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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4213 Engrossed Amendment House (EAH)]

                In the House of Representatives, U. S.,

                                                          May 28, 2010.
    Resolved, That the House agree to the amendment of the Senate to 
the bill (H.R. 4213) entitled ``An Act to amend the Internal Revenue 
Code of 1986 to extend certain expiring provisions, and for other 
purposes.'', with the following

                  HOUSE AMENDMENT TO SENATE AMENDMENT:

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

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

    (a) Short Title.--This Act may be cited as the ``American Jobs and 
Closing Tax Loopholes Act of 2010''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in titles I, II, and IV of this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue Code of 
1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

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

                   TITLE I--INFRASTRUCTURE INCENTIVES

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

               TITLE II--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

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

                   Subtitle B--Individual Tax Relief

                    Part I--Miscellaneous Provisions

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

                  Part II--Low-income Housing Credits

Sec. 231. Election for direct payment of low-income housing credit for 
                            2010.

                    Subtitle C--Business Tax Relief

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

            Subtitle D--Temporary Disaster Relief Provisions

                    Part I--National Disaster Relief

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

                      Part II--Regional Provisions

                    subpart a--new york liberty zone

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

                           subpart b--go zone

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

                     TITLE III--PENSION PROVISIONS

                   Subtitle A--Pension Funding Relief

                     Part 1--Single-Employer Plans

Sec. 301. Extended period for single-employer defined benefit plans to 
                            amortize certain shortfall amortization 
                            bases.
Sec. 302. Application of extended amortization period to plans subject 
                            to prior law funding rules.
Sec. 303. Suspension of certain funding level limitations.
Sec. 304. Lookback for credit balance rule.
Sec. 305. Information reporting.
Sec. 306. Rollover of amounts received in airline carrier bankruptcy.

                      Part 2--Multiemployer Plans

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

                       Subtitle B--Fee Disclosure

Sec. 321. Short title of subtitle.
Sec. 322. Amendments to the Employee Retirement Income Security Act of 
                            1974.
Sec. 323. Amendments to the Internal Revenue Code of 1986.
Sec. 324. Regulatory authority and coordination.
Sec. 325. Effective date of subtitle.

                       TITLE IV--REVENUE OFFSETS

                     Subtitle A--Foreign Provisions

Sec. 401. Rules to prevent splitting foreign tax credits from the 
                            income to which they relate.
Sec. 402. Denial of foreign tax credit with respect to foreign income 
                            not subject to United States taxation by 
                            reason of covered asset acquisitions.
Sec. 403. Separate application of foreign tax credit limitation, etc., 
                            to items resourced under treaties.
Sec. 404. Limitation on the amount of foreign taxes deemed paid with 
                            respect to section 956 inclusions.
Sec. 405. Special rule with respect to certain redemptions by foreign 
                            subsidiaries.
Sec. 406. Modification of affiliation rules for purposes of rules 
                            allocating interest expense.
Sec. 407. Termination of special rules for interest and dividends 
                            received from persons meeting the 80-
                            percent foreign business requirements.
Sec. 408. Source rules for income on guarantees.
Sec. 409. Limitation on extension of statute of limitations for failure 
                            to notify Secretary of certain foreign 
                            transfers.

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

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

                    Subtitle C--Corporate Provisions

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

                      Subtitle D--Other Provisions

Sec. 431. Modifications with respect to Oil Spill Liability Trust Fund.
Sec. 432. Time for payment of corporate estimated taxes.

          TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE

        Subtitle A--Unemployment Insurance and Other Assistance

Sec. 501. Extension of unemployment insurance provisions.
Sec. 502. Coordination of emergency unemployment compensation with 
                            regular compensation.
Sec. 503. Extension of the Emergency Contingency Fund.

                     Subtitle B--Health Provisions

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

                       TITLE VI--OTHER PROVISIONS

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

                    TITLE VII--BUDGETARY PROVISIONS

Sec. 701. Budgetary provisions.

                   TITLE I--INFRASTRUCTURE INCENTIVES

SEC. 101. EXTENSION OF BUILD AMERICA BONDS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

               TITLE II--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

SEC. 201. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED HYBRID 
              MOTOR VEHICLES OTHER THAN PASSENGER AUTOMOBILES AND LIGHT 
              TRUCKS.

    (a) In General.--Paragraph (3) of section 30B(k) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2009.

SEC. 202. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2009'' and inserting ``December 31, 2010''.
    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2009'' and inserting ``December 31, 2010''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2009'' and inserting ``December 31, 
        2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2009.

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

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

SEC. 204. EXTENSION AND MODIFICATION OF CREDIT FOR STEEL INDUSTRY FUEL.

