL.—Subclause (I) of section 

22 172(j)(1)(A)(i) is amended by striking ‘‘January 1, 2010’’ 

23 and inserting ‘‘January 1, 2011’’. 
36 

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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to losses attributable to disasters occur3 ring after December 31, 2009. 

4 SEC. 175. EXPENSING OF QUALIFIED DISASTER EXPENSES. 

5 (a) IN GENERAL.—Subparagraph (A) of section 

6 198A(b)(2) is amended by striking ‘‘January 1, 2010’’ and 

7 inserting ‘‘January 1, 2011’’. 

8 (b) EFFECTIVE DATE.—The amendment made by this 

9 section shall apply to expenditures on account of disasters 

10 occurring after December 31, 2009. 

11 PART II—REGIONAL PROVISIONS 

12 Subpart A—New York Liberty Zone 

13 SEC. 181. SPECIAL DEPRECIATION ALLOWANCE FOR NON14 RESIDENTIAL AND RESIDENTIAL REAL PROP15 ERTY. 

16 (a) IN GENERAL.—Subparagraph (A) of section 

17 1400L(b)(2) is amended by striking ‘‘December 31, 2009’’ 

18 and inserting ‘‘December 31, 2010’’. 

19 (b) EFFECTIVE DATE.—The amendment made by this 

20 section shall apply to property placed in service after De21 cember 31, 2009. 

22 SEC. 182. TAX-EXEMPT BOND FINANCING. 

23 (a) IN GENERAL.—Subparagraph (D) of section 

24 1400L(d)(2) is amended by striking ‘‘January 1, 2010’’ and 

25 inserting ‘‘January 1, 2011’’. 
37 

† HR 4213 EAS 

1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to bonds issued after December 31, 2009. 

3 Subpart B—GO Zone 

4 SEC. 183. SPECIAL DEPRECIATION ALLOWANCE. 

5 (a) IN GENERAL.—Paragraph (6) of section 

6 1400N(d)(6) is amended by striking subparagraph (D). 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to property placed in service after De9 cember 31, 2009. 

10 SEC. 184. INCREASE IN REHABILITATION CREDIT. 

11 (a) IN GENERAL.—Subsection (h) of section 1400N is 

12 amended by striking ‘‘December 31, 2009’’ and inserting 

13 ‘‘December 31, 2010’’. 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to amounts paid or incurred after De16 cember 31, 2009. 

17 SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH RESPECT 

18 TO CERTAIN INDIVIDUALS AFFECTED BY 

19 HURRICANE KATRINA FOR EMPLOYERS IN20 SIDE DISASTER AREAS. 

21 (a) IN GENERAL.—Paragraph (1) of section 201(b) of 

22 the Katrina Emergency Tax Relief Act of 2005 is amended 

23 by striking ‘‘4-year’’ and inserting ‘‘5-year’’. 
38 

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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall apply to individuals hired after August 

3 27, 2009. 

4 Subpart C—Midwestern Disaster Areas 

5 SEC. 191. SPECIAL RULES FOR USE OF RETIREMENT FUNDS. 

6 (a) IN GENERAL.—Section 702(d)(10) of the Heart7 land Disaster Tax Relief Act of 2008 (Public Law 110–343; 

8 122 Stat. 3918) is amended— 

9 (1) by striking ‘‘January 1, 2010’’ both places it 

10 appears and inserting ‘‘January 1, 2011’’, and 

11 (2) by striking ‘‘December 31, 2009’’ both places 

12 it appears and inserting ‘‘December 31, 2010’’. 

13 (b) EFFECTIVE DATE.—The amendments made by this 

14 section shall take effect as if included in section 702(d)(10) 

15 of the Heartland Disaster Tax Relief Act of 2008. 

16 SEC. 192. EXCLUSION OF CANCELLATION OF MORTGAGE IN17 DEBTEDNESS. 

18 (a) IN GENERAL.—Section 702(e)(4)(C) of the Heart19 land Disaster Tax Relief Act of 2008 (Public Law 110–343; 

20 122 Stat. 3918) is amended by striking ‘‘January 1, 2010’’ 

21 and inserting ‘‘January 1, 2011’’. 

22 (b) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to discharges of indebtedness after De24 cember 31, 2009. 
39 

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1 TITLE II—UNEMPLOYMENT IN2 SURANCE, HEALTH, AND 

3 OTHER PROVISIONS 

4 Subtitle A—Unemployment 

5 Insurance 

6 SEC. 201. EXTENSION OF UNEMPLOYMENT INSURANCE 

7 PROVISIONS. 

8 (a) IN GENERAL.—(1) Section 4007 of the Supple9 mental Appropriations Act, 2008 (Public Law 110–252; 26 

10 U.S.C. 3304 note) is amended— 

11 (A) by striking ‘‘April 5, 2010’’ each place it ap12 pears and inserting ‘‘December 31, 2010’’; 

13 (B) in the heading for subsection (b)(2), by strik14 ing ‘‘APRIL 5, 2010’’ and inserting ‘‘DECEMBER 31, 

15 2010’’; and 

16 (C) in subsection (b)(3), by striking ‘‘September 

17 4, 2010’’ and inserting ‘‘May 31, 2011’’. 

18 (2) Section 2002(e) of the Assistance for Unemployed 

19 Workers and Struggling Families Act, as contained in Pub20 lic Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 438), is 

21 amended— 

22 (A) in paragraph (1)(B), by striking ‘‘April 5, 

23 2010’’ and inserting ‘‘December 31, 2010’’; 
40 

† HR 4213 EAS 

1 (B) in the heading for paragraph (2), by strik2 ing ‘‘APRIL 5, 2010’’ and inserting ‘‘DECEMBER 31, 

3 2010’’; and 

4 (C) in paragraph (3), by striking ‘‘October 5, 

5 2010’’ and inserting ‘‘June 30, 2011’’. 

6 (3) Section 2005 of the Assistance for Unemployed 

7 Workers and Struggling Families Act, as contained in Pub8 lic Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), is 

9 amended— 

10 (A) by striking ‘‘April 5, 2010’’ each place it ap11 pears and inserting ‘‘January 1, 2011’’; and 

12 (B) in subsection (c), by striking ‘‘September 4, 

13 2010’’ and inserting ‘‘June 1, 2011’’. 

14 (4) Section 5 of the Unemployment Compensation Ex15 tension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 

16 note) is amended by striking ‘‘September 4, 2010’’ and in17 serting ‘‘May 31, 2011’’. 

18 (b) FUNDING.—Section 4004(e)(1) of the Supplemental 

19 Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 

20 3304 note) is amended— 

21 (1) in subparagraph (C), by striking ‘‘and’’ at 

22 the end; and 

23 (2) by inserting after subparagraph (D) the fol24 lowing new subparagraph: 
41 

† HR 4213 EAS 

1 ‘‘(E) the amendments made by section 

2 201(a)(1) of the American Workers, State, and 

3 Business Relief Act of 2010; and’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall take effect as if included in the enactment of 

6 the Temporary Extension Act of 2010. 

7 Subtitle B—Health Provisions 

8 SEC. 211. EXTENSION AND IMPROVEMENT OF PREMIUM AS9 SISTANCE FOR COBRA BENEFITS. 

10 (a) EXTENSION OF ELIGIBILITY PERIOD.—Subsection 

11 (a)(3)(A) of section 3001 of division B of the American Re12 covery and Reinvestment Act of 2009 (Public Law 111–5), 

13 as amended by section 3 of the Temporary Extension Act 

14 of 2010, is amended by striking ‘‘March 31, 2010’’ and in15 serting ‘‘December 31, 2010’’. 

16 (b) RULES RELATING TO 2010 EXTENSION.—Sub17 section (a) of section 3001 of division B of the American 

18 Recovery and Reinvestment Act of 2009 (Public Law 111– 

19 5), as amended by subsection (b)(1)(C), is further amended 

20 by adding at the end the following: 

21 ‘‘(18) RULES RELATED TO 2010 EXTENSION.— 

22 ‘‘(A) ELECTION TO PAY PREMIUMS RETRO23 ACTIVELY AND MAINTAIN COBRA COVERAGE.—In 

24 the case of any premium for a period of coverage 

25 during an assistance eligible individual’s 2010 
42 

† HR 4213 EAS 

1 transition period, such individual shall be treat2 ed for purposes of any COBRA continuation 

3 provision as having timely paid the amount of 

4 such premium if— 

5 ‘‘(i) such individual’s qualifying event 

6 was on or after April 1, 2010 and prior to 

7 the date of enactment of this paragraph, 

8 and 

9 ‘‘(ii) such individual pays, by the lat10 est of 60 days after the date of the enact11 ment of this paragraph, 30 days after the 

12 date of provision of the notification required 

13 under paragraph (16)(D)(ii) (as applied by 

14 subparagraph (D) of this paragraph), or the 

15 period described in section 

16 4980B(f)(2)(B)(iii) of the Internal Revenue 

17 Code of 1986, the amount of such premium, 

18 after the application of paragraph (1)(A). 

19 ‘‘(B) REFUNDS AND CREDITS FOR RETRO20 ACTIVE PREMIUM ASSISTANCE ELIGIBILITY.—In 

21 the case of an assistance eligible individual who 

22 pays, with respect to any period of COBRA con23 tinuation coverage during such individual’s 2010 

24 transition period, the premium amount for such 

25 coverage without regard to paragraph (1)(A), 
43 

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1 rules similar to the rules of paragraph (12)(E) 

2 shall apply. 

3 ‘‘(C) 2010 TRANSITION PERIOD.— 

4 ‘‘(i) IN GENERAL.—For purposes of 

5 this paragraph, the term ‘transition period’ 

6 means, with respect to any assistance eligi7 ble individual, any period of coverage if— 

8 ‘‘(I) such assistance eligible indi9 vidual experienced an involuntary ter10 mination that was a qualifying event 

11 prior to the date of enactment of the 

12 American Workers, State, and Business 

13 Relief Act of 2010, and 

14 ‘‘(II) paragraph (1)(A) applies to 

15 such period by reason of the amend16 ments made by section 211 of the 

17 American Workers, State, and Business 

18 Relief Act of 2010. 

19 ‘‘(ii) CONSTRUCTION.—Any period 

20 during the period described in subclauses 

21 (I) and (II) of clause (i) for which the ap22 plicable premium has been paid pursuant 

23 to subparagraph (A) shall be treated as a 

24 period of coverage referred to in such para25 graph, irrespective of any failure to timely 
44 

† HR 4213 EAS 

1 pay the applicable premium (other than 

2 pursuant to subparagraph (A)) for such pe3 riod. 

4 ‘‘(D) NOTIFICATION.—Notification provi5 sions similar to the provisions of paragraph 

6 (16)(E) shall apply for purposes of this para7 graph.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by this 

9 section shall take effect as if included in the provisions of 

10 section 3001 of division B of the American Recovery and 

11 Reinvestment Act of 2009. 

12 SEC. 212. EXTENSION OF THERAPY CAPS EXCEPTIONS 

13 PROCESS. 

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

15 U.S.C. 1395l(g)(5)) is amended by striking ‘‘March 31, 

16 2010’’ and inserting ‘‘December 31, 2010’’. 

17 SEC. 213. TREATMENT OF PHARMACIES UNDER DURABLE 

18 MEDICAL EQUIPMENT ACCREDITATION RE19 QUIREMENTS. 

20 (a) IN GENERAL.—Section 1834(a)(20) of the Social 

21 Security Act (42 U.S.C. 1395m(a)(20)) is amended— 

22 (1) in subparagraph (F)— 

23 (A) in clause (i)— 

24 (i) by striking ‘‘clause (ii)’’ and insert25 ing ‘‘clauses (ii) and (iii)’’; 
45 

† HR 4213 EAS 

1 (ii) by striking ‘‘January 1, 2010’’ 

2 and inserting ‘‘January 1, 2011’’; and 

3 (iii) by striking ‘‘and’’ at the end; 

4 (B) in clause (ii)(II), by striking the period 

5 at the end and inserting ‘‘; and’’; 

6 (C) by inserting after clause (ii)(II) the fol7 lowing new clause: 

8 ‘‘(iii)(I) subject to subclause (II), with 

9 respect to items and services furnished on or 

10 after January 1, 2011, the accreditation re11 quirement of clause (i) shall not apply to a 

12 pharmacy described in subparagraph (G); 

13 and 

14 ‘‘(II) effective with respect to items and 

15 services furnished on or after the date of the 

16 enactment of this subparagraph, the Sec17 retary may apply to pharmacies quality 

18 standards and an accreditation requirement 

19 established by the Secretary that are an al20 ternative to the quality standards and ac21 creditation requirement otherwise applicable 

22 under this paragraph if the Secretary deter23 mines such alternative quality standards 

24 and accreditation requirement are appro25 priate for pharmacies.’’; and 
46 

† HR 4213 EAS 

1 (D) by adding at the end the following flush 

2 sentence: 

3 ‘‘If determined appropriate by the Secretary, 

4 any alternative quality standards and accredita5 tion requirement established under clause 

6 (iii)(II) may differ for categories of pharmacies 

7 established by the Secretary (such as pharmacies 

8 described in subparagraph (G)).’’; and 

9 (2) by adding at the end the following new sub10 paragraph: 

11 ‘‘(G) PHARMACY DESCRIBED.—A pharmacy 

12 described in this subparagraph is a pharmacy 

13 that meets each of the following criteria: 

14 ‘‘(i) The total billings by the pharmacy 

15 for such items and services under this title 

16 are less than 5 percent of total pharmacy 

17 sales for a previous period (of not less than 

18 24 months) specified by the Secretary. 

19 ‘‘(ii) The pharmacy has been enrolled 

20 under section 1866(j) as a supplier of dura21 ble medical equipment, prosthetics, 

22 orthotics, and supplies, has been issued 

23 (which may include the renewal of) a pro24 vider number for at least 2 years, and for 

25 which a final adverse action (as defined in 
47 

† HR 4213 EAS 

1 section 424.57(a) of title 42, Code of Federal 

2 Regulations) has not been imposed in the 

3 past 2 years. 

4 ‘‘(iii) The pharmacy submits to the 

5 Secretary an attestation, in a form and 

6 manner, and at a time, specified by the 

7 Secretary, that the pharmacy meets the cri8 teria described in clauses (i) and (ii). 

9 ‘‘(iv) The pharmacy agrees to submit 

10 materials as requested by the Secretary, or 

11 during the course of an audit conducted on 

12 a random sample of pharmacies selected an13 nually, to verify that the pharmacy meets 

14 the criteria described in clauses (i) and (ii). 

15 Materials submitted under the preceding 

16 sentence shall include a certification by an 

17 independent accountant on behalf of the 

18 pharmacy or the submission of tax returns 

19 filed by the pharmacy during the relevant 

20 periods, as requested by the Secretary.’’. 

21 (b) CONFORMING AMENDMENTS.—Section 

22 1834(a)(20)(E) of the Social Security Act (42 U.S.C. 

23 1395m(a)(20)(E)) is amended— 
48 

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1 (1) in the first sentence, by striking ‘‘The’’ and 

2 inserting ‘‘Except as provided in the third sentence, 

3 the’’; and 

4 (2) by adding at the end the following new sen5 tences: ‘‘Notwithstanding the preceding sentences, any 

6 alternative quality standards and accreditation re7 quirement established under subparagraph (F)(iii)(II) 

8 shall be established through notice and comment rule9 making. The Secretary may implement by program 

10 instruction or otherwise subparagraph (G) after con11 sultation with representatives of relevant parties. The 

12 specifications developed by the Secretary in order to 

13 implement subparagraph (G) shall be posted on the 

14 Internet website of the Centers for Medicare & Med15 icaid Services.’’. 

16 (c) ADMINISTRATION.—Chapter 35 of title 44, United 

17 States Code, shall not apply to this section. 

18 (d) RULE OF CONSTRUCTION.—Nothing in the provi19 sions of, or amendments made by, this section shall be con20 strued as affecting the application of an accreditation re21 quirement for pharmacies to qualify for bidding in a com22 petitive acquisition area under section 1847 of the Social 

23 Security Act (42 U.S.C. 1395w–3). 

24 (e) WAIVER OF 1-YEAR REENROLLMENT BAR.—In the 

25 case of a pharmacy described in subparagraph (G) of sec-
49 

† HR 4213 EAS 

1 tion 1834(a)(20) of the Social Security Act, as added by 

2 subsection (a), whose billing privileges were revoked prior 

3 to January 1, 2011, by reason of noncompliance with sub4 paragraph (F)(i) of such section, the Secretary of Health 

5 and Human Services shall waive any reenrollment bar im6 posed pursuant to section 424.535(d) of title 42, Code of 

7 Federal Regulations (as in effect on the date of the enact8 ment of this Act) for such pharmacy to reapply for such 

9 privileges. 

10 SEC. 214. ENHANCED PAYMENT FOR MENTAL HEALTH 

11 SERVICES. 

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

13 Patients and Providers Act of 2008 (Public Law 110–275) 

14 is amended by striking ‘‘December 31, 2009’’ and inserting 

15 ‘‘December 31, 2010’’. 

16 SEC. 215. EXTENSION OF AMBULANCE ADD-ONS. 

17 (a) IN GENERAL.—Section 1834(l)(13) of the Social 

18 Security Act (42 U.S.C. 1395m(l)(13)) is amended— 

19 (1) in subparagraph (A)— 

20 (A) in the matter preceding clause (i), by 

21 striking ‘‘before January 1, 2010’’ and inserting 

22 ‘‘before January 1, 2011’’; and 

23 (B) in each of clauses (i) and (ii), by strik24 ing ‘‘before January 1, 2010’’ and inserting ‘‘be25 fore January 1, 2011’’. 
50 

† HR 4213 EAS 

1 (b) AIR AMBULANCE IMPROVEMENTS.—Section 

2 146(b)(1) of the Medicare Improvements for Patients and 

3 Providers Act of 2008 (Public Law 110–275) is amended 

4 by striking ‘‘ending on December 31, 2009’’ and inserting 

5 ‘‘ending on December 31, 2010’’. 

6 (c) SUPER RURAL AMBULANCE.—Section 

7 1834(l)(12)(A) of the Social Security Act (42 U.S.C. 

8 1395m(l)(12)(A)) is amended— 

9 (1) in the first sentence, by striking ‘‘2010’’ and 

10 inserting ‘‘2011’’; and 

11 (2) by adding at the end the following new sen12 tence: ‘‘For purposes of applying this subparagraph 

13 for ground ambulance services furnished on or after 

14 January 1, 2010, and before January 1, 2011, the 

15 Secretary shall use the percent increase that was ap16 plicable under this subparagraph to ground ambu17 lance services furnished during 2009.’’. 

18 SEC. 216. EXTENSION OF GEOGRAPHIC FLOOR FOR WORK. 

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

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

21 January 1, 2010’’ and inserting ‘‘before January 1, 2011’’. 
51 

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1 SEC. 217. EXTENSION OF PAYMENT FOR TECHNICAL COM2 PONENT OF CERTAIN PHYSICIAN PATHOLOGY 

3 SERVICES. 

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

5 Benefits Improvement and Protection Act of 2000 (as en6 acted into law by section 1(a)(6) of Public Law 106–554), 

7 as amended by section 732 of the Medicare Prescription 

8 Drug, Improvement, and Modernization Act of 2003 (42 

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

10 Relief and Health Care Act of 2006 (42 U.S.C. 1395w–4 

11 note), section 104 of the Medicare, Medicaid, and SCHIP 

12 Extension Act of 2007 (Public Law 110–173), and section 

13 136 of the Medicare Improvements for Patients and Pro14 viders Act of 2008 (Public Law 110–275), is amended by 

15 striking ‘‘and 2009’’ and inserting ‘‘2009, and 2010’’. 

16 SEC. 218. EXTENSION OF OUTPATIENT HOLD HARMLESS 

17 PROVISION. 

18 (a) IN GENERAL.—Section 1833(t)(7)(D)(i) of the So19 cial Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) is amend20 ed— 

21 (1) in subclause (II)— 

22 (A) in the first sentence, by striking 

23 ‘‘2010’’and inserting ‘‘2011’’; and 

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

25 2009’’ and inserting ‘‘, 2009, or 2010’’; and 
52 

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1 (2) in subclause (III), by striking ‘‘January 1, 

2 2010’’ and inserting ‘‘January 1, 2011’’. 

3 (b) PERMITTING ALL SOLE COMMUNITY HOSPITALS

4 TO BE ELIGIBLE FOR HOLD HARMLESS.—Section 

5 1833(t)(7)(D)(i)(III) of the Social Security Act (42 U.S.C. 

6 1395l(t)(7)(D)(i)(III)) is amended by adding at the end the 

7 following new sentence: ‘‘In the case of covered OPD services 

8 furnished on or after January 1, 2010, and before January 

9 1, 2011, the preceding sentence shall be applied without re10 gard to the 100-bed limitation.’’. 

11 SEC. 219. EHR CLARIFICATION. 

12 (a) QUALIFICATION FOR CLINIC-BASED PHYSICIANS.— 

13 (1) MEDICARE.—Section 1848(o)(1)(C)(ii) of the 

14 Social Security Act (42 U.S.C. 1395w–4(o)(1)(C)(ii)) 

15 is amended by striking ‘‘setting (whether inpatient or 

16 outpatient)’’ and inserting ‘‘inpatient or emergency 

17 room setting’’. 

18 (2) MEDICAID.—Section 1903(t)(3)(D) of the So19 cial Security Act (42 U.S.C. 1396b(t)(3)(D)) is 

20 amended by striking ‘‘setting (whether inpatient or 

21 outpatient)’’ and inserting ‘‘inpatient or emergency 

22 room setting’’. 

23 (b) EFFECTIVE DATE.—The amendments made by sub24 section (a) shall be effective as if included in the enactment 
53 

† HR 4213 EAS 

1 of the HITECH Act (included in the American Recovery 

2 and Reinvestment Act of 2009 (Public Law 111–5)). 

3 (c) IMPLEMENTATION.—Notwithstanding any other 

4 provision of law, the Secretary may implement the amend5 ments made by this section by program instruction or other6 wise. 

7 SEC. 220. EXTENSION OF REIMBURSEMENT FOR ALL MEDI8 CARE PART B SERVICES FURNISHED BY CER9 TAIN INDIAN HOSPITALS AND CLINICS. 

10 Section 1880(e)(1)(A) of the Social Security Act (42 

11 U.S.C. 1395qq(e)(1)(A)) is amended by striking ‘‘5-year pe12 riod’’ and inserting ‘‘6-year period’’. 

13 SEC. 221. EXTENSION OF CERTAIN PAYMENT RULES FOR 

14 LONG-TERM CARE HOSPITAL SERVICES AND 

15 OF MORATORIUM ON THE ESTABLISHMENT 

16 OF CERTAIN HOSPITALS AND FACILITIES. 

17 (a) EXTENSION OF CERTAIN PAYMENT RULES.—Sec18 tion 114(c) of the Medicare, Medicaid, and SCHIP Exten19 sion Act of 2007 (42 U.S.C. 1395ww note), as amended by 

20 section 4302(a) of the American Recovery and Reinvestment 

21 Act (Public Law 111–5), is amended by striking ‘‘3-year 

22 period’’ each place it appears and inserting ‘‘4-year pe23 riod’’. 

24 (b) EXTENSION OF MORATORIUM.—Section 114(d)(1) 

25 of such Act (42 U.S.C. 1395ww note), as amended by section 
54 

† HR 4213 EAS 

1 4302(b) of the American Recovery and Reinvestment Act 

2 (Public Law 111–5), in the matter preceding subparagraph 

3 (A), is amended by striking ‘‘3-year period’’ and inserting 

4 ‘‘4-year period’’. 

5 SEC. 222. EXTENSION OF THE MEDICARE RURAL HOSPITAL 

6 FLEXIBILITY PROGRAM. 

7 Section 1820(j) of the Social Security Act (42 U.S.C. 

8 1395i–4(j)) is amended— 

9 (1) by striking ‘‘2010, and for’’ and inserting 

10 ‘‘2010, for’’; and 

11 (2) by inserting ‘‘and for making grants to all 

12 States under subsection (g), such sums as may be nec13 essary in fiscal year 2011, to remain available until 

14 expended’’ before the period at the end. 

15 SEC. 223. EXTENSION OF SECTION 508 HOSPITAL RECLASSI16 FICATIONS. 

17 (a) IN GENERAL.—Subsection (a) of section 106 of di18 vision B of the Tax Relief and Health Care Act of 2006 

19 (42 U.S.C. 1395 note), as amended by section 117 of the 

20 Medicare, Medicaid, and SCHIP Extension Act of 2007 

21 (Public Law 110–173) and section 124 of the Medicare Im22 provements for Patients and Providers Act of 2008 (Public 

23 Law 110–275), is amended by striking ‘‘September 30, 

24 2009’’ and inserting ‘‘September 30, 2010’’. 
55 

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1 (b) SPECIAL RULE FOR FISCAL YEAR 2010.—For pur2 poses of implementation of the amendment made by sub3 section (a), including (notwithstanding paragraph (3) of 

4 section 117(a) of the Medicare, Medicaid, and SCHIP Ex5 tension Act of 2007 (Public Law 110–173), as amended by 

6 section 124(b) of the Medicare Improvements for Patients 

7 and Providers Act of 2008 (Public Law 110–275)) for pur8 poses of the implementation of paragraph (2) of such section 

9 117(a), during fiscal year 2010, the Secretary of Health 

10 and Human Services (in this subsection referred to as the 

11 ‘‘Secretary’’) shall use the hospital wage index that was pro12 mulgated by the Secretary in the Federal Register on Au13 gust 27, 2009 (74 Fed. Reg. 43754), and any subsequent 

14 corrections. 

15 SEC. 224. TECHNICAL CORRECTION RELATED TO CRITICAL 

16 ACCESS HOSPITAL SERVICES. 

17 (a) IN GENERAL.—Subsections (g)(2)(A) and (l)(8) of 

18 section 1834 of the Social Security Act (42 U.S.C. 1395m) 

19 are each amended by inserting ‘‘101 percent of’’ before ‘‘the 

20 reasonable costs’’. 

21 (b) EFFECTIVE DATE.—The amendments made by sub22 section (a) shall take effect as if included in the enactment 

23 of section 405(a) of the Medicare Prescription Drug, Im24 provement, and Modernization Act of 2003 (Public Law 

25 108–173; 117 Stat. 2266). 
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† HR 4213 EAS 

1 SEC. 225. EXTENSION FOR SPECIALIZED MA PLANS FOR 

2 SPECIAL NEEDS INDIVIDUALS. 

3 (a) IN GENERAL.—Section 1859(f)(1) of the Social Se4 curity Act (42 U.S.C. 1395w–28(f)(1)) is amended by strik5 ing ‘‘2011’’ and inserting ‘‘2012’’. 

6 (b) TEMPORARY EXTENSION OF AUTHORITY TO OPER7 ATE BUT NO SERVICE AREA EXPANSION FOR DUAL SPE8 CIAL NEEDS PLANS THAT DO NOT MEET CERTAIN RE9 QUIREMENTS.—Section 164(c)(2) of the Medicare Improve10 ments for Patients and Providers Act of 2008 (Public Law 

11 110–275) is amended by striking ‘‘December 31, 2010’’ and 

12 inserting ‘‘December 31, 2011’’. 

13 SEC. 226. EXTENSION OF REASONABLE COST CONTRACTS. 

14 Section 1876(h)(5)(C)(ii) of the Social Security Act 

15 (42 U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter 

16 preceding subclause (I), by striking ‘‘January 1, 2010’’ and 

17 inserting ‘‘January 1, 2011’’. 

18 SEC. 227. EXTENSION OF PARTICULAR WAIVER POLICY FOR 

19 EMPLOYER GROUP PLANS. 

20 For plan year 2011 and subsequent plan years, to the 

21 extent that the Secretary of Health and Human Services 

22 is applying the 2008 service area extension waiver policy 

23 (as modified in the April 11, 2008, Centers for Medicare 

24 & Medicaid Services’ memorandum with the subject ‘‘2009 

25 Employer Group Waiver-Modification of the 2008 Service 

26 Area Extension Waiver Granted to Certain MA Local Co-
57 

† HR 4213 EAS 

1 ordinated Care Plans’’) to Medicare Advantage coordinated 

2 care plans, the Secretary shall extend the application of 

3 such waiver policy to employers who contract directly with 

4 the Secretary as a Medicare Advantage private fee-for-serv5 ice plan under section 1857(i)(2) of the Social Security Act 

6 (42 U.S.C. 1395w–27(i)(2)) and that had enrollment as of 

7 January 1, 2010. 

8 SEC. 228. EXTENSION OF CONTINUING CARE RETIREMENT 

9 COMMUNITY PROGRAM. 

10 Notwithstanding any other provision of law, the Sec11 retary of Health and Human Services shall continue to con12 duct the Erickson Advantage Continuing Care Retirement 

13 Community (CCRC) program under part C of title XVIII 

14 of the Social Security Act through December 31, 2011. 

15 SEC. 229. FUNDING OUTREACH AND ASSISTANCE FOR LOW16 INCOME PROGRAMS. 

17 (a) ADDITIONAL FUNDING FOR STATE HEALTH INSUR18 ANCE PROGRAMS.—Subsection (a)(1)(B) of section 119 of 

19 the Medicare Improvements for Patients and Providers Act 

20 of 2008 (42 U.S.C. 1395b–3 note) is amended by striking 

21 ‘‘(42 U.S.C. 1395w–23(f))’’ and all that follows through the 

22 period at the end and inserting ‘‘(42 U.S.C. 1395w–23(f)), 

23 to the Centers for Medicare & Medicaid Services Program 

24 Management Account— 
58 

† HR 4213 EAS 

1 ‘‘(i) for fiscal year 2009, of $7,500,000; 

2 and 

3 ‘‘(ii) for fiscal year 2010, of 

4 $6,000,000. 

5 Amounts appropriated under this subparagraph 

6 shall remain available until expended.’’. 

7 (b) ADDITIONAL FUNDING FOR AREA AGENCIES ON

8 AGING.—Subsection (b)(1)(B) of such section 119 is amend9 ed by striking ‘‘(42 U.S.C. 1395w–23(f))’’ and all that fol10 lows through the period at the end and inserting ‘‘(42 

11 U.S.C. 1395w–23(f)), to the Administration on Aging— 

12 ‘‘(i) for fiscal year 2009, of $7,500,000; 

13 and 

14 ‘‘(ii) for fiscal year 2010, of 

15 $6,000,000. 

16 Amounts appropriated under this subparagraph 

17 shall remain available until expended.’’. 

18 (c) ADDITIONAL FUNDING FOR AGING AND DISABILITY

19 RESOURCE CENTERS.—Subsection (c)(1)(B) of such section 

20 119 is amended by striking ‘‘(42 U.S.C. 1395w–23(f))’’ and 

21 all that follows through the period at the end and inserting 

22 ‘‘(42 U.S.C. 1395w–23(f)), to the Administration on 

23 Aging— 

24 ‘‘(i) for fiscal year 2009, of $5,000,000; 

25 and 
59 

† HR 4213 EAS 

1 ‘‘(ii) for fiscal year 2010, of 

2 $6,000,000. 

3 Amounts appropriated under this subparagraph 

4 shall remain available until expended.’’. 

5 (d) ADDITIONAL FUNDING FOR CONTRACT WITH THE

6 NATIONAL CENTER FOR BENEFITS AND OUTREACH EN7 ROLLMENT.—Subsection (d)(2) of such section 119 is 

8 amended by striking ‘‘(42 U.S.C. 1395w–23(f))’’ and all 

9 that follows through the period at the end and inserting 

10 ‘‘(42 U.S.C. 1395w–23(f)), to the Administration on 

11 Aging— 

12 ‘‘(i) for fiscal year 2009, of $5,000,000; 

13 and 

14 ‘‘(ii) for fiscal year 2010, of 

15 $2,000,000. 

16 Amounts appropriated under this subparagraph 

17 shall remain available until expended.’’. 

18 SEC. 230. FAMILY-TO-FAMILY HEALTH INFORMATION CEN19 TERS. 

20 Section 501(c)(1)(A)(iii) of the Social Security Act (42 

21 U.S.C. 701(c)(1)(A)(iii)) is amended by striking ‘‘fiscal 

22 year 2009’’ and inserting ‘‘each of fiscal years 2009 through 

23 2011’’. 
60 

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1 SEC. 231. IMPLEMENTATION FUNDING. 

2 For purposes of carrying out the provisions of, and 

3 amendments made by, this Act that relate to titles XVIII 

4 and XIX of the Social Security Act, there are appropriated 

5 to the Secretary of Health and Human Services for the Cen6 ters for Medicare & Medicaid Services Program Manage7 ment Account, from amounts in the general fund of the 

8 Treasury not otherwise appropriated, $100,000,000. 

9 Amounts appropriated under the preceding sentence shall 

10 remain available until expended. 

11 SEC. 232. EXTENSION OF ARRA INCREASE IN FMAP. 

12 Section 5001 of the American Recovery and Reinvest13 ment Act of 2009 (Public Law 111–5) is amended— 

14 (1) in subsection (a)(3), by striking ‘‘first cal15 endar quarter’’ and inserting ‘‘first 3 calendar quar16 ters’’; 

17 (2) in subsection (c)— 

18 (A) in paragraph (2)(B), by striking ‘‘July 

19 1, 2010’’ and inserting ‘‘January 1, 2011’’; 

20 (B) in paragraph (3)(B)(i), by striking 

21 ‘‘July 1, 2010’’ each place it appears and insert22 ing ‘‘January 1, 2011’’; and 

23 (C) in paragraph (4)(C)(ii), by striking 

24 ‘‘the 3-consecutive-month period beginning with 

25 January 2010’’ and inserting ‘‘any 3-consecu-
61 

† HR 4213 EAS 

1 tive-month period that begins after December 

2 2009 and ends before January 2011’’; 

3 (3) in subsection (g)— 

4 (A) in paragraph (1), by striking ‘‘Sep5 tember 30, 2011’’ and inserting ‘‘March 31, 

6 2012’’; 

7 (B) in paragraph (2)— 

8 (i) by inserting ‘‘of such Act’’ after 

9 ‘‘1923’’; and 

10 (ii) by adding at the end the following 

11 new sentence: ‘‘Voluntary contributions by a 

12 political subdivision to the non-Federal 

13 share of expenditures under the State Med14 icaid plan or to the non-Federal share of 

15 payments under section 1923 of the Social 

16 Security Act shall not be considered to be 

17 required contributions for purposes of this 

18 section.’’; and 

19 (C) by adding at the end the following: 

20 ‘‘(3) CERTIFICATION BY CHIEF EXECUTIVE OFFI21 CER.—No additional Federal funds shall be paid to a 

22 State as a result of this section with respect to a cal23 endar quarter occurring during the period beginning 

24 on January 1, 2011, and ending on June 30, 2011, 

25 unless, not later than 45 days after the date of enact-
62 

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1 ment of this paragraph, the chief executive officer of 

2 the State certifies that the State will request and use 

3 such additional Federal funds.’’; and 

4 (4) in subsection (h)(3), by striking ‘‘December 

5 31, 2010’’ and inserting ‘‘June 30, 2011’’. 

6 SEC. 233. EXTENSION OF GAINSHARING DEMONSTRATION. 

7 (a) IN GENERAL.—Subsection (d)(3) of section 5007 

8 of the Deficit Reduction Act of 2005 (Public Law 109–171) 

9 is amended by inserting ‘‘(or 21 months after the date of 

10 the enactment of the American Workers, State, and Business 

11 Relief Act of 2010, in the case of a demonstration project 

12 in operation as of October 1, 2008)’’ after ‘‘December 31, 

13 2009’’. 

14 (b) FUNDING.— 

15 (1) IN GENERAL.—Subsection (f)(1) of such sec16 tion is amended by inserting ‘‘and for fiscal year 

17 2010, $1,600,000,’’ after ‘‘$6,000,000,’’. 

18 (2) AVAILABILITY.—Subsection (f)(2) of such sec19 tion is amended by striking ‘‘2010’’ and inserting 

20 ‘‘2014 or until expended’’. 

21 (c) REPORTS.— 

22 (1) QUALITY IMPROVEMENT AND SAVINGS.—Sub23 section (e)(3) of such section is amended by striking 

24 ‘‘December 1, 2008’’ and inserting ‘‘18 months after 
63 

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1 the date of the enactment of the American Workers, 

2 State, and Business Relief Act of 2010’’. 

3 (2) FINAL REPORT.—Subsection (e)(4) of such 

4 section is amended by striking ‘‘May 1, 2010’’ and 

5 inserting ‘‘42 months after the date of the enactment 

6 of the American Workers, State, and Business Relief 

7 Act of 2010’’. 

8 Subtitle C—Other Provisions 

9 SEC. 241. EXTENSION OF USE OF 2009 POVERTY GUIDE10 LINES. 

11 Section 1012 of the Department of Defense Appropria12 tions Act, 2010 (Public Law 111–118) is amended— 

13 (1) by striking ‘‘before March 31, 2010’’; and 

14 (2) by inserting ‘‘for 2011’’ after ‘‘until updated 

15 poverty guidelines’’. 

16 SEC. 242. REFUNDS DISREGARDED IN THE ADMINISTRA17 TION OF FEDERAL PROGRAMS AND FEDER18 ALLY ASSISTED PROGRAMS. 

19 (a) IN GENERAL.—Subchapter A of chapter 65 is 

20 amended by adding at the end the following new section: 

21 ‘‘SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRA22 TION OF FEDERAL PROGRAMS AND FEDER23 ALLY ASSISTED PROGRAMS. 

24 ‘‘(a) IN GENERAL.—Notwithstanding any other provi25 sion of law, any refund (or advance payment with respect 
64 

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1 to a refundable credit) made to any individual under this 

2 title shall not be taken into account as income, and shall 

3 not be taken into account as resources for a period of 12 

4 months from receipt, for purposes of determining the eligi5 bility of such individual (or any other individual) for bene6 fits or assistance (or the amount or extent of benefits or 

7 assistance) under any Federal program or under any State 

8 or local program financed in whole or in part with Federal 

9 funds. 

10 ‘‘(b) TERMINATION.—Subsection (a) shall not apply to 

11 any amount received after December 31, 2010.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections for 

13 such subchapter is amended by adding at the end the fol14 lowing new item: 

‘‘Sec. 6409. Refunds disregarded in the administration of Federal programs and 

federally assisted programs.’’. 

15 (c) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to amounts received after December 31, 

17 2009. 

18 SEC. 243. STATE COURT IMPROVEMENT PROGRAM. 

19 Section 438 of the Social Security Act (42 U.S.C. 

20 629h) is amended— 

21 (1) in subsection (c)(2)(A), by striking ‘‘2010’’ 

22 and inserting ‘‘2011’’; and 

23 (2) in subsection (e), by striking ‘‘2010’’ and in24 serting ‘‘2011’’. 
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1 SEC. 244. EXTENSION OF NATIONAL FLOOD INSURANCE 

2 PROGRAM. 

3 Section 129 of the Continuing Appropriations Resolu4 tion, 2010 (Public Law 111–68), as amended by section 

5 1005 of Public Law 111–118, is further amended by strik6 ing ‘‘by substituting’’ and all that follows through the pe7 riod at the end, and inserting ‘‘by substituting December 

8 31, 2010, for the date specified in each such section.’’. The 

9 amendment made by this section shall be considered to have 

10 taken effect on February 28, 2010. 

11 SEC. 245. EMERGENCY DISASTER ASSISTANCE. 

12 (a) DEFINITIONS.—Except as otherwise provided in 

13 this section, in this section: 

14 (1) DISASTER COUNTY.— 

15 (A) IN GENERAL.—The term ‘‘disaster coun16 ty’’ means a county included in the geographic 

17 area covered by a qualifying natural disaster 

18 declaration for the 2009 crop year. 

19 (B) EXCLUSION.—The term ‘‘disaster coun20 ty’’ does not include a contiguous county. 

21 (2) ELIGIBLE AQUACULTURE PRODUCER.—The 

22 term ‘‘eligible aquaculture producer’’ means an aqua23 culture producer that during the 2009 calendar year, 

24 as determined by the Secretary— 

25 (A) produced an aquaculture species for 

26 which feed costs represented a substantial per-
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1 centage of the input costs of the aquaculture op2 eration; and 

3 (B) experienced a substantial price increase 

4 of feed costs above the previous 5-year average. 

5 (3) ELIGIBLE PRODUCER.—The term ‘‘eligible 

6 producer’’ means an agricultural producer in a dis7 aster county. 

8 (4) ELIGIBLE SPECIALTY CROP PRODUCER.—The 

9 term ‘‘eligible specialty crop producer’’ means an ag10 ricultural producer that, for the 2009 crop year, as 

11 determined by the Secretary— 

12 (A) produced, or was prevented from plant13 ing, a specialty crop; and 

14 (B) experienced crop losses in a disaster 

15 county due to drought, excessive rainfall, or a re16 lated condition. 

17 (5) QUALIFYING NATURAL DISASTER DECLARA18 TION.—The term ‘‘qualifying natural disaster dec19 laration’’ means a natural disaster declared by the 

20 Secretary for production losses under section 321(a) 

21 of the Consolidated Farm and Rural Development Act 

22 (7 U.S.C. 1961(a)). 

23 (6) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Agriculture. 
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1 (7) SPECIALTY CROP.—The term ‘‘specialty 

2 crop’’ has the meaning given the term in section 3 of 

3 the Specialty Crops Competitiveness Act of 2004 

4 (Public Law 108–465; 7 U.S.C. 1621 note). 

5 (b) SUPPLEMENTAL DIRECT PAYMENT.— 

6 (1) IN GENERAL.—Of the funds of the Com7 modity Credit Corporation, the Secretary shall use 

8 such sums as are necessary to make supplemental 

9 payments under sections 1103 and 1303 of the Food, 

10 Conservation, and Energy Act of 2008 (7 U.S.C. 

11 8713, 8753) to eligible producers on farms located in 

12 disaster counties that had at least 1 crop of economic 

13 significance (other than fruits and vegetables or crops 

14 intended for grazing) suffer at least a 5-percent crop 

15 loss due to a natural disaster, including quality 

16 losses, as determined by the Secretary, in an amount 

17 equal to 90 percent of the direct payment the eligible 

18 producers received for the 2009 crop year on the farm. 

19 (2) ACRE PROGRAM.—Eligible producers that 

20 received payments under section 1105 of the Food, 

21 Conservation, and Energy Act of 2008 (7 U.S.C. 

22 8715) for the 2009 crop year and that otherwise meet 

23 the requirements of paragraph (1) shall be eligible to 

24 receive supplemental payments under that paragraph 

25 in an amount equal to 112.5 percent of the reduced 
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1 direct payment the eligible producers received for the 

2 2009 crop year under section 1103 or 1303 of the 

3 Food, Conservation, and Energy Act of 2008 (7 

4 U.S.C. 8713, 8753). 

5 (3) RELATIONSHIP TO OTHER LAW.—Assistance 

6 received under this subsection shall be included in the 

7 calculation of farm revenue for the 2009 crop year 

8 under section 531(b)(4)(A) of the Federal Crop Insur9 ance Act (7 U.S.C. 1531(b)(4)(A)) and section 

10 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 

11 2497(b)(4)(A)). 

12 (c) SPECIALTY CROP ASSISTANCE.— 

13 (1) IN GENERAL.—Of the funds of the Com14 modity Credit Corporation, the Secretary shall use 

15 not more than $300,000,000, to remain available 

16 until September 30, 2011, to carry out a program of 

17 grants to States to assist eligible specialty crop pro18 ducers for losses due to a natural disaster affecting 

19 the 2009 crops, of which not more than— 

20 (A) $150,000,000 shall be used to assist eli21 gible specialty crop producers in counties that 

22 have been declared a disaster as the result of 

23 drought; and 

24 (B) $150,000,000 shall be used to assist eli25 gible specialty crop producers in counties that 
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1 have been declared a disaster as the result of ex2 cessive rainfall or a related condition. 

3 (2) NOTIFICATION.—Not later than 60 days after 

4 the date of enactment of this Act, the Secretary shall 

5 notify the State department of agriculture (or similar 

6 entity) in each State of the availability of funds to 

7 assist eligible specialty crop producers, including such 

8 terms as are determined by the Secretary to be nec9 essary for the equitable treatment of eligible specialty 

10 crop producers. 

11 (3) PROVISION OF GRANTS.— 

12 (A) IN GENERAL.—The Secretary shall 

13 make grants to States for disaster counties on a 

14 pro rata basis based on the value of specialty 

15 crop losses in those counties during the 2009 cal16 endar year, as determined by the Secretary. 

17 (B) TIMING.—Not later than 120 days after 

18 the date of enactment of this Act, the Secretary 

19 shall make grants to States to provide assistance 

20 under this subsection. 

21 (C) MAXIMUM GRANT.—The maximum 

22 amount of a grant made to a State for counties 

23 described in paragraph (1)(B) may not exceed 

24 $40,000,000. 
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1 (4) REQUIREMENTS.—The Secretary shall make 

2 grants under this subsection only to States that dem3 onstrate to the satisfaction of the Secretary that the 

4 State will— 

5 (A) use grant funds to assist eligible spe6 cialty crop producers; 

7 (B) provide assistance to eligible specialty 

8 crop producers not later than 90 days after the 

9 date on which the State receives grant funds; 

10 and 

11 (C) not later than 30 days after the date on 

12 which the State provides assistance to eligible 

13 specialty crop producers, submit to the Secretary 

14 a report that describes— 

15 (i) the manner in which the State pro16 vided assistance; 

17 (ii) the amounts of assistance provided 

18 by type of specialty crop; and 

19 (iii) the process by which the State de20 termined the levels of assistance to eligible 

21 specialty crop producers. 

22 (5) PROHIBITION.—An eligible specialty crop 

23 producer that receives assistance under this subsection 

24 shall be ineligible to receive assistance under sub25 section (b). 
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1 (6) RELATION TO OTHER LAW.—Assistance re2 ceived under this subsection shall be included in the 

3 calculation of farm revenue for the 2009 crop year 

4 under section 531(b)(4)(A) of the Federal Crop Insur5 ance Act (7 U.S.C. 1531(b)(4)(A)) and section 

6 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 

7 2497(b)(4)(A)). 

8 (d) COTTONSEED ASSISTANCE.— 

9 (1) IN GENERAL.—Of the funds of the Com10 modity Credit Corporation, the Secretary shall use 

11 not more than $42,000,000 to provide supplemental 

12 assistance to eligible producers and first-handlers of 

13 the 2009 crop of cottonseed in a disaster county. 

14 (2) GENERAL TERMS.—Except as otherwise pro15 vided in this subsection, the Secretary shall provide 

16 disaster assistance under this subsection under the 

17 same terms and conditions as assistance provided 

18 under section 3015 of the Emergency Agricultural 

19 Disaster Assistance Act of 2006 (title III of Public 

20 Law 109–234; 120 Stat. 477). 

21 (3) DISTRIBUTION OF ASSISTANCE.—The Sec22 retary shall distribute assistance to first handlers for 

23 the benefit of eligible producers in a disaster county 

24 in an amount equal to the product obtained by multi25 plying— 
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1 (A) the payment rate, as determined under 

2 paragraph (4); and 

3 (B) the county-eligible production, as deter4 mined under paragraph (5). 

5 (4) PAYMENT RATE.—The payment rate shall be 

6 equal to the quotient obtained by dividing— 

7 (A) the sum of the county-eligible produc8 tion, as determined under paragraph (5); by 

9 (B) the total funds made available to carry 

10 out this subsection. 

11 (5) COUNTY-ELIGIBLE PRODUCTION.—The coun12 ty-eligible production shall be equal to the product ob13 tained by multiplying— 

14 (A) the number of acres planted to cotton in 

15 the disaster county, as reported to the Secretary 

16 by first-handlers; 

17 (B) the expected cotton lint yield for the dis18 aster county, as determined by the Secretary 

19 based on the best available information; and 

20 (C) the national average seed-to-lint ratio, 

21 as determined by the Secretary based on the best 

22 available information for the 5 crop years imme23 diately preceding the 2009 crop, excluding the 

24 year in which the average ratio was the highest 
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1 and the year in which the average ratio was the 

2 lowest in such period. 

3 (e) AQUACULTURE ASSISTANCE.— 

4 (1) GRANT PROGRAM.— 

5 (A) IN GENERAL.—Of the funds of the Com6 modity Credit Corporation, the Secretary shall 

7 use not more than $25,000,000, to remain avail8 able until September 30, 2011, to carry out a 

9 program of grants to States to assist eligible 

10 aquaculture producers for losses associated with 

11 high feed input costs during the 2009 calendar 

12 year. 

13 (B) NOTIFICATION.—Not later than 60 days 

14 after the date of enactment of this Act, the Sec15 retary shall notify the State department of agri16 culture (or similar entity) in each State of the 

17 availability of funds to assist eligible aqua18 culture producers, including such terms as are 

19 determined by the Secretary to be necessary for 

20 the equitable treatment of eligible aquaculture 

21 producers. 

22 (C) PROVISION OF GRANTS.— 

23 (i) IN GENERAL.—The Secretary shall 

24 make grants to States under this subsection 

25 on a pro rata basis based on the amount of 
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1 aquaculture feed used in each State during 

2 the 2008 calendar year, as determined by 

3 the Secretary. 

4 (ii) TIMING.—Not later than 120 days 

5 after the date of enactment of this Act, the 

6 Secretary shall make grants to States to 

7 provide assistance under this subsection. 

8 (D) REQUIREMENTS.—The Secretary shall 

9 make grants under this subsection only to States 

10 that demonstrate to the satisfaction of the Sec11 retary that the State will— 

12 (i) use grant funds to assist eligible 

13 aquaculture producers; 

14 (ii) provide assistance to eligible aqua15 culture producers not later than 60 days 

16 after the date on which the State receives 

17 grant funds; and 

18 (iii) not later than 30 days after the 

19 date on which the State provides assistance 

20 to eligible aquaculture producers, submit to 

21 the Secretary a report that describes— 

22 (I) the manner in which the State 

23 provided assistance; 
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1 (II) the amounts of assistance 

2 provided per species of aquaculture; 

3 and 

4 (III) the process by which the 

5 State determined the levels of assist6 ance to eligible aquaculture producers. 

7 (2) REDUCTION IN PAYMENTS.—An eligible 

8 aquaculture producer that receives assistance under 

9 this subsection shall not be eligible to receive any 

10 other assistance under the supplemental agricultural 

11 disaster assistance program established under section 

12 531 of the Federal Crop Insurance Act (7 U.S.C. 

13 1531) and section 901 of the Trade Act of 1974 (19 

14 U.S.C. 2497) for any losses in 2009 relating to the 

15 same species of aquaculture. 

16 (3) REPORT TO CONGRESS.—Not later than 240 

17 days after the date of enactment of this Act, the Sec18 retary shall submit to the appropriate committees of 

19 Congress a report that— 

20 (A) describes in detail the manner in which 

21 this subsection has been carried out; and 

22 (B) includes the information reported to the 

23 Secretary under paragraph (1)(D)(iii). 

24 (f) HAWAII TRANSPORTATION COOPERATIVE.—Not25 withstanding any other provision of law, the Secretary shall 
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1 use $21,000,000 of funds of the Commodity Credit Corpora2 tion to make a payment to an agricultural transportation 

3 cooperative in the State of Hawaii, the members of which 

4 are eligible to participate in the commodity loan program 

5 of the Farm Service Agency, for assistance to maintain and 

6 develop employment. 

7 (g) LIVESTOCK FORAGE DISASTER PROGRAM.— 

8 (1) DEFINITION OF DISASTER COUNTY.—In this 

9 subsection: 

10 (A) IN GENERAL.—The term ‘‘disaster coun11 ty’’ means a county included in the geographic 

12 area covered by a qualifying natural disaster 

13 declaration announced by the Secretary in cal14 endar year 2009. 

15 (B) INCLUSION.—The term ‘‘disaster coun16 ty’’ includes a contiguous county. 

17 (2) PAYMENTS.—Of the funds of the Commodity 

18 Credit Corporation, the Secretary shall use not more 

19 than $50,000,000 to carry out a program to make 

20 payments to eligible producers that had grazing losses 

21 in disaster counties in calendar year 2009. 

22 (3) CRITERIA.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), assistance under this sub25 section shall be determined under the same cri-
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1 teria as are used to carry out the programs 

2 under section 531(d) of the Federal Crop Insur3 ance Act (7 U.S.C. 1531(d)) and section 901(d) 

4 of the Trade Act of 1974 (19 U.S.C. 2497(d)). 

5 (B) DROUGHT INTENSITY.—For purposes of 

6 this subsection, an eligible producer shall not be 

7 required to meet the drought intensity require8 ments of section 531(d)(3)(D)(ii) of the Federal 

9 Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) 

10 and section 901(d)(3)(D)(ii) of the Trade Act of 

11 1974 (19 U.S.C. 2497(d)(3)(D)(ii)). 

12 (4) AMOUNT.—Assistance under this subsection 

13 shall be in an amount equal to 1 monthly payment 

14 using the monthly payment rate under section 

15 531(d)(3)(B) of the Federal Crop Insurance Act (7 

16 U.S.C. 1531(d)(3)(B)) and section 901(d)(3)(B) of the 

17 Trade Act of 1974 (19 U.S.C. 2497(d)(3)(B)). 

18 (5) RELATION TO OTHER LAW.—An eligible pro19 ducer that receives assistance under this subsection 

20 shall be ineligible to receive assistance for 2009 graz21 ing losses under the program carried out under sec22 tion 531(d) of the Federal Crop Insurance Act (7 

23 U.S.C. 1531(d)) and section 901(d) of the Trade Act 

24 of 1974 (19 U.S.C. 2497(d)). 

25 (h) EMERGENCY LOANS FOR POULTRY PRODUCERS.— 
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1 (1) DEFINITIONS.—In this subsection: 

2 (A) ANNOUNCEMENT DATE.—The term ‘‘an3 nouncement date’’ means the date on which the 

4 Secretary announces the emergency loan pro5 gram under this subsection. 

6 (B) POULTRY INTEGRATOR.—The term 

7 ‘‘poultry integrator’’ means a poultry integrator 

8 that filed proceedings under chapter 11 of title 

9 11, United States Code, in United States Bank10 ruptcy Court during the 30-day period begin11 ning on December 1, 2008. 

12 (2) LOAN PROGRAM.— 

13 (A) IN GENERAL.—Of the funds of the Com14 modity Credit Corporation, the Secretary shall 

15 use not more than $75,000,000, to remain avail16 able until expended, for the cost of making no17 interest emergency loans available to poultry 

18 producers that meet the requirements of this sub19 section. 

20 (B) TERMS AND CONDITIONS.—Except as 

21 otherwise provided in this subsection, emergency 

22 loans under this subsection shall be subject to 

23 such terms and conditions as are determined by 

24 the Secretary. 

25 (3) LOANS.— 
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1 (A) IN GENERAL.—An emergency loan made 

2 to a poultry producer under this subsection shall 

3 be for the purpose of providing financing to the 

4 poultry producer in response to financial losses 

5 associated with the termination or nonrenewal of 

6 any contract between the poultry producer and a 

7 poultry integrator. 

8 (B) ELIGIBILITY.— 

9 (i) IN GENERAL.—To be eligible for an 

10 emergency loan under this subsection, not 

11 later than 90 days after the announcement 

12 date, a poultry producer shall submit to the 

13 Secretary evidence that— 

14 (I) the contract of the poultry pro15 ducer described in subparagraph (A) 

16 was not continued; and 

17 (II) no similar contract has been 

18 awarded subsequently to the poultry 

19 producer. 

20 (ii) REQUIREMENT TO OFFER

21 LOANS.—Notwithstanding any other provi22 sion of law, if a poultry producer meets the 

23 eligibility requirements described in clause 

24 (i), subject to the availability of funds 

25 under paragraph (2)(A), the Secretary shall 
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1 offer to make a loan under this subsection 

2 to the poultry producer with a minimum 

3 term of 2 years. 

4 (4) ADDITIONAL REQUIREMENTS.— 

5 (A) IN GENERAL.—A poultry producer that 

6 receives an emergency loan under this subsection 

7 may use the emergency loan proceeds only to 

8 repay the amount that the poultry producer owes 

9 to any lender for the purchase, improvement, or 

10 operation of the poultry farm. 

11 (B) CONVERSION OF THE LOAN.—A poultry 

12 producer that receives an emergency loan under 

13 this subsection shall be eligible to have the bal14 ance of the emergency loan converted, but not re15 financed, to a loan that has the same terms and 

16 conditions as an operating loan under subtitle B 

17 of the Consolidated Farm and Rural Develop18 ment Act (7 U.S.C. 1941 et seq.). 

19 (i) STATE AND LOCAL GOVERNMENTS.—Section 

20 1001(f)(6)(A) of the Food Security Act of 1985 (7 U.S.C. 

21 1308(f)(6)(A)) is amended by inserting ‘‘(other than the 

22 conservation reserve program established under subchapter 

23 B of chapter 1 of subtitle D of title XII of this Act)’’ before 

24 the period at the end. 

25 (j) ADMINISTRATION.— 
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1 (1) REGULATIONS.— 

2 (A) IN GENERAL.—As soon as practicable 

3 after the date of enactment of this Act, the Sec4 retary shall promulgate such regulations as are 

5 necessary to implement this section and the 

6 amendment made by this section. 

7 (B) PROCEDURE.—The promulgation of the 

8 regulations and administration of this section 

9 and the amendment made by this section shall be 

10 made without regard to— 

11 (i) the notice and comment provisions 

12 of section 553 of title 5, United States Code; 

13 (ii) the Statement of Policy of the Sec14 retary of Agriculture effective July 24, 1971 

15 (36 Fed. Reg. 13804), relating to notices of 

16 proposed rulemaking and public participa17 tion in rulemaking; and 

18 (iii) chapter 35 of title 44, United 

19 States Code (commonly known as the ‘‘Pa20 perwork Reduction Act’’). 

21 (C) CONGRESSIONAL REVIEW OF AGENCY

22 RULEMAKING.—In carrying out this paragraph, 

23 the Secretary shall use the authority provided 

24 under section 808 of title 5, United States Code. 
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1 (2) ADMINISTRATIVE COSTS.—Of the funds of the 

2 Commodity Credit Corporation, the Secretary may 

3 use up to $10,000,000 to pay administrative costs in4 curred by the Secretary that are directly related to 

5 carrying out this Act. 

6 (3) PROHIBITION.—None of the funds of the Ag7 ricultural Disaster Relief Trust Fund established 

8 under section 902 of the Trade Act of 1974 (19 U.S.C. 

9 2497a) may be used to carry out this Act. 

10 SEC. 246. SMALL BUSINESS LOAN GUARANTEE ENHANCE11 MENT EXTENSIONS. 

12 (a) APPROPRIATION.—There is appropriated, out of 

13 any funds in the Treasury not otherwise appropriated, for 

14 an additional amount for ‘‘Small Business Administration 

15 – Business Loans Program Account’’, $560,000,000, to re16 main available through December 31, 2010, for the cost of— 

17 (1) fee reductions and eliminations under section 

18 501 of division A of the American Recovery and Re19 investment Act of 2009 (Public Law 111–5; 123 Stat. 

20 151), as amended by this section, for loans guaran21 teed under section 7(a) of the Small Business Act (15 

22 U.S.C. 636(a)), title V of the Small Business Invest23 ment Act of 1958 (15 U.S.C. 695 et seq.), or section 

24 502 of division A of the American Recovery and Re-
83 

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1 investment Act of 2009 (Public Law 111–5; 123 Stat. 

2 152), as amended by this section; and 

3 (2) loan guarantees under section 502 of division 

4 A of the American Recovery and Reinvestment Act of 

5 2009 (Public Law 111–5; 123 Stat. 152), as amended 

6 by this section, 

7 Provided, That such costs, including the cost of modifying 

8 such loans, shall be as defined in section 502 of the Congres9 sional Budget Act of 1974. 

10 (b) EXTENSION OF PROGRAMS.— 

11 (1) FEES.—Section 501 of division A of the 

12 American Recovery and Reinvestment Act of 2009 

13 (Public Law 111–5; 123 Stat. 151) is amended by 

14 striking ‘‘September 30, 2010’’ each place it appears 

15 and inserting ‘‘December 31, 2010’’. 

16 (2) LOAN GUARANTEES.—Section 502(f) of divi17 sion A of the American Recovery and Reinvestment 

18 Act of 2009 (Public Law 111–5; 123 Stat. 153) is 

19 amended by striking ‘‘March 28, 2010’’ and inserting 

20 ‘‘December 31, 2010’’. 

21 (3) EFFECTIVE DATE FOR LOAN GUARANTEES.— 

22 The amendment made by paragraph (2) shall take ef23 fect on February 27, 2010. 
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1 TITLE III—PENSION FUNDING 

2 RELIEF 

3 Subtitle A—Single Employer Plans 

4 SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DE5 FINED BENEFIT PLANS TO AMORTIZE CER6 TAIN SHORTFALL AMORTIZATION BASES. 

7 (a) AMENDMENTS TO ERISA.— 

8 (1) IN GENERAL.—Paragraph (2) of section 

9 303(c) of the Employee Retirement Income Security 

10 Act of 1974 (29 U.S.C. 1083(c)) is amended by add11 ing at the end the following subparagraph: 

12 ‘‘(D) SPECIAL ELECTION FOR ELIGIBLE

13 PLAN YEARS.— 

14 ‘‘(i) IN GENERAL.—If a plan sponsor 

15 elects to apply this subparagraph with re16 spect to the shortfall amortization base of a 

17 plan for any eligible plan year (in this sub18 paragraph and paragraph (7) referred to as 

19 an ‘election year’), then, notwithstanding 

20 subparagraphs (A) and (B)— 

21 ‘‘(I) the shortfall amortization in22 stallments with respect to such base 

23 shall be determined under clause (ii) or 

24 (iii), whichever is specified in the elec25 tion, and 
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1 ‘‘(II) the shortfall amortization 

2 installment for any plan year in the 9- 

3 plan-year period described in clause 

4 (ii) or the 15-plan-year period de5 scribed in clause (iii), respectively, 

6 with respect to such shortfall amortiza7 tion base is the annual installment de8 termined under the applicable clause 

9 for that year for that base. 

10 ‘‘(ii) 2 PLUS 7 AMORTIZATION SCHED11 ULE.—The shortfall amortization install12 ments determined under this clause are— 

13 ‘‘(I) in the case of the first 2 plan 

14 years in the 9-plan-year period begin15 ning with the election year, interest on 

16 the shortfall amortization base of the 

17 plan for the election year (determined 

18 using the effective interest rate for the 

19 plan for the election year), and 

20 ‘‘(II) in the case of the last 7 plan 

21 years in such 9-plan-year period, the 

22 amounts necessary to amortize the re23 maining balance of the shortfall amor24 tization base of the plan for the elec25 tion year in level annual installments 
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1 over such last 7 plan years (using the 

2 segment rates under subparagraph (C) 

3 for the election year). 

4 ‘‘(iii) 15-YEAR AMORTIZATION.—The 

5 shortfall amortization installments deter6 mined under this subparagraph are the 

7 amounts necessary to amortize the shortfall 

8 amortization base of the plan for the elec9 tion year in level annual installments over 

10 the 15-plan-year period beginning with the 

11 election year (using the segment rates under 

12 subparagraph (C) for the election year). 

13 ‘‘(iv) ELECTION.— 

14 ‘‘(I) IN GENERAL.—The plan 

15 sponsor of a plan may elect to have 

16 this subparagraph apply to not more 

17 than 2 eligible plan years with respect 

18 to the plan, except that in the case of 

19 a plan described in section 106 of the 

20 Pension Protection Act of 2006, the 

21 plan sponsor may only elect to have 

22 this subparagraph apply to a plan 

23 year beginning in 2011. 

24 ‘‘(II) AMORTIZATION SCHED25 ULE.—Such election shall specify 
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1 whether the amortization schedule 

2 under clause (ii) or (iii) shall apply to 

3 an election year, except that if a plan 

4 sponsor elects to have this subpara5 graph apply to 2 eligible plan years, 

6 the plan sponsor must elect the same 

7 schedule for both years. 

8 ‘‘(III) OTHER RULES.—Such elec9 tion shall be made at such time, and in 

10 such form and manner, as shall be pre11 scribed by the Secretary of the Treas12 ury, and may be revoked only with the 

13 consent of the Secretary of the Treas14 ury. The Secretary of the Treasury 

15 shall, before granting a revocation re16 quest, provide the Pension Benefit 

17 Guaranty Corporation an opportunity 

18 to comment on the conditions applica19 ble to the treatment of any portion of 

20 the election year shortfall amortization 

21 base that remains unamortized as of 

22 the revocation date. 

23 ‘‘(v) ELIGIBLE PLAN YEAR.—For pur24 poses of this subparagraph, the term ‘eligi25 ble plan year’ means any plan year begin-
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1 ning in 2008, 2009, 2010, or 2011, except 

2 that a plan year shall only be treated as an 

3 eligible plan year if the due date under sub4 section (j)(1) for the payment of the min5 imum required contribution for such plan 

6 year occurs on or after the date of the enact7 ment of this subparagraph. 

8 ‘‘(vi) REPORTING.—A plan sponsor of 

9 a plan who makes an election under clause 

10 (i) shall— 

11 ‘‘(I) give notice of the election to 

12 participants and beneficiaries of the 

13 plan, and 

14 ‘‘(II) inform the Pension Benefit 

15 Guaranty Corporation of such election 

16 in such form and manner as the Direc17 tor of the Pension Benefit Guaranty 

18 Corporation may prescribe. 

19 ‘‘(vii) INCREASES IN REQUIRED IN20 STALLMENTS IN CERTAIN CASES.—For in21 creases in required contributions in cases of 

22 excess compensation or extraordinary divi23 dends or stock redemptions, see paragraph 

24 (7).’’. 
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1 (2) INCREASES IN REQUIRED INSTALLMENTS IN

2 CERTAIN CASES.—Section 303(c) of the Employee Re3 tirement Income Security Act of 1974 (29 U.S.C. 

4 1083(c)) is amended by adding at the end the fol5 lowing paragraph: 

6 ‘‘(7) INCREASES IN ALTERNATE REQUIRED IN7 STALLMENTS IN CASES OF EXCESS COMPENSATION OR

8 EXTRAORDINARY DIVIDENDS OR STOCK REDEMP9 TIONS.— 

10 ‘‘(A) IN GENERAL.—If there is an install11 ment acceleration amount with respect to a plan 

12 for any plan year in the restriction period with 

13 respect to an election year under paragraph 

14 (2)(D), then the shortfall amortization install15 ment otherwise determined and payable under 

16 such paragraph for such plan year shall, subject 

17 to the limitation under subparagraph (B), be in18 creased by such amount. 

19 ‘‘(B) TOTAL INSTALLMENTS LIMITED TO

20 SHORTFALL BASE.—Subject to rules prescribed 

21 by the Secretary of the Treasury, if a shortfall 

22 amortization installment with respect to any 

23 shortfall amortization base for an election year 

24 is required to be increased for any plan year 

25 under subparagraph (A)— 
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† HR 4213 EAS 

1 ‘‘(i) such increase shall not result in 

2 the amount of such installment exceeding 

3 the present value of such installment and all 

4 succeeding installments with respect to such 

5 base (determined without regard to such in6 crease but after application of clause (ii)), 

7 and 

8 ‘‘(ii) subsequent shortfall amortization 

9 installments with respect to such base shall, 

10 in reverse order of the otherwise required in11 stallments, be reduced to the extent nec12 essary to limit the present value of such 

13 subsequent shortfall amortization install14 ments (after application of this paragraph) 

15 to the present value of the remaining 

16 unamortized shortfall amortization base. 

17 ‘‘(C) INSTALLMENT ACCELERATION

18 AMOUNT.—For purposes of this paragraph— 

19 ‘‘(i) IN GENERAL.—The term ‘install20 ment acceleration amount’ means, with re21 spect to any plan year in a restriction pe22 riod with respect to an election year, the 

23 sum of— 

24 ‘‘(I) the aggregate amount of ex25 cess employee compensation determined 
91 

† HR 4213 EAS 

1 under subparagraph (D) with respect 

2 to all employees for the plan year, plus 

3 ‘‘(II) the aggregate amount of ex4 traordinary dividends and redemp5 tions determined under subparagraph 

6 (E) for the plan year. 

7 ‘‘(ii) ANNUAL LIMITATION.—The in8 stallment acceleration amount for any plan 

9 year shall not exceed the excess (if any) of— 

10 ‘‘(I) the sum of the shortfall amor11 tization installments for the plan year 

12 and all preceding plan years in the 

13 amortization period elected under 

14 paragraph (2)(D) with respect to the 

15 shortfall amortization base with respect 

16 to an election year, determined without 

17 regard to paragraph (2)(D) and this 

18 paragraph, over 

19 ‘‘(II) the sum of the shortfall am20 ortization installments for such plan 

21 year and all such preceding plan 

22 years, determined after application of 

23 paragraph (2)(D) (and in the case of 

24 any preceding plan year, after appli25 cation of this paragraph). 
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† HR 4213 EAS 

1 ‘‘(iii) CARRYOVER OF EXCESS INSTALL2 MENT ACCELERATION AMOUNTS.— 

3 ‘‘(I) IN GENERAL.—If the install4 ment acceleration amount for any plan 

5 year (determined without regard to 

6 clause (ii)) exceeds the limitation 

7 under clause (ii), then, subject to sub8 clause (II), such excess shall be treated 

9 as an installment acceleration amount 

10 with respect to the succeeding plan 

11 year. 

12 ‘‘(II) CAP TO APPLY.—If any 

13 amount treated as an installment ac14 celeration amount under subclause (I) 

15 or this subclause with respect any suc16 ceeding plan year, when added to other 

17 installment acceleration amounts (de18 termined without regard to clause (ii)) 

19 with respect to the plan year, exceeds 

20 the limitation under clause (ii), the 

21 portion of such amount representing 

22 such excess shall be treated as an in23 stallment acceleration amount with re24 spect to the next succeeding plan year. 
93 

† HR 4213 EAS 

1 ‘‘(III) LIMITATION ON YEARS TO

2 WHICH AMOUNTS CARRIED FOR.—No 

3 amount shall be carried under sub4 clause (I) or (II) to a plan year which 

5 begins after the first plan year fol6 lowing the last plan year in the re7 striction period (or after the second 

8 plan year following such last plan year 

9 in the case of an election year with re10 spect to which 15-year amortization 

11 was elected under paragraph (2)(D)). 

12 ‘‘(IV) ORDERING RULES.—For 

13 purposes of applying subclause (II), 

14 installment acceleration amounts for 

15 the plan year (determined without re16 gard to any carryover under this 

17 clause) shall be applied first against 

18 the limitation under clause (ii) and 

19 then carryovers to such plan year shall 

20 be applied against such limitation on 

21 a first-in, first-out basis. 

22 ‘‘(D) EXCESS EMPLOYEE COMPENSATION.— 

23 For purposes of this paragraph— 

24 ‘‘(i) IN GENERAL.—The term ‘excess 

25 employee compensation’ means, with respect 
94 

† HR 4213 EAS 

1 to any employee for any plan year, the ex2 cess (if any) of— 

3 ‘‘(I) the aggregate amount includ4 ible in income under chapter 1 of the 

5 Internal Revenue Code of 1986 for re6 muneration during the calendar year 

7 in which such plan year begins for 

8 services performed by the employee for 

9 the plan sponsor (whether or not per10 formed during such calendar year), 

11 over 

12 ‘‘(II) $1,000,000. 

13 ‘‘(ii) AMOUNTS SET ASIDE FOR NON14 QUALIFIED DEFERRED COMPENSATION.—If 

15 during any calendar year assets are set 

16 aside or reserved (directly or indirectly) in 

17 a trust (or other arrangement as determined 

18 by the Secretary of the Treasury), or trans19 ferred to such a trust or other arrangement, 

20 by a plan sponsor for purposes of paying 

21 deferred compensation of an employee under 

22 a nonqualified deferred compensation plan 

23 (as defined in section 409A of such Code) of 

24 the plan sponsor, then, for purposes of 

25 clause (i), the amount of such assets shall be 
95 

† HR 4213 EAS 

1 treated as remuneration of the employee in2 cludible in income for the calendar year un3 less such amount is otherwise includible in 

4 income for such year. An amount to which 

5 the preceding sentence applies shall not be 

6 taken into account under this paragraph for 

7 any subsequent calendar year. 

8 ‘‘(iii) ONLY REMUNERATION FOR CER9 TAIN POST-2009 SERVICES COUNTED.—Re10 muneration shall be taken into account 

11 under clause (i) only to the extent attrib12 utable to services performed by the employee 

13 for the plan sponsor after February 28, 

14 2010. 

15 ‘‘(iv) EXCEPTION FOR CERTAIN EQUITY

16 PAYMENTS.— 

17 ‘‘(I) IN GENERAL.—There shall 

18 not be taken into account under clause 

19 (i)(I) any amount includible in income 

20 with respect to the granting after Feb21 ruary 28, 2010, of service recipient 

22 stock (within the meaning of section 

23 409A of the Internal Revenue Code of 

24 1986) that, upon such grant, is subject 

25 to a substantial risk of forfeiture (as 
96 

† HR 4213 EAS 

1 defined under section 83(c)(1) of such 

2 Code) for at least 5 years from the date 

3 of such grant. 

4 ‘‘(II) SECRETARIAL AUTHOR5 ITY.—The Secretary of the Treasury 

6 may by regulation provide for the ap7 plication of this clause in the case of a 

8 person other than a corporation. 

9 ‘‘(v) OTHER EXCEPTIONS.—The fol10 lowing amounts includible in income shall 

11 not be taken into account under clause 

12 (i)(I): 

13 ‘‘(I) COMMISSIONS.—Any remu14 neration payable on a commission 

15 basis solely on account of income di16 rectly generated by the individual per17 formance of the individual to whom 

18 such remuneration is payable. 

19 ‘‘(II) CERTAIN PAYMENTS UNDER

20 EXISTING CONTRACTS.—Any remu21 neration consisting of nonqualified de22 ferred compensation, restricted stock, 

23 stock options, or stock appreciation 

24 rights payable or granted under a 

25 written binding contract that was in 
97 

† HR 4213 EAS 

1 effect on March 1, 2010, and which 

2 was not modified in any material re3 spect before such remuneration is paid. 

4 ‘‘(vi) SELF-EMPLOYED INDIVIDUAL

5 TREATED AS EMPLOYEE.—The term ‘em6 ployee’ includes, with respect to a calendar 

7 year, a self-employed individual who is 

8 treated as an employee under section 401(c) 

9 of such Code for the taxable year ending 

10 during such calendar year, and the term 

11 ‘compensation’ shall include earned income 

12 of such individual with respect to such self13 employment. 

14 ‘‘(vii) INDEXING OF AMOUNT.—In the 

15 case of any calendar year beginning after 

16 2010, the dollar amount under clause (i)(II) 

17 shall be increased by an amount equal to— 

18 ‘‘(I) such dollar amount, multi19 plied by 

20 ‘‘(II) the cost-of-living adjustment 

21 determined under section 1(f)(3) of 

22 such Code for the calendar year, deter23 mined by substituting ‘calendar year 

24 2009’ for ‘calendar year 1992’ in sub25 paragraph (B) thereof. 
98 

† HR 4213 EAS 

1 If the amount of any increase under clause 

2 (i) is not a multiple of $1,000, such in3 crease shall be rounded to the next lowest 

4 multiple of $1,000. 

5 ‘‘(E) EXTRAORDINARY DIVIDENDS AND RE6 DEMPTIONS.— 

7 ‘‘(i) IN GENERAL.—The amount deter8 mined under this subparagraph for any 

9 plan year is the excess (if any) of the sum 

10 of the dividends declared during the plan 

11 year by the plan sponsor plus the aggregate 

12 amount paid for the redemption of stock of 

13 the plan sponsor redeemed during the plan 

14 year over the greater of— 

15 ‘‘(I) the adjusted net income 

16 (within the meaning of section 4043) of 

17 the plan sponsor for the preceding plan 

18 year, determined without regard to 

19 any reduction by reason of interest, 

20 taxes, depreciation, or amortization, or 

21 ‘‘(II) in the case of a plan sponsor 

22 that determined and declared dividends 

23 in the same manner for at least 5 con24 secutive years immediately preceding 

25 such plan year, the aggregate amount 
99 

† HR 4213 EAS 

1 of dividends determined and declared 

2 for such plan year using such manner. 

3 ‘‘(ii) ONLY CERTAIN POST-2009 DIVI4 DENDS AND REDEMPTIONS COUNTED.—For 

5 purposes of clause (i), there shall only be 

6 taken into account dividends declared, and 

7 redemptions occurring, after February 28, 

8 2010. 

9 ‘‘(iii) EXCEPTION FOR INTRA-GROUP

10 DIVIDENDS.—Dividends paid by one mem11 ber of a controlled group (as defined in sec12 tion 302(d)(3)) to another member of such 

13 group shall not be taken into account under 

14 clause (i). 

15 ‘‘(iv) EXCEPTION FOR CERTAIN RE16 DEMPTIONS.—Redemptions that are made 

17 pursuant to a plan maintained with respect 

18 to employees, or that are made on account 

19 of the death, disability, or termination of 

20 employment of an employee or shareholder, 

21 shall not be taken into account under clause 

22 (i). 

23 ‘‘(v) EXCEPTION FOR CERTAIN PRE24 FERRED STOCK.— 
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† HR 4213 EAS 

1 ‘‘(I) IN GENERAL.—Dividends 

2 and redemptions with respect to appli3 cable preferred stock shall not be taken 

4 into account under clause (i) to the ex5 tent that dividends accrue with respect 

6 to such stock at a specified rate in all 

7 events and without regard to the plan 

8 sponsor’s income, and interest accrues 

9 on any unpaid dividends with respect 

10 to such stock. 

11 ‘‘(II) APPLICABLE PREFERRED

12 STOCK.—For purposes of subclause (I), 

13 the term ‘applicable preferred stock’ 

14 means preferred stock which was issued 

15 before March 1, 2010 (or which was 

16 issued after such date and is held by 

17 an employee benefit plan subject to the 

18 provisions of this title). 

19 ‘‘(F) OTHER DEFINITIONS AND RULES.— 

20 For purposes of this paragraph— 

21 ‘‘(i) PLAN SPONSOR.—The term ‘ plan 

22 sponsor’ includes any member of the plan 

23 sponsor’s controlled group (as defined in 

24 section 302(d)(3)). 
101 

† HR 4213 EAS 

1 ‘‘(ii) RESTRICTION PERIOD.—The term 

2 ‘restriction period’ means, with respect to 

3 any election year— 

4 ‘‘(I) except as provided in sub5 clause (II), the 3-year period beginning 

6 with the election year (or, if later, the 

7 first plan year beginning after Decem8 ber 31, 2009), and 

9 ‘‘(II) if the plan sponsor elects 15- 

10 year amortization for the shortfall am11 ortization base for the election year, the 

12 5-year period beginning with the elec13 tion year (or, if later, the first plan 

14 year beginning after December 31, 

15 2009). 

16 ‘‘(iii) ELECTIONS FOR MULTIPLE

17 PLANS.—If a plan sponsor makes elections 

18 under paragraph (2)(D) with respect to 2 

19 or more plans, the Secretary of the Treas20 ury shall provide rules for the application 

21 of this paragraph to such plans, including 

22 rules for the ratable allocation of any in23 stallment acceleration amount among such 

24 plans on the basis of each plan’s relative re25 duction in the plan’s shortfall amortization 
102 

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1 installment for the first plan year in the 

2 amortization period described in subpara3 graph (A) (determined without regard to 

4 this paragraph). 

5 ‘‘(iv) MERGERS AND ACQUISITIONS.— 

6 The Secretary of the Treasury shall pre7 scribe rules for the application of paragraph 

8 (2)(D) and this paragraph in any case 

9 where there is a merger or acquisition in10 volving a plan sponsor making the election 

11 under paragraph (2)(D).’’. 

12 (3) CONFORMING AMENDMENTS.—Section 303 of 

13 such Act (29 U.S.C. 1083) is amended— 

14 (A) in subsection (c)(1), by striking ‘‘the 

15 shortfall amortization bases for such plan year 

16 and each of the 6 preceding plan years’’ and in17 serting ‘‘any shortfall amortization base which 

18 has not been fully amortized under this sub19 section’’, and 

20 (B) in subsection (j)(3), by adding at the 

21 end the following: 

22 ‘‘(F) QUARTERLY CONTRIBUTIONS NOT TO

23 INCLUDE CERTAIN INCREASED CONTRIBU24 TIONS.—Subparagraph (D) shall be applied 
103 

† HR 4213 EAS 

1 without regard to any increase under subsection 

2 (c)(7).’’. 

3 (b) AMENDMENTS TO INTERNAL REVENUE CODE OF

4 1986.— 

5 (1) IN GENERAL.—Paragraph (2) of section 

6 430(c) is amended by adding at the end the following 

7 subparagraph: 

8 ‘‘(D) SPECIAL ELECTION FOR ELIGIBLE

9 PLAN YEARS.— 

10 ‘‘(i) IN GENERAL.—If a plan sponsor 

11 elects to apply this subparagraph with re12 spect to the shortfall amortization base of a 

13 plan for any eligible plan year (in this sub14 paragraph and paragraph (7) referred to as 

15 an ‘election year’), then, notwithstanding 

16 subparagraphs (A) and (B)— 

17 ‘‘(I) the shortfall amortization in18 stallments with respect to such base 

19 shall be determined under clause (ii) or 

20 (iii), whichever is specified in the elec21 tion, and 

22 ‘‘(II) the shortfall amortization 

23 installment for any plan year in the 9- 

24 plan-year period described in clause 

25 (ii) or the 15-plan-year period de-
104 

† HR 4213 EAS 

1 scribed in clause (iii), respectively, 

2 with respect to such shortfall amortiza3 tion base is the annual installment de4 termined under the applicable clause 

5 for that year for that base. 

6 ‘‘(ii) 2 PLUS 7 AMORTIZATION SCHED7 ULE.—The shortfall amortization install8 ments determined under this clause are— 

9 ‘‘(I) in the case of the first 2 plan 

10 years in the 9-plan-year period begin11 ning with the election year, interest on 

12 the shortfall amortization base of the 

13 plan for the election year (determined 

14 using the effective interest rate for the 

15 plan for the election year), and 

16 ‘‘(II) in the case of the last 7 plan 

17 years in such 9-plan-year period, the 

18 amounts necessary to amortize the re19 maining balance of the shortfall amor20 tization base of the plan for the elec21 tion year in level annual installments 

22 over such last 7 plan years (using the 

23 segment rates under subparagraph (C) 

24 for the election year). 
105 

† HR 4213 EAS 

1 ‘‘(iii) 15-YEAR AMORTIZATION.—The 

2 shortfall amortization installments deter3 mined under this subparagraph are the 

4 amounts necessary to amortize the shortfall 

5 amortization base of the plan for the elec6 tion year in level annual installments over 

7 the 15-plan-year period beginning with the 

8 election year (using the segment rates under 

9 subparagraph (C) for the election year). 

10 ‘‘(iv) ELECTION.— 

11 ‘‘(I) IN GENERAL.—The plan 

12 sponsor of a plan may elect to have 

13 this subparagraph apply to not more 

14 than 2 eligible plan years with respect 

15 to the plan, except that in the case of 

16 a plan described in section 106 of the 

17 Pension Protection Act of 2006, the 

18 plan sponsor may only elect to have 

19 this subparagraph apply to a plan 

20 year beginning in 2011. 

21 ‘‘(II) AMORTIZATION SCHED22 ULE.—Such election shall specify 

23 whether the amortization schedule 

24 under clause (ii) or (iii) shall apply to 

25 an election year, except that if a plan 
106 

† HR 4213 EAS 

1 sponsor elects to have this subpara2 graph apply to 2 eligible plan years, 

3 the plan sponsor must elect the same 

4 schedule for both years. 

5 ‘‘(III) OTHER RULES.—Such elec6 tion shall be made at such time, and in 

7 such form and manner, as shall be pre8 scribed by the Secretary, and may be 

9 revoked only with the consent of the 

10 Secretary. The Secretary shall, before 

11 granting a revocation request, provide 

12 the Pension Benefit Guaranty Cor13 poration an opportunity to comment 

14 on the conditions applicable to the 

15 treatment of any portion of the election 

16 year shortfall amortization base that 

17 remains unamortized as of the revoca18 tion date. 

19 ‘‘(v) ELIGIBLE PLAN YEAR.—For pur20 poses of this subparagraph, the term ‘eligi21 ble plan year’ means any plan year begin22 ning in 2008, 2009, 2010, or 2011, except 

23 that a plan year shall only be treated as an 

24 eligible plan year if the due date under sub25 section (j)(1) for the payment of the min-
107 

† HR 4213 EAS 

1 imum required contribution for such plan 

2 year occurs on or after the date of the enact3 ment of this subparagraph. 

4 ‘‘(vi) REPORTING.—A plan sponsor of 

5 a plan who makes an election under clause 

6 (i) shall— 

7 ‘‘(I) give notice of the election to 

8 participants and beneficiaries of the 

9 plan, and 

10 ‘‘(II) inform the Pension Benefit 

11 Guaranty Corporation of such election 

12 in such form and manner as the Direc13 tor of the Pension Benefit Guaranty 

14 Corporation may prescribe. 

15 ‘‘(vii) INCREASES IN REQUIRED IN16 STALLMENTS IN CERTAIN CASES.—For in17 creases in required contributions in cases of 

18 excess compensation or extraordinary divi19 dends or stock redemptions, see paragraph 

20 (7).’’. 

21 (2) INCREASES IN REQUIRED CONTRIBUTIONS IF

22 EXCESS COMPENSATION PAID.—Section 430(c) is 

23 amended by adding at the end the following para24 graph: 
108 

† HR 4213 EAS 

1 ‘‘(7) INCREASES IN ALTERNATE REQUIRED IN2 STALLMENTS IN CASES OF EXCESS COMPENSATION OR

3 EXTRAORDINARY DIVIDENDS OR STOCK REDEMP4 TIONS.— 

5 ‘‘(A) IN GENERAL.—If there is an install6 ment acceleration amount with respect to a plan 

7 for any plan year in the restriction period with 

8 respect to an election year under paragraph 

9 (2)(D), then the shortfall amortization install10 ment otherwise determined and payable under 

11 such paragraph for such plan year shall, subject 

12 to the limitation under subparagraph (B), be in13 creased by such amount. 

14 ‘‘(B) TOTAL INSTALLMENTS LIMITED TO

15 SHORTFALL BASE.—Subject to rules prescribed 

16 by the Secretary, if a shortfall amortization in17 stallment with respect to any shortfall amortiza18 tion base for an election year is required to be 

19 increased for any plan year under subparagraph 

20 (A)— 

21 ‘‘(i) such increase shall not result in 

22 the amount of such installment exceeding 

23 the present value of such installment and all 

24 succeeding installments with respect to such 

25 base (determined without regard to such in-
109 

† HR 4213 EAS 

1 crease but after application of clause (ii)), 

2 and 

3 ‘‘(ii) subsequent shortfall amortization 

4 installments with respect to such base shall, 

5 in reverse order of the otherwise required in6 stallments, be reduced to the extent nec7 essary to limit the present value of such 

8 subsequent shortfall amortization install9 ments (after application of this paragraph) 

10 to the present value of the remaining 

11 unamortized shortfall amortization base. 

12 ‘‘(C) INSTALLMENT ACCELERATION

13 AMOUNT.—For purposes of this paragraph— 

14 ‘‘(i) IN GENERAL.—The term ‘install15 ment acceleration amount’ means, with re16 spect to any plan year in a restriction pe17 riod with respect to an election year, the 

18 sum of— 

19 ‘‘(I) the aggregate amount of ex20 cess employee compensation determined 

21 under subparagraph (D) with respect 

22 to all employees for the plan year, plus 

23 ‘‘(II) the aggregate amount of ex24 traordinary dividends and redemp-
110 

† HR 4213 EAS 

1 tions determined under subparagraph 

2 (E) for the plan year. 

3 ‘‘(ii) ANNUAL LIMITATION.—The in4 stallment acceleration amount for any plan 

5 year shall not exceed the excess (if any) of— 

6 ‘‘(I) the sum of the shortfall amor7 tization installments for the plan year 

8 and all preceding plan years in the 

9 amortization period elected under 

10 paragraph (2)(D) with respect to the 

11 shortfall amortization base with respect 

12 to an election year, determined without 

13 regard to paragraph (2)(D) and this 

14 paragraph, over 

15 ‘‘(II) the sum of the shortfall am16 ortization installments for such plan 

17 year and all such preceding plan 

18 years, determined after application of 

19 paragraph (2)(D) (and in the case of 

20 any preceding plan year, after appli21 cation of this paragraph). 

22 ‘‘(iii) CARRYOVER OF EXCESS INSTALL23 MENT ACCELERATION AMOUNTS.— 

24 ‘‘(I) IN GENERAL.—If the install25 ment acceleration amount for any plan 
111 

† HR 4213 EAS 

1 year (determined without regard to 

2 clause (ii)) exceeds the limitation 

3 under clause (ii), then, subject to sub4 clause (II), such excess shall be treated 

5 as an installment acceleration amount 

6 with respect to the succeeding plan 

7 year. 

8 ‘‘(II) CAP TO APPLY.—If any 

9 amount treated as an installment ac10 celeration amount under subclause (I) 

11 or this subclause with respect any suc12 ceeding plan year, when added to other 

13 installment acceleration amounts (de14 termined without regard to clause (ii)) 

15 with respect to the plan year, exceeds 

16 the limitation under clause (ii), the 

17 portion of such amount representing 

18 such excess shall be treated as an in19 stallment acceleration amount with re20 spect to the next succeeding plan year. 

21 ‘‘(III) LIMITATION ON YEARS TO

22 WHICH AMOUNTS CARRIED FOR.—No 

23 amount shall be carried under sub24 clause (I) or (II) to a plan year which 

25 begins after the first plan year fol-
112 

† HR 4213 EAS 

1 lowing the last plan year in the re2 striction period (or after the second 

3 plan year following such last plan year 

4 in the case of an election year with re5 spect to which 15-year amortization 

6 was elected under paragraph (2)(D)). 

7 ‘‘(IV) ORDERING RULES.—For 

8 purposes of applying subclause (II), 

9 installment acceleration amounts for 

10 the plan year (determined without re11 gard to any carryover under this 

12 clause) shall be applied first against 

13 the limitation under clause (ii) and 

14 then carryovers to such plan year shall 

15 be applied against such limitation on 

16 a first-in, first-out basis. 

17 ‘‘(D) EXCESS EMPLOYEE COMPENSATION.— 

18 For purposes of this paragraph— 

19 ‘‘(i) IN GENERAL.—The term ‘excess 

20 employee compensation’ means, with respect 

21 to any employee for any plan year, the ex22 cess (if any) of— 

23 ‘‘(I) the aggregate amount includ24 ible in income under this chapter for 

25 remuneration during the calendar year 
113 

† HR 4213 EAS 

1 in which such plan year begins for 

2 services performed by the employee for 

3 the plan sponsor (whether or not per4 formed during such calendar year), 

5 over 

6 ‘‘(II) $1,000,000. 

7 ‘‘(ii) AMOUNTS SET ASIDE FOR NON8 QUALIFIED DEFERRED COMPENSATION.—If 

9 during any calendar year assets are set 

10 aside or reserved (directly or indirectly) in 

11 a trust (or other arrangement as determined 

12 by the Secretary), or transferred to such a 

13 trust or other arrangement, by a plan spon14 sor for purposes of paying deferred com15 pensation of an employee under a non16 qualified deferred compensation plan (as de17 fined in section 409A) of the plan sponsor, 

18 then, for purposes of clause (i), the amount 

19 of such assets shall be treated as remunera20 tion of the employee includible in income 

21 for the calendar year unless such amount is 

22 otherwise includible in income for such 

23 year. An amount to which the preceding 

24 sentence applies shall not be taken into ac-
114 

† HR 4213 EAS 

1 count under this paragraph for any subse2 quent calendar year. 

3 ‘‘(iii) ONLY REMUNERATION FOR CER4 TAIN POST-2009 SERVICES COUNTED.—Re5 muneration shall be taken into account 

6 under clause (i) only to the extent attrib7 utable to services performed by the employee 

8 for the plan sponsor after February 28, 

9 2010. 

10 ‘‘(iv) EXCEPTION FOR CERTAIN EQUITY

11 PAYMENTS.— 

12 ‘‘(I) IN GENERAL.—There shall 

13 not be taken into account under clause 

14 (i)(I) any amount includible in income 

15 with respect to the granting after Feb16 ruary 28, 2010, of service recipient 

17 stock (within the meaning of section 

18 409A) that, upon such grant, is subject 

19 to a substantial risk of forfeiture (as 

20 defined under section 83(c)(1)) for at 

21 least 5 years from the date of such 

22 grant. 

23 ‘‘(II) SECRETARIAL AUTHOR24 ITY.—The Secretary may by regulation 

25 provide for the application of this 
115 

† HR 4213 EAS 

1 clause in the case of a person other 

2 than a corporation. 

3 ‘‘(v) OTHER EXCEPTIONS.—The fol4 lowing amounts includible in income shall 

5 not be taken into account under clause 

6 (i)(I): 

7 ‘‘(I) COMMISSIONS.—Any remu8 neration payable on a commission 

9 basis solely on account of income di10 rectly generated by the individual per11 formance of the individual to whom 

12 such remuneration is payable. 

13 ‘‘(II) CERTAIN PAYMENTS UNDER

14 EXISTING CONTRACTS.—Any remu15 neration consisting of nonqualified de16 ferred compensation, restricted stock, 

17 stock options, or stock appreciation 

18 rights payable or granted under a 

19 written binding contract that was in 

20 effect on March 1, 2010, and which 

21 was not modified in any material re22 spect before such remuneration is paid. 

23 ‘‘(vi) SELF-EMPLOYED INDIVIDUAL

24 TREATED AS EMPLOYEE.—The term ‘em25 ployee’ includes, with respect to a calendar 
116 

† HR 4213 EAS 

1 year, a self-employed individual who is 

2 treated as an employee under section 401(c) 

3 for the taxable year ending during such cal4 endar year, and the term ‘compensation’ 

5 shall include earned income of such indi6 vidual with respect to such self-employment. 

7 ‘‘(vii) INDEXING OF AMOUNT.—In the 

8 case of any calendar year beginning after 

9 2010, the dollar amount under clause (i)(II) 

10 shall be increased by an amount equal to— 

11 ‘‘(I) such dollar amount, multi12 plied by 

13 ‘‘(II) the cost-of-living adjustment 

14 determined under section 1(f)(3) for 

15 the calendar year, determined by sub16 stituting ‘calendar year 2009’ for ‘cal17 endar year 1992’ in subparagraph (B) 

18 thereof. 

19 If the amount of any increase under clause 

20 (i) is not a multiple of $1,000, such in21 crease shall be rounded to the next lowest 

22 multiple of $1,000. 

23 ‘‘(E) EXTRAORDINARY DIVIDENDS AND RE24 DEMPTIONS.— 
117 

† HR 4213 EAS 

1 ‘‘(i) IN GENERAL.—The amount deter2 mined under this subparagraph for any 

3 plan year is the excess (if any) of the sum 

4 of the dividends declared during the plan 

5 year by the plan sponsor plus the aggregate 

6 amount paid for the redemption of stock of 

7 the plan sponsor redeemed during the plan 

8 year over the greater of— 

9 ‘‘(I) the adjusted net income 

10 (within the meaning of section 4043 of 

11 the Employee Retirement Income Secu12 rity Act of 1974) of the plan sponsor 

13 for the preceding plan year, deter14 mined without regard to any reduction 

15 by reason of interest, taxes, deprecia16 tion, or amortization, or 

17 ‘‘(II) in the case of a plan sponsor 

18 that determined and declared dividends 

19 in the same manner for at least 5 con20 secutive years immediately preceding 

21 such plan year, the aggregate amount 

22 of dividends determined and declared 

23 for such plan year using such manner. 

24 ‘‘(ii) ONLY CERTAIN POST-2009 DIVI25 DENDS AND REDEMPTIONS COUNTED.—For 
118 

† HR 4213 EAS 

1 purposes of clause (i), there shall only be 

2 taken into account dividends declared, and 

3 redemptions occurring, after February 28, 

4 2010. 

5 ‘‘(iii) EXCEPTION FOR INTRA-GROUP

6 DIVIDENDS.—Dividends paid by one mem7 ber of a controlled group (as defined in sec8 tion 412(d)(3)) to another member of such 

9 group shall not be taken into account under 

10 clause (i). 

11 ‘‘(iv) EXCEPTION FOR CERTAIN RE12 DEMPTIONS.—Redemptions that are made 

13 pursuant to a plan maintained with respect 

14 to employees, or that are made on account 

15 of the death, disability, or termination of 

16 employment of an employee or shareholder, 

17 shall not be taken into account under clause 

18 (i). 

19 ‘‘(v) EXCEPTION FOR CERTAIN PRE20 FERRED STOCK.— 

21 ‘‘(I) IN GENERAL.—Dividends 

22 and redemptions with respect to appli23 cable preferred stock shall not be taken 

24 into account under clause (i) to the ex25 tent that dividends accrue with respect 
119 

† HR 4213 EAS 

1 to such stock at a specified rate in all 

2 events and without regard to the plan 

3 sponsor’s income, and interest accrues 

4 on any unpaid dividends with respect 

5 to such stock. 

6 ‘‘(II) APPLICABLE PREFERRED

7 STOCK.—For purposes of subclause (I), 

8 the term ‘applicable preferred stock’ 

9 means preferred stock which was issued 

10 before March 1, 2010 (or which was 

11 issued after such date and is held by 

12 an employee benefit plan subject to the 

13 provisions of title I of Employee Re14 tirement Income Security Act of 1974). 

15 ‘‘(F) OTHER DEFINITIONS AND RULES.— 

16 For purposes of this paragraph— 

17 ‘‘(i) PLAN SPONSOR.—The term ‘ plan 

18 sponsor’ includes any member of the plan 

19 sponsor’s controlled group (as defined in 

20 section 412(d)(3)). 

21 ‘‘(ii) RESTRICTION PERIOD.—The term 

22 ‘restriction period’ means, with respect to 

23 any election year— 

24 ‘‘(I) except as provided in sub25 clause (II), the 3-year period beginning 
120 

† HR 4213 EAS 

1 with the election year (or, if later, the 

2 first plan year beginning after Decem3 ber 31, 2009), and 

4 ‘‘(II) if the plan sponsor elects 15- 

5 year amortization for the shortfall am6 ortization base for the election year, the 

7 5-year period beginning with the elec8 tion year (or, if later, the first plan 

9 year beginning after December 31, 

10 2009). 

11 ‘‘(iii) ELECTIONS FOR MULTIPLE

12 PLANS.—If a plan sponsor makes elections 

13 under paragraph (2)(D) with respect to 2 

14 or more plans, the Secretary shall provide 

15 rules for the application of this paragraph 

16 to such plans, including rules for the ratable 

17 allocation of any installment acceleration 

18 amount among such plans on the basis of 

19 each plan’s relative reduction in the plan’s 

20 shortfall amortization installment for the 

21 first plan year in the amortization period 

22 described in subparagraph (A) (determined 

23 without regard to this paragraph). 

24 ‘‘(iv) MERGERS AND ACQUISITIONS.— 

25 The Secretary shall prescribe rules for the 
121 

† HR 4213 EAS 

1 application of paragraph (2)(D) and this 

2 paragraph in any case where there is a 

3 merger or acquisition involving a plan 

4 sponsor making the election under para5 graph (2)(D).’’. 

6 (3) CONFORMING AMENDMENTS.—Section 430 is 

7 amended— 

8 (A) in subsection (c)(1), by striking ‘‘the 

9 shortfall amortization bases for such plan year 

10 and each of the 6 preceding plan years’’ and in11 serting ‘‘any shortfall amortization base which 

12 has not been fully amortized under this sub13 section’’, and 

14 (B) in subsection (j)(3), by adding at the 

15 end the following: 

16 ‘‘(F) QUARTERLY CONTRIBUTIONS NOT TO

17 INCLUDE CERTAIN INCREASED CONTRIBU18 TIONS.—Subparagraph (D) shall be applied 

19 without regard to any increase under subsection 

20 (c)(7).’’. 

21 (c) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to plan years beginning after December 

23 31, 2007. 
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1 SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PE2 RIOD TO PLANS SUBJECT TO PRIOR LAW 

3 FUNDING RULES. 

4 (a) IN GENERAL.—Title I of the Pension Protection 

5 Act of 2006 is amended by redesignating section 107 as sec6 tion 108 and by inserting the following after section 106: 

7 ‘‘SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PE8 RIODS TO PLANS WITH DELAYED EFFECTIVE 

9 DATE. 

10 ‘‘(a) IN GENERAL.—If the plan sponsor of a plan to 

11 which section 104, 105, or 106 of this Act applies elects 

12 to have this section apply for any eligible plan year (in 

13 this section referred to as an ‘election year’), section 302 

14 of the Employee Retirement Income Security Act of 1974 

15 and section 412 of the Internal Revenue Code of 1986 (as 

16 in effect before the amendments made by this subtitle and 

17 subtitle B) shall apply to such year in the manner described 

18 in subsection (b) or (c), whichever is specified in the elec19 tion. All references in this section to ‘such Act’ or ‘such 

20 Code’ shall be to such Act or such Code as in effect before 

21 the amendments made by this subtitle and subtitle B. 

22 ‘‘(b) APPLICATION OF 2 AND 7 RULE.—In the case of 

23 an election year to which this subsection applies— 

24 ‘‘(1) 2-YEAR LOOKBACK FOR DETERMINING DEF25 ICIT REDUCTION CONTRIBUTIONS FOR CERTAIN

26 PLANS.—For purposes of applying section 302(d)(9) 
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† HR 4213 EAS 

1 of such Act and section 412(l)(9) of such Code, the 

2 funded current liability percentage (as defined in sub3 paragraph (C) thereof) for such plan for such plan 

4 year shall be such funded current liability percentage 

5 of such plan for the second plan year preceding the 

6 first election year of such plan. 

7 ‘‘(2) CALCULATION OF DEFICIT REDUCTION CON8 TRIBUTION.—For purposes of applying section 302(d) 

9 of such Act and section 412(l) of such Code to a plan 

10 to which such sections apply (after taking into ac11 count paragraph (1))— 

12 ‘‘(A) in the case of the increased unfunded 

13 new liability of the plan, the applicable percent14 age described in section 302(d)(4)(C) of such Act 

15 and section 412(l)(4)(C) of such Code shall be the 

16 third segment rate described in sections 104(b), 

17 105(b), and 106(b) of this Act, and 

18 ‘‘(B) in the case of the excess of the un19 funded new liability over the increased unfunded 

20 new liability, such applicable percentage shall be 

21 determined without regard to this section. 

22 ‘‘(c) APPLICATION OF 15-YEAR AMORTIZATION.—In 

23 the case of an election year to which this subsection applies, 

24 for purposes of applying section 302(d) of such Act and sec25 tion 412(l) of such Code— 
124 

† HR 4213 EAS 

1 ‘‘(1) in the case of the increased unfunded new 

2 liability of the plan, the applicable percentage de3 scribed in section 302(d)(4)(C) of such Act and sec4 tion 412(l)(4)(C) of such Code for any pre-effective 

5 date plan year beginning with or after the first elec6 tion year shall be the ratio of— 

7 ‘‘(A) the annual installments payable in 

8 each year if the increased unfunded new liability 

9 for such plan year were amortized over 15 years, 

10 using an interest rate equal to the third segment 

11 rate described in sections 104(b), 105(b), and 

12 106(b) of this Act, to 

13 ‘‘(B) the increased unfunded new liability 

14 for such plan year, and 

15 ‘‘(2) in the case of the excess of the unfunded new 

16 liability over the increased unfunded new liability, 

17 such applicable percentage shall be determined with18 out regard to this section. 

19 ‘‘(d) ELECTION.— 

20 ‘‘(1) IN GENERAL.—The plan sponsor of a plan 

21 may elect to have this section apply to not more than 

22 2 eligible plan years with respect to the plan, except 

23 that in the case of a plan to which section 106 of this 

24 Act applies, the plan sponsor may only elect to have 

25 this section apply to 1 eligible plan year. 
125 

† HR 4213 EAS 

1 ‘‘(2) AMORTIZATION SCHEDULE.—Such election 

2 shall specify whether the rules under subsection (b) or 

3 (c) shall apply to an election year, except that if a 

4 plan sponsor elects to have this section apply to 2 eli5 gible plan years, the plan sponsor must elect the same 

6 rule for both years. 

7 ‘‘(3) OTHER RULES.—Such election shall be 

8 made at such time, and in such form and manner, 

9 as shall be prescribed by the Secretary of the Treas10 ury, and may be revoked only with the consent of the 

11 Secretary of the Treasury. 

12 ‘‘(e) DEFINITIONS.—For purposes of this section— 

13 ‘‘(1) ELIGIBLE PLAN YEAR.—For purposes of this 

14 subparagraph, the term ‘eligible plan year’ means 

15 any plan year beginning in 2008, 2009, 2010, or 

16 2011, except that a plan year beginning in 2008 shall 

17 only be treated as an eligible plan year if the due 

18 date for the payment of the minimum required con19 tribution for such plan year occurs on or after the 

20 date of the enactment of this clause. 

21 ‘‘(2) PRE-EFFECTIVE DATE PLAN YEAR.—The 

22 term ‘pre-effective date plan year’ means, with respect 

23 to a plan, any plan year prior to the first year in 

24 which the amendments made by this subtitle and sub25 title B apply to the plan. 
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† HR 4213 EAS 

1 ‘‘(3) INCREASED UNFUNDED NEW LIABILITY.— 

2 The term ‘increased unfunded new liability’ means, 

3 with respect to a year, the excess (if any) of the un4 funded new liability over the amount of unfunded 

5 new liability determined as if the value of the plan’s 

6 assets determined under subsection 302(c)(2) of such 

7 Act and section 412(c)(2) of such Code equaled the 

8 product of the current liability of the plan for the 

9 year multiplied by the funded current liability per10 centage (as defined in section 302(d)(8)(B) of such 

11 Act and 412(l)(8)(B) of such Code) of the plan for the 

12 second plan year preceding the first election year of 

13 such plan. 

14 ‘‘(4) OTHER DEFINITIONS.—The terms ‘unfunded 

15 new liability’ and ‘current liability’ shall have the 

16 meanings set forth in section 302(d) of such Act and 

17 section 412(l) of such Code.’’. 

18 (b) ELIGIBLE CHARITY PLANS.—Section 104 of the 

19 Pension Protection Act of 2006 is amended— 

20 (1) by striking ‘‘eligible cooperative plan’’ wher21 ever it appears in subsections (a) and (b) and insert22 ing ‘‘eligible cooperative plan or an eligible charity 

23 plan’’, and 

24 (2) by adding at the end the following new sub25 section: 
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† HR 4213 EAS 

1 ‘‘(d) ELIGIBLE CHARITY PLAN DEFINED.—For pur2 poses of this section, a plan shall be treated as an eligible 

3 charity plan for a plan year if the plan is maintained by 

4 more than one employer (determined without regard to sec5 tion 414(c) of the Internal Revenue Code) and 100 percent 

6 of the employers are described in section 501(c)(3) of such 

7 Code.’’. 

8 (c) EFFECTIVE DATE.— 

9 (1) IN GENERAL.—The amendment made by sub10 section (a) shall take effect as if included in the Pen11 sion Protection Act of 2006. 

12 (2) ELIGIBLE CHARITY PLAN.—The amendments 

13 made by subsection (b) shall apply to plan years be14 ginning after December 31, 2007, except that a plan 

15 sponsor may elect to apply such amendments to plan 

16 years beginning after December 31, 2008. Any such 

17 election shall be made at such time, and in such form 

18 and manner, as shall be prescribed by the Secretary 

19 of the Treasury, and may be revoked only with the 

20 consent of the Secretary of the Treasury. 

21 SEC. 303. LOOKBACK FOR CERTAIN BENEFIT RESTRIC22 TIONS. 

23 (a) IN GENERAL.— 
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† HR 4213 EAS 

1 (1) AMENDMENT TO ERISA.—Section 206(g)(9) of 

2 the Employee Retirement Income Security Act of 

3 1974 is amended by adding at the end the following: 

4 ‘‘(D) SPECIAL RULE FOR CERTAIN YEARS.— 

5 Solely for purposes of any applicable provi6 sion— 

7 ‘‘(i) IN GENERAL.—For plan years be8 ginning on or after October 1, 2008, and be9 fore October 1, 2010, the adjusted funding 

10 target attainment percentage of a plan shall 

11 be the greater of— 

12 ‘‘(I) such percentage, as deter13 mined without regard to this subpara14 graph, or 

15 ‘‘(II) the adjusted funding target 

16 attainment percentage for such plan 

17 for the plan year beginning after Octo18 ber 1, 2007, and before October 1, 

19 2008, as determined under rules pre20 scribed by the Secretary of the Treas21 ury. 

22 ‘‘(ii) SPECIAL RULE.—In the case of a 

23 plan for which the valuation date is not the 

24 first day of the plan year— 
129 

† HR 4213 EAS 

1 ‘‘(I) clause (i) shall apply to plan 

2 years beginning after December 31, 

3 2007, and before January 1, 2010, and 

4 ‘‘(II) clause (i)(II) shall apply 

5 based on the last plan year beginning 

6 before November 1, 2007, as determined 

7 under rules prescribed by the Secretary 

8 of the Treasury. 

9 ‘‘(iii) APPLICABLE PROVISION.—For 

10 purposes of this subparagraph, the term 

11 ‘applicable provision’ means— 

12 ‘‘(I) paragraph (3), but only for 

13 purposes of applying such paragraph 

14 to a payment which, as determined 

15 under rules prescribed by the Secretary 

16 of the Treasury, is a payment under a 

17 social security leveling option which 

18 accelerates payments under the plan 

19 before, and reduces payments after, a 

20 participant starts receiving social secu21 rity benefits in order to provide sub22 stantially similar aggregate payments 

23 both before and after such benefits are 

24 received, and 

25 ‘‘(II) paragraph (4).’’. 
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† HR 4213 EAS 

1 (2) AMENDMENT TO INTERNAL REVENUE CODE

2 OF 1986.—Section 436(j) of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the fol4 lowing: 

5 ‘‘(3) SPECIAL RULE FOR CERTAIN YEARS.—Sole6 ly for purposes of any applicable provision— 

7 ‘‘(A) IN GENERAL.—For plan years begin8 ning on or after October 1, 2008, and before Oc9 tober 1, 2010, the adjusted funding target attain10 ment percentage of a plan shall be the greater 

11 of— 

12 ‘‘(i) such percentage, as determined 

13 without regard to this paragraph, or 

14 ‘‘(ii) the adjusted funding target at15 tainment percentage for such plan for the 

16 plan year beginning after October 1, 2007, 

17 and before October 1, 2008, as determined 

18 under rules prescribed by the Secretary. 

19 ‘‘(B) SPECIAL RULE.—In the case of a plan 

20 for which the valuation date is not the first day 

21 of the plan year— 

22 ‘‘(i) subparagraph (A) shall apply to 

23 plan years beginning after December 31, 

24 2007, and before January 1, 2010, and 
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† HR 4213 EAS 

1 ‘‘(ii) subparagraph (A)(ii) shall apply 

2 based on the last plan year beginning before 

3 November 1, 2007, as determined under 

4 rules prescribed by the Secretary. 

5 ‘‘(C) APPLICABLE PROVISION.—For pur6 poses of this paragraph, the term ‘applicable 

7 provision’ means— 

8 ‘‘(i) subsection (d), but only for pur9 poses of applying such paragraph to a pay10 ment which, as determined under rules pre11 scribed by the Secretary, is a payment 

12 under a social security leveling option 

13 which accelerates payments under the plan 

14 before, and reduces payments after, a par15 ticipant starts receiving social security ben16 efits in order to provide substantially simi17 lar aggregate payments both before and 

18 after such benefits are received, and 

19 ‘‘(ii) subsection (e).’’. 

20 (b) INTERACTION WITH WRERA RULE.—Section 203 

21 of the Worker, Retiree, and Employer Recovery Act of 2008 

22 shall apply to a plan for any plan year in lieu of the 

23 amendments made by this section applying to sections 

24 206(g)(4) of the Employee Retirement Income Security Act 

25 of 1974 and 436(e) of the Internal Revenue Code of 1986 
132 

† HR 4213 EAS 

1 only to the extent that such section produces a higher ad2 justed funding target attainment percentage for such plan 

3 for such year. 

4 (c) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the amendments made by this section shall 

7 apply to plan years beginning on or after October 1, 

8 2008. 

9 (2) SPECIAL RULE.—In the case of a plan for 

10 which the valuation date is not the first day of the 

11 plan year, the amendments made by this section shall 

12 apply to plan years beginning after December 31, 

13 2007. 

14 SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE FOR 

15 PLANS MAINTAINED BY CHARITIES. 

16 (a) AMENDMENT TO ERISA.—Paragraph (3) of section 

17 303(f) of the Employee Retirement Income Security Act of 

18 1974 is amended by adding the following at the end thereof: 

19 ‘‘(D) SPECIAL RULE FOR CERTAIN YEARS

20 OF PLANS MAINTAINED BY CHARITIES.— 

21 ‘‘(i) IN GENERAL.—For purposes of ap22 plying subparagraph (C) for plan years be23 ginning after August 31, 2009, and before 

24 September 1, 2011, the ratio determined 
133 

† HR 4213 EAS 

1 under such subparagraph for the preceding 

2 plan year shall be the greater of— 

3 ‘‘(I) such ratio, as determined 

4 without regard to this subparagraph, 

5 or 

6 ‘‘(II) the ratio for such plan for 

7 the plan year beginning after August 

8 31, 2007, and before September 1, 

9 2008, as determined under rules pre10 scribed by the Secretary of the Treas11 ury. 

12 ‘‘(ii) SPECIAL RULE.—In the case of a 

13 plan for which the valuation date is not the 

14 first day of the plan year— 

15 ‘‘(I) clause (i) shall apply to plan 

16 years beginning after December 31, 

17 2008, and before January 1, 2011, and 

18 ‘‘(II) clause (i)(II) shall apply 

19 based on the last plan year beginning 

20 before September 1, 2007, as deter21 mined under rules prescribed by the 

22 Secretary of the Treasury. 

23 ‘‘(iii) LIMITATION TO CHARITIES.— 

24 This subparagraph shall not apply to any 

25 plan unless such plan is maintained exclu-
134 

† HR 4213 EAS 

1 sively by one or more organizations de2 scribed in section 501(c)(3) of the Internal 

3 Revenue Code of 1986.’’. 

4 (b) AMENDMENT TO INTERNAL REVENUE CODE OF

5 1986.—Paragraph (3) of section 430(f) of the Internal Rev6 enue Code of 1986 is amended by adding the following at 

7 the end thereof: 

8 ‘‘(D) SPECIAL RULE FOR CERTAIN YEARS

9 OF PLANS MAINTAINED BY CHARITIES.— 

10 ‘‘(i) IN GENERAL.—For purposes of ap11 plying subparagraph (C) for plan years be12 ginning after August 31, 2009, and before 

13 September 1, 2011, the ratio determined 

14 under such subparagraph for the preceding 

15 plan year of a plan shall be the greater of— 

16 ‘‘(I) such ratio, as determined 

17 without regard to this subsection, or 

18 ‘‘(II) the ratio for such plan for 

19 the plan year beginning after August 

20 31, 2007 and before September 1, 2008, 

21 as determined under rules prescribed 

22 by the Secretary. 

23 ‘‘(ii) SPECIAL RULE.—In the case of a 

24 plan for which the valuation date is not the 

25 first day of the plan year— 
135 

† HR 4213 EAS 

1 ‘‘(I) clause (i) shall apply to plan 

2 years beginning after December 31, 

3 2007, and before January 1, 2010, and 

4 ‘‘(II) clause (i)(II) shall apply 

5 based on the last plan year beginning 

6 before September 1, 2007, as deter7 mined under rules prescribed by the 

8 Secretary. 

9 ‘‘(iii) LIMITATION TO CHARITIES.— 

10 This subparagraph shall not apply to any 

11 plan unless such plan is maintained exclu12 sively by one or more organizations de13 scribed in section 501(c)(3).’’. 

14 (c) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section shall 

17 apply to plan years beginning after August 31, 2009. 

18 (2) SPECIAL RULE.—In the case of a plan for 

19 which the valuation date is not the first day of the 

20 plan year, the amendments made by this section shall 

21 apply to plan years beginning after December 31, 

22 2008. 
136 

† HR 4213 EAS 

1 Subtitle B—Multiemployer Plans 

2 SEC. 311. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT 

3 RULES. 

4 (a) ADJUSTMENTS.— 

5 (1) AMENDMENT TO ERISA.—Section 304(b) of 

6 the Employee Retirement Income Security Act of 

7 1974 (29 U.S.C. 1084(b)) is amended by adding at 

8 the end the following new paragraph: 

9 ‘‘(8) SPECIAL RELIEF RULES.—Notwithstanding 

10 any other provision of this subsection— 

11 ‘‘(A) AMORTIZATION OF NET INVESTMENT

12 LOSSES.— 

13 ‘‘(i) IN GENERAL.—A multiemployer 

14 plan with respect to which the solvency test 

15 under subparagraph (C) is met may treat 

16 the portion of any experience loss or gain 

17 attributable to net investment losses in18 curred in either or both of the first two plan 

19 years ending after August 31, 2008, as an 

20 item separate from other experience losses, 

21 to be amortized in equal annual install22 ments (until fully amortized) over the pe23 riod — 

24 ‘‘(I) beginning with the plan year 

25 in which such portion is first recog-
137 

† HR 4213 EAS 

1 nized in the actuarial value of assets, 

2 and 

3 ‘‘(II) ending with the last plan 

4 year in the 30-plan year period begin5 ning with the plan year in which such 

6 net investment loss was incurred. 

7 ‘‘(ii) COORDINATION WITH EXTEN8 SIONS.—If this subparagraph applies for 

9 any plan year— 

10 ‘‘(I) no extension of the amortiza11 tion period under clause (i) shall be al12 lowed under subsection (d), and 

13 ‘‘(II) if an extension was granted 

14 under subsection (d) for any plan year 

15 before the election to have this subpara16 graph apply to the plan year, such ex17 tension shall not result in such amorti18 zation period exceeding 30 years. 

19 ‘‘(iii) NET INVESTMENT LOSSES.—For 

20 purposes of this subparagraph— 

21 ‘‘(I) IN GENERAL.—Net invest22 ment losses shall be determined in the 

23 manner prescribed by the Secretary of 

24 the Treasury on the basis of the dif25 ference between actual and expected re-
138 

† HR 4213 EAS 

1 turns (including any difference attrib2 utable to any criminally fraudulent in3 vestment arrangement). 

4 ‘‘(II) CRIMINALLY FRAUDULENT

5 INVESTMENT ARRANGEMENTS.—The de6 termination as to whether an arrange7 ment is a criminally fraudulent invest8 ment arrangement shall be made under 

9 rules substantially similar to the rules 

10 prescribed by the Secretary of the 

11 Treasury for purposes of section 165 of 

12 the Internal Revenue Code of 1986. 

13 ‘‘(B) EXPANDED SMOOTHING PERIOD.— 

14 ‘‘(i) IN GENERAL.—A multiemployer 

15 plan with respect to which the solvency test 

16 under subparagraph (C) is met may change 

17 its asset valuation method in a manner 

18 which— 

19 ‘‘(I) spreads the difference between 

20 expected and actual returns for either 

21 or both of the first 2 plan years ending 

22 after August 31, 2008, over a period of 

23 not more than 10 years, 

24 ‘‘(II) provides that for either or 

25 both of the first 2 plan years beginning 
139 

† HR 4213 EAS 

1 after August 31, 2008, the value of 

2 plan assets at any time shall not be 

3 less than 80 percent or greater than 

4 130 percent of the fair market value of 

5 such assets at such time, or 

6 ‘‘(III) makes both changes de7 scribed in subclauses (I) and (II) to 

8 such method. 

9 ‘‘(ii) ASSET VALUATION METHODS.—If 

10 this subparagraph applies for any plan 

11 year— 

12 ‘‘(I) the Secretary of the Treasury 

13 shall not treat the asset valuation 

14 method of the plan as unreasonable 

15 solely because of the changes in such 

16 method described in clause (i), and 

17 ‘‘(II) such changes shall be deemed 

18 approved by such Secretary under sec19 tion 302(d)(1) and section 412(d)(1) of 

20 such Code. 

21 ‘‘(iii) AMORTIZATION OF REDUCTION

22 IN UNFUNDED ACCRUED LIABILITY.—If this 

23 subparagraph and subparagraph (A) both 

24 apply for any plan year, the plan shall 

25 treat any reduction in unfunded accrued li-
140 

† HR 4213 EAS 

1 ability resulting from the application of 

2 this subparagraph as a separate experience 

3 amortization base, to be amortized in equal 

4 annual installments (until fully amortized) 

5 over a period of 30 plan years rather than 

6 the period such liability would otherwise be 

7 amortized over. 

8 ‘‘(C) SOLVENCY TEST.—The solvency test 

9 under this paragraph is met only if the plan ac10 tuary certifies that the plan is projected to have 

11 sufficient assets to timely pay expected benefits 

12 and anticipated expenditures over the amortiza13 tion period, taking into account the changes in 

14 the funding standard account under this para15 graph. 

16 ‘‘(D) RESTRICTION ON BENEFIT IN17 CREASES.—If subparagraph (A) or (B) apply to 

18 a multiemployer plan for any plan year, then, 

19 in addition to any other applicable restrictions 

20 on benefit increases, a plan amendment increas21 ing benefits may not go into effect during either 

22 of the 2 plan years immediately following such 

23 plan year unless— 

24 ‘‘(i) the plan actuary certifies that— 
141 

† HR 4213 EAS 

1 ‘‘(I) any such increase is paid for 

2 out of additional contributions not al3 located to the plan immediately before 

4 the application of this paragraph to 

5 the plan, and 

6 ‘‘(II) the plan’s funded percentage 

7 and projected credit balances for such 2 

8 plan years are reasonably expected to 

9 be at least as high as such percentage 

10 and balances would have been if the 

11 benefit increase had not been adopted, 

12 or 

13 ‘‘(ii) the amendment is required as a 

14 condition of qualification under part I of 

15 subchapter D of chapter 1 of the Internal 

16 Revenue Code of 1986 or to comply with 

17 other applicable law. 

18 ‘‘(E) REPORTING.—A plan sponsor of a 

19 plan to which this paragraph applies shall— 

20 ‘‘(i) give notice of such application to 

21 participants and beneficiaries of the plan, 

22 and 

23 ‘‘(ii) inform the Pension Benefit Guar24 anty Corporation of such application in 

25 such form and manner as the Director of 
142 

† HR 4213 EAS 

1 the Pension Benefit Guaranty Corporation 

2 may prescribe.’’. 

3 (2) AMENDMENT TO INTERNAL REVENUE CODE

4 OF 1986.—Section 431(b) is amended by adding at the 

5 end the following new paragraph: 

6 ‘‘(8) SPECIAL RELIEF RULES.—Notwithstanding 

7 any other provision of this subsection— 

8 ‘‘(A) AMORTIZATION OF NET INVESTMENT

9 LOSSES.— 

10 ‘‘(i) IN GENERAL.—A multiemployer 

11 plan with respect to which the solvency test 

12 under subparagraph (C) is met may treat 

13 the portion of any experience loss or gain 

14 attributable to net investment losses in15 curred in either or both of the first two plan 

16 years ending after August 31, 2008, as an 

17 item separate from other experience losses, 

18 to be amortized in equal annual install19 ments (until fully amortized) over the pe20 riod — 

21 ‘‘(I) beginning with the plan year 

22 in which such portion is first recog23 nized in the actuarial value of assets, 

24 and 
143 

† HR 4213 EAS 

1 ‘‘(II) ending with the last plan 

2 year in the 30-plan year period begin3 ning with the plan year in which such 

4 net investment loss was incurred. 

5 ‘‘(ii) COORDINATION WITH EXTEN6 SIONS.—If this subparagraph applies for 

7 any plan year— 

8 ‘‘(I) no extension of the amortiza9 tion period under clause (i) shall be al10 lowed under subsection (d), and 

11 ‘‘(II) if an extension was granted 

12 under subsection (d) for any plan year 

13 before the election to have this subpara14 graph apply to the plan year, such ex15 tension shall not result in such amorti16 zation period exceeding 30 years. 

17 ‘‘(iii) NET INVESTMENT LOSSES.—For 

18 purposes of this subparagraph— 

19 ‘‘(I) IN GENERAL.—Net invest20 ment losses shall be determined in the 

21 manner prescribed by the Secretary on 

22 the basis of the difference between ac23 tual and expected returns (including 

24 any difference attributable to any 
144 

† HR 4213 EAS 

1 criminally fraudulent investment ar2 rangement). 

3 ‘‘(II) CRIMINALLY FRAUDULENT

4 INVESTMENT ARRANGEMENTS.—The de5 termination as to whether an arrange6 ment is a criminally fraudulent invest7 ment arrangement shall be made under 

8 rules substantially similar to the rules 

9 prescribed by the Secretary for pur10 poses of section 165. 

11 ‘‘(B) EXPANDED SMOOTHING PERIOD.— 

12 ‘‘(i) IN GENERAL.—A multiemployer 

13 plan with respect to which the solvency test 

14 under subparagraph (C) is met may change 

15 its asset valuation method in a manner 

16 which— 

17 ‘‘(I) spreads the difference between 

18 expected and actual returns for either 

19 or both of the first 2 plan years ending 

20 after August 31, 2008, over a period of 

21 not more than 10 years, 

22 ‘‘(II) provides that for either or 

23 both of the first 2 plan years beginning 

24 after August 31, 2008, the value of 

25 plan assets at any time shall not be 
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1 less than 80 percent or greater than 

2 130 percent of the fair market value of 

3 such assets at such time, or 

4 ‘‘(III) makes both changes de5 scribed in subclauses (I) and (II) to 

6 such method. 

7 ‘‘(ii) ASSET VALUATION METHODS.—If 

8 this subparagraph applies for any plan 

9 year— 

10 ‘‘(I) the Secretary shall not treat 

11 the asset valuation method of the plan 

12 as unreasonable solely because of the 

13 changes in such method described in 

14 clause (i), and 

15 ‘‘(II) such changes shall be deemed 

16 approved by the Secretary under sec17 tion 302(d)(1) of the Employee Retire18 ment Income Security Act of 1974 and 

19 section 412(d)(1). 

20 ‘‘(iii) AMORTIZATION OF REDUCTION

21 IN UNFUNDED ACCRUED LIABILITY.—If this 

22 subparagraph and subparagraph (A) both 

23 apply for any plan year, the plan shall 

24 treat any reduction in unfunded accrued li25 ability resulting from the application of 
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† HR 4213 EAS 

1 this subparagraph as a separate experience 

2 amortization base, to be amortized in equal 

3 annual installments (until fully amortized) 

4 over a period of 30 plan years rather than 

5 the period such liability would otherwise be 

6 amortized over. 

7 ‘‘(C) SOLVENCY TEST.—The solvency test 

8 under this paragraph is met only if the plan ac9 tuary certifies that the plan is projected to have 

10 sufficient assets to timely pay expected benefits 

11 and anticipated expenditures over the amortiza12 tion period, taking into account the changes in 

13 the funding standard account under this para14 graph. 

15 ‘‘(D) RESTRICTION ON BENEFIT IN16 CREASES.—If subparagraph (A) or (B) apply to 

17 a multiemployer plan for any plan year, then, 

18 in addition to any other applicable restrictions 

19 on benefit increases, a plan amendment increas20 ing benefits may not go into effect during either 

21 of the 2 plan years immediately following such 

22 plan year unless— 

23 ‘‘(i) the plan actuary certifies that— 

24 ‘‘(I) any such increase is paid for 

25 out of additional contributions not al-
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† HR 4213 EAS 

1 located to the plan immediately before 

2 the application of this paragraph to 

3 the plan, and 

4 ‘‘(II) the plan’s funded percentage 

5 and projected credit balances for such 2 

6 plan years are reasonably expected to 

7 be at least as high as such percentage 

8 and balances would have been if the 

9 benefit increase had not been adopted, 

10 or 

11 ‘‘(ii) the amendment is required as a 

12 condition of qualification under part I of 

13 subchapter D or to comply with other appli14 cable law. 

15 ‘‘(E) REPORTING.—A plan sponsor of a 

16 plan to which this paragraph applies shall— 

17 ‘‘(i) give notice of such application to 

18 participants and beneficiaries of the plan, 

19 and 

20 ‘‘(ii) inform the Pension Benefit Guar21 anty Corporation of such application in 

22 such form and manner as the Director of 

23 the Pension Benefit Guaranty Corporation 

24 may prescribe.’’. 

25 (b) EFFECTIVE DATES.— 
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† HR 4213 EAS 

1 (1) IN GENERAL.—The amendments made by 

2 this section shall take effect as of the first day of the 

3 first plan year ending after August 31, 2008, except 

4 that any election a plan makes pursuant to this sec5 tion that affects the plan’s funding standard account 

6 for the first plan year beginning after August 31, 

7 2008, shall be disregarded for purposes of applying 

8 the provisions of section 305 of the Employee Retire9 ment Income Security Act of 1974 and section 432 of 

10 the Internal Revenue Code of 1986 to such plan year. 

11 (2) RESTRICTIONS ON BENEFIT INCREASES.— 

12 Notwithstanding paragraph (1), the restrictions on 

13 plan amendments increasing benefits in sections 

14 304(b)(8)(D) of such Act and 431(b)(8)(D) of such 

15 Code, as added by this section, shall take effect on the 

16 date of enactment of this Act. 

17 TITLE IV—OFFSET PROVISIONS 

18 Subtitle A—Black Liquor 

19 SEC. 401. EXCLUSION OF UNPROCESSED FUELS FROM THE 

20 CELLULOSIC BIOFUEL PRODUCER CREDIT. 

21 (a) IN GENERAL.—Subparagraph (E) of section 

22 40(b)(6) is amended by adding at the end the following new 

23 clause: 
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† HR 4213 EAS 

1 ‘‘(iii) EXCLUSION OF UNPROCESSED

2 FUELS.—The term ‘cellulosic biofuel’ shall 

3 not include any fuel if— 

4 ‘‘(I) more than 4 percent of such 

5 fuel (determined by weight) is any 

6 combination of water and sediment, or 

7 ‘‘(II) the ash content of such fuel 

8 is more than 1 percent (determined by 

9 weight).’’. 

10 (b) EFFECTIVE DATE.—The amendment made by this 

11 section shall apply to fuels sold or used after the date of 

12 the enactment of this Act. 

13 SEC. 402. PROHIBITION ON ALTERNATIVE FUEL CREDIT 

14 AND ALTERNATIVE FUEL MIXTURE CREDIT 

15 FOR BLACK LIQUOR. 

16 (a) IN GENERAL.—The last sentence of section 

17 6426(d)(2) is amended by striking ‘‘or biodiesel’’ and in18 serting ‘‘biodiesel, or any fuel (including lignin, wood resi19 dues, or spent pulping liquors) derived from the production 

20 of paper or pulp’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply to fuel sold or used after December 31, 

23 2009. 
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1 Subtitle B—Homebuyer Credit 

2 SEC. 411. TECHNICAL MODIFICATIONS TO HOMEBUYER 

3 CREDIT. 

4 (a) EXPANDED DOCUMENTATION REQUIREMENT.— 

5 Subsection (d) of section 36, as amended by the Worker, 

6 Homeownership, and Business Assistance Act of 2009, is 

7 amended— 

8 (1) by striking ‘‘or’’ at the end of paragraph (3), 

9 (2) by striking the period at the end of para10 graph (4) and inserting a comma, and 

11 (3) by adding at the end the following new para12 graphs: 

13 ‘‘(5) in the case of a taxpayer to whom such a 

14 credit would be allowed (but for this paragraph) by 

15 reason of subsection (c)(6), the taxpayer fails to at16 tach to the return of tax for such taxable year a copy 

17 of such property tax bills or other documentation as 

18 are required by the Secretary to demonstrate compli19 ance with the requirements of subsection (c)(6), or 

20 ‘‘(6) in the case of a taxpayer to whom such a 

21 credit would be allowed (but for this paragraph) by 

22 reason of subsection (h)(2), the taxpayer fails to at23 tach to the return of tax for such taxable year a copy 

24 of the binding contract which meets the requirements 

25 of subsection (h)(2).’’. 
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† HR 4213 EAS 

1 (b) MODIFICATION OF EFFECTIVE DATE OF DOCU2 MENTATION REQUIREMENTS.—Paragraph (2) of section 

3 12(e) of the Worker, Homeownership, and Business Assist4 ance Act of 2009 is amended by striking ‘‘returns for tax5 able years ending after the date of the enactment of this 

6 Act’’ and inserting ‘‘returns filed after the date of the enact7 ment of this Act’’. 

8 (c) EFFECTIVE DATES.— 

9 (1) DOCUMENTATION REQUIREMENTS.—The 

10 amendments made by subsection (a) shall apply to 

11 purchases on or after the date of the enactment of this 

12 Act. 

13 (2) EFFECTIVE DATE OF WORKER, HOMEOWNER14 SHIP, AND BUSINESS ASSISTANCE ACT.—The amend15 ment made by subsection (b) shall apply to purchases 

16 of a principal residence on or after the date of the en17 actment of the Worker, Homeownership, and Business 

18 Assistance Act of 2009. 

19 Subtitle C—Economic Substance 

20 SEC. 421. CODIFICATION OF ECONOMIC SUBSTANCE DOC21 TRINE; PENALTIES. 

22 (a) IN GENERAL.—Section 7701 is amended by redes23 ignating subsection (o) as subsection (p) and by inserting 

24 after subsection (n) the following new subsection: 
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† HR 4213 EAS 

1 ‘‘(o) CLARIFICATION OF ECONOMIC SUBSTANCE DOC2 TRINE.— 

3 ‘‘(1) APPLICATION OF DOCTRINE.—In the case of 

4 any transaction to which the economic substance doc5 trine is relevant, such transaction shall be treated as 

6 having economic substance only if— 

7 ‘‘(A) the transaction changes in a meaning8 ful way (apart from Federal income tax effects) 

9 the taxpayer’s economic position, and 

10 ‘‘(B) the taxpayer has a substantial purpose 

11 (apart from Federal income tax effects) for enter12 ing into such transaction. 

13 ‘‘(2) SPECIAL RULE WHERE TAXPAYER RELIES

14 ON PROFIT POTENTIAL.— 

15 ‘‘(A) IN GENERAL.—The potential for profit 

16 of a transaction shall be taken into account in 

17 determining whether the requirements of sub18 paragraphs (A) and (B) of paragraph (1) are 

19 met with respect to the transaction only if the 

20 present value of the reasonably expected pre-tax 

21 profit from the transaction is substantial in rela22 tion to the present value of the expected net tax 

23 benefits that would be allowed if the transaction 

24 were respected. 
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† HR 4213 EAS 

1 ‘‘(B) TREATMENT OF FEES AND FOREIGN

2 TAXES.—Fees and other transaction expenses 

3 shall be taken into account as expenses in deter4 mining pre-tax profit under subparagraph (A). 

5 The Secretary may issue regulations requiring 

6 foreign taxes to be treated as expenses in deter7 mining pre-tax profit in appropriate cases. 

8 ‘‘(3) STATE AND LOCAL TAX BENEFITS.—For 

9 purposes of paragraph (1), any State or local income 

10 tax effect which is related to a Federal income tax ef11 fect shall be treated in the same manner as a Federal 

12 income tax effect. 

13 ‘‘(4) FINANCIAL ACCOUNTING BENEFITS.—For 

14 purposes of paragraph (1)(B), achieving a financial 

15 accounting benefit shall not be taken into account as 

16 a purpose for entering into a transaction if the origin 

17 of such financial accounting benefit is a reduction of 

18 Federal income tax. 

19 ‘‘(5) DEFINITIONS AND SPECIAL RULES.—For 

20 purposes of this subsection— 

21 ‘‘(A) ECONOMIC SUBSTANCE DOCTRINE.— 

22 The term ‘economic substance doctrine’ means 

23 the common law doctrine under which tax bene24 fits under subtitle A with respect to a trans25 action are not allowable if the transaction does 
154 

† HR 4213 EAS 

1 not have economic substance or lacks a business 

2 purpose. 

3 ‘‘(B) EXCEPTION FOR PERSONAL TRANS4 ACTIONS OF INDIVIDUALS.—In the case of an in5 dividual, paragraph (1) shall apply only to 

6 transactions entered into in connection with a 

7 trade or business or an activity engaged in for 

8 the production of income. 

9 ‘‘(C) OTHER COMMON LAW DOCTRINES NOT

10 AFFECTED.—Except as specifically provided in 

11 this subsection, the provisions of this subsection 

12 shall not be construed as altering or supplanting 

13 any other rule of law, and the requirements of 

14 this subsection shall be construed as being in ad15 dition to any such other rule of law. 

16 ‘‘(D) DETERMINATION OF APPLICATION OF

17 DOCTRINE NOT AFFECTED.—The determination 

18 of whether the economic substance doctrine is rel19 evant to a transaction shall be made in the same 

20 manner as if this subsection had never been en21 acted. 

22 ‘‘(E) TRANSACTION.—The term ‘trans23 action’ includes a series of transactions. 
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† HR 4213 EAS 

1 ‘‘(6) REGULATIONS.—The Secretary shall pre2 scribe such regulations as may be necessary or appro3 priate to carry out the purposes of this subsection.’’. 

4 (b) PENALTY FOR UNDERPAYMENTS ATTRIBUTABLE

5 TO TRANSACTIONS LACKING ECONOMIC SUBSTANCE.— 

6 (1) IN GENERAL.—Subsection (b) of section 6662 

7 is amended by inserting after paragraph (5) the fol8 lowing new paragraph: 

9 ‘‘(6) Any disallowance of claimed tax benefits by 

10 reason of a transaction lacking economic substance 

11 (within the meaning of section 7701(o)) or failing to 

12 meet the requirements of any similar rule of law.’’. 

13 (2) INCREASED PENALTY FOR NONDISCLOSED

14 TRANSACTIONS.—Section 6662 is amended by adding 

15 at the end the following new subsection: 

16 ‘‘(i) INCREASE IN PENALTY IN CASE OF NONDIS17 CLOSED NONECONOMIC SUBSTANCE TRANSACTIONS.— 

18 ‘‘(1) IN GENERAL.—In the case of any portion of 

19 an underpayment which is attributable to one or 

20 more nondisclosed noneconomic substance trans21 actions, subsection (a) shall be applied with respect to 

22 such portion by substituting ‘40 percent’ for ‘20 per23 cent’. 

24 ‘‘(2) NONDISCLOSED NONECONOMIC SUBSTANCE

25 TRANSACTIONS.—For purposes of this subsection, the 
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† HR 4213 EAS 

1 term ‘nondisclosed noneconomic substance trans2 action’ means any portion of a transaction described 

3 in subsection (b)(6) with respect to which the relevant 

4 facts affecting the tax treatment are not adequately 

5 disclosed in the return nor in a statement attached to 

6 the return. 

7 ‘‘(3) SPECIAL RULE FOR AMENDED RETURNS.— 

8 Except as provided in regulations, in no event shall 

9 any amendment or supplement to a return of tax be 

10 taken into account for purposes of this subsection if 

11 the amendment or supplement is filed after the earlier 

12 of the date the taxpayer is first contacted by the Sec13 retary regarding the examination of the return or 

14 such other date as is specified by the Secretary.’’. 

15 (3) CONFORMING AMENDMENT.—Subparagraph 

16 (B) of section 6662A(e)(2) is amended— 

17 (A) by striking ‘‘section 6662(h)’’ and in18 serting ‘‘subsections (h) or (i) of section 6662’’; 

19 and 

20 (B) by striking ‘‘GROSS VALUATION

21 MISSTATEMENT PENALTY’’ in the heading and 

22 inserting ‘‘CERTAIN INCREASED UNDERPAYMENT

23 PENALTIES’’. 

24 (c) REASONABLE CAUSE EXCEPTION NOT APPLICABLE

25 TO NONECONOMIC SUBSTANCE TRANSACTIONS.— 
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† HR 4213 EAS 

1 (1) REASONABLE CAUSE EXCEPTION FOR UNDER2 PAYMENTS.—Subsection (c) of section 6664 is amend3 ed— 

4 (A) by redesignating paragraphs (2) and 

5 (3) as paragraphs (3) and (4), respectively; 

6 (B) by striking ‘‘paragraph (2)’’ in para7 graph (4)(A), as so redesignated, and inserting 

8 ‘‘paragraph (3)’’; and 

9 (C) by inserting after paragraph (1) the fol10 lowing new paragraph: 

11 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

12 apply to any portion of an underpayment which is 

13 attributable to one or more transactions described in 

14 section 6662(b)(6).’’. 

15 (2) REASONABLE CAUSE EXCEPTION FOR RE16 PORTABLE TRANSACTION UNDERSTATEMENTS.—Sub17 section (d) of section 6664 is amended— 

18 (A) by redesignating paragraphs (2) and 

19 (3) as paragraphs (3) and (4), respectively; 

20 (B) by striking ‘‘paragraph (2)(C)’’ in 

21 paragraph (4), as so redesignated, and inserting 

22 ‘‘paragraph (3)(C)’’; and 

23 (C) by inserting after paragraph (1) the fol24 lowing new paragraph: 
158 

† HR 4213 EAS 

1 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

2 apply to any portion of a reportable transaction un3 derstatement which is attributable to one or more 

4 transactions described in section 6662(b)(6).’’. 

5 (d) APPLICATION OF PENALTY FOR ERRONEOUS CLAIM

6 FOR REFUND OR CREDIT TO NONECONOMIC SUBSTANCE

7 TRANSACTIONS.—Section 6676 is amended by redesig8 nating subsection (c) as subsection (d) and inserting after 

9 subsection (b) the following new subsection: 

10 ‘‘(c) NONECONOMIC SUBSTANCE TRANSACTIONS

11 TREATED AS LACKING REASONABLE BASIS.—For purposes 

12 of this section, any excessive amount which is attributable 

13 to any transaction described in section 6662(b)(6) shall not 

14 be treated as having a reasonable basis.’’. 

15 (e) EFFECTIVE DATE.— 

16 (1) IN GENERAL.—Except as otherwise provided 

17 in this subsection, the amendments made by this sec18 tion shall apply to transactions entered into after the 

19 date of the enactment of this Act. 

20 (2) UNDERPAYMENTS.—The amendments made 

21 by subsections (b) and (c)(1) shall apply to underpay22 ments attributable to transactions entered into after 

23 the date of the enactment of this Act. 

24 (3) UNDERSTATEMENTS.—The amendments 

25 made by subsection (c)(2) shall apply to understate-
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† HR 4213 EAS 

1 ments attributable to transactions entered into after 

2 the date of the enactment of this Act. 

3 (4) REFUNDS AND CREDITS.—The amendment 

4 made by subsection (d) shall apply to refunds and 

5 credits attributable to transactions entered into after 

6 the date of the enactment of this Act. 

7 Subtitle D—Additional Provisions 

8 SEC. 431. REVISION TO THE MEDICARE IMPROVEMENT 

9 FUND. 

10 Section 1898(b)(1)(A) of the Social Security Act (42 

11 U.S.C. 1395iii(b)(1)(A)), as amended by section 1011(b) of 

12 the Department of Defense Appropriations Act, 2010 (Pub13 lic Law 111–118), is amended by striking 

14 ‘‘$20,740,000,000’’ and inserting ‘‘$12,740,000,000’’. 

15 TITLE V—SATELLITE 

16 TELEVISION EXTENSION 

17 SEC. 500. SHORT TITLE. 

18 This title may be cited as the ‘‘Satellite Television Ex19 tension and Localism Act of 2010’’. 

20 Subtitle A—Statutory Licenses 

21 SEC. 501. REFERENCE. 

22 Except as otherwise provided, whenever in this subtitle 

23 an amendment is made to a section or other provision, the 

24 reference shall be considered to be made to such section or 

25 provision of title 17, United States Code. 
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† HR 4213 EAS 

1 SEC. 502. MODIFICATIONS TO STATUTORY LICENSE FOR 

2 SATELLITE CARRIERS. 

3 (a) HEADING RENAMED.— 

4 (1) IN GENERAL.—The heading of section 119 is 

5 amended by striking ‘‘superstations and net6 work stations for private home viewing’’ 

7 and inserting ‘‘distant television program8 ming by satellite’’. 

9 (2) TABLE OF CONTENTS.—The table of contents 

10 for chapter 1 is amended by striking the item relating 

11 to section 119 and inserting the following: 

‘‘119. Limitations on exclusive rights: Secondary transmissions of distant television programming by satellite.’’. 

12 (b) UNSERVED HOUSEHOLD DEFINED.— 

13 (1) IN GENERAL.—Section 119(d)(10) is amend14 ed— 

15 (A) by striking subparagraph (A) and in16 serting the following: 

17 ‘‘(A) cannot receive, through the use of an 

18 antenna, an over-the-air signal containing the 

19 primary stream, or, on or after the qualifying 

20 date, the multicast stream, originating in that 

21 household’s local market and affiliated with that 

22 network of— 

23 ‘‘(i) if the signal originates as an ana24 log signal, Grade B intensity as defined by 
161 

† HR 4213 EAS 

1 the Federal Communications Commission 

2 in section 73.683(a) of title 47, Code of Fed3 eral Regulations, as in effect on January 1, 

4 1999; or 

5 ‘‘(ii) if the signal originates as a dig6 ital signal, intensity defined in the values 

7 for the digital television noise-limited serv8 ice contour, as defined in regulations issued 

9 by the Federal Communications Commis10 sion (section 73.622(e) of title 47, Code of 

11 Federal Regulations), as such regulations 

12 may be amended from time to time;’’; 

13 (B) in subparagraph (B)— 

14 (i) by striking ‘‘subsection (a)(14)’’ 

15 and inserting ‘‘subsection (a)(13),’’; and 

16 (ii) by striking ‘‘Satellite Home Viewer 

17 Extension and Reauthorization Act of 

18 2004’’ and inserting ‘‘Satellite Television 

19 Extension and Localism Act of 2010’’; and 

20 (C) in subparagraph (D), by striking 

21 ‘‘(a)(12)’’ and inserting ‘‘(a)(11)’’. 

22 (2) QUALIFYING DATE DEFINED.—Section 119(d) 

23 is amended by adding at the end the following: 

24 ‘‘(14) QUALIFYING DATE.—The term ‘qualifying 

25 date’, for purposes of paragraph (10)(A), means— 
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† HR 4213 EAS 

1 ‘‘(A) July 1, 2010, for multicast streams 

2 that exist on December 31, 2009; and 

3 ‘‘(B) January 1, 2011, for all other 

4 multicast streams.’’. 

5 (c) FILING FEE.—Section 119(b)(1) is amended— 

6 (1) in subparagraph (A), by striking ‘‘and’’ after 

7 the semicolon at the end; 

8 (2) in subparagraph (B), by striking the period 

9 and inserting ‘‘; and’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(C) a filing fee, as determined by the Reg12 ister of Copyrights pursuant to section 708(a).’’. 

13 (d) DEPOSIT OF STATEMENTS AND FEES; 

14 VERIFICATION PROCEDURES.—Section 119(b) is amend15 ed— 

16 (1) by amending the subsection heading to read 

17 as follows: ‘‘(b) DEPOSIT OF STATEMENTS AND FEES; 

18 VERIFICATION PROCEDURES.—’’; 

19 (2) in paragraph (1), by striking subparagraph 

20 (B) and inserting the following: 

21 ‘‘(B) a royalty fee payable to copyright 

22 owners pursuant to paragraph (4) for that 6- 

23 month period, computed by multiplying the total 

24 number of subscribers receiving each secondary 

25 transmission of a primary stream or multicast 
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† HR 4213 EAS 

1 stream of each non-network station or network 

2 station during each calendar year month by the 

3 appropriate rate in effect under this subsection; 

4 and’’; 

5 (3) by redesignating paragraphs (2), (3), and (4) 

6 as paragraphs (3), (4), and (5), respectively; 

7 (4) by inserting after paragraph (1) the fol8 lowing: 

9 ‘‘(2) VERIFICATION OF ACCOUNTS AND FEE PAY10 MENTS.—The Register of Copyrights shall issue regu11 lations to permit interested parties to verify and 

12 audit the statements of account and royalty fees sub13 mitted by satellite carriers under this subsection.’’; 

14 (5) in paragraph (3), as redesignated, in the 

15 first sentence— 

16 (A) by inserting ‘‘(including the filing fee 

17 specified in paragraph (1)(C))’’ after ‘‘shall re18 ceive all fees’’; and 

19 (B) by striking ‘‘paragraph (4)’’ and insert20 ing ‘‘paragraph (5)’’; 

21 (6) in paragraph (4), as redesignated— 

22 (A) by striking ‘‘paragraph (2)’’ and insert23 ing ‘‘paragraph (3)’’; and 

24 (B) by striking ‘‘paragraph (4)’’ each place 

25 it appears and inserting ‘‘paragraph (5)’’; and 
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† HR 4213 EAS 

1 (7) in paragraph (5), as redesignated, by strik2 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 

3 (e) ADJUSTMENT OF ROYALTY FEES.—Section 119(c) 

4 is amended as follows: 

5 (1) Paragraph (1) is amended— 

6 (A) in the heading for such paragraph, by 

7 striking ‘‘ANALOG’’; 

8 (B) in subparagraph (A)— 

9 (i) by striking ‘‘primary analog trans10 missions’’ and inserting ‘‘primary trans11 missions’’; and 

12 (ii) by striking ‘‘July 1, 2004’’ and in13 serting ‘‘July 1, 2009’’; 

14 (C) in subparagraph (B)— 

15 (i) by striking ‘‘January 2, 2005, the 

16 Librarian of Congress’’ and inserting ‘‘May 

17 1, 2010, the Copyright Royalty Judges’’; 

18 and 

19 (ii) by striking ‘‘primary analog 

20 transmission’’ and inserting ‘‘primary 

21 transmissions’’; 

22 (D) in subparagraph (C), by striking ‘‘Li23 brarian of Congress’’ and inserting ‘‘Copyright 

24 Royalty Judges’’; 

25 (E) in subparagraph (D)— 
165 

† HR 4213 EAS 

1 (i) in clause (i)— 

2 (I) by striking ‘‘(i) Voluntary 

3 agreements’’ and inserting the fol4 lowing: 

5 ‘‘(i) VOLUNTARY AGREEMENTS; FIL6 ING.—Voluntary agreements’’; and 

7 (II) by striking ‘‘that a parties’’ 

8 and inserting ‘‘that are parties’’; and 

9 (ii) in clause (ii)— 

10 (I) by striking ‘‘(ii)(I) Within’’ 

11 and inserting the following: 

12 ‘‘(ii) PROCEDURE FOR ADOPTION OF

13 FEES.— 

14 ‘‘(I) PUBLICATION OF NOTICE.— 

15 Within’’; 

16 (II) in subclause (I), by striking 

17 ‘‘an arbitration proceeding pursuant to 

18 subparagraph (E)’’ and inserting ‘‘a 

19 proceeding under subparagraph (F)’’; 

20 (III) in subclause (II), by striking 

21 ‘‘(II) Upon receiving a request under 

22 subclause (I), the Librarian of Con23 gress’’ and inserting the following: 

24 ‘‘(II) PUBLIC NOTICE OF FEES.— 

25 Upon receiving a request under sub-
166 

† HR 4213 EAS 

1 clause (I), the Copyright Royalty 

2 Judges’’; and 

3 (IV) in subclause (III)— 

4 (aa) by striking ‘‘(III) The 

5 Librarian’’ and inserting the fol6 lowing: 

7 ‘‘(III) ADOPTION OF FEES.—The 

8 Copyright Royalty Judges’’; 

9 (bb) by striking ‘‘an arbitra10 tion proceeding’’ and inserting 

11 ‘‘the proceeding under subpara12 graph (F)’’; and 

13 (cc) by striking ‘‘the arbitra14 tion proceeding’’ and inserting 

15 ‘‘that proceeding’’; 

16 (F) in subparagraph (E)— 

17 (i) by striking ‘‘Copyright Office’’ and 

18 inserting ‘‘Copyright Royalty Judges’’; and 

19 (ii) by striking ‘‘March 28, 2010’’ and 

20 inserting ‘‘December 31, 2014’’; and 

21 (G) in subparagraph (F)— 

22 (i) in the heading, by striking ‘‘COM23 PULSORY ARBITRATION’’ and inserting 

24 ‘‘COPYRIGHT ROYALTY JUDGES PRO25 CEEDING’’; 
167 

† HR 4213 EAS 

1 (ii) in clause (i)— 

2 (I) in the heading, by striking 

3 ‘‘PROCEEDINGS’’ and inserting ‘‘THE

4 PROCEEDING’’; 

5 (II) in the matter preceding sub6 clause (I)— 

7 (aa) by striking ‘‘May 1, 

8 2005, the Librarian of Congress’’ 

9 and inserting ‘‘July 1, 2010, the 

10 Copyright Royalty Judges’’; 

11 (bb) by striking ‘‘arbitration 

12 proceedings’’ and inserting ‘‘a 

13 proceeding’’; 

14 (cc) by striking ‘‘fee to be 

15 paid’’ and inserting ‘‘fees to be 

16 paid’’; 

17 (dd) by striking ‘‘primary 

18 analog transmission’’ and insert19 ing ‘‘the primary transmissions’’; 

20 and 

21 (ee) by striking ‘‘distribu22 tors’’ and inserting ‘‘distribu23 tors—’’; 

24 (III) in subclause (II)— 
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† HR 4213 EAS 

1 (aa) by striking ‘‘Librarian 

2 of Congress’’ and inserting ‘‘Copy3 right Royalty Judges’’; and 

4 (bb) by striking ‘‘arbitra5 tion’’; and 

6 (IV) by amending the last sen7 tence to read as follows: ‘‘Such pro8 ceeding shall be conducted under chap9 ter 8.’’; 

10 (iii) in clause (ii), by amending the 

11 matter preceding subclause (I) to read as 

12 follows: 

13 ‘‘(ii) ESTABLISHMENT OF ROYALTY

14 FEES.—In determining royalty fees under 

15 this subparagraph, the Copyright Royalty 

16 Judges shall establish fees for the secondary 

17 transmissions of the primary transmissions 

18 of network stations and non-network sta19 tions that most clearly represent the fair 

20 market value of secondary transmissions, 

21 except that the Copyright Royalty Judges 

22 shall adjust royalty fees to account for the 

23 obligations of the parties under any appli24 cable voluntary agreement filed with the 

25 Copyright Royalty Judges in accordance 
169 

† HR 4213 EAS 

1 with subparagraph (D). In determining the 

2 fair market value, the Judges shall base 

3 their decision on economic, competitive, and 

4 programming information presented by the 

5 parties, including—’’; 

6 (iv) by amending clause (iii) to read 

7 as follows: 

8 ‘‘(iii) EFFECTIVE DATE FOR DECISION

9 OF COPYRIGHT ROYALTY JUDGES.—The obli10 gation to pay the royalty fees established 

11 under a determination that is made by the 

12 Copyright Royalty Judges in a proceeding 

13 under this paragraph shall be effective as of 

14 January 1, 2010.’’; and 

15 (v) in clause (iv)— 

16 (I) in the heading, by striking 

17 ‘‘FEE’’ and inserting ‘‘FEES’’; and 

18 (II) by striking ‘‘fee referred to in 

19 (iii)’’ and inserting ‘‘fees referred to in 

20 clause (iii)’’. 

21 (2) Paragraph (2) is amended to read as follows: 

22 ‘‘(2) ANNUAL ROYALTY FEE ADJUSTMENT.—Ef23 fective January 1 of each year, the royalty fee pay24 able under subsection (b)(1)(B) for the secondary 

25 transmission of the primary transmissions of network 
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1 stations and non-network stations shall be adjusted by 

2 the Copyright Royalty Judges to reflect any changes 

3 occurring in the cost of living as determined by the 

4 most recent Consumer Price Index (for all consumers 

5 and for all items) published by the Secretary of Labor 

6 before December 1 of the preceding year. Notification 

7 of the adjusted fees shall be published in the Federal 

8 Register at least 25 days before January 1.’’. 

9 (f) DEFINITIONS.— 

10 (1) SUBSCRIBER.—Section 119(d)(8) is amended 

11 to read as follows: 

12 ‘‘(8) SUBSCRIBER; SUBSCRIBE.— 

13 ‘‘(A) SUBSCRIBER.—The term ‘subscriber’ 

14 means a person or entity that receives a sec15 ondary transmission service from a satellite car16 rier and pays a fee for the service, directly or in17 directly, to the satellite carrier or to a dis18 tributor. 

19 ‘‘(B) SUBSCRIBE.—The term ‘subscribe’ 

20 means to elect to become a subscriber.’’. 

21 (2) LOCAL MARKET.—Section 119(d)(11) is 

22 amended to read as follows: 

23 ‘‘(11) LOCAL MARKET.—The term ‘local market’ 

24 has the meaning given such term under section 

25 122(j).’’. 
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1 (3) LOW POWER TELEVISION STATION.—Section 

2 119(d) is amended by striking paragraph (12) and 

3 redesignating paragraphs (13) and (14) as para4 graphs (12) and (13), respectively. 

5 (4) MULTICAST STREAM.—Section 119(d), as 

6 amended by paragraph (3), is further amended by 

7 adding at the end the following new paragraph: 

8 ‘‘(14) MULTICAST STREAM.—The term ‘multicast 

9 stream’ means a digital stream containing program10 ming and program-related material affiliated with a 

11 television network, other than the primary stream.’’. 

12 (5) PRIMARY STREAM.—Section 119(d), as 

13 amended by paragraph (4), is further amended by 

14 adding at the end the following new paragraph: 

15 ‘‘(15) PRIMARY STREAM.—The term ‘primary 

16 stream’ means— 

17 ‘‘(A) the single digital stream of program18 ming as to which a television broadcast station 

19 has the right to mandatory carriage with a sat20 ellite carrier under the rules of the Federal Com21 munications Commission in effect on July 1, 

22 2009; or 

23 ‘‘(B) if there is no stream described in sub24 paragraph (A), then either— 
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1 ‘‘(i) the single digital stream of pro2 gramming associated with the network last 

3 transmitted by the station as an analog sig4 nal; or 

5 ‘‘(ii) if there is no stream described in 

6 clause (i), then the single digital stream of 

7 programming affiliated with the network 

8 that, as of July 1, 2009, had been offered by 

9 the television broadcast station for the long10 est period of time.’’. 

11 (6) CLERICAL AMENDMENT.—Section 119(d) is 

12 amended in paragraphs (1), (2), and (5) by striking 

13 ‘‘which’’ each place it appears and inserting ‘‘that’’. 

14 (g) SUPERSTATION REDESIGNATED AS NON-NETWORK

15 STATION.—Section 119 is amended— 

16 (1) by striking ‘‘superstation’’ each place it ap17 pears in a heading and each place it appears in text 

18 and inserting ‘‘non-network station’’; and 

19 (2) by striking ‘‘superstations’’ each place it ap20 pears in a heading and each place it appears in text 

21 and inserting ‘‘non-network stations’’. 

22 (h) REMOVAL OF CERTAIN PROVISIONS.— 

23 (1) REMOVAL OF PROVISIONS.—Section 119(a) is 

24 amended— 
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1 (A) in paragraph (2), by striking subpara2 graph (C) and redesignating subparagraph (D) 

3 as subparagraph (C); 

4 (B) by striking paragraph (3) and redesig5 nating paragraphs (4) through (14) as para6 graphs (3) through (13), respectively; and 

7 (C) by striking paragraph (15) and redesig8 nating paragraph (16) as paragraph (14). 

9 (2) CONFORMING AMENDMENTS.—Section 119 is 

10 amended— 

11 (A) in subsection (a)— 

12 (i) in paragraph (1), by striking ‘‘(5), 

13 (6), and (8)’’ and inserting ‘‘(4), (5), and 

14 (7)’’; 

15 (ii) in paragraph (2)— 

16 (I) in subparagraph (A), by strik17 ing ‘‘subparagraphs (B) and (C) of 

18 this paragraph and paragraphs (5), 

19 (6), (7), and (8)’’ and inserting ‘‘sub20 paragraph (B) of this paragraph and 

21 paragraphs (4), (5), (6), and (7)’’; 

22 (II) in subparagraph (B)(i), by 

23 striking the second sentence; and 
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1 (III) in subparagraph (C) (as re2 designated), by striking clauses (i) and 

3 (ii) and inserting the following: 

4 ‘‘(i) INITIAL LISTS.—A satellite carrier 

5 that makes secondary transmissions of a 

6 primary transmission made by a network 

7 station pursuant to subparagraph (A) shall, 

8 not later than 90 days after commencing 

9 such secondary transmissions, submit to the 

10 network that owns or is affiliated with the 

11 network station a list identifying (by name 

12 and address, including street or rural route 

13 number, city, State, and 9-digit zip code) 

14 all subscribers to which the satellite carrier 

15 makes secondary transmissions of that pri16 mary transmission to subscribers in 

17 unserved households. 

18 ‘‘(ii) MONTHLY LISTS.—After the sub19 mission of the initial lists under clause (i), 

20 the satellite carrier shall, not later than the 

21 15th of each month, submit to the network 

22 a list, aggregated by designated market 

23 area, identifying (by name and address, in24 cluding street or rural route number, city, 

25 State, and 9-digit zip code) any persons 
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1 who have been added or dropped as sub2 scribers under clause (i) since the last sub3 mission under this subparagraph.’’; and 

4 (iii) in subparagraph (E) of para5 graph (3) (as redesignated)— 

6 (I) by striking ‘‘under paragraph 

7 (3) or’’; and 

8 (II) by striking ‘‘paragraph (12)’’ 

9 and inserting ‘‘paragraph (11)’’; and 

10 (B) in subsection (b)(1), by striking the 

11 final sentence. 

12 (i) MODIFICATIONS TO PROVISIONS FOR SECONDARY

13 TRANSMISSIONS BY SATELLITE CARRIERS.— 

14 (1) PREDICTIVE MODEL.—Section 

15 119(a)(2)(B)(ii) is amended by adding at the end the 

16 following: 

17 ‘‘(III) ACCURATE PREDICTIVE

18 MODEL WITH RESPECT TO DIGITAL

19 SIGNALS.—Notwithstanding subclause 

20 (I), in determining presumptively 

21 whether a person resides in an 

22 unserved household under subsection 

23 (d)(10)(A) with respect to digital sig24 nals, a court shall rely on a predictive 

25 model set forth by the Federal Commu-
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1 nications Commission pursuant to a 

2 rulemaking as provided in section 

3 339(c)(3) of the Communications Act 

4 of 1934 (47 U.S.C. 339(c)(3)), as that 

5 model may be amended by the Com6 mission over time under such section to 

7 increase the accuracy of that model. 

8 Until such time as the Commission sets 

9 forth such model, a court shall rely on 

10 the predictive model as recommended 

11 by the Commission with respect to dig12 ital signals in its Report to Congress 

13 in ET Docket No. 05–182, FCC 05– 

14 199 (released December 9, 2005).’’. 

15 (2) MODIFICATIONS TO STATUTORY LICENSE

16 WHERE RETRANSMISSIONS INTO LOCAL MARKET

17 AVAILABLE.—Section 119(a)(3) (as redesignated) is 

18 amended— 

19 (A) by striking ‘‘analog’’ each place it ap20 pears in a heading and text; 

21 (B) by striking subparagraphs (B), (C), and 

22 (D), and inserting the following: 

23 ‘‘(B) RULES FOR LAWFUL SUBSCRIBERS AS

24 OF DATE OF ENACTMENT OF 2010 ACT.—In the 

25 case of a subscriber of a satellite carrier who, on 
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1 the day before the date of the enactment of the 

2 Satellite Television Extension and Localism Act 

3 of 2010, was lawfully receiving the secondary 

4 transmission of the primary transmission of a 

5 network station under the statutory license under 

6 paragraph (2) (in this subparagraph referred to 

7 as the ‘distant signal’), other than subscribers to 

8 whom subparagraph (A) applies, the statutory 

9 license under paragraph (2) shall apply to sec10 ondary transmissions by that satellite carrier to 

11 that subscriber of the distant signal of a station 

12 affiliated with the same television network, and 

13 the subscriber’s household shall continue to be 

14 considered to be an unserved household with re15 spect to such network, until such time as the sub16 scriber elects to terminate such secondary trans17 missions, whether or not the subscriber elects to 

18 subscribe to receive the secondary transmission of 

19 the primary transmission of a local network sta20 tion affiliated with the same network pursuant 

21 to the statutory license under section 122. 

22 ‘‘(C) FUTURE APPLICABILITY.— 

23 ‘‘(i) WHEN LOCAL SIGNAL AVAILABLE

24 AT TIME OF SUBSCRIPTION.—The statutory 

25 license under paragraph (2) shall not apply 
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1 to the secondary transmission by a satellite 

2 carrier of the primary transmission of a 

3 network station to a person who is not a 

4 subscriber lawfully receiving such secondary 

5 transmission as of the date of the enactment 

6 of the Satellite Television Extension and 

7 Localism Act of 2010 and, at the time such 

8 person seeks to subscribe to receive such sec9 ondary transmission, resides in a local 

10 market where the satellite carrier makes 

11 available to that person the secondary 

12 transmission of the primary transmission of 

13 a local network station affiliated with the 

14 same network pursuant to the statutory li15 cense under section 122. 

16 ‘‘(ii) WHEN LOCAL SIGNAL AVAILABLE

17 AFTER SUBSCRIPTION.—In the case of a 

18 subscriber who lawfully subscribes to and 

19 receives the secondary transmission by a 

20 satellite carrier of the primary transmission 

21 of a network station under the statutory li22 cense under paragraph (2) (in this clause 

23 referred to as the ‘distant signal’) on or 

24 after the date of the enactment of the Sat25 ellite Television Extension and Localism 
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1 Act of 2010, the statutory license under 

2 paragraph (2) shall apply to secondary 

3 transmissions by that satellite carrier to 

4 that subscriber of the distant signal of a 

5 station affiliated with the same television 

6 network, and the subscriber’s household shall 

7 continue to be considered to be an unserved 

8 household with respect to such network, 

9 until such time as the subscriber elects to 

10 terminate such secondary transmissions, but 

11 only if such subscriber subscribes to the sec12 ondary transmission of the primary trans13 mission of a local network station affiliated 

14 with the same network within 60 days after 

15 the satellite carrier makes available to the 

16 subscriber such secondary transmission of 

17 the primary transmission of such local net18 work station.’’; 

19 (C) by redesignating subparagraphs (E), 

20 (F), and (G) as subparagraphs (D), (E), and 

21 (F), respectively; 

22 (D) in subparagraph (E) (as redesignated), 

23 by striking ‘‘(C) or (D)’’ and inserting ‘‘(B) or 

24 (C)’’; and 
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1 (E) in subparagraph (F) (as redesignated), 

2 by inserting ‘‘9-digit’’ before ‘‘zip code’’. 

3 (3) STATUTORY DAMAGES FOR TERRITORIAL RE4 STRICTIONS.—Section 119(a)(6) (as redesignated) is 

5 amended— 

6 (A) in subparagraph (A)(ii), by striking 

7 ‘‘$5’’ and inserting ‘‘$250’’; 

8 (B) in subparagraph (B)— 

9 (i) in clause (i), by striking ‘‘$250,000 

10 for each 6-month period’’ and inserting 

11 ‘‘$2,500,000 for each 3-month period’’; and 

12 (ii) in clause (ii), by striking 

13 ‘‘$250,000’’ and inserting ‘‘$2,500,000’’; 

14 and 

15 (C) by adding at the end the following flush 

16 sentences: 

17 ‘‘The court shall direct one half of any statutory 

18 damages ordered under clause (i) to be deposited 

19 with the Register of Copyrights for distribution 

20 to copyright owners pursuant to subsection (b). 

21 The Copyright Royalty Judges shall issue regula22 tions establishing procedures for distributing 

23 such funds, on a proportional basis, to copyright 

24 owners whose works were included in the sec-
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1 ondary transmissions that were the subject of the 

2 statutory damages.’’. 

3 (4) TECHNICAL AMENDMENT.—Section 119(a)(4) 

4 (as redesignated) is amended by striking ‘‘and 509’’. 

5 (5) CLERICAL AMENDMENT.—Section 

6 119(a)(2)(B)(iii)(II) is amended by striking ‘‘In this 

7 clause’’ and inserting ‘‘In this clause,’’. 

8 (j) MORATORIUM EXTENSION.—Section 119(e) is 

9 amended by striking ‘‘March 28, 2010’’ and inserting ‘‘De10 cember 31, 2014’’. 

11 (k) CLERICAL AMENDMENTS.—Section 119 is amend12 ed— 

13 (1) by striking ‘‘of the Code of Federal Regula14 tions’’ each place it appears and inserting ‘‘, Code of 

15 Federal Regulations’’; and 

16 (2) in subsection (d)(6), by striking ‘‘or the Di17 rect’’ and inserting ‘‘, or the Direct’’. 

18 SEC. 503. MODIFICATIONS TO STATUTORY LICENSE FOR 

19 SATELLITE CARRIERS IN LOCAL MARKETS. 

20 (a) HEADING RENAMED.— 

21 (1) IN GENERAL.—The heading of section 122 is 

22 amended by striking ‘‘by satellite carriers 

23 within local markets’’ and inserting ‘‘of local 

24 television programming by satellite’’. 
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1 (2) TABLE OF CONTENTS.—The table of contents 

2 for chapter 1 is amended by striking the item relating 

3 to section 122 and inserting the following: 

‘‘122. Limitations on exclusive rights: Secondary transmissions of local television 

programming by satellite.’’. 

4 (b) STATUTORY LICENSE.—Section 122(a) is amended 

5 to read as follows: 

6 ‘‘(a) SECONDARY TRANSMISSIONS INTO LOCAL MAR7 KETS.— 

8 ‘‘(1) SECONDARY TRANSMISSIONS OF TELEVISION

9 BROADCAST STATIONS WITHIN A LOCAL MARKET.—A 

10 secondary transmission of a performance or display 

11 of a work embodied in a primary transmission of a 

12 television broadcast station into the station’s local 

13 market shall be subject to statutory licensing under 

14 this section if— 

15 ‘‘(A) the secondary transmission is made by 

16 a satellite carrier to the public; 

17 ‘‘(B) with regard to secondary trans18 missions, the satellite carrier is in compliance 

19 with the rules, regulations, or authorizations of 

20 the Federal Communications Commission gov21 erning the carriage of television broadcast sta22 tion signals; and 
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1 ‘‘(C) the satellite carrier makes a direct or 

2 indirect charge for the secondary transmission 

3 to— 

4 ‘‘(i) each subscriber receiving the sec5 ondary transmission; or 

6 ‘‘(ii) a distributor that has contracted 

7 with the satellite carrier for direct or indi8 rect delivery of the secondary transmission 

9 to the public. 

10 ‘‘(2) SIGNIFICANTLY VIEWED STATIONS.— 

11 ‘‘(A) IN GENERAL.—A secondary trans12 mission of a performance or display of a work 

13 embodied in a primary transmission of a tele14 vision broadcast station to subscribers who re15 ceive secondary transmissions of primary trans16 missions under paragraph (1) shall be subject to 

17 statutory licensing under this paragraph if the 

18 secondary transmission is of the primary trans19 mission of a network station or a non-network 

20 station to a subscriber who resides outside the 

21 station’s local market but within a community 

22 in which the signal has been determined by the 

23 Federal Communications Commission to be sig24 nificantly viewed in such community, pursuant 

25 to the rules, regulations, and authorizations of 
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1 the Federal Communications Commission in ef2 fect on April 15, 1976, applicable to determining 

3 with respect to a cable system whether signals 

4 are significantly viewed in a community. 

5 ‘‘(B) WAIVER.—A subscriber who is denied 

6 the secondary transmission of the primary trans7 mission of a network station or a non-network 

8 station under subparagraph (A) may request a 

9 waiver from such denial by submitting a request, 

10 through the subscriber’s satellite carrier, to the 

11 network station or non-network station in the 

12 local market affiliated with the same network or 

13 non-network where the subscriber is located. The 

14 network station or non-network station shall ac15 cept or reject the subscriber’s request for a waiver 

16 within 30 days after receipt of the request. If the 

17 network station or non-network station fails to 

18 accept or reject the subscriber’s request for a 

19 waiver within that 30-day period, that network 

20 station or non-network station shall be deemed to 

21 agree to the waiver request. 

22 ‘‘(3) SECONDARY TRANSMISSION OF LOW POWER

23 PROGRAMMING.— 

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graphs (B) and (C), a secondary transmission of 
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1 a performance or display of a work embodied in 

2 a primary transmission of a television broadcast 

3 station to subscribers who receive secondary 

4 transmissions of primary transmissions under 

5 paragraph (1) shall be subject to statutory licens6 ing under this paragraph if the secondary trans7 mission is of the primary transmission of a tele8 vision broadcast station that is licensed as a low 

9 power television station, to a subscriber who re10 sides within the same designated market area as 

11 the station that originates the transmission. 

12 ‘‘(B) NO APPLICABILITY TO REPEATERS AND

13 TRANSLATORS.—Secondary transmissions pro14 vided for in subparagraph (A) shall not apply to 

15 any low power television station that retransmits 

16 the programs and signals of another television 

17 station for more than 2 hours each day. 

18 ‘‘(C) NO IMPACT ON OTHER SECONDARY

19 TRANSMISSIONS OBLIGATIONS.—A satellite car20 rier that makes secondary transmissions of a 

21 primary transmission of a low power television 

22 station under a statutory license provided under 

23 this section is not required, by reason of such 

24 secondary transmissions, to make any other sec25 ondary transmissions. 
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1 ‘‘(4) SPECIAL EXCEPTIONS.—A secondary trans2 mission of a performance or display of a work em3 bodied in a primary transmission of a television 

4 broadcast station to subscribers who receive secondary 

5 transmissions of primary transmissions under para6 graph (1) shall, if the secondary transmission is made 

7 by a satellite carrier that complies with the require8 ments of paragraph (1), be subject to statutory licens9 ing under this paragraph as follows: 

10 ‘‘(A) STATES WITH SINGLE FULL-POWER

11 NETWORK STATION.—In a State in which there 

12 is licensed by the Federal Communications Com13 mission a single full-power station that was a 

14 network station on January 1, 1995, the statu15 tory license provided for in this paragraph shall 

16 apply to the secondary transmission by a sat17 ellite carrier of the primary transmission of that 

18 station to any subscriber in a community that is 

19 located within that State and that is not within 

20 the first 50 television markets as listed in the 

21 regulations of the Commission as in effect on 

22 such date (47 C.F.R. 76.51). 

23 ‘‘(B) STATES WITH ALL NETWORK STATIONS

24 AND NON-NETWORK STATIONS IN SAME LOCAL

25 MARKET.—In a State in which all network sta-
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1 tions and non-network stations licensed by the 

2 Federal Communications Commission within 

3 that State as of January 1, 1995, are assigned 

4 to the same local market and that local market 

5 does not encompass all counties of that State, the 

6 statutory license provided under this paragraph 

7 shall apply to the secondary transmission by a 

8 satellite carrier of the primary transmissions of 

9 such station to all subscribers in the State who 

10 reside in a local market that is within the first 

11 50 major television markets as listed in the regu12 lations of the Commission as in effect on such 

13 date (section 76.51 of title 47, Code of Federal 

14 Regulations). 

15 ‘‘(C) ADDITIONAL STATIONS.—In the case of 

16 that State in which are located 4 counties that— 

17 ‘‘(i) on January 1, 2004, were in local 

18 markets principally comprised of counties 

19 in another State, and 

20 ‘‘(ii) had a combined total of 41,340 

21 television households, according to the U.S. 

22 Television Household Estimates by Nielsen 

23 Media Research for 2004, 

24 the statutory license provided under this para25 graph shall apply to secondary transmissions by 
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1 a satellite carrier to subscribers in any such 

2 county of the primary transmissions of any net3 work station located in that State, if the satellite 

4 carrier was making such secondary trans5 missions to any subscribers in that county on 

6 January 1, 2004. 

7 ‘‘(D) CERTAIN ADDITIONAL STATIONS.—If 2 

8 adjacent counties in a single State are in a local 

9 market comprised principally of counties located 

10 in another State, the statutory license provided 

11 for in this paragraph shall apply to the sec12 ondary transmission by a satellite carrier to sub13 scribers in those 2 counties of the primary trans14 missions of any network station located in the 

15 capital of the State in which such 2 counties are 

16 located, if— 

17 ‘‘(i) the 2 counties are located in a 

18 local market that is in the top 100 markets 

19 for the year 2003 according to Nielsen 

20 Media Research; and 

21 ‘‘(ii) the total number of television 

22 households in the 2 counties combined did 

23 not exceed 10,000 for the year 2003 accord24 ing to Nielsen Media Research. 
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1 ‘‘(E) NETWORKS OF NONCOMMERCIAL EDU2 CATIONAL BROADCAST STATIONS.—In the case of 

3 a system of three or more noncommercial edu4 cational broadcast stations licensed to a single 

5 State, public agency, or political, educational, or 

6 special purpose subdivision of a State, the statu7 tory license provided for in this paragraph shall 

8 apply to the secondary transmission of the pri9 mary transmission of such system to any sub10 scriber in any county or county equivalent with11 in such State, if such subscriber is located in a 

12 designated market area that is not otherwise eli13 gible to receive the secondary transmission of the 

14 primary transmission of a noncommercial edu15 cational broadcast station located within the 

16 State pursuant to paragraph (1). 

17 ‘‘(5) APPLICABILITY OF ROYALTY RATES AND

18 PROCEDURES.—The royalty rates and procedures 

19 under section 119(b) shall apply to the secondary 

20 transmissions to which the statutory license under 

21 paragraph (4) applies.’’. 

22 (c) REPORTING REQUIREMENTS.—Section 122(b) is 

23 amended— 
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1 (1) in paragraph (1), by striking ‘‘station a list’’ 

2 and all that follows through the end and inserting the 

3 following: ‘‘station— 

4 ‘‘(A) a list identifying (by name in alpha5 betical order and street address, including coun6 ty and 9-digit zip code) all subscribers to which 

7 the satellite carrier makes secondary trans8 missions of that primary transmission under 

9 subsection (a); and 

10 ‘‘(B) a separate list, aggregated by des11 ignated market area (by name and address, in12 cluding street or rural route number, city, State, 

13 and 9-digit zip code), which shall indicate those 

14 subscribers being served pursuant to paragraph 

15 (2) of subsection (a).’’; and 

16 (2) in paragraph (2), by striking ‘‘network a 

17 list’’ and all that follows through the end and insert18 ing the following: ‘‘network— 

19 ‘‘(A) a list identifying (by name in alpha20 betical order and street address, including coun21 ty and 9-digit zip code) any subscribers who 

22 have been added or dropped as subscribers since 

23 the last submission under this subsection; and 

24 ‘‘(B) a separate list, aggregated by des25 ignated market area (by name and street ad-
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† HR 4213 EAS 

1 dress, including street or rural route number, 

2 city, State, and 9-digit zip code), identifying 

3 those subscribers whose service pursuant to para4 graph (2) of subsection (a) has been added or 

5 dropped since the last submission under this sub6 section.’’. 

7 (d) NO ROYALTY FEE FOR CERTAIN SECONDARY

8 TRANSMISSIONS.—Section 122(c) is amended— 

9 (1) in the heading, by inserting ‘‘FOR CERTAIN

10 SECONDARY TRANSMISSIONS’’ after ‘‘REQUIRED’’; and 

11 (2) by striking ‘‘subsection (a)’’ and inserting 

12 ‘‘paragraphs (1), (2), and (3) of subsection (a)’’. 

13 (e) VIOLATIONS FOR TERRITORIAL RESTRICTIONS.— 

14 (1) MODIFICATION TO STATUTORY DAMAGES.— 

15 Section 122(f) is amended— 

16 (A) in paragraph (1)(B), by striking ‘‘$5’’ 

17 and inserting ‘‘$250’’; and 

18 (B) in paragraph (2), by striking 

19 ‘‘$250,000’’ each place it appears and inserting 

20 ‘‘$2,500,000’’. 

21 (2) CONFORMING AMENDMENTS FOR ADDITIONAL

22 STATIONS.—Section 122 is amended— 

23 (A) in subsection (f), by striking ‘‘section 

24 119 or’’ each place it appears and inserting the 

25 following: ‘‘section 119, subject to statutory li-
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1 censing by reason of paragraph (2)(A), (3), or 

2 (4) of subsection (a), or subject to’’; and 

3 (B) in subsection (g), by striking ‘‘section 

4 119 or’’ and inserting the following: ‘‘section 

5 119, paragraph (2)(A), (3), or (4) of subsection 

6 (a), or’’. 

7 (f) DEFINITIONS.—Section 122(j) is amended— 

8 (1) in paragraph (1), by striking ‘‘which con9 tracts’’ and inserting ‘‘that contracts’’; 

10 (2) by redesignating paragraphs (4) and (5) as 

11 paragraphs (6) and (7), respectively; 

12 (3) in paragraph (3)— 

13 (A) by redesignating such paragraph as 

14 paragraph (4); 

15 (B) in the heading of such paragraph, by 

16 inserting ‘‘NON-NETWORK STATION;’’ after ‘‘NET17 WORK STATION;’’; and 

18 (C) by inserting ‘‘ ‘non-network station’,’’ 

19 after ‘‘ ‘network station’,’’; 

20 (4) by inserting after paragraph (2) the fol21 lowing: 

22 ‘‘(3) LOW POWER TELEVISION STATION.—The 

23 term ‘low power television station’ means a low power 

24 TV station as defined in section 74.701(f) of title 47, 

25 Code of Federal Regulations, as in effect on June 1, 
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† HR 4213 EAS 

1 2004. For purposes of this paragraph, the term ‘low 

2 power television station’ includes a low power tele3 vision station that has been accorded primary status 

4 as a Class A television licensee under section 

5 73.6001(a) of title 47, Code of Federal Regulations.’’; 

6 (5) by inserting after paragraph (4) (as redesig7 nated) the following: 

8 ‘‘(5) NONCOMMERCIAL EDUCATIONAL BROADCAST

9 STATION.—The term ‘noncommercial educational 

10 broadcast station’ means a television broadcast sta11 tion that is a noncommercial educational broadcast 

12 station as defined in section 397 of the Communica13 tions Act of 1934, as in effect on the date of the enact14 ment of the Satellite Television Extension and Local15 ism Act of 2010.’’; and 

16 (6) by amending paragraph (6) (as redesignated) 

17 to read as follows: 

18 ‘‘(6) SUBSCRIBER.—The term ‘subscriber’ means 

19 a person or entity that receives a secondary trans20 mission service from a satellite carrier and pays a fee 

21 for the service, directly or indirectly, to the satellite 

22 carrier or to a distributor.’’. 

23 SEC. 504. MODIFICATIONS TO CABLE SYSTEM SECONDARY 

24 TRANSMISSION RIGHTS UNDER SECTION 111. 

25 (a) HEADING RENAMED.— 
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1 (1) IN GENERAL.—The heading of section 111 is 

2 amended by inserting at the end the following: ‘‘of 

3 broadcast programming by cable’’. 

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

5 for chapter 1 is amended by striking the item relating 

6 to section 111 and inserting the following: 

‘‘111. Limitations on exclusive rights: Secondary transmissions of broadcast programming by cable.’’. 

7 (b) TECHNICAL AMENDMENT.—Section 111(a)(4) is 

8 amended by striking ‘‘; or’’ and inserting ‘‘or section 122;’’. 

9 (c) STATUTORY LICENSE FOR SECONDARY TRANS10 MISSIONS BY CABLE SYSTEMS.—Section 111(d) is amend11 ed— 

12 (1) in paragraph (1)— 

13 (A) in the matter preceding subparagraph 

14 (A)— 

15 (i) by striking ‘‘A cable system whose 

16 secondary’’ and inserting the following: 

17 ‘‘STATEMENT OF ACCOUNT AND ROYALTY

18 FEES.—Subject to paragraph (5), a cable 

19 system whose secondary’’; and 

20 (ii) by striking ‘‘by regulation—’’ and 

21 inserting ‘‘by regulation the following:’’; 

22 (B) in subparagraph (A)— 
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† HR 4213 EAS 

1 (i) by striking ‘‘a statement of ac2 count’’ and inserting ‘‘A statement of ac3 count’’; and 

4 (ii) by striking ‘‘; and’’ and inserting 

5 a period; and 

6 (C) by striking subparagraphs (B), (C), and 

7 (D) and inserting the following: 

8 ‘‘(B) Except in the case of a cable system 

9 whose royalty fee is specified in subparagraph 

10 (E) or (F), a total royalty fee payable to copy11 right owners pursuant to paragraph (3) for the 

12 period covered by the statement, computed on the 

13 basis of specified percentages of the gross receipts 

14 from subscribers to the cable service during such 

15 period for the basic service of providing sec16 ondary transmissions of primary broadcast 

17 transmitters, as follows: 

18 ‘‘(i) 1.064 percent of such gross receipts 

19 for the privilege of further transmitting, be20 yond the local service area of such primary 

21 transmitter, any non-network programming 

22 of a primary transmitter in whole or in 

23 part, such amount to be applied against the 

24 fee, if any, payable pursuant to clauses (ii) 

25 through (iv); 
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† HR 4213 EAS 

1 ‘‘(ii) 1.064 percent of such gross re2 ceipts for the first distant signal equivalent; 

3 ‘‘(iii) 0.701 percent of such gross re4 ceipts for each of the second, third, and 

5 fourth distant signal equivalents; and 

6 ‘‘(iv) 0.330 percent of such gross re7 ceipts for the fifth distant signal equivalent 

8 and each distant signal equivalent there9 after. 

10 ‘‘(C) In computing amounts under clauses 

11 (ii) through (iv) of subparagraph (B)— 

12 ‘‘(i) any fraction of a distant signal 

13 equivalent shall be computed at its frac14 tional value; 

15 ‘‘(ii) in the case of any cable system lo16 cated partly within and partly outside of 

17 the local service area of a primary trans18 mitter, gross receipts shall be limited to 

19 those gross receipts derived from subscribers 

20 located outside of the local service area of 

21 such primary transmitter; and 

22 ‘‘(iii) if a cable system provides a sec23 ondary transmission of a primary trans24 mitter to some but not all communities 

25 served by that cable system— 
197 

† HR 4213 EAS 

1 ‘‘(I) the gross receipts and the dis2 tant signal equivalent values for such 

3 secondary transmission shall be de4 rived solely on the basis of the sub5 scribers in those communities where the 

6 cable system provides such secondary 

7 transmission; and 

8 ‘‘(II) the total royalty fee for the 

9 period paid by such system shall not be 

10 less than the royalty fee calculated 

11 under subparagraph (B)(i) multiplied 

12 by the gross receipts from all sub13 scribers to the system. 

14 ‘‘(D) A cable system that, on a statement 

15 submitted before the date of the enactment of the 

16 Satellite Television Extension and Localism Act 

17 of 2010, computed its royalty fee consistent with 

18 the methodology under subparagraph (C)(iii), or 

19 that amends a statement filed before such date of 

20 enactment to compute the royalty fee due using 

21 such methodology, shall not be subject to an ac22 tion for infringement, or eligible for any royalty 

23 refund or offset, arising out of its use of such 

24 methodology on such statement. 
198 

† HR 4213 EAS 

1 ‘‘(E) If the actual gross receipts paid by 

2 subscribers to a cable system for the period cov3 ered by the statement for the basic service of pro4 viding secondary transmissions of primary 

5 broadcast transmitters are $263,800 or less— 

6 ‘‘(i) gross receipts of the cable system 

7 for the purpose of this paragraph shall be 

8 computed by subtracting from such actual 

9 gross receipts the amount by which 

10 $263,800 exceeds such actual gross receipts, 

11 except that in no case shall a cable system’s 

12 gross receipts be reduced to less than 

13 $10,400; and 

14 ‘‘(ii) the royalty fee payable under this 

15 paragraph to copyright owners pursuant to 

16 paragraph (3) shall be 0.5 percent, regard17 less of the number of distant signal equiva18 lents, if any. 

19 ‘‘(F) If the actual gross receipts paid by 

20 subscribers to a cable system for the period cov21 ered by the statement for the basic service of pro22 viding secondary transmissions of primary 

23 broadcast transmitters are more than $263,800 

24 but less than $527,600, the royalty fee payable 
199 

† HR 4213 EAS 

1 under this paragraph to copyright owners pursu2 ant to paragraph (3) shall be— 

3 ‘‘(i) 0.5 percent of any gross receipts 

4 up to $263,800, regardless of the number of 

5 distant signal equivalents, if any; and 

6 ‘‘(ii) 1 percent of any gross receipts in 

7 excess of $263,800, but less than $527,600, 

8 regardless of the number of distant signal 

9 equivalents, if any. 

10 ‘‘(G) A filing fee, as determined by the Reg11 ister of Copyrights pursuant to section 708(a).’’; 

12 (2) in paragraph (2), in the first sentence— 

13 (A) by striking ‘‘The Register of Copy14 rights’’ and inserting the following ‘‘HANDLING

15 OF FEES.—The Register of Copyrights’’; and 

16 (B) by inserting ‘‘(including the filing fee 

17 specified in paragraph (1)(G))’’ after ‘‘shall re18 ceive all fees’’; 

19 (3) in paragraph (3)— 

20 (A) by striking ‘‘The royalty fees’’ and in21 serting the following: ‘‘DISTRIBUTION OF ROY22 ALTY FEES TO COPYRIGHT OWNERS.—The roy23 alty fees’’; 

24 (B) in subparagraph (A)— 
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† HR 4213 EAS 

1 (i) by striking ‘‘any such’’ and insert2 ing ‘‘Any such’’; and 

3 (ii) by striking ‘‘; and’’ and inserting 

4 a period; 

5 (C) in subparagraph (B)— 

6 (i) by striking ‘‘any such’’ and insert7 ing ‘‘Any such’’; and 

8 (ii) by striking the semicolon and in9 serting a period; and 

10 (D) in subparagraph (C), by striking ‘‘any 

11 such’’ and inserting ‘‘Any such’’; 

12 (4) in paragraph (4), by striking ‘‘The royalty 

13 fees’’ and inserting the following: ‘‘PROCEDURES FOR

14 ROYALTY FEE DISTRIBUTION.—The royalty fees’’; and 

15 (5) by adding at the end the following new para16 graphs: 

17 ‘‘(5) 3.75 PERCENT RATE AND SYNDICATED EX18 CLUSIVITY SURCHARGE NOT APPLICABLE TO

19 MULTICAST STREAMS.—The royalty rates specified in 

20 sections 256.2(c) and 256.2(d) of title 37, Code of 

21 Federal Regulations (commonly referred to as the 

22 ‘3.75 percent rate’ and the ‘syndicated exclusivity sur23 charge’, respectively), as in effect on the date of the 

24 enactment of the Satellite Television Extension and 

25 Localism Act of 2010, as such rates may be adjusted, 
201 

† HR 4213 EAS 

1 or such sections redesignated, thereafter by the Copy2 right Royalty Judges, shall not apply to the sec3 ondary transmission of a multicast stream. 

4 ‘‘(6) VERIFICATION OF ACCOUNTS AND FEE PAY5 MENTS.—The Register of Copyrights shall issue regu6 lations to provide for the confidential verification by 

7 copyright owners whose works were embodied in the 

8 secondary transmissions of primary transmissions 

9 pursuant to this section of the information reported 

10 on the semiannual statements of account filed under 

11 this subsection on or after January 1, 2010, in order 

12 that the auditor designated under subparagraph (A) 

13 is able to confirm the correctness of the calculations 

14 and royalty payments reported therein. The regula15 tions shall— 

16 ‘‘(A) establish procedures for the designation 

17 of a qualified independent auditor— 

18 ‘‘(i) with exclusive authority to request 

19 verification of such a statement of account 

20 on behalf of all copyright owners whose 

21 works were the subject of secondary trans22 missions of primary transmissions by the 

23 cable system (that deposited the statement) 

24 during the accounting period covered by the 

25 statement; and 
202 

† HR 4213 EAS 

1 ‘‘(ii) who is not an officer, employee, 

2 or agent of any such copyright owner for 

3 any purpose other than such audit; 

4 ‘‘(B) establish procedures for safeguarding 

5 all non-public financial and business informa6 tion provided under this paragraph; 

7 ‘‘(C)(i) require a consultation period for the 

8 independent auditor to review its conclusions 

9 with a designee of the cable system; 

10 ‘‘(ii) establish a mechanism for the cable 

11 system to remedy any errors identified in the 

12 auditor’s report and to cure any underpayment 

13 identified; and 

14 ‘‘(iii) provide an opportunity to remedy 

15 any disputed facts or conclusions; 

16 ‘‘(D) limit the frequency of requests for 

17 verification for a particular cable system and the 

18 number of audits that a multiple system oper19 ator can be required to undergo in a single year; 

20 and 

21 ‘‘(E) permit requests for verification of a 

22 statement of account to be made only within 3 

23 years after the last day of the year in which the 

24 statement of account is filed. 
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† HR 4213 EAS 

1 ‘‘(7) ACCEPTANCE OF ADDITIONAL DEPOSITS.— 

2 Any royalty fee payments received by the Copyright 

3 Office from cable systems for the secondary trans4 mission of primary transmissions that are in addi5 tion to the payments calculated and deposited in ac6 cordance with this subsection shall be deemed to have 

7 been deposited for the particular accounting period 

8 for which they are received and shall be distributed 

9 as specified under this subsection.’’. 

10 (d) EFFECTIVE DATE OF NEW ROYALTY FEE

11 RATES.—The royalty fee rates established in section 

12 111(d)(1)(B) of title 17, United States Code, as amended 

13 by subsection (c)(1)(C) of this section, shall take effect com14 mencing with the first accounting period occurring in 2010. 

15 (e) DEFINITIONS.—Section 111(f) is amended— 

16 (1) by striking the first undesignated paragraph 

17 and inserting the following: 

18 ‘‘(1) PRIMARY TRANSMISSION.—A ‘primary 

19 transmission’ is a transmission made to the public by 

20 a transmitting facility whose signals are being re21 ceived and further transmitted by a secondary trans22 mission service, regardless of where or when the per23 formance or display was first transmitted. In the case 

24 of a television broadcast station, the primary stream 
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† HR 4213 EAS 

1 and any multicast streams transmitted by the station 

2 constitute primary transmissions.’’; 

3 (2) in the second undesignated paragraph— 

4 (A) by striking ‘‘A ‘secondary trans5 mission’ ’’ and inserting the following: 

6 ‘‘(2) SECONDARY TRANSMISSION.—A ‘secondary 

7 transmission’ ’’; and 

8 (B) by striking ‘‘ ‘cable system’ ’’ and insert9 ing ‘‘cable system’’; 

10 (3) in the third undesignated paragraph— 

11 (A) by striking ‘‘A ‘cable system’ ’’ and in12 serting the following: 

13 ‘‘(3) CABLE SYSTEM.—A ‘cable system’ ’’; and 

14 (B) by striking ‘‘Territory, Trust Territory, 

15 or Possession’’ and inserting ‘‘territory, trust ter16 ritory, or possession of the United States’’; 

17 (4) in the fourth undesignated paragraph, in the 

18 first sentence— 

19 (A) by striking ‘‘The ‘local service area of a 

20 primary transmitter’, in the case of a television 

21 broadcast station, comprises the area in which 

22 such station is entitled to insist’’ and inserting 

23 the following: 

24 ‘‘(4) LOCAL SERVICE AREA OF A PRIMARY TRANS25 MITTER.—The ‘local service area of a primary trans-
205 

† HR 4213 EAS 

1 mitter’, in the case of both the primary stream and 

2 any multicast streams transmitted by a primary 

3 transmitter that is a television broadcast station, 

4 comprises the area where such primary transmitter 

5 could have insisted’’; 

6 (B) by striking ‘‘76.59 of title 47 of the 

7 Code of Federal Regulations’’ and inserting the 

8 following: ‘‘76.59 of title 47, Code of Federal 

9 Regulations, or within the noise-limited contour 

10 as defined in 73.622(e)(1) of title 47, Code of 

11 Federal Regulations’’; and 

12 (C) by striking ‘‘as defined by the rules and 

13 regulations of the Federal Communications Com14 mission,’’; 

15 (5) by amending the fifth undesignated para16 graph to read as follows: 

17 ‘‘(5) DISTANT SIGNAL EQUIVALENT.— 

18 ‘‘(A) IN GENERAL.—Except as provided 

19 under subparagraph (B), a ‘distant signal equiv20 alent’— 

21 ‘‘(i) is the value assigned to the sec22 ondary transmission of any non-network 

23 television programming carried by a cable 

24 system in whole or in part beyond the local 
206 

† HR 4213 EAS 

1 service area of the primary transmitter of 

2 such programming; and 

3 ‘‘(ii) is computed by assigning a value 

4 of one to each primary stream and to each 

5 multicast stream (other than a simulcast) 

6 that is an independent station, and by as7 signing a value of one-quarter to each pri8 mary stream and to each multicast stream 

9 (other than a simulcast) that is a network 

10 station or a noncommercial educational sta11 tion. 

12 ‘‘(B) EXCEPTIONS.—The values for inde13 pendent, network, and noncommercial edu14 cational stations specified in subparagraph (A) 

15 are subject to the following: 

16 ‘‘(i) Where the rules and regulations of 

17 the Federal Communications Commission 

18 require a cable system to omit the further 

19 transmission of a particular program and 

20 such rules and regulations also permit the 

21 substitution of another program embodying 

22 a performance or display of a work in place 

23 of the omitted transmission, or where such 

24 rules and regulations in effect on the date of 

25 the enactment of the Copyright Act of 1976 
207 

† HR 4213 EAS 

1 permit a cable system, at its election, to ef2 fect such omission and substitution of a 

3 nonlive program or to carry additional pro4 grams not transmitted by primary trans5 mitters within whose local service area the 

6 cable system is located, no value shall be as7 signed for the substituted or additional pro8 gram. 

9 ‘‘(ii) Where the rules, regulations, or 

10 authorizations of the Federal Communica11 tions Commission in effect on the date of the 

12 enactment of the Copyright Act of 1976 per13 mit a cable system, at its election, to omit 

14 the further transmission of a particular 

15 program and such rules, regulations, or au16 thorizations also permit the substitution of 

17 another program embodying a performance 

18 or display of a work in place of the omitted 

19 transmission, the value assigned for the sub20 stituted or additional program shall be, in 

21 the case of a live program, the value of one 

22 full distant signal equivalent multiplied by 

23 a fraction that has as its numerator the 

24 number of days in the year in which such 
208 

† HR 4213 EAS 

1 substitution occurs and as its denominator 

2 the number of days in the year. 

3 ‘‘(iii) In the case of the secondary 

4 transmission of a primary transmitter that 

5 is a television broadcast station pursuant to 

6 the late-night or specialty programming 

7 rules of the Federal Communications Com8 mission, or the secondary transmission of a 

9 primary transmitter that is a television 

10 broadcast station on a part-time basis 

11 where full-time carriage is not possible be12 cause the cable system lacks the activated 

13 channel capacity to retransmit on a full14 time basis all signals that it is authorized 

15 to carry, the values for independent, net16 work, and noncommercial educational sta17 tions set forth in subparagraph (A), as the 

18 case may be, shall be multiplied by a frac19 tion that is equal to the ratio of the broad20 cast hours of such primary transmitter re21 transmitted by the cable system to the total 

22 broadcast hours of the primary transmitter. 

23 ‘‘(iv) No value shall be assigned for the 

24 secondary transmission of the primary 

25 stream or any multicast streams of a pri-
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† HR 4213 EAS 

1 mary transmitter that is a television broad2 cast station in any community that is with3 in the local service area of the primary 

4 transmitter.’’; 

5 (6) by striking the sixth undesignated paragraph 

6 and inserting the following: 

7 ‘‘(6) NETWORK STATION.— 

8 ‘‘(A) TREATMENT OF PRIMARY STREAM.— 

9 The term ‘network station’ shall be applied to a 

10 primary stream of a television broadcast station 

11 that is owned or operated by, or affiliated with, 

12 one or more of the television networks in the 

13 United States providing nationwide trans14 missions, and that transmits a substantial part 

15 of the programming supplied by such networks 

16 for a substantial part of the primary stream’s 

17 typical broadcast day. 

18 ‘‘(B) TREATMENT OF MULTICAST

19 STREAMS.—The term ‘network station’ shall be 

20 applied to a multicast stream on which a tele21 vision broadcast station transmits all or substan22 tially all of the programming of an inter23 connected program service that— 
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† HR 4213 EAS 

1 ‘‘(i) is owned or operated by, or affili2 ated with, one or more of the television net3 works described in subparagraph (A); and 

4 ‘‘(ii) offers programming on a regular 

5 basis for 15 or more hours per week to at 

6 least 25 of the affiliated television licensees 

7 of the interconnected program service in 10 

8 or more States.’’; 

9 (7) by striking the seventh undesignated para10 graph and inserting the following: 

11 ‘‘(7) INDEPENDENT STATION.—The term ‘inde12 pendent station’ shall be applied to the primary 

13 stream or a multicast stream of a television broadcast 

14 station that is not a network station or a noncommer15 cial educational station.’’; 

16 (8) by striking the eighth undesignated para17 graph and inserting the following: 

18 ‘‘(8) NONCOMMERCIAL EDUCATIONAL STATION.— 

19 The term ‘noncommercial educational station’ shall be 

20 applied to the primary stream or a multicast stream 

21 of a television broadcast station that is a noncommer22 cial educational broadcast station as defined in sec23 tion 397 of the Communications Act of 1934, as in 

24 effect on the date of the enactment of the Satellite Tel25 evision Extension and Localism Act of 2010.’’; and 
211 

† HR 4213 EAS 

1 (9) by adding at the end the following: 

2 ‘‘(9) PRIMARY STREAM.—A ‘primary stream’ 

3 is— 

4 ‘‘(A) the single digital stream of program5 ming that, before June 12, 2009, was substan6 tially duplicating the programming transmitted 

7 by the television broadcast station as an analog 

8 signal; or 

9 ‘‘(B) if there is no stream described in sub10 paragraph (A), then the single digital stream of 

11 programming transmitted by the television 

12 broadcast station for the longest period of time. 

13 ‘‘(10) PRIMARY TRANSMITTER.—A ‘primary 

14 transmitter’ is a television or radio broadcast station 

15 licensed by the Federal Communications Commission, 

16 or by an appropriate governmental authority of Can17 ada or Mexico, that makes primary transmissions to 

18 the public. 

19 ‘‘(11) MULTICAST STREAM.—A ‘multicast 

20 stream’ is a digital stream of programming that is 

21 transmitted by a television broadcast station and is 

22 not the station’s primary stream. 

23 ‘‘(12) SIMULCAST.—A ‘simulcast’ is a multicast 

24 stream of a television broadcast station that dupli-
212 

† HR 4213 EAS 

1 cates the programming transmitted by the primary 

2 stream or another multicast stream of such station. 

3 ‘‘(13) SUBSCRIBER; SUBSCRIBE.— 

4 ‘‘(A) SUBSCRIBER.—The term ‘subscriber’ 

5 means a person or entity that receives a sec6 ondary transmission service from a cable system 

7 and pays a fee for the service, directly or indi8 rectly, to the cable system. 

9 ‘‘(B) SUBSCRIBE.—The term ‘subscribe’ 

10 means to elect to become a subscriber.’’. 

11 (f) TIMING OF SECTION 111 PROCEEDINGS.—Section 

12 804(b)(1) is amended by striking ‘‘2005’’ each place it ap13 pears and inserting ‘‘2015’’. 

14 (g) TECHNICAL AND CONFORMING AMENDMENTS.— 

15 (1) CORRECTIONS TO FIX LEVEL DESIGNA16 TIONS.—Section 111 is amended— 

17 (A) in subsections (a), (c), and (e), by strik18 ing ‘‘clause’’ each place it appears and inserting 

19 ‘‘paragraph’’; 

20 (B) in subsection (c)(1), by striking 

21 ‘‘clauses’’ and inserting ‘‘paragraphs’’; and 

22 (C) in subsection (e)(1)(F), by striking 

23 ‘‘subclause’’ and inserting ‘‘subparagraph’’. 

24 (2) CONFORMING AMENDMENT TO HYPHENATE

25 NONNETWORK.—Section 111 is amended by striking 
213 

† HR 4213 EAS 

1 ‘‘nonnetwork’’ each place it appears and inserting 

2 ‘‘non-network’’. 

3 (3) PREVIOUSLY UNDESIGNATED PARAGRAPH.— 

4 Section 111(e)(1) is amended by striking ‘‘second 

5 paragraph of subsection (f)’’ and inserting ‘‘sub6 section (f)(2)’’. 

7 (4) REMOVAL OF SUPERFLUOUS ANDS.—Section 

8 111(e) is amended— 

9 (A) in paragraph (1)(A), by striking ‘‘and’’ 

10 at the end; 

11 (B) in paragraph (1)(B), by striking ‘‘and’’ 

12 at the end; 

13 (C) in paragraph (1)(C), by striking ‘‘and’’ 

14 at the end; 

15 (D) in paragraph (1)(D), by striking ‘‘and’’ 

16 at the end; and 

17 (E) in paragraph (2)(A), by striking ‘‘and’’ 

18 at the end. 

19 (5) REMOVAL OF VARIANT FORMS REF20 ERENCES.—Section 111 is amended— 

21 (A) in subsection (e)(4), by striking ‘‘, and 

22 each of its variant forms,’’; and 

23 (B) in subsection (f), by striking ‘‘and their 

24 variant forms’’. 
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† HR 4213 EAS 

1 (6) CORRECTION TO TERRITORY REFERENCE.— 

2 Section 111(e)(2) is amended in the matter preceding 

3 subparagraph (A) by striking ‘‘three territories’’ and 

4 inserting ‘‘five entities’’. 

5 (h) EFFECTIVE DATE WITH RESPECT TO MULTICAST

6 STREAMS.— 

7 (1) IN GENERAL.—Subject to paragraphs (2) and 

8 (3), the amendments made by this section, to the ex9 tent such amendments assign a distant signal equiva10 lent value to the secondary transmission of the 

11 multicast stream of a primary transmitter, shall take 

12 effect on the date of the enactment of this Act. 

13 (2) DELAYED APPLICABILITY.— 

14 (A) SECONDARY TRANSMISSIONS OF A

15 MULTICAST STREAM BEYOND THE LOCAL SERV16 ICE AREA OF ITS PRIMARY TRANSMITTER BE17 FORE 2010 ACT.—In any case in which a cable 

18 system was making secondary transmissions of a 

19 multicast stream beyond the local service area of 

20 its primary transmitter before the date of the en21 actment of this Act, a distant signal equivalent 

22 value (referred to in paragraph (1)) shall not be 

23 assigned to secondary transmissions of such 

24 multicast stream that are made on or before 

25 June 30, 2010. 
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† HR 4213 EAS 

1 (B) MULTICAST STREAMS SUBJECT TO PRE2 EXISTING WRITTEN AGREEMENTS FOR THE SEC3 ONDARY TRANSMISSION OF SUCH STREAMS.—In 

4 any case in which the secondary transmission of 

5 a multicast stream of a primary transmitter is 

6 the subject of a written agreement entered into 

7 on or before June 30, 2009, between a cable sys8 tem or an association representing the cable sys9 tem and a primary transmitter or an associa10 tion representing the primary transmitter, a dis11 tant signal equivalent value (referred to in para12 graph (1)) shall not be assigned to secondary 

13 transmissions of such multicast stream beyond 

14 the local service area of its primary transmitter 

15 that are made on or before the date on which 

16 such written agreement expires. 

17 (C) NO REFUNDS OR OFFSETS FOR PRIOR

18 STATEMENTS OF ACCOUNT.—A cable system that 

19 has reported secondary transmissions of a 

20 multicast stream beyond the local service area of 

21 its primary transmitter on a statement of ac22 count deposited under section 111 of title 17, 

23 United States Code, before the date of the enact24 ment of this Act shall not be entitled to any re25 fund, or offset, of royalty fees paid on account of 
216 

† HR 4213 EAS 

1 such secondary transmissions of such multicast 

2 stream. 

3 (3) DEFINITIONS.—In this subsection, the terms 

4 ‘‘cable system’’, ‘‘secondary transmission’’, ‘‘multicast 

5 stream’’, and ‘‘local service area of a primary trans6 mitter’’ have the meanings given those terms in sec7 tion 111(f) of title 17, United States Code, as amend8 ed by this section. 

9 SEC. 505. CERTAIN WAIVERS GRANTED TO PROVIDERS OF 

10 LOCAL-INTO-LOCAL SERVICE FOR ALL DMAS. 

11 Section 119 is amended by adding at the end the fol12 lowing new subsection: 

13 ‘‘(g) CERTAIN WAIVERS GRANTED TO PROVIDERS OF

14 LOCAL-INTO-LOCAL SERVICE TO ALL DMAS.— 

15 ‘‘(1) INJUNCTION WAIVER.—A court that issued 

16 an injunction pursuant to subsection (a)(7)(B) before 

17 the date of the enactment of this subsection shall 

18 waive such injunction if the court recognizes the enti19 ty against which the injunction was issued as a 

20 qualified carrier. 

21 ‘‘(2) LIMITED TEMPORARY WAIVER.— 

22 ‘‘(A) IN GENERAL.—Upon a request made 

23 by a satellite carrier, a court that issued an in24 junction against such carrier under subsection 

25 (a)(7)(B) before the date of the enactment of this 
217 

† HR 4213 EAS 

1 subsection shall waive such injunction with re2 spect to the statutory license provided under sub3 section (a)(2) to the extent necessary to allow 

4 such carrier to make secondary transmissions of 

5 primary transmissions made by a network sta6 tion to unserved households located in short mar7 kets in which such carrier was not providing 

8 local service pursuant to the license under section 

9 122 as of December 31, 2009. 

10 ‘‘(B) EXPIRATION OF TEMPORARY WAIV11 ER.—A temporary waiver of an injunction 

12 under subparagraph (A) shall expire after the 

13 end of the 120-day period beginning on the date 

14 such temporary waiver is issued unless extended 

15 for good cause by the court making the tem16 porary waiver. 

17 ‘‘(C) FAILURE TO PROVIDE LOCAL-INTO18 LOCAL SERVICE TO ALL DMAS.— 

19 ‘‘(i) FAILURE TO ACT REASONABLY

20 AND IN GOOD FAITH.—If the court issuing 

21 a temporary waiver under subparagraph 

22 (A) determines that the satellite carrier that 

23 made the request for such waiver has failed 

24 to act reasonably or has failed to make a 
218 

† HR 4213 EAS 

1 good faith effort to provide local-into-local 

2 service to all DMAs, such failure— 

3 ‘‘(I) is actionable as an act of in4 fringement under section 501 and the 

5 court may in its discretion impose the 

6 remedies provided for in sections 502 

7 through 506 and subsection (a)(6)(B) 

8 of this section; and 

9 ‘‘(II) shall result in the termi10 nation of the waiver issued under sub11 paragraph (A). 

12 ‘‘(ii) FAILURE TO PROVIDE LOCAL13 INTO-LOCAL SERVICE.—If the court issuing 

14 a temporary waiver under subparagraph 

15 (A) determines that the satellite carrier that 

16 made the request for such waiver has failed 

17 to provide local-into-local service to all 

18 DMAs, but determines that the carrier acted 

19 reasonably and in good faith, the court may 

20 in its discretion impose financial penalties 

21 that reflect— 

22 ‘‘(I) the degree of control the car23 rier had over the circumstances that 

24 resulted in the failure; 
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† HR 4213 EAS 

1 ‘‘(II) the quality of the carrier’s 

2 efforts to remedy the failure; and 

3 ‘‘(III) the severity and duration of 

4 any service interruption. 

5 ‘‘(D) SINGLE TEMPORARY WAIVER AVAIL6 ABLE.—An entity may only receive one tem7 porary waiver under this paragraph. 

8 ‘‘(E) SHORT MARKET DEFINED.—For pur9 poses of this paragraph, the term ‘short market’ 

10 means a local market in which programming of 

11 one or more of the four most widely viewed tele12 vision networks nationwide as measured on the 

13 date of the enactment of this subsection is not of14 fered on the primary stream transmitted by any 

15 local television broadcast station. 

16 ‘‘(3) ESTABLISHMENT OF QUALIFIED CARRIER

17 RECOGNITION.— 

18 ‘‘(A) STATEMENT OF ELIGIBILITY.—An en19 tity seeking to be recognized as a qualified car20 rier under this subsection shall file a statement 

21 of eligibility with the court that imposed the in22 junction. A statement of eligibility must in23 clude— 

24 ‘‘(i) an affidavit that the entity is pro25 viding local-into-local service to all DMAs; 
220 

† HR 4213 EAS 

1 ‘‘(ii) a request for a waiver of the in2 junction; and 

3 ‘‘(iii) a certification issued pursuant to 

4 section 342(a) of Communications Act of 

5 1934. 

6 ‘‘(B) GRANT OF RECOGNITION AS A QUALI7 FIED CARRIER.—Upon receipt of a statement of 

8 eligibility, the court shall recognize the entity as 

9 a qualified carrier and issue the waiver under 

10 paragraph (1). 

11 ‘‘(C) VOLUNTARY TERMINATION.—At any 

12 time, an entity recognized as a qualified carrier 

13 may file a statement of voluntary termination 

14 with the court certifying that it no longer wishes 

15 to be recognized as a qualified carrier. Upon re16 ceipt of such statement, the court shall reinstate 

17 the injunction waived under paragraph (1). 

18 ‘‘(D) LOSS OF RECOGNITION PREVENTS FU19 TURE RECOGNITION.—No entity may be recog20 nized as a qualified carrier if such entity had 

21 previously been recognized as a qualified carrier 

22 and subsequently lost such recognition or volun23 tarily terminated such recognition under sub24 paragraph (C). 
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† HR 4213 EAS 

1 ‘‘(4) QUALIFIED CARRIER OBLIGATIONS AND

2 COMPLIANCE.— 

3 ‘‘(A) CONTINUING OBLIGATIONS.— 

4 ‘‘(i) IN GENERAL.—An entity recog5 nized as a qualified carrier shall continue 

6 to provide local-into-local service to all 

7 DMAs. 

8 ‘‘(ii) COOPERATION WITH GAO EXAM9 INATION.—An entity recognized as a quali10 fied carrier shall fully cooperate with the 

11 Comptroller General in the examination re12 quired by subparagraph (B). 

13 ‘‘(B) QUALIFIED CARRIER COMPLIANCE EX14 AMINATION.— 

15 ‘‘(i) EXAMINATION AND REPORT.—The 

16 Comptroller General shall conduct an exam17 ination and publish a report concerning the 

18 qualified carrier’s compliance with the roy19 alty payment and household eligibility re20 quirements of the license under this section. 

21 The report shall address the qualified car22 rier’s conduct during the period beginning 

23 on the date on which the qualified carrier 

24 is recognized as such under paragraph 

25 (3)(B) and ending on December 31, 2011. 
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1 ‘‘(ii) RECORDS OF QUALIFIED CAR2 RIER.—Beginning on the date that is one 

3 year after the date on which the qualified 

4 carrier is recognized as such under para5 graph (3)(B), but not later than October 1, 

6 2011, the qualified carrier shall provide the 

7 Comptroller General with all records that 

8 the Comptroller General, in consultation 

9 with the Register of Copyrights, considers to 

10 be directly pertinent to the following re11 quirements under this section: 

12 ‘‘(I) Proper calculation and pay13 ment of royalties under the statutory 

14 license under this section. 

15 ‘‘(II) Provision of service under 

16 this license to eligible subscribers only. 

17 ‘‘(iii) SUBMISSION OF REPORT.—The 

18 Comptroller General shall file the report re19 quired by clause (i) not later than March 1, 

20 2012, with the court referred to in para21 graph (1) that issued the injunction, the 

22 Register of Copyrights, the Committees on 

23 the Judiciary and on Energy and Com24 merce of the House of Representatives, and 

25 the Committees on the Judiciary and on 
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† HR 4213 EAS 

1 Commerce, Science, and Transportation of 

2 the Senate. 

3 ‘‘(iv) EVIDENCE OF INFRINGEMENT.— 

4 The Comptroller General shall include in 

5 the report a statement of whether the exam6 ination by the Comptroller General indi7 cated that there is substantial evidence that 

8 a copyright holder could bring a successful 

9 action under this section against the quali10 fied carrier for infringement. The Comp11 troller General shall consult with the Reg12 ister of Copyrights in preparing such state13 ment. 

14 ‘‘(v) SUBSEQUENT EXAMINATION.—If 

15 the report includes the Comptroller Gen16 eral’s statement that there is substantial 

17 evidence that a copyright holder could bring 

18 a successful action under this section 

19 against the qualified carrier for infringe20 ment, the Comptroller General shall, not 

21 later than 6 months after the report under 

22 clause (i) is published, initiate another ex23 amination of the qualified carrier’s compli24 ance with the royalty payment and house25 hold eligibility requirements of the license 
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1 under this section since the last report was 

2 filed under clause (iii). The Comptroller 

3 General shall file a report on such examina4 tion with the court referred to in paragraph 

5 (1) that issued the injunction, the Register 

6 of Copyrights, the Committees on the Judi7 ciary and on Energy and Commerce of the 

8 House of Representatives, and the Commit9 tees on the Judiciary and on Commerce, 

10 Science, and Transportation of the Senate. 

11 The report shall include a statement de12 scribed in clause (iv), prepared in consulta13 tion with the Register of Copyrights. 

14 ‘‘(vi) COMPLIANCE.—Upon motion 

15 filed by an aggrieved copyright owner, the 

16 court recognizing an entity as a qualified 

17 carrier shall terminate such designation 

18 upon finding that the entity has failed to 

19 cooperate with the examinations required by 

20 this subparagraph. 

21 ‘‘(C) AFFIRMATION.—A qualified carrier 

22 shall file an affidavit with the district court and 

23 the Register of Copyrights 30 months after such 

24 status was granted stating that, to the best of the 
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1 affiant’s knowledge, it is in compliance with the 

2 requirements for a qualified carrier. 

3 ‘‘(D) COMPLIANCE DETERMINATION.—Upon 

4 the motion of an aggrieved television broadcast 

5 station, the court recognizing an entity as a 

6 qualified carrier may make a determination of 

7 whether the entity is providing local-into-local 

8 service to all DMAs. 

9 ‘‘(E) PLEADING REQUIREMENT.—In any 

10 motion brought under subparagraph (D), the 

11 party making such motion shall specify one or 

12 more designated market areas (as such term is 

13 defined in section 122(j)(2)(C)) for which the 

14 failure to provide service is being alleged, and, 

15 for each such designated market area, shall plead 

16 with particularity the circumstances of the al17 leged failure. 

18 ‘‘(F) BURDEN OF PROOF.—In any pro19 ceeding to make a determination under subpara20 graph (D), and with respect to a designated 

21 market area for which failure to provide service 

22 is alleged, the entity recognized as a qualified 

23 carrier shall have the burden of proving that the 

24 entity provided local-into-local service with a 

25 good quality satellite signal to at least 90 per-
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1 cent of the households in such designated market 

2 area (based on the most recent census data re3 leased by the United States Census Bureau) at 

4 the time and place alleged. 

5 ‘‘(5) FAILURE TO PROVIDE SERVICE.— 

6 ‘‘(A) PENALTIES.—If the court recognizing 

7 an entity as a qualified carrier finds that such 

8 entity has willfully failed to provide local-into9 local service to all DMAs, such finding shall re10 sult in the loss of recognition of the entity as a 

11 qualified carrier and the termination of the 

12 waiver provided under paragraph (1), and the 

13 court may, in its discretion— 

14 ‘‘(i) treat such failure as an act of in15 fringement under section 501, and subject 

16 such infringement to the remedies provided 

17 for in sections 502 through 506 and sub18 section (a)(6)(B) of this section; and 

19 ‘‘(ii) impose a fine of not less than 

20 $250,000 and not more than $5,000,000. 

21 ‘‘(B) EXCEPTION FOR NONWILLFUL VIOLA22 TION.—If the court determines that the failure to 

23 provide local-into-local service to all DMAs is 

24 nonwillful, the court may in its discretion im-
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1 pose financial penalties for noncompliance that 

2 reflect— 

3 ‘‘(i) the degree of control the entity had 

4 over the circumstances that resulted in the 

5 failure; 

6 ‘‘(ii) the quality of the entity’s efforts 

7 to remedy the failure and restore service; 

8 and 

9 ‘‘(iii) the severity and duration of any 

10 service interruption. 

11 ‘‘(6) PENALTIES FOR VIOLATIONS OF LICENSE.— 

12 A court that finds, under subsection (a)(6)(A), that 

13 an entity recognized as a qualified carrier has will14 fully made a secondary transmission of a primary 

15 transmission made by a network station and embody16 ing a performance or display of a work to a sub17 scriber who is not eligible to receive the transmission 

18 under this section shall reinstate the injunction 

19 waived under paragraph (1), and the court may 

20 order statutory damages of not more than $2,500,000. 

21 ‘‘(7) LOCAL-INTO-LOCAL SERVICE TO ALL DMAS

22 DEFINED.—For purposes of this subsection: 

23 ‘‘(A) IN GENERAL.—An entity provides 

24 ‘local-into-local service to all DMAs’ if the entity 

25 provides local service in all designated market 
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1 areas (as such term is defined in section 

2 122(j)(2)(C)) pursuant to the license under sec3 tion 122. 

4 ‘‘(B) HOUSEHOLD COVERAGE.—For pur5 poses of subparagraph (A), an entity that makes 

6 available local-into-local service with a good 

7 quality satellite signal to at least 90 percent of 

8 the households in a designated market area based 

9 on the most recent census data released by the 

10 United States Census Bureau shall be considered 

11 to be providing local service to such designated 

12 market area. 

13 ‘‘(C) GOOD QUALITY SATELLITE SIGNAL DE14 FINED.—The term ‘good quality signal’ has the 

15 meaning given such term under section 342(e)(2) 

16 of Communications Act of 1934.’’. 

17 SEC. 506. COPYRIGHT OFFICE FEES. 

18 Section 708(a) is amended— 

19 (1) in paragraph (8), by striking ‘‘and’’ after the 

20 semicolon; 

21 (2) in paragraph (9), by striking the period and 

22 inserting a semicolon; 

23 (3) by inserting after paragraph (9) the fol24 lowing: 
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1 ‘‘(10) on filing a statement of account based on 

2 secondary transmissions of primary transmissions 

3 pursuant to section 119 or 122; and 

4 ‘‘(11) on filing a statement of account based on 

5 secondary transmissions of primary transmissions 

6 pursuant to section 111.’’; and 

7 (4) by adding at the end the following new sen8 tence: ‘‘Fees established under paragraphs (10) and 

9 (11) shall be reasonable and may not exceed one-half 

10 of the cost necessary to cover reasonable expenses in11 curred by the Copyright Office for the collection and 

12 administration of the statements of account and any 

13 royalty fees deposited with such statements.’’. 

14 SEC. 507. TERMINATION OF LICENSE. 

15 Section 1003(a)(2)(A) of Public Law 111–118 is 

16 amended by striking ‘‘March 28, 2010’’ and inserting ‘‘De17 cember 31, 2014’’. 

18 SEC. 508. CONSTRUCTION. 

19 Nothing in section 111, 119, or 122 of title 17, United 

20 States Code, including the amendments made to such sec21 tions by this subtitle, shall be construed to affect the mean22 ing of any terms under the Communications Act of 1934, 

23 except to the extent that such sections are specifically cross24 referenced in such Act or the regulations issued thereunder. 
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1 Subtitle B—Communications 

2 Provisions 

3 SEC. 521. REFERENCE. 

4 Except as otherwise provided, whenever in this subtitle 

5 an amendment is made to a section or other provision, the 

6 reference shall be considered to be made to such section or 

7 provision of the Communications Act of 1934 (47 U.S.C. 

8 151 et seq.). 

9 SEC. 522. EXTENSION OF AUTHORITY. 

10 Section 325(b) is amended— 

11 (1) in paragraph (2)(C), by striking ‘‘March 28, 

12 2010’’ and inserting ‘‘December 31, 2014’’; and 

13 (2) in paragraph (3)(C), by striking ‘‘March 29, 

14 2010’’ each place it appears in clauses (ii) and (iii) 

15 and inserting ‘‘January 1, 2015’’. 

16 SEC. 523. SIGNIFICANTLY VIEWED STATIONS. 

17 (a) IN GENERAL.—Paragraphs (1) and (2) of section 

18 340(b) are amended to read as follows: 

19 ‘‘(1) SERVICE LIMITED TO SUBSCRIBERS TAKING

20 LOCAL-INTO-LOCAL SERVICE.—This section shall 

21 apply only to retransmissions to subscribers of a sat22 ellite carrier who receive retransmissions of a signal 

23 from that satellite carrier pursuant to section 338. 

24 ‘‘(2) SERVICE LIMITATIONS.—A satellite carrier 

25 may retransmit to a subscriber in high definition for-
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1 mat the signal of a station determined by the Com2 mission to be significantly viewed under subsection 

3 (a) only if such carrier also retransmits in high defi4 nition format the signal of a station located in the 

5 local market of such subscriber and affiliated with the 

6 same network whenever such format is available from 

7 such station.’’. 

8 (b) RULEMAKING REQUIRED.—Within 210 days after 

9 the date of the enactment of this Act, the Federal Commu10 nications Commission shall take all actions necessary to 

11 promulgate a rule to implement the amendments made by 

12 subsection (a). 

13 SEC. 524. DIGITAL TELEVISION TRANSITION CONFORMING 

14 AMENDMENTS. 

15 (a) SECTION 338.—Section 338 is amended— 

16 (1) in subsection (a), by striking ‘‘(3) EFFECTIVE

17 DATE.—No satellite’’ and all that follows through 

18 ‘‘until January 1, 2002.’’; and 

19 (2) by amending subsection (g) to read as fol20 lows: 

21 ‘‘(g) CARRIAGE OF LOCAL STATIONS ON A SINGLE RE22 CEPTION ANTENNA.— 

23 ‘‘(1) SINGLE RECEPTION ANTENNA.—Each sat24 ellite carrier that retransmits the signals of local tele25 vision broadcast stations in a local market shall re-
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1 transmit such stations in such market so that a sub2 scriber may receive such stations by means of a single 

3 reception antenna and associated equipment. 

4 ‘‘(2) ADDITIONAL RECEPTION ANTENNA.—If the 

5 carrier retransmits the signals of local television 

6 broadcast stations in a local market in high defini7 tion format, the carrier shall retransmit such signals 

8 in such market so that a subscriber may receive such 

9 signals by means of a single reception antenna and 

10 associated equipment, but such antenna and associ11 ated equipment may be separate from the single re12 ception antenna and associated equipment used to 

13 comply with paragraph (1).’’. 

14 (b) SECTION 339.—Section 339 is amended— 

15 (1) in subsection (a)— 

16 (A) in paragraph (1)(B), by striking ‘‘Such 

17 two network stations’’ and all that follows 

18 through ‘‘more than two network stations.’’; and 

19 (B) in paragraph (2)— 

20 (i) in the heading for subparagraph 

21 (A), by striking ‘‘TO ANALOG SIGNALS’’; 

22 (ii) in subparagraph (A)— 

23 (I) in the heading for clause (i), 

24 by striking ‘‘ANALOG’’; 

25 (II) in clause (i)— 
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1 (aa) by striking ‘‘analog’’ 

2 each place it appears; and 

3 (bb) by striking ‘‘October 1, 

4 2004’’ and inserting ‘‘October 1, 

5 2009’’; 

6 (III) in the heading for clause 

7 (ii), by striking ‘‘ANALOG’’; and 

8 (IV) in clause (ii)— 

9 (aa) by striking ‘‘analog’’ 

10 each place it appears; and 

11 (bb) by striking ‘‘2004’’ and 

12 inserting ‘‘2009’’; 

13 (iii) by amending subparagraph (B) to 

14 read as follows: 

15 ‘‘(B) RULES FOR OTHER SUBSCRIBERS.— 

16 ‘‘(i) IN GENERAL.—In the case of a 

17 subscriber of a satellite carrier who is eligi18 ble to receive the signal of a network station 

19 under this section (in this subparagraph re20 ferred to as a ‘distant signal’), other than 

21 subscribers to whom subparagraph (A) ap22 plies, the following shall apply: 

23 ‘‘(I) In a case in which the sat24 ellite carrier makes available to that 

25 subscriber, on January 1, 2005, the 
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1 signal of a local network station affili2 ated with the same television network 

3 pursuant to section 338, the carrier 

4 may only provide the secondary trans5 missions of the distant signal of a sta6 tion affiliated with the same network 

7 to that subscriber if the subscriber’s 

8 satellite carrier, not later than March 

9 1, 2005, submits to that television net10 work the list and statement required by 

11 subparagraph (F)(i). 

12 ‘‘(II) In a case in which the sat13 ellite carrier does not make available to 

14 that subscriber, on January 1, 2005, 

15 the signal of a local network station 

16 pursuant to section 338, the carrier 

17 may only provide the secondary trans18 missions of the distant signal of a sta19 tion affiliated with the same network 

20 to that subscriber if— 

21 ‘‘(aa) that subscriber seeks to 

22 subscribe to such distant signal 

23 before the date on which such car24 rier commences to carry pursuant 

25 to section 338 the signals of sta-
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1 tions from the local market of 

2 such local network station; and 

3 ‘‘(bb) the satellite carrier, 

4 within 60 days after such date, 

5 submits to each television network 

6 the list and statement required by 

7 subparagraph (F)(ii). 

8 ‘‘(ii) SPECIAL CIRCUMSTANCES.—A 

9 subscriber of a satellite carrier who was 

10 lawfully receiving the distant signal of a 

11 network station on the day before the date 

12 of enactment of the Satellite Television Ex13 tension and Localism Act of 2010 may re14 ceive both such distant signal and the local 

15 signal of a network station affiliated with 

16 the same network until such subscriber 

17 chooses to no longer receive such distant sig18 nal from such carrier, whether or not such 

19 subscriber elects to subscribe to such local 

20 signal.’’; 

21 (iv) in subparagraph (C)— 

22 (I) by striking ‘‘analog’’; 

23 (II) in clause (i), by striking ‘‘the 

24 Satellite Home Viewer Extension and 
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1 Reauthorization Act of 2004; and’’ and 

2 inserting the following: 

3 ‘‘the Satellite Television Extension and Lo4 calism Act of 2010 and, at the time such 

5 person seeks to subscribe to receive such sec6 ondary transmission, resides in a local 

7 market where the satellite carrier makes 

8 available to that person the signal of a local 

9 network station affiliated with the same tel10 evision network pursuant to section 338 

11 (and the retransmission of such signal by 

12 such carrier can reach such subscriber); or’’; 

13 and 

14 (III) by amending clause (ii) to 

15 read as follows: 

16 ‘‘(ii) lawfully subscribes to and receives 

17 a distant signal on or after the date of en18 actment of the Satellite Television Exten19 sion and Localism Act of 2010, and, subse20 quent to such subscription, the satellite car21 rier makes available to that subscriber the 

22 signal of a local network station affiliated 

23 with the same network as the distant signal 

24 (and the retransmission of such signal by 

25 such carrier can reach such subscriber), un-
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1 less such person subscribes to the signal of 

2 the local network station within 60 days 

3 after such signal is made available.’’; 

4 (v) in subparagraph (D)— 

5 (I) in the heading, by striking 

6 ‘‘DIGITAL’’; 

7 (II) by striking clauses (i), (iii) 

8 through (v), (vii) through (ix), and 

9 (xi); 

10 (III) by redesignating clause (vi) 

11 as clause (i) and transferring such 

12 clause to appear before clause (ii); 

13 (IV) by amending such clause (i) 

14 (as so redesignated) to read as follows: 

15 ‘‘(i) ELIGIBILITY AND SIGNAL TEST16 ING.—A subscriber of a satellite carrier 

17 shall be eligible to receive a distant signal 

18 of a network station affiliated with the 

19 same network under this section if, with re20 spect to a local network station, such sub21 scriber— 

22 ‘‘(I) is a subscriber whose house23 hold is not predicted by the model spec24 ified in subsection (c)(3) to receive the 

25 signal intensity required under section 
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1 73.622(e)(1) or, in the case of a low2 power station or translator station 

3 transmitting an analog signal, section 

4 73.683(a) of title 47, Code of Federal 

5 Regulations, or a successor regulation; 

6 ‘‘(II) is determined, based on a 

7 test conducted in accordance with sec8 tion 73.686(d) of title 47, Code of Fed9 eral Regulations, or any successor reg10 ulation, not to be able to receive a sig11 nal that exceeds the signal intensity 

12 standard in section 73.622(e)(1) or, in 

13 the case of a low-power station or 

14 translator station transmitting an 

15 analog signal, section 73.683(a) of such 

16 title, or a successor regulation; or 

17 ‘‘(III) is in an unserved house18 hold, as determined under section 

19 119(d)(10)(A) of title 17, United States 

20 Code.’’; 

21 (V) in clause (ii)— 

22 (aa) by striking ‘‘DIGITAL’’ 

23 in the heading; 
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1 (bb) by striking ‘‘digital’’ the 

2 first two places such term ap3 pears; 

4 (cc) by striking ‘‘Satellite 

5 Home Viewer Extension and Re6 authorization Act of 2004’’ and 

7 inserting ‘‘Satellite Television Ex8 tension and Localism Act of 

9 2010’’; and 

10 (dd) by striking ‘‘, whether 

11 or not such subscriber elects to 

12 subscribe to local digital signals’’; 

13 (VI) by inserting after clause (ii) 

14 the following new clause: 

15 ‘‘(iii) TIME-SHIFTING PROHIBITED.— 

16 In a case in which the satellite carrier 

17 makes available to an eligible subscriber 

18 under this subparagraph the signal of a 

19 local network station pursuant to section 

20 338, the carrier may only provide the dis21 tant signal of a station affiliated with the 

22 same network to that subscriber if, in the 

23 case of any local market in the 48 contig24 uous States of the United States, the distant 

25 signal is the secondary transmission of a 
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1 station whose prime time network program2 ming is generally broadcast simultaneously 

3 with, or later than, the prime time network 

4 programming of the affiliate of the same 

5 network in the local market.’’; and 

6 (VII) by redesignating clause (x) 

7 as clause (iv); and 

8 (vi) in subparagraph (E), by striking 

9 ‘‘distant analog signal or’’ and all that fol10 lows through ‘‘(B), or (D))’’ and inserting 

11 ‘‘distant signal’’; 

12 (2) in subsection (c)— 

13 (A) by amending paragraph (3) to read as 

14 follows: 

15 ‘‘(3) ESTABLISHMENT OF IMPROVED PREDICTIVE

16 MODEL AND ON-LOCATION TESTING REQUIRED.— 

17 ‘‘(A) PREDICTIVE MODEL.—Within 210 

18 days after the date of the enactment of the Sat19 ellite Television Extension and Localism Act of 

20 2010, the Commission shall develop and pre21 scribe by rule a point-to-point predictive model 

22 for reliably and presumptively determining the 

23 ability of individual locations, through the use of 

24 an antenna, to receive signals in accordance 

25 with the signal intensity standard in section 
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† HR 4213 EAS 

1 73.622(e)(1) of title 47, Code of Federal Regula2 tions, or a successor regulation, including to ac3 count for the continuing operation of translator 

4 stations and low power television stations. In 

5 prescribing such model, the Commission shall 

6 rely on the Individual Location Longley-Rice 

7 model set forth by the Commission in CS Docket 

8 No. 98–201, as previously revised with respect to 

9 analog signals, and as recommended by the Com10 mission with respect to digital signals in its Re11 port to Congress in ET Docket No. 05–182, FCC 

12 05–199 (released December 9, 2005). The Com13 mission shall establish procedures for the contin14 ued refinement in the application of the model 

15 by the use of additional data as it becomes avail16 able. 

17 ‘‘(B) ON-LOCATION TESTING.—The Commis18 sion shall issue an order completing its rule19 making proceeding in ET Docket No. 06–94 

20 within 210 days after the date of enactment of 

21 the Satellite Television Extension and Localism 

22 Act of 2010. In conducting such rulemaking, the 

23 Commission shall seek ways to minimize con24 sumer burdens associated with on-location test25 ing.’’; 
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1 (B) by amending paragraph (4)(A) to read 

2 as follows: 

3 ‘‘(A) IN GENERAL.—If a subscriber’s request 

4 for a waiver under paragraph (2) is rejected and 

5 the subscriber submits to the subscriber’s satellite 

6 carrier a request for a test verifying the sub7 scriber’s inability to receive a signal of the sig8 nal intensity referenced in clause (i) of sub9 section (a)(2)(D), the satellite carrier and the 

10 network station or stations asserting that the re11 transmission is prohibited with respect to that 

12 subscriber shall select a qualified and inde13 pendent person to conduct the test referenced in 

14 such clause. Such test shall be conducted within 

15 30 days after the date the subscriber submits a 

16 request for the test. If the written findings and 

17 conclusions of a test conducted in accordance 

18 with such clause demonstrate that the subscriber 

19 does not receive a signal that meets or exceeds 

20 the requisite signal intensity standard in such 

21 clause, the subscriber shall not be denied the re22 transmission of a signal of a network station 

23 under section 119(d)(10)(A) of title 17, United 

24 States Code.’’; 
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1 (C) in paragraph (4)(B), by striking ‘‘the 

2 signal intensity’’ and all that follows through 

3 ‘‘United States Code’’ and inserting ‘‘such req4 uisite signal intensity standard’’; and 

5 (D) in paragraph (4)(E), by striking 

6 ‘‘Grade B intensity’’. 

7 (c) SECTION 340.—Section 340(i) is amended by strik8 ing paragraph (4). 

9 SEC. 525. APPLICATION PENDING COMPLETION OF 

10 RULEMAKINGS. 

11 (a) IN GENERAL.—During the period beginning on the 

12 date of the enactment of this Act and ending on the date 

13 on which the Federal Communications Commission adopts 

14 rules pursuant to the amendments to the Communications 

15 Act of 1934 made by section 523 and section 524 of this 

16 title, the Federal Communications Commission shall follow 

17 its rules and regulations promulgated pursuant to sections 

18 338, 339, and 340 of the Communications Act of 1934 as 

19 in effect on the day before the date of the enactment of this 

20 Act. 

21 (b) TRANSLATOR STATIONS AND LOW POWER TELE22 VISION STATIONS.—Notwithstanding subsection (a), for 

23 purposes of determining whether a subscriber within the 

24 local market served by a translator station or a low power 

25 television station affiliated with a television network is eli-
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1 gible to receive distant signals under section 339 of the 

2 Communications Act of 1934, the rules and regulations of 

3 the Federal Communications Commission for determining 

4 such subscriber’s eligibility as in effect on the day before 

5 the date of the enactment of this Act shall apply until the 

6 date on which the translator station or low power television 

7 station is licensed to broadcast a digital signal. 

8 (c) DEFINITIONS.—As used in this subtitle: 

9 (1) LOCAL MARKET; LOW POWER TELEVISION

10 STATION; SATELLITE CARRIER; SUBSCRIBER; TELE11 VISION BROADCAST STATION.—The terms ‘‘local mar12 ket’’, ‘‘low power television station’’, ‘‘satellite car13 rier’’, ‘‘subscriber’’, and ‘‘television broadcast station’’ 

14 have the meanings given such terms in section 338(k) 

15 of the Communications Act of 1934. 

16 (2) NETWORK STATION; TELEVISION NETWORK.— 

17 The terms ‘‘network station’’ and ‘‘television network’’ 

18 have the meanings given such terms in section 339(d) 

19 of such Act. 

20 SEC. 526. PROCESS FOR ISSUING QUALIFIED CARRIER CER21 TIFICATION. 

22 Part I of title III is amended by adding at the end 

23 the following new section: 
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† HR 4213 EAS 

1 ‘‘SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER 

2 CERTIFICATION. 

3 ‘‘(a) CERTIFICATION.—The Commission shall issue a 

4 certification for the purposes of section 119(g)(3)(A)(iii) of 

5 title 17, United States Code, if the Commission determines 

6 that— 

7 ‘‘(1) a satellite carrier is providing local service 

8 pursuant to the statutory license under section 122 of 

9 such title in each designated market area; and 

10 ‘‘(2) with respect to each designated market area 

11 in which such satellite carrier was not providing such 

12 local service as of the date of enactment of the Sat13 ellite Television Extension and Localism Act of 

14 2010— 

15 ‘‘(A) the satellite carrier’s satellite beams 

16 are designed, and predicted by the satellite man17 ufacturer’s pre-launch test data, to provide a 

18 good quality satellite signal to at least 90 per19 cent of the households in each such designated 

20 market area based on the most recent census 

21 data released by the United States Census Bu22 reau; and 

23 ‘‘(B) there is no material evidence that there 

24 has been a satellite or sub-system failure subse25 quent to the satellite’s launch that precludes the 
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† HR 4213 EAS 

1 ability of the satellite carrier to satisfy the re2 quirements of subparagraph (A). 

3 ‘‘(b) INFORMATION REQUIRED.—Any entity seeking 

4 the certification provided for in subsection (a) shall submit 

5 to the Commission the following information: 

6 ‘‘(1) An affidavit stating that, to the best of the 

7 affiant’s knowledge, the satellite carrier provides local 

8 service in all designated market areas pursuant to the 

9 statutory license provided for in section 122 of title 

10 17, United States Code, and listing those designated 

11 market areas in which local service was provided as 

12 of the date of enactment of the Satellite Television Ex13 tension and Localism Act of 2010. 

14 ‘‘(2) For each designated market area not listed 

15 in paragraph (1): 

16 ‘‘(A) Identification of each such designated 

17 market area and the location of its local receive 

18 facility. 

19 ‘‘(B) Data showing the number of house20 holds, and maps showing the geographic dis21 tribution thereof, in each such designated market 

22 area based on the most recent census data re23 leased by the United States Census Bureau. 

24 ‘‘(C) Maps, with superimposed effective 

25 isotropically radiated power predictions obtained 
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1 in the satellite manufacturer’s pre-launch tests, 

2 showing that the contours of the carrier’s satellite 

3 beams as designed and the geographic area that 

4 the carrier’s satellite beams are designed to cover 

5 are predicted to provide a good quality satellite 

6 signal to at least 90 percent of the households in 

7 such designated market area based on the most 

8 recent census data released by the United States 

9 Census Bureau. 

10 ‘‘(D) For any satellite relied upon for cer11 tification under this section, an affidavit stating 

12 that, to the best of the affiant’s knowledge, there 

13 have been no satellite or sub-system failures sub14 sequent to the satellite’s launch that would de15 grade the design performance to such a degree 

16 that a satellite transponder used to provide local 

17 service to any such designated market area is 

18 precluded from delivering a good quality satellite 

19 signal to at least 90 percent of the households in 

20 such designated market area based on the most 

21 recent census data released by the United States 

22 Census Bureau. 

23 ‘‘(E) Any additional engineering, des24 ignated market area, or other information the 

25 Commission considers necessary to determine 
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1 whether the Commission shall grant a certifi2 cation under this section. 

3 ‘‘(c) CERTIFICATION ISSUANCE.— 

4 ‘‘(1) PUBLIC COMMENT.—The Commission shall 

5 provide 30 days for public comment on a request for 

6 certification under this section. 

7 ‘‘(2) DEADLINE FOR DECISION.—The Commis8 sion shall grant or deny a request for certification 

9 within 90 days after the date on which such request 

10 is filed. 

11 ‘‘(d) SUBSEQUENT AFFIRMATION.—An entity granted 

12 qualified carrier status pursuant to section 119(g) of title 

13 17, United States Code, shall file an affidavit with the Com14 mission 30 months after such status was granted stating 

15 that, to the best of the affiant’s knowledge, it is in compli16 ance with the requirements for a qualified carrier. 

17 ‘‘(e) DEFINITIONS.—For the purposes of this section: 

18 ‘‘(1) DESIGNATED MARKET AREA.—The term 

19 ‘designated market area’ has the meaning given such 

20 term in section 122(j)(2)(C) of title 17, United States 

21 Code. 

22 ‘‘(2) GOOD QUALITY SATELLITE SIGNAL.— 

23 ‘‘(A) IN GENERAL.—The term ‘‘good quality 

24 satellite signal’’ means— 
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1 ‘‘(i) a satellite signal whose power level 

2 as designed shall achieve reception and de3 modulation of the signal at an availability 

4 level of at least 99.7 percent using— 

5 ‘‘(I) models of satellite antennas 

6 normally used by the satellite carrier’s 

7 subscribers; and 

8 ‘‘(II) the same calculation meth9 odology used by the satellite carrier to 

10 determine predicted signal availability 

11 in the top 100 designated market 

12 areas; and 

13 ‘‘(ii) taking into account whether a 

14 signal is in standard definition format or 

15 high definition format, compression method16 ology, modulation, error correction, power 

17 level, and utilization of advances in tech18 nology that do not circumvent the intent of 

19 this section to provide for non-discrimina20 tory treatment with respect to any com21 parable television broadcast station signal, 

22 a video signal transmitted by a satellite 

23 carrier such that— 

24 ‘‘(I) the satellite carrier treats all 

25 television broadcast stations’ signals 
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1 the same with respect to statistical 

2 multiplexer prioritization; and 

3 ‘‘(II) the number of video signals 

4 in the relevant satellite transponder is 

5 not more than the then current greatest 

6 number of video signals carried on any 

7 equivalent transponder serving the top 

8 100 designated market areas. 

9 ‘‘(B) DETERMINATION.—For the purposes of 

10 subparagraph (A), the top 100 designated market 

11 areas shall be as determined by Nielsen Media 

12 Research and published in the Nielsen Station 

13 Index Directory and Nielsen Station Index 

14 United States Television Household Estimates or 

15 any successor publication as of the date of a sat16 ellite carrier’s application for certification under 

17 this section.’’. 

18 SEC. 527. NONDISCRIMINATION IN CARRIAGE OF HIGH DEF19 INITION DIGITAL SIGNALS OF NONCOMMER20 CIAL EDUCATIONAL TELEVISION STATIONS. 

21 (a) IN GENERAL.—Section 338(a) is amended by add22 ing at the end the following new paragraph: 

23 ‘‘(5) NONDISCRIMINATION IN CARRIAGE OF HIGH

24 DEFINITION SIGNALS OF NONCOMMERCIAL EDU25 CATIONAL TELEVISION STATIONS.— 
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1 ‘‘(A) EXISTING CARRIAGE OF HIGH DEFINI2 TION SIGNALS.—If, before the date of enactment 

3 of the Satellite Television Extension and Local4 ism Act of 2010, an eligible satellite carrier is 

5 providing, under section 122 of title 17, United 

6 States Code, any secondary transmissions in 

7 high definition format to subscribers located 

8 within the local market of a television broadcast 

9 station of a primary transmission made by that 

10 station, then such satellite carrier shall carry the 

11 signals in high-definition format of qualified 

12 noncommercial educational television stations lo13 cated within that local market in accordance 

14 with the following schedule: 

15 ‘‘(i) By December 31, 2010, in at least 

16 50 percent of the markets in which such sat17 ellite carrier provides such secondary trans18 missions in high definition format. 

19 ‘‘(ii) By December 31, 2011, in every 

20 market in which such satellite carrier pro21 vides such secondary transmissions in high 

22 definition format. 

23 ‘‘(B) NEW INITIATION OF SERVICE.—If, on 

24 or after the date of enactment of the Satellite 

25 Television Extension and Localism Act of 2010, 
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1 an eligible satellite carrier initiates the provi2 sion, under section 122 of title 17, United States 

3 Code, of any secondary transmissions in high 

4 definition format to subscribers located within 

5 the local market of a television broadcast station 

6 of a primary transmission made by that station, 

7 then such satellite carrier shall carry the signals 

8 in high-definition format of all qualified non9 commercial educational television stations lo10 cated within that local market.’’. 

11 (b) DEFINITIONS.—Section 338(k) is amended— 

12 (1) by redesignating paragraphs (2) through (8) 

13 as paragraphs (3) through (9), respectively; 

14 (2) by inserting after paragraph (1) the fol15 lowing new paragraph: 

16 ‘‘(2) ELIGIBLE SATELLITE CARRIER.—The term 

17 ‘eligible satellite carrier’ means any satellite carrier 

18 that is not a party to a carriage contract that— 

19 ‘‘(A) governs carriage of at least 30 quali20 fied noncommercial educational television sta21 tions; and 

22 ‘‘(B) is in force and effect within 60 days 

23 after the date of enactment of the Satellite Tele24 vision Extension and Localism Act of 2010.’’; 
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1 (3) by redesignating paragraphs (6) through (9) 

2 (as previously redesignated) as paragraphs (7) 

3 through (10), respectively; and 

4 (4) by inserting after paragraph (5) (as so redes5 ignated) the following new paragraph: 

6 ‘‘(6) QUALIFIED NONCOMMERCIAL EDUCATIONAL

7 TELEVISION STATION.—The term ‘qualified non8 commercial educational television station’ means any 

9 full-power television broadcast station that— 

10 ‘‘(A) under the rules and regulations of the 

11 Commission in effect on March 29, 1990, is li12 censed by the Commission as a noncommercial 

13 educational broadcast station and is owned and 

14 operated by a public agency, nonprofit founda15 tion, nonprofit corporation, or nonprofit associa16 tion; and 

17 ‘‘(B) has as its licensee an entity that is eli18 gible to receive a community service grant, or 

19 any successor grant thereto, from the Corpora20 tion for Public Broadcasting, or any successor 

21 organization thereto, on the basis of the formula 

22 set forth in section 396(k)(6)(B) of this title.’’. 

23 SEC. 528. SAVINGS CLAUSE REGARDING DEFINITIONS. 

24 Nothing in this subtitle or the amendments made by 

25 this subtitle shall be construed to affect— 
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1 (1) the meaning of the terms ‘‘program related’’ 

2 and ‘‘primary video’’ under the Communications Act 

3 of 1934; or 

4 (2) the meaning of the term ‘‘multicast’’ in any 

5 regulations issued by the Federal Communications 

6 Commission. 

7 SEC. 529. STATE PUBLIC AFFAIRS BROADCASTS. 

8 Section 335(b) is amended— 

9 (1) by inserting ‘‘STATE PUBLIC AFFAIRS,’’ 

10 after ‘‘EDUCATIONAL,’’ in the heading; 

11 (2) by striking paragraph (1) and inserting the 

12 following: 

13 ‘‘(1) CHANNEL CAPACITY REQUIRED.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraph (B), the Commission shall require, 

16 as a condition of any provision, initial author17 ization, or authorization renewal for a provider 

18 of direct broadcast satellite service providing 

19 video programming, that the provider of such 

20 service reserve a portion of its channel capacity, 

21 equal to not less than 4 percent nor more than 

22 7 percent, exclusively for noncommercial pro23 gramming of an educational or informational 

24 nature. 
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1 ‘‘(B) REQUIREMENT FOR QUALIFIED SAT2 ELLITE PROVIDER.—The Commission shall re3 quire, as a condition of any provision, initial 

4 authorization, or authorization renewal for a 

5 qualified satellite provider of direct broadcast 

6 satellite service providing video programming, 

7 that such provider reserve a portion of its chan8 nel capacity, equal to not less than 3.5 percent 

9 nor more than 7 percent, exclusively for non10 commercial programming of an educational or 

11 informational nature.’’; 

12 (3) in paragraph (5), by striking ‘‘For purposes 

13 of the subsection—’’ and inserting ‘‘For purposes of 

14 this subsection:’’; and 

15 (4) by adding at the end of paragraph (5) the 

16 following: 

17 ‘‘(C) The term ‘qualified satellite provider’ 

18 means any provider of direct broadcast satellite 

19 service that— 

20 ‘‘(i) provides the retransmission of the 

21 State public affairs networks of at least 15 

22 different States; 

23 ‘‘(ii) offers the programming of State 

24 public affairs networks upon reasonable 

25 prices, terms, and conditions as determined 
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1 by the Commission under paragraph (4); 

2 and 

3 ‘‘(iii) does not delete any noncommer4 cial programming of an educational or in5 formational nature in connection with the 

6 carriage of a State public affairs network. 

7 ‘‘(D) The term ‘State public affairs network’ 

8 means a non-commercial non-broadcast network 

9 or a noncommercial educational television sta10 tion— 

11 ‘‘(i) whose programming consists of in12 formation about State government delibera13 tions and public policy events; and 

14 ‘‘(ii) that is operated by— 

15 ‘‘(I) a State government or sub16 division thereof; 

17 ‘‘(II) an organization described in 

18 section 501(c)(3) of the Internal Rev19 enue Code of 1986 that is exempt from 

20 taxation under section 501(a) of such 

21 Code and that is governed by an inde22 pendent board of directors; or 

23 ‘‘(III) a cable system.’’. 
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1 Subtitle C—Reports and Savings 

2 Provision 

3 SEC. 531. DEFINITION. 

4 In this subtitle, the term ‘‘appropriate Congressional 

5 committees’’ means the Committees on the Judiciary and 

6 on Commerce, Science, and Transportation of the Senate 

7 and the Committees on the Judiciary and on Energy and 

8 Commerce of the House of Representatives. 

9 SEC. 532. REPORT ON MARKET BASED ALTERNATIVES TO 

10 STATUTORY LICENSING. 

11 Not later than 1 year after the date of the enactment 

12 of this Act, and after consultation with the Federal Commu13 nications Commission, the Register of Copyrights shall sub14 mit to the appropriate Congressional committees a report 

15 containing— 

16 (1) proposed mechanisms, methods, and rec17 ommendations on how to implement a phase-out of 

18 the statutory licensing requirements set forth in sec19 tions 111, 119, and 122 of title 17, United States 

20 Code, by making such sections inapplicable to the sec21 ondary transmission of a performance or display of 

22 a work embodied in a primary transmission of a 

23 broadcast station that is authorized to license the 

24 same secondary transmission directly with respect to 
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1 all of the performances and displays embodied in such 

2 primary transmission; 

3 (2) any recommendations for alternative means 

4 to implement a timely and effective phase-out of the 

5 statutory licensing requirements set forth in sections 

6 111, 119, and 122 of title 17, United States Code; 

7 and 

8 (3) any recommendations for legislative or ad9 ministrative actions as may be appropriate to achieve 

10 such a phase-out. 

11 SEC. 533. REPORT ON COMMUNICATIONS IMPLICATIONS OF 

12 STATUTORY LICENSING MODIFICATIONS. 

13 (a) STUDY.—The Comptroller General shall conduct a 

14 study that analyzes and evaluates the changes to the car15 riage requirements currently imposed on multichannel 

16 video programming distributors under the Communications 

17 Act of 1934 (47 U.S.C. 151 et seq.) and the regulations pro18 mulgated by the Federal Communications Commission that 

19 would be required or beneficial to consumers, and such other 

20 matters as the Comptroller General deems appropriate, if 

21 Congress implemented a phase-out of the current statutory 

22 licensing requirements set forth under sections 111, 119, 

23 and 122 of title 17, United States Code. Among other 

24 things, the study shall consider the impact such a phase- 
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1 out and related changes to carriage requirements would 

2 have on consumer prices and access to programming. 

3 (b) REPORT.—Not later than 1 year after the date of 

4 the enactment of this Act, the Comptroller General shall re5 port to the appropriate Congressional committees the results 

6 of the study, including any recommendations for legislative 

7 or administrative actions. 

8 SEC. 534. REPORT ON IN-STATE BROADCAST PROGRAM9 MING. 

10 Not later than 1 year after the date of the enactment 

11 of this Act, the Federal Communications Commission shall 

12 submit to the appropriate Congressional committees a re13 port containing an analysis of— 

14 (1) the number of households in a State that re15 ceive the signals of local broadcast stations assigned 

16 to a community of license that is located in a dif17 ferent State; 

18 (2) the extent to which consumers in each local 

19 market have access to in-state broadcast programming 

20 over the air or from a multichannel video program21 ming distributor; and 

22 (3) whether there are alternatives to the use of 

23 designated market areas, as defined in section 122 of 

24 title 17, United States Code, to define local markets 
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1 that would provide more consumers with in-state 

2 broadcast programming. 

3 SEC. 535. LOCAL NETWORK CHANNEL BROADCAST RE4 PORTS. 

5 (a) REQUIREMENT.— 

6 (1) IN GENERAL.—On the 180th day after the 

7 date of the enactment of this Act, and on each suc8 ceeding anniversary of such 180th day, each satellite 

9 carrier shall submit an annual report to the Federal 

10 Communications Commission setting forth— 

11 (A) each local market in which it— 

12 (i) retransmits signals of 1 or more tel13 evision broadcast stations with a commu14 nity of license in that market; 

15 (ii) has commenced providing such sig16 nals in the preceding 1-year period; and 

17 (iii) has ceased to provide such signals 

18 in the preceding 1-year period; and 

19 (B) detailed information regarding the use 

20 and potential use of satellite capacity for the re21 transmission of local signals in each local mar22 ket. 

23 (2) TERMINATION.—The requirement under 

24 paragraph (1) shall cease after each satellite carrier 

25 has submitted 5 reports under such paragraph. 
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1 (b) FCC STUDY; REPORT.— 

2 (1) STUDY.—If no satellite carrier files a request 

3 for a certification under section 342 of the Commu4 nications Act of 1934 (as added by section 526 of this 

5 title) within 180 days after the date of the enactment 

6 of this Act, the Federal Communications Commission 

7 shall initiate a study of— 

8 (A) incentives that would induce a satellite 

9 carrier to provide the signals of 1 or more tele10 vision broadcast stations licensed to provide sig11 nals in local markets in which the satellite car12 rier does not provide such signals; and 

13 (B) the economic and satellite capacity con14 ditions affecting delivery of local signals by sat15 ellite carriers to these markets. 

16 (2) REPORT.—Within 1 year after the date of the 

17 initiation of the study under paragraph (1), the Fed18 eral Communications Commission shall submit a re19 port to the appropriate Congressional committees con20 taining its findings, conclusions, and recommenda21 tions. 

22 (c) DEFINITIONS.—In this section— 

23 (1) the terms ‘‘local market’’ and ‘‘satellite car24 rier’’ have the meaning given such terms in section 
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1 339(d) of the Communications Act of 1934 (47 U.S.C. 

2 339(d)); and 

3 (2) the term ‘‘television broadcast station’’ has 

4 the meaning given such term in section 325(b)(7) of 

5 such Act (47 U.S.C. 325(b)(7)). 

6 SEC. 536. SAVINGS PROVISION REGARDING USE OF NEGO7 TIATED LICENSES. 

8 (a) IN GENERAL.—Nothing in this title, title 17, 

9 United States Code, the Communications Act of 1934, regu10 lations promulgated by the Register of Copyrights under 

11 this title or title 17, United States Code, or regulations pro12 mulgated by the Federal Communications Commission 

13 under this title or the Communications Act of 1934 shall 

14 be construed to prevent a multichannel video programming 

15 distributor from retransmitting a performance or display 

16 of a work pursuant to an authorization granted by the 

17 copyright owner or, if within the scope of its authorization, 

18 its licensee. 

19 (b) LIMITATION.—Nothing in subsection (a) shall be 

20 construed to affect any obligation of a multichannel video 

21 programming distributor under section 325(b) of the Com22 munications Act of 1934 to obtain the authority of a tele23 vision broadcast station before retransmitting that station’s 

24 signal. 
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1 SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT OF COPY2 RIGHT. 

3 (a) EFFECTIVE DATE.—Unless specifically provided 

4 otherwise, this title, and the amendments made by this title, 

5 shall take effect on February 27, 2010, and with the excep6 tion of the reference in subsection (b), all references to the 

7 date of enactment of this Act shall be deemed to refer to 

8 February 27, 2010, unless otherwise specified. 

9 (b) NONINFRINGEMENT OF COPYRIGHT.—The sec10 ondary transmission of a performance or display of a work 

11 embodied in a primary transmission is not an infringement 

12 of copyright if it was made by a satellite carrier on or after 

13 February 27, 2010, and prior to enactment of this Act, and 

14 was in compliance with the law as in existence on February 

15 27, 2010. 

16 Subtitle D—Severability 

17 SEC. 541. SEVERABILITY. 

18 If any provision of this title, an amendment made by 

19 this title, or the application of such provision or amend20 ment to any person or circumstance is held to be unconsti21 tutional, the remainder of this title, the amendments made 

22 by this title, and the application of such provision or 

23 amendment to any person or circumstance shall not be af24 fected thereby. 
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1 TITLE VI—OTHER PROVISIONS 

2 SEC. 601. INCREASE IN THE MEDICARE PHYSICIAN PAY3 MENT UPDATE. 

4 Paragraph (10) of section 1848(d) of the Social Secu5 rity Act, as added by section 1011(a) of the Department 

6 of Defense Appropriations Act, 2010 (Public Law 111–118), 

7 is amended— 

8 (1) in subparagraph (A), by striking ‘‘March 31, 

9 2010’’ and inserting ‘‘September 30, 2010’’; and 

10 (2) in subparagraph (B), by striking ‘‘April 1, 

11 2010’’ and inserting ‘‘October 1, 2010’’. 

12 SEC. 602. ELECTION TO TEMPORARILY UTILIZE UNUSED 

13 AMT CREDITS DETERMINED BY DOMESTIC IN14 VESTMENT. 

15 (a) IN GENERAL.—Section 53 is amended by adding 

16 at the end the following new subsection: 

17 ‘‘(g) ELECTION FOR CORPORATIONS WITH UNUSED

18 CREDITS.— 

19 ‘‘(1) IN GENERAL.—If a corporation elects to 

20 have this subsection apply, then notwithstanding any 

21 other provision of law, the limitation imposed by sub22 section (c) for any such taxable year shall be in23 creased by the AMT credit adjustment amount. 

24 ‘‘(2) AMT CREDIT ADJUSTMENT AMOUNT.—For 

25 purposes of paragraph (1), the term ‘AMT credit ad-
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1 justment amount’ means with respect to any taxable 

2 year beginning in 2010, the lesser of— 

3 ‘‘(A) 50 percent of a corporation’s min4 imum tax credit determined under subsection 

5 (b), or 

6 ‘‘(B) 10 percent of new domestic invest7 ments made during such taxable year. 

8 ‘‘(3) NEW DOMESTIC INVESTMENTS.—For pur9 poses of this subsection, the term ‘new domestic in10 vestments’ means the cost of qualified property (as de11 fined in section 168(k)(2)(A)(i))— 

12 ‘‘(A) the original use of which commences 

13 with the taxpayer during the taxable year, and 

14 ‘‘(B) which is placed in service in the 

15 United States by the taxpayer during such tax16 able year. 

17 ‘‘(4) CREDIT REFUNDABLE.—For purposes of 

18 subsections (b) and (c) of section 6401, the aggregate 

19 increase in the credits allowable under part IV of sub20 chapter A for any taxable year resulting from the ap21 plication of this subsection shall be treated as allowed 

22 under subpart C of such part (and not to any other 

23 subpart). 

24 ‘‘(5) ELECTION.— 
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1 ‘‘(A) IN GENERAL.—An election under this 

2 subsection shall be made at such time and in 

3 such manner as prescribed by the Secretary, and 

4 once effective, may be revoked only with the con5 sent of the Secretary. 

6 ‘‘(B) INTERIM ELECTIONS.—Until such time 

7 as the Secretary prescribes a manner for making 

8 an election under this subsection, a taxpayer is 

9 treated as having made a valid election by pro10 viding written notification to the Secretary and 

11 the Commissioner of Internal Revenue of such 

12 election. 

13 ‘‘(6) TREATMENT OF CERTAIN PARTNERSHIP IN14 VESTMENTS.—For purposes of this subsection, any 

15 corporation’s allocable share of any new domestic in16 vestments by a partnership more than 90 percent of 

17 the capital and profits interest in which is owned by 

18 such corporation (directly or indirectly) at all times 

19 during the taxable year in which an election under 

20 this subsection is in effect shall be considered new do21 mestic investments of such corporation for such tax22 able year. 

23 ‘‘(7) NO DOUBLE BENEFIT.—Notwithstanding 

24 clause (iii)(II) of section 172(b)(1)(H), any taxpayer 

25 which has previously made an election under such 
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1 section shall be deemed to have revoked such election 

2 by the making of its first election under this sub3 section. 

4 ‘‘(8) REGULATIONS.—The Secretary may issue 

5 such regulations or other guidance as may be nec6 essary or appropriate to carry out this subsection, in7 cluding to prevent fraud and abuse under this sub8 section. 

9 ‘‘(9) TERMINATION.—This subsection shall not 

10 apply to any taxable year that begins after December 

11 31, 2010.’’. 

12 (b) QUICK REFUND OF REFUNDABLE CREDIT.—Sec13 tion 6425 is amended by adding at the end the following 

14 new subsection: 

15 ‘‘(e) ALLOWANCE OF AMT CREDIT ADJUSTMENT

16 AMOUNT.—The amount of an adjustment under this section 

17 as determined under subsection (c)(2) for any taxable year 

18 may be increased to the extent of the corporation’s AMT 

19 credit adjustment amount determined under section 53(g) 

20 for such taxable year.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to taxable years beginning after Decem23 ber 31, 2009. 
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1 SEC. 603. INFORMATION REPORTING FOR RENTAL PROP2 ERTY EXPENSE PAYMENTS. 

3 (a) IN GENERAL.—Section 6041 is amended by adding 

4 at the end the following new subsection: 

5 ‘‘(h) TREATMENT OF RENTAL PROPERTY EXPENSE

6 PAYMENTS.— 

7 ‘‘(1) IN GENERAL.—Solely for purposes of sub8 section (a) and except as provided in paragraph (2), 

9 a person receiving rental income from real estate shall 

10 be considered to be engaged in a trade or business of 

11 renting property. 

12 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

13 apply to— 

14 ‘‘(A) any individual, including any indi15 vidual who is an active member of the uniformed 

16 services, if substantially all rental income is de17 rived from renting the principal residence (with18 in the meaning of section 121) of such individual 

19 on a temporary basis, 

20 ‘‘(B) any individual who receives rental in21 come of not more than the minimal amount, as 

22 determined under regulations prescribed by the 

23 Secretary, and 

24 ‘‘(C) any other individual for whom the re25 quirements of this section would cause hardship, 
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1 as determined under regulations prescribed by 

2 the Secretary.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by this 

4 section shall apply to payments made after December 31, 

5 2010. 

6 SEC. 604. EXTENSION OF LOW-INCOME HOUSING CREDIT 

7 RULES FOR BUILDINGS IN GO ZONES. 

8 Section 1400N(c)(5) is amended by striking ‘‘January 

9 1, 2011’’ and inserting ‘‘January 1, 2013’’. 

10 SEC. 605. INCREASE IN INFORMATION RETURN PENALTIES. 

11 (a) FAILURE TO FILE CORRECT INFORMATION RE12 TURNS.— 

13 (1) IN GENERAL.—Subsections (a)(1), (b)(1)(A), 

14 and (b)(2)(A) of section 6721 are each amended by 

15 striking ‘‘$50’’ and inserting ‘‘$100’’. 

16 (2) AGGREGATE ANNUAL LIMITATION.—Sub17 sections (a)(1), (d)(1)(A), and (e)(3)(A) of section 

18 6721 are each amended by striking ‘‘$250,000’’ and 

19 inserting ‘‘$1,500,000’’. 

20 (b) REDUCTION WHERE CORRECTION WITHIN 30 

21 DAYS.— 

22 (1) IN GENERAL.—Subparagraph (A) of section 

23 6721(b)(1) is amended by striking ‘‘$15’’ and insert24 ing ‘‘$30’’. 
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1 (2) AGGREGATE ANNUAL LIMITATION.—Sub2 sections (b)(1)(B) and (d)(1)(B) of section 6721 are 

3 each amended by striking ‘‘$75,000’’ and inserting 

4 ‘‘$250,000’’. 

5 (c) REDUCTION WHERE CORRECTION ON OR BEFORE

6 AUGUST 1.— 

7 (1) IN GENERAL.—Subparagraph (A) of section 

8 6721(b)(2) is amended by striking ‘‘$30’’ and insert9 ing ‘‘$60’’. 

10 (2) AGGREGATE ANNUAL LIMITATION.—Sub11 sections (b)(2)(B) and (d)(1)(C) of section 6721are 

12 each amended by striking ‘‘$150,000’’ and inserting 

13 ‘‘$500,000’’. 

14 (d) AGGREGATE ANNUAL LIMITATIONS FOR PERSONS

15 WITH GROSS RECEIPTS OF NOT MORE THAN $5,000,000.— 

16 Paragraph (1) of section 6721(d) is amended— 

17 (1) by striking ‘‘$100,000’’ in subparagraph (A) 

18 and inserting ‘‘$500,000’’, 

19 (2) by striking ‘‘$25,000’’ in subparagraph (B) 

20 and inserting ‘‘$75,000’’, and 

21 (3) by striking ‘‘$50,000’’ in subparagraph (C) 

22 and inserting ‘‘$200,000’’. 

23 (e) PENALTY IN CASE OF INTENTIONAL DISREGARD.— 

24 Paragraph (2) of section 6721(e) is amended by striking 

25 ‘‘$100’’ and inserting ‘‘$250’’. 
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1 (f) ADJUSTMENT FOR INFLATION.—Section 6721 is 

2 amended by adding at the end the following new subsection: 

3 ‘‘(f) ADJUSTMENT FOR INFLATION.— 

4 ‘‘(1) IN GENERAL.—For each fifth calendar year 

5 beginning after 2012, each of the dollar amounts 

6 under subsections (a), (b), (d) (other than paragraph 

7 (2)(A) thereof), and (e) shall be increased by such dol8 lar amount multiplied by the cost-of-living adjust9 ment determined under section 1(f)(3) determined by 

10 substituting ‘calendar year 2011’ for ‘calendar year 

11 1992’ in subparagraph (B) thereof. 

12 ‘‘(2) ROUNDING.—If any amount adjusted under 

13 paragraph (1)— 

14 ‘‘(A) is not less than $75,000 and is not a 

15 multiple of $500, such amount shall be rounded 

16 to the next lowest multiple of $500, and 

17 ‘‘(B) is not described in subparagraph (A) 

18 and is not a multiple of $10, such amount shall 

19 be rounded to the next lowest multiple of $10.’’. 

20 (g) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply with respect to information returns re22 quired to be filed on or after January 1, 2011. 
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1 SEC. 606. TAX-EXEMPT BOND FINANCING. 

2 (a) IN GENERAL.—Paragraphs (2)(D) and (7)(C) of 

3 section 1400N(a) are each amended by striking ‘‘January 

4 1, 2011’’ and inserting ‘‘January 1, 2012’’. 

5 (b) CONFORMING AMENDMENTS.—Sections 702(d)(1) 

6 and 704(a) of the Heartland Disaster Tax Relief Act of 

7 2008 (Public Law 110–343; 122 Stat. 3913, 3919) are each 

8 amended by striking‘‘January 1, 2011’’ each place it ap9 pears and inserting ‘‘January 1, 2012’’. 

10 SEC. 607. APPLICATION OF LEVY TO PAYMENTS TO FED11 ERAL VENDORS RELATING TO PROPERTY. 

12 (a) IN GENERAL.—Section 6331(h)(3) is amended by 

13 striking ‘‘goods or services’’ and inserting ‘‘property, goods, 

14 or services’’. 

15 (b) EFFECTIVE DATE.—The amendment made by this 

16 section shall apply to levies approved after the date of the 

17 enactment of this Act. 

18 SEC. 608. ELECTION FOR REFUNDABLE LOW-INCOME HOUS19 ING CREDIT FOR 2010. 

20 Subsection (n) of section 42, as added by section 121, 

21 is amended to read as follows: 

22 ‘‘(n) ELECTION FOR REFUNDABLE CREDITS.— 

23 ‘‘(1) IN GENERAL.—The housing credit agency of 

24 each State shall be allowed a credit in an amount 

25 equal to such State’s 2010 low-income housing refund-
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1 able credit election amount, which shall be payable by 

2 the Secretary as provided in paragraph (5). 

3 ‘‘(2) 2010 LOW-INCOME HOUSING REFUNDABLE

4 CREDIT ELECTION AMOUNT.—For purposes of this 

5 subsection, the term ‘2010 low-income housing refund6 able credit election amount’ means, with respect to 

7 any State, such amount as the State may elect which 

8 does not exceed 85 percent of the product of— 

9 ‘‘(A) the sum of— 

10 ‘‘(i) 100 percent of the State housing 

11 credit ceiling for 2010 which is attributable 

12 to amounts described in clauses (i) and (iii) 

13 of subsection (h)(3)(C), plus any increase in 

14 the State housing credit ceiling for 2010 

15 made by reason of section 1400N(c) (includ16 ing as such section is applied by reason of 

17 sections 702(d)(2) and 704(b) of the Tax 

18 Extenders and Alternative Minimum Tax 

19 Relief Act of 2008), and 

20 ‘‘(ii) 40 percent of the State housing 

21 credit ceiling for 2010 which is attributable 

22 to amounts described in clauses (ii) and 

23 (iv) of such subsection, plus any increase in 

24 the State housing credit ceiling for 2010 
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1 made by reason of the application of such 

2 section 702(d)(2) and 704(b), multiplied by 

3 ‘‘(B) 10. 

4 For purposes of subparagraph (A)(ii), in the case of 

5 any area to which section 702(d)(2) or 704(b) of the 

6 Tax Extenders and Alternative Minimum Tax Relief 

7 Act of 2008 applies, section 1400N(c)(1)(A) shall be 

8 applied without regard to clause (i) 

9 ‘‘(3) COORDINATION WITH NON-REFUNDABLE

10 CREDIT.—For purposes of this section, the amounts 

11 described in clauses (i) through (iv) of subsection 

12 (h)(3)(C) with respect to any State for 2010 shall 

13 each be reduced by so much of such amount as is 

14 taken into account in determining the amount of the 

15 credit allowed with respect to such State under para16 graph (1). 

17 ‘‘(4) SPECIAL RULE FOR BASIS.—Basis of a 

18 qualified low-income building shall not be reduced by 

19 the amount of any payment made under this sub20 section. 

21 ‘‘(5) PAYMENT OF CREDIT; USE TO FINANCE

22 LOW-INCOME BUILDINGS.—The Secretary shall pay to 

23 the housing credit agency of each State an amount 

24 equal to the credit allowed under paragraph (1). 

25 Rules similar to the rules of subsections (c) and (d) 
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1 of section 1602 of the American Recovery and Rein2 vestment Tax Act of 2009 shall apply with respect to 

3 any payment made under this paragraph, except that 

4 such subsection (d) shall be applied by substituting 

5 ‘January 1, 2012’ for ‘January 1, 2011’.’’. 

6 SEC. 609. LOW-INCOME HOUSING GRANT ELECTION. 

7 (a) CLARIFICATION OF ELIGIBILITY OF LOW-INCOME

8 HOUSING CREDITS FOR LOW-INCOME HOUSING GRANT

9 ELECTION.—Paragraph (1) of section 1602(b) of the Amer10 ican Recovery and Reinvestment Tax Act of 2009 is amend11 ed— 

12 (1) by inserting ‘‘, plus any increase in the State 

13 housing credit ceiling for 2009 attributable to any 

14 State housing credit ceiling returned in 2009 to the 

15 State by reason of section 1400N(c) of such Code (in16 cluding as such section is applied by reason of sec17 tions 702(d)(2) and 704(b) of the Tax Extenders and 

18 Alternative Minimum Tax Relief Act of 2008)’’ after 

19 ‘‘1986’’ in subparagraph (A), and 

20 (2) by inserting ‘‘, plus any increase in the State 

21 housing credit ceiling for 2009 attributable to any ad22 ditional State housing credit ceiling made by reason 

23 of the application of such section 702(d)(2) and 

24 704(b)’’ after ‘‘such section’’ in subparagraph (B). 
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1 (b) APPLICATION OF ADDITIONAL HOUSING CREDIT

2 AMOUNT FOR PURPOSES OF 2009 GRANT ELECTION.—Sub3 section (b) of section 1602 of the American Recovery and 

4 Reinvestment Tax Act of 2009, as amended by subsection 

5 (a), is amended by adding at the end the following flush 

6 sentence: 

7 ‘‘For purposes of paragraph (1)(B), in the case of any area 

8 to which section 702(d)(2) or 704(b) of the Tax Extenders 

9 and Alternative Minimum Tax Relief Act of 2008 applies, 

10 section 1400N(c)(1)(A) of such Code shall be applied with11 out regard to clause (i).’’. 

12 (c) EFFECTIVE DATE.—The amendments made by this 

13 section shall apply as if included in the enactment of section 

14 1602 of the American Recovery and Reinvestment Tax Act 

15 of 2009. 

16 SEC. 610. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS 

17 TO ROTH DESIGNATED ACCOUNTS. 

18 (a) IN GENERAL.—Section 402A(c) of the Internal 

19 Revenue Code of 1986 is amended by adding at the end 

20 the following new paragraph: 

21 ‘‘(4) TAXABLE ROLLOVERS TO DESIGNATED ROTH

22 ACCOUNTS.— 

23 ‘‘(A) IN GENERAL.—Notwithstanding sec24 tions 402(c), 403(b)(8), and 457(e)(16), in the 
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1 case of any distribution to which this paragraph 

2 applies— 

3 ‘‘(i) there shall be included in gross in4 come any amount which would be includible 

5 were it not part of a qualified rollover con6 tribution, 

7 ‘‘(ii) section 72(t) shall not apply, and 

8 ‘‘(iii) unless the taxpayer elects not to 

9 have this clause apply, any amount re10 quired to be included in gross income for 

11 any taxable year beginning in 2010 by rea12 son of this paragraph shall be so included 

13 ratably over the 2-taxable-year period be14 ginning with the first taxable year begin15 ning in 2011. 

16 Any election under clause (iii) for any distribu17 tions during a taxable year may not be changed 

18 after the due date for such taxable year. 

19 ‘‘(B) DISTRIBUTIONS TO WHICH PARA20 GRAPH APPLIES.—In the case of an applicable 

21 retirement plan which includes a qualified Roth 

22 contribution program, this paragraph shall 

23 apply to a distribution from such plan other 

24 than from a designated Roth account which is 

25 contributed in a qualified rollover contribution 
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1 to the designated Roth account maintained 

2 under such plan for the benefit of the individual 

3 to whom the distribution is made. 

4 ‘‘(C) OTHER RULES.—The rules of subpara5 graphs (D), (E), and (F) of section 408A(d)(3) 

6 (as in effect for taxable years beginning after 

7 2009) shall apply for purposes of this para8 graph.’’. 

9 SEC. 611. MODIFICATION OF STANDARDS FOR WINDOWS, 

10 DOORS, AND SKYLIGHTS WITH RESPECT TO 

11 THE CREDIT FOR NONBUSINESS ENERGY 

12 PROPERTY. 

13 (a) IN GENERAL.—Paragraph (4) of section 25C(c) is 

14 amended by striking ‘‘unless’’ and all that follows and in15 serting ‘‘unless— 

16 ‘‘(A) in the case of any component placed in 

17 service after the date which is 90 days after the 

18 date of the enactment of the American Workers, 

19 State, and Business Relief Act of 2010, such 

20 component meets the criteria for such compo21 nents established by the 2010 Energy Star Pro22 gram Requirements for Residential Windows, 

23 Doors, and Skylights, Version 5.0 (or any subse24 quent version of such requirements which is in 

25 effect after January 4, 2010), 
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1 ‘‘(B) in the case of any component placed 

2 in service after the date of the enactment of the 

3 American Workers, State, and Business Relief 

4 Act of 2010 and on or before the date which is 

5 90 days after such date, such component meets 

6 the criteria described in subparagraph (A) or is 

7 equal to or below a U factor of 0.30 and SHGC 

8 of 0.30, and 

9 ‘‘(C) in the case of any component which is 

10 a garage door, such component is equal to or 

11 below a U factor of 0.30 and SHGC of 0.30.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by this 

13 section shall apply to property placed in service after the 

14 date of the enactment of this Act. 

15 SEC. 612. PARTICIPANTS IN GOVERNMENT SECTION 457 

16 PLANS ALLOWED TO TREAT ELECTIVE DEFER17 RALS AS ROTH CONTRIBUTIONS. 

18 (a) IN GENERAL.—Section 402A(e)(1) (defining appli19 cable retirement plan) is amended by striking ‘‘and’’ at the 

20 end of subparagraph (A), by striking the period at the end 

21 of subparagraph (B) and inserting ‘‘, and’’, and by adding 

22 at the end the following: 

23 ‘‘(C) an eligible deferred compensation plan 

24 (as defined in section 457(b)) of an eligible em25 ployer described in section 457(e)(1)(A).’’. 
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1 (b) ELECTIVE DEFERRALS.—Section 402A(e)(2) (de2 fining elective deferral) is amended to read as follows: 

3 ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective 

4 deferral’ means— 

5 ‘‘(A) any elective deferral described in sub6 paragraph (A) or (C) of section 402(g)(3), and 

7 ‘‘(B) any elective deferral of compensation 

8 by an individual under an eligible deferred com9 pensation plan (as defined in section 457(b)) of 

10 an eligible employer described in section 

11 457(e)(1)(A).’’. 

12 (c) EFFECTIVE DATE.—The amendments made by this 

13 section shall apply to taxable years beginning after Decem14 ber 31, 2010. 

15 SEC. 613. EXTENSION OF SPECIAL ALLOWANCE FOR CER16 TAIN PROPERTY. 

17 (a) IN GENERAL.—Section 15345(d)(1)(D) of the Food 

18 Conservation and Energy Act of 2008 (Public Law 110– 

19 246) is amended by striking ‘‘December 31, 2009’’ and in20 serting ‘‘December 31, 2010’’. 

21 (b) CONFORMING AMENDMENT.—Section 

22 15345(d)(1)(F) of such Act is amended by striking ‘‘Janu23 ary 1, 2008’’ and inserting ‘‘January 1, 2010’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall take effect as if included in section 15345 of 

3 the Food Conservation and Energy Act of 2008. 

4 SEC. 614. APPLICATION OF BAD CHECKS PENALTY TO ELEC5 TRONIC PAYMENTS. 

6 (a) IN GENERAL.—Section 6657 is amended— 

7 (1) by striking ‘‘If any check or money order in 

8 payment of any amount’’ and inserting ‘‘If any in9 strument in payment, by any commercially accept10 able means, of any amount’’, and 

11 (2) by striking ‘‘such check’’ each place it ap12 pears and inserting ‘‘such instrument’’. 

13 (b) EFFECTIVE DATES.—The amendments made by 

14 this section shall apply to instruments tendered after the 

15 date of the enactment of this Act. 

16 SEC. 615. GRANTS FOR ENERGY EFFICIENT APPLIANCES IN 

17 LIEU OF TAX CREDIT. 

18 In the case of any taxable year which includes the last 

19 day of calendar year 2009 or calendar year 2010, a tax20 payer who elects to waive the credit which would otherwise 

21 be determined with respect to the taxpayer under section 

22 45M of the Internal Revenue Code of 1986 for such taxable 

23 year shall be treated as making a payment against the tax 

24 imposed under subtitle A of such Code for such taxable year 

25 in an amount equal to 85 percent of the amount of the cred-
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1 it which would otherwise be so determined. Such payment 

2 shall be treated as made on the later of the due date of the 

3 return of such tax or the date on which such return is filed. 

4 Elections under this section may be made separately for 

5 2009 and 2010, but once made shall be irrevocable. 

6 SEC. 616. BUDGETARY EFFECTS OF LEGISLATION PASSED 

7 BY THE SENATE. 

8 (a) ESTABLISHMENT OF WEB PAGE.— 

9 (1) IN GENERAL.—Not later than 90 days after 

10 the enactment of this Act, the Secretary of the Senate 

11 shall establish on the official website of the United 

12 States Senate (www.senate.gov) a page entitled ‘‘In13 formation on the Budgetary Effects of Legislation 

14 Considered by the Senate’’ which shall include— 

15 (A) links to appropriate pages on the 

16 website of the Congressional Budget Office 

17 (www.cbo.gov) that contain cost estimates of leg18 islation passed by the Senate; and 

19 (B) as available, links to pages with any 

20 other information produced by the Congressional 

21 Budget Office that summarize or further explain 

22 the budgetary effects of legislation considered by 

23 the Senate. 

24 (2) UPDATES.—The Secretary of the Senate shall 

25 update this page every 3 months. 
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1 (b) CBO REQUIREMENTS.—Nothing in this section 

2 shall be construed as imposing any new requirements on 

3 the Congressional Budget Office. 

4 SEC. 617. SENATE SPENDING DISCLOSURE. 

5 (a) IN GENERAL.—The Secretary of the Senate shall 

6 post prominently on the front page of the public website 

7 of the Senate (http://www.senate.gov/) the following infor8 mation: 

9 (1) The total amount of discretionary and direct 

10 spending passed by the Senate that has not been paid 

11 for, including emergency designated spending or 

12 spending otherwise exempted from PAYGO require13 ments. 

14 (2) The total amount of net spending authorized 

15 in legislation passed by the Senate, as scored by CBO. 

16 (3) The number of new government programs 

17 created in legislation passed by the Senate. 

18 (4) The totals for paragraphs (1) through (3) as 

19 passed by both Houses of Congress and signed into 

20 law by the President. 

21 (b) DISPLAY.—The information tallies required by 

22 subsection (a) shall be itemized by bill and date, updated 

23 weekly, and archived by calendar year. 

24 (c) EFFECTIVE DATE.—The PAYGO tally required by 

25 subsection (a)(1) shall begin with the date of enactment of 
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1 the Statutory Pay-As-You-Go Act of 2010 and the author2 ization tally required by subsection (a)(2) shall apply to 

3 all legislation passed beginning January 1, 2010. 

4 SEC. 618. ALLOCATION OF GEOTHERMAL RECEIPTS. 

5 Notwithstanding any other provision of law, for fiscal 

6 year 2010 only, all funds received from sales, bonuses, roy7 alties, and rentals under the Geothermal Steam Act of 1970 

8 (30 U.S.C. 1001 et seq.) shall be deposited in the Treasury, 

9 of which— 

10 (1) 50 percent shall be used by the Secretary of 

11 the Treasury to make payments to States within the 

12 boundaries of which the leased land and geothermal 

13 resources are located; 

14 (2) 25 percent shall be used by the Secretary of 

15 the Treasury to make payments to the counties within 

16 the boundaries of which the leased land or geothermal 

17 resources are located; and 

18 (3) 25 percent shall be deposited in miscellaneous 

19 receipts. 

20 SEC. 619. QUALIFYING TIMBER CONTRACT OPTIONS. 

21 (a) DEFINITIONS.—In this section: 

22 (1) QUALIFYING CONTRACT.—The term ‘‘quali23 fying contract’’ means a contract that has not been 

24 terminated by the Bureau of Land Management for 

25 the sale of timber on lands administered by the Bu-
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1 reau of Land Management that meets all of the fol2 lowing criteria: 

3 (A) The contract was awarded during the 

4 period beginning on January 1, 2005, and end5 ing on December 31, 2008. 

6 (B) There is unharvested volume remaining 

7 for the contract. 

8 (C) The contract is not a salvage sale. 

9 (D) The Secretary determined there is not 

10 an urgent need to harvest under the contract due 

11 to deteriorating timber conditions that developed 

12 after the award of the contract. 

13 (2) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of the Interior, acting through the Di15 rector of Bureau of Land Management. 

16 (3) TIMBER PURCHASER.—The term ‘‘timber 

17 purchaser’’ means the party to the qualifying contract 

18 for the sale of timber from lands administered by the 

19 Bureau of Land Management. 

20 (b) MARKET-RELATED CONTRACT EXTENSION OP21 TION.—Upon a timber purchaser’s written request, the Sec22 retary may make a one-time modification to the qualifying 

23 contract to add 3 years to the contract expiration date if 

24 the written request— 
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1 (1) is received by the Secretary not later than 90 

2 days after the date of enactment of this Act; and 

3 (2) contains a provision releasing the United 

4 States from all liability, including further consider5 ation or compensation, resulting from the modifica6 tion under this subsection of the term of a qualifying 

7 contract. 

8 (c) REPORTING.—Not later than 6 months after the 

9 date of the enactment of this Act, the Secretary shall submit 

10 to Congress a report detailing a plan and timeline to pro11 mulgate new regulations authorizing the Bureau of Land 

12 Management to extend timber contracts due to changes in 

13 market conditions. 

14 (d) REGULATIONS.—Not later than 2 years after the 

15 date of the enactment of this Act, the Secretary shall pro16 mulgate new regulations authorizing the Bureau of Land 

17 Management to extend timber contracts due to changes in 

18 market conditions. 

19 (e) NO SURRENDER OF CLAIMS.—This section shall 

20 not have the effect of surrendering any claim by the United 

21 States against any timber purchaser that arose under a 

22 timber sale contract, including a qualifying contract, before 

23 the date on which the Secretary adjusts the contract term 

24 under subsection (b). 
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1 SEC. 620. ARRA PLANNING AND REPORTING. 

2 Section 1512 of the American Recovery and Reinvest3 ment Act of 2009 (Public Law 111–5; 123 Stat. 287) is 

4 amended— 

5 (1) in subsection (d)— 

6 (A) in the subsection heading, by inserting 

7 ‘‘PLANS AND’’ after ‘‘AGENCY’’; 

8 (B) by striking ‘‘Not later than’’ and insert9 ing the following: 

10 ‘‘(1) DEFINITION.—In this subsection, the term 

11 ‘covered program’ means a program for which funds 

12 are appropriated under this division— 

13 ‘‘(A) in an amount that is— 

14 ‘‘(i) more than $2,000,000,000; and 

15 ‘‘(ii) more than 150 percent of the 

16 funds appropriated for the program for fis17 cal year 2008; or 

18 ‘‘(B) that did not exist before the date of en19 actment of this Act. 

20 ‘‘(2) PLANS.—Not later than July 1, 2010, the 

21 head of each agency that distributes recovery funds 

22 shall submit to Congress and make available on the 

23 website of the agency a plan for each covered pro24 gram, which shall, at a minimum, contain— 

25 ‘‘(A) a description of the goals for the cov26 ered program using recovery funds; 
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1 ‘‘(B) a discussion of how the goals described 

2 in subparagraph (A) relate to the goals for ongo3 ing activities of the covered program, if applica4 ble; 

5 ‘‘(C) a description of the activities that the 

6 agency will undertake to achieve the goals de7 scribed in subparagraph (A); 

8 ‘‘(D) a description of the total recovery 

9 funding for the covered program and the recov10 ery funding for each activity under the covered 

11 program, including identifying whether the ac12 tivity will be carried out using grants, contracts, 

13 or other types of funding mechanisms; 

14 ‘‘(E) a schedule of milestones for major 

15 phases of the activities under the covered pro16 gram, with planned delivery dates; 

17 ‘‘(F) performance measures the agency will 

18 use to track the progress of each of the activities 

19 under the covered program in meeting the goals 

20 described in subparagraph (A), including per21 formance targets, the frequency of measurement, 

22 and a description of the methodology for each 

23 measure; 

24 ‘‘(G) a description of the process of the 

25 agency for the periodic review of the progress of 
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1 the covered program towards meeting the goals 

2 described in subparagraph (A); and 

3 ‘‘(H) a description of how the agency will 

4 hold program managers accountable for achiev5 ing the goals described in subparagraph (A). 

6 ‘‘(3) REPORTS.— 

7 ‘‘(A) IN GENERAL.—Not later than’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(B) REPORTS ON PLANS.—Not later than 

10 30 days after the end of the calendar quarter 

11 ending September 30, 2010, and every calendar 

12 quarter thereafter during which the agency obli13 gates or expends recovery funds, the head of each 

14 agency that developed a plan for a covered pro15 gram under paragraph (2) shall submit to Con16 gress and make available on a website of the 

17 agency a report for each covered program that— 

18 ‘‘(i) discusses the progress of the agency 

19 in implementing the plan; 

20 ‘‘(ii) describes the progress towards 

21 achieving the goals described in paragraph 

22 (2)(A) for the covered program; 

23 ‘‘(iii) discusses the status of each activ24 ity carried out under the covered program, 

25 including whether the activity is completed; 
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1 ‘‘(iv) details the unobligated and unex2 pired balances and total obligations and 

3 outlays under the covered program; 

4 ‘‘(v) discusses— 

5 ‘‘(I) whether the covered program 

6 has met the milestones for the covered 

7 program described in paragraph 

8 (2)(E); 

9 ‘‘(II) if the covered program has 

10 failed to meet the milestones, the rea11 sons why; and 

12 ‘‘(III) any changes in the mile13 stones for the covered program, includ14 ing the reasons for the change; 

15 ‘‘(vi) discusses the performance of the 

16 covered program, including— 

17 ‘‘(I) whether the covered program 

18 has met the performance measures for 

19 the covered program described in para20 graph (2)(F); 

21 ‘‘(II) if the covered program has 

22 failed to meet the performance meas23 ures, the reasons why; and 
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1 ‘‘(III) any trends in information 

2 relating to the performance of the cov3 ered program; and 

4 ‘‘(vii) evaluates the ability of the cov5 ered program to meet the goals of the cov6 ered program given the performance of the 

7 covered program.’’; 

8 (2) in subsection (f)— 

9 (A) by striking ‘‘Within 180 days’’ and in10 serting the following: 

11 ‘‘(1) IN GENERAL.—Within 180 days’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(2) PENALTIES.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graphs (B), (C), and (D), the Attorney General 

16 may bring a civil action in an appropriate 

17 United States district court against a recipient 

18 of recovery funds from an agency that does not 

19 provide the information required under sub20 section (c) or knowingly provides information 

21 under subsection (c) that contains a material 

22 omission or misstatement. In a civil action 

23 under this paragraph, the court may impose a 

24 civil penalty on a recipient of recovery funds in 

25 an amount not more than $250,000. Any 
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1 amounts received from a civil penalty under this 

2 paragraph shall be deposited in the general fund 

3 of the Treasury. 

4 ‘‘(B) NOTIFICATION.— 

5 ‘‘(i) IN GENERAL.—The head of an 

6 agency shall provide a written notification 

7 to a recipient of recovery funds from the 

8 agency that fails to provide the information 

9 required under subsection (c). A notification 

10 under this subparagraph shall provide the 

11 recipient with information on how to com12 ply with the necessary reporting require13 ments and notice of the penalties for failing 

14 to do so. 

15 ‘‘(ii) LIMITATION.—A court may not 

16 impose a civil penalty under subparagraph 

17 (A) relating to the failure to provide infor18 mation required under subsection (c) if, not 

19 later than 31 days after the date of the noti20 fication under clause (i), the recipient of the 

21 recovery funds provides the information. 

22 ‘‘(C) CONSIDERATIONS.—In determining the 

23 amount of a penalty under this paragraph for a 

24 recipient of recovery funds, a court shall con25 sider— 
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1 ‘‘(i) the number of times the recipient 

2 has failed to provide the information re3 quired under subsection (c); 

4 ‘‘(ii) the amount of recovery funds pro5 vided to the recipient; 

6 ‘‘(iii) whether the recipient is a gov7 ernment, nonprofit entity, or educational 

8 institution; and 

9 ‘‘(iv) whether the recipient is a small 

10 business concern (as defined under section 3 

11 of the Small Business Act (15 U.S.C. 632)), 

12 with particular consideration given to busi13 nesses with not more than 50 employees. 

14 ‘‘(D) APPLICABILITY.—This paragraph 

15 shall apply to any report required to be sub16 mitted on or after the date of enactment of this 

17 paragraph. 

18 ‘‘(E) NONEXCLUSIVITY.—The imposition of 

19 a civil penalty under this subsection shall not 

20 preclude any other criminal, civil, or adminis21 trative remedy available to the United States or 

22 any other person under Federal or State law. 

23 ‘‘(3) TECHNICAL ASSISTANCE.—Each agency dis24 tributing recovery funds shall provide technical assist25 ance, as necessary, to assist recipients of recovery 
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1 funds in complying with the requirements to provide 

2 information under subsection (c), which shall include 

3 providing recipients with a reminder regarding each 

4 reporting requirement. 

5 ‘‘(4) PUBLIC LISTING.— 

6 ‘‘(A) IN GENERAL.—Not later than 45 days 

7 after the end of each calendar quarter, and sub8 ject to the notification requirements under para9 graph (2)(B), the Board shall make available on 

10 the website established under section 1526 a list 

11 of all recipients of recovery funds that did not 

12 provide the information required under sub13 section (c) for the calendar quarter. 

14 ‘‘(B) CONTENTS.—A list made available 

15 under subparagraph (A) shall, for each recipient 

16 of recovery funds on the list, include the name 

17 and address of the recipient, the identification 

18 number for the award, the amount of recovery 

19 funds awarded to the recipient, a description of 

20 the activity for which the recovery funds were 

21 provided, and, to the extent known by the Board, 

22 the reason for noncompliance. 

23 ‘‘(5) REGULATIONS AND REPORTING.— 

24 ‘‘(A) REGULATIONS.—Not later than 90 

25 days after the date of enactment of this para-
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1 graph, the Attorney General, in consultation 

2 with the Director of the Office of Management 

3 and Budget and the Chairperson, shall promul4 gate regulations regarding implementation of 

5 this section. 

6 ‘‘(B) REPORTING.— 

7 ‘‘(i) IN GENERAL.—Not later than July 

8 1, 2010, and every 3 months thereafter, the 

9 Director of the Office of Management and 

10 Budget, in consultation with the Chair11 person, shall submit to Congress a report on 

12 the extent of noncompliance by recipients of 

13 recovery funds with the reporting require14 ments under this section. 

15 ‘‘(ii) CONTENTS.—Each report sub16 mitted under clause (i) shall include— 

17 ‘‘(I) information, for the quarter 

18 and in total, regarding the number 

19 and amount of civil penalties imposed 

20 and collected under this subsection, 

21 sorted by agency and program; 

22 ‘‘(II) information on the steps 

23 taken by the Federal Government to re24 duce the level of noncompliance; and 
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1 ‘‘(III) any other information de2 termined appropriate by the Direc3 tor.’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(i) TERMINATION.—The reporting requirements 

6 under this section shall terminate on September 30, 2013.’’. 

7 SEC. 621. GAO STUDY. 

8 Not later than 180 days after the date of enactment 

9 of this Act, the Comptroller General shall report to Congress 

10 detailing— 

11 (1) the pattern of job loss in the New England 

12 and Midwest States over the past 20 years; 

13 (2) the role of the off-shoring of manufacturing 

14 jobs in overall job loss in the regions; and 

15 (3) recommendations to attract industries and 

16 bring jobs to the region. 

17 SEC. 622. EXTENSION AND MODIFICATION OF SECTION 45 

18 CREDIT FOR REFINED COAL FROM STEEL IN19 DUSTRY FUEL. 

20 (a) CREDIT PERIOD.— 

21 (1) IN GENERAL.—Subclause (II) of section 

22 45(e)(8)(D)(ii) is amended to read as follows: 

23 ‘‘(II) CREDIT PERIOD.—In lieu of 

24 the 10-year period referred to in 

25 clauses (i) and (ii)(II) of subpara-
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1 graph (A), the credit period shall be 

2 the period beginning on the date that 

3 the facility first produces steel industry 

4 fuel that is sold to an unrelated person 

5 after September 30, 2008, and ending 

6 2 years after such date.’’. 

7 (2) CONFORMING AMENDMENT.—Section 

8 45(e)(8)(D) is amended by striking clause (iii) and 

9 by redesignating clause (iv) as clause (iii). 

10 (b) EXTENSION OF PLACED-IN-SERVICE DATE.—Sub11 paragraph (A) of section 45(d)(8) is amended— 

12 (1) by striking ‘‘(or any modification to a facil13 ity)’’, and 

14 (2) by striking ‘‘2010’’ and inserting ‘‘2011’’. 

15 (c) CLARIFICATIONS.— 

16 (1) STEEL INDUSTRY FUEL.—Subclause (I) of 

17 section 45(c)(7)(C)(i) is amended by inserting ‘‘, a 

18 blend of coal and petroleum coke, or other coke feed19 stock’’ after ‘‘on coal’’. 

20 (2) OWNERSHIP INTEREST.—Section 45(d)(8) is 

21 amended by adding at the end the following new flush 

22 sentence: 

23 ‘‘With respect to a facility producing steel industry 

24 fuel, no person (including a ground lessor, customer, 

25 supplier, or technology licensor) shall be treated as 
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1 having an ownership interest in the facility or as oth2 erwise entitled to the credit allowable under sub3 section (a) with respect to such facility if such per4 son’s rent, license fee, or other entitlement to net pay5 ments from the owner of such facility is measured by 

6 a fixed dollar amount or a fixed amount per ton, or 

7 otherwise determined without regard to the profit or 

8 loss of such facility.’’. 

9 (3) PRODUCTION AND SALE.—Subparagraph (D) 

10 of section 45(e)(8), as amended by subsection (a)(2), 

11 is amended by redesignating clause (iii) as clause (iv) 

12 and by inserting after clause (ii) the following new 

13 clause: 

14 ‘‘(iii) PRODUCTION AND SALE.—The 

15 owner of a facility producing steel industry 

16 fuel shall be treated as producing and sell17 ing steel industry fuel where that owner 

18 manufactures such steel industry fuel from 

19 coal, a blend of coal and petroleum coke, or 

20 other coke feedstock to which it has title. 

21 The sale of such steel industry fuel by the 

22 owner of the facility to a person who is not 

23 the owner of the facility shall not fail to 

24 qualify as a sale to an unrelated person 
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1 solely because such purchaser may also be a 

2 ground lessor, supplier, or customer.’’. 

3 (d) SPECIFIED CREDIT FOR PURPOSES OF ALTER4 NATIVE MINIMUM TAX EXCLUSION.—Subclause (II) of sec5 tion 38(c)(4)(B)(iii) is amended by inserting ‘‘(in the case 

6 of a refined coal production facility producing steel indus7 try fuel, during the credit period set forth in section 

8 45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 

9 (e) EFFECTIVE DATES.— 

10 (1) IN GENERAL.—The amendments made by 

11 subsections (a), (b), and (d) shall take effect on the 

12 date of the enactment of this Act. 

13 (2) CLARIFICATIONS.—The amendments made by 

14 subsection (c) shall take effect as if included in the 

15 amendments made by the Energy Improvement and 

16 Extension Act of 2008. 

17 SEC. 623. MODIFICATIONS TO MINE RESCUE TEAM TRAIN18 ING CREDIT AND ELECTION TO EXPENSE AD19 VANCED MINE SAFETY EQUIPMENT. 

20 (a) MINE RESCUE TEAM TRAINING CREDIT ALLOW21 ABLE AGAINST AMT.—Subparagraph (B) of section 

22 38(c)(4) is amended— 

23 (1) by redesignating clauses (vi), (vii), and (viii) 

24 as clauses (vii), (viii), and (ix), respectively, and 
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1 (2) by inserting after clause (v) the following 

2 new clause: 

3 ‘‘(vi) the credit determined under sec4 tion 45N,’’. 

5 (b) ELECTION TO EXPENSE ADVANCED MINE SAFETY

6 EQUIPMENT ALLOWABLE AGAINST AMT.—Subparagraph 

7 (C) of section 56(g)(4) is amended by adding at the end 

8 the following new clause: 

9 ‘‘(vii) SPECIAL RULE FOR ELECTION

10 TO EXPENSE ADVANCED MINE SAFETY

11 EQUIPMENT.—Clause (i) shall not apply to 

12 amounts deductible under section 179E.’’. 

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

14 section shall apply to taxable years beginning after Decem15 ber 31, 2009. 

16 SEC. 624. APPLICATION OF CONTINUOUS LEVY TO EMPLOY17 MENT TAX LIABILITY OF CERTAIN FEDERAL 

18 CONTRACTORS. 

19 (a) IN GENERAL.—Section 6330(h) is amended by in20 serting ‘‘or if the person subject to the levy (or any prede21 cessor thereof) is a Federal contractor that was identified 

22 as owing such employment taxes through the Federal Pay23 ment Levy Program’’ before the period at the end of the 

24 first sentence. 
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to levies issued after December 31, 2010. 

3 TITLE VII—DETERMINATION OF 

4 BUDGETARY EFFECTS 

5 SEC. 701. DETERMINATION OF BUDGETARY EFFECTS. 

6 (a) IN GENERAL.—The budgetary effects of this Act, 

7 for the purpose of complying with the Statutory Pay-As8 You-Go-Act of 2010, shall be determined by reference to the 

9 latest statement titled ‘‘Budgetary Effects of PAYGO Legis10 lation’’ for this Act, submitted for printing in the Congres11 sional Record by the Chairman of the Senate Budget Com12 mittee, provided that such statement has been submitted 

13 prior to the vote on passage. 

14 (b) EMERGENCY DESIGNATION.—Sections 201, 211, 

15 and 232 of this Act are designated as an emergency require16 ment pursuant to section 4(g) of the Statutory Pay-As-You17 Go Act of 2010 (Public Law 111–139; 2 U.S.C. 933(g)) and 

18 section 403(a) of S. Con. Res. 13 (111th Congress), the con19 current resolution on the budget for fiscal year 2010. In 

20 the House of Representatives, sections 201, 211, and 232 
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1 of this Act are designated as an emergency for purposes of 

2 pay-as-you-go principles. 

Attest: 

Secretary. 

111TH CONGRESS 

2D SESSION H.R. 4213 

AMENDMENT