    (a) Credit Period.--
            (1) In general.--Subclause (II) of section 45(e)(8)(D)(ii) 
        is amended to read as follows:
                                    ``(II) Credit period.--In lieu of 
                                the 10-year period referred to in 
                                clauses (i) and (ii)(II) of 
                                subparagraph (A), the credit period 
                                shall be the period beginning on the 
                                date that the facility first produces 
                                steel industry fuel that is sold to an 
                                unrelated person after September 30, 
                                2008, and ending 2 years after such 
                                date.''.
            (2) Conforming amendment.--Section 45(e)(8)(D) is amended 
        by striking clause (iii) and by redesignating clause (iv) as 
        clause (iii).
    (b) Extension of Placed-in-service Date.--Subparagraph (A) of 
section 45(d)(8) is amended--
            (1) by striking ``(or any modification to a facility)''; 
        and
            (2) by striking ``2010'' and inserting ``2011''.
    (c) Clarifications.--
            (1) Steel industry fuel.--Subclause (I) of section 
        45(c)(7)(C)(i) is amended by inserting ``, a blend of coal and 
        petroleum coke, or other coke feedstock'' after ``on coal''.
            (2) Ownership interest.--Section 45(d)(8) is amended by 
        adding at the end the following new flush sentence:
        ``With respect to a facility producing steel industry fuel, no 
        person (including a ground lessor, customer, supplier, or 
        technology licensor) shall be treated as having an ownership 
        interest in the facility or as otherwise entitled to the credit 
        allowable under subsection (a) with respect to such facility if 
        such person's rent, license fee, or other entitlement to net 
        payments from the owner of such facility is measured by a fixed 
        dollar amount or a fixed amount per ton, or otherwise 
        determined without regard to the profit or loss of such 
        facility.''.
            (3) Production and sale.--Subparagraph (D) of section 
        45(e)(8), as amended by subsection (a)(2), is amended by 
        redesignating clause (iii) as clause (iv) and by inserting 
        after clause (ii) the following new clause:
                            ``(iii) Production and sale.--The owner of 
                        a facility producing steel industry fuel shall 
                        be treated as producing and selling steel 
                        industry fuel where that owner manufactures 
                        such steel industry fuel from coal, a blend of 
                        coal and petroleum coke, or other coke 
                        feedstock to which it has title. The sale of 
                        such steel industry fuel by the owner of the 
                        facility to a person who is not the owner of 
                        the facility shall not fail to qualify as a 
                        sale to an unrelated person solely because such 
                        purchaser may also be a ground lessor, 
                        supplier, or customer.''.
    (d) Specified Credit for Purposes of Alternative Minimum Tax 
Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is amended by 
inserting ``(in the case of a refined coal production facility 
producing steel industry fuel, during the credit period set forth in 
section 45(e)(8)(D)(ii)(II))'' after ``service''.
    (e) Effective Dates.--
            (1) In general.--The amendments made by subsections (a), 
        (b), and (d) shall take effect on the date of the enactment of 
        this Act.
            (2) Clarifications.--The amendments made by subsection (c) 
        shall take effect as if included in the amendments made by the 
        Energy Improvement and Extension Act of 2008.

SEC. 205. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

    (a) In General.--Paragraph (1) of section 45K(g) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after December 31, 2009.

SEC. 206. NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2009.

SEC. 207. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE FUEL 
              AND ALTERNATIVE FUEL MIXTURES.

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

SEC. 208. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC OR 
              STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED 
              ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Modification of Definition of Independent Transmission 
Company.--
            (1) In general.--Clause (i) of section 451(i)(4)(B) is 
        amended to read as follows:
                            ``(i) who the Federal Energy Regulatory 
                        Commission determines in its authorization of 
                        the transaction under section 203 of the 
                        Federal Power Act (16 U.S.C. 824b) or by 
                        declaratory order--
                                    ``(I) is not itself a market 
                                participant as determined by the 
                                Commission, and also is not controlled 
                                by any such market participant, or
                                    ``(II) to be independent from 
                                market participants or to be an 
                                independent transmission company within 
                                the meaning of such Commission's rules 
                                applicable to independent transmission 
                                providers, and''.
            (2) Related persons.--Paragraph (4) of section 451(i) is 
        amended by adding at the end the following flush sentence:
        ``For purposes of subparagraph (B)(i)(I), a person shall be 
        treated as controlled by another person if such persons would 
        be treated as a single employer under section 52.''.
    (c) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to dispositions after December 31, 2009.
            (2) Modifications.--The amendments made by subsection (b) 
        shall apply to dispositions after the date of the enactment of 
        this Act.

SEC. 209. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL AND 
              GAS FROM MARGINAL WELLS.

    (a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

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

    In the case of any taxable year which includes the last day of 
calendar year 2009 or calendar year 2010, a taxpayer who elects to 
waive the credit which would otherwise be determined with respect to 
the taxpayer under section 45M of the Internal Revenue Code of 1986 for 
such taxable year shall be treated as making a payment against the tax 
imposed under subtitle A of such Code for such taxable year in an 
amount equal to 85 percent of the amount of the credit which would 
otherwise be so determined. Such payment shall be treated as made on 
the later of the due date of the return of such tax or the date on 
which such return is filed. Elections under this section may be made 
separately for 2009 and 2010, but once made shall be irrevocable. No 
amount shall be includible in gross income or alternative minimum 
taxable income by reason of this section.

SEC. 211. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND SKYLIGHTS 
              WITH RESPECT TO THE CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Paragraph (4) of section 25C(c) is amended by 
striking ``unless'' and all that follows and inserting ``unless--
                    ``(A) in the case of any component placed in 
                service after the date which is 90 days after the date 
                of the enactment of the American Jobs and Closing Tax 
                Loopholes Act of 2010, such component meets the 
                criteria for such components established by the 2010 
                Energy Star Program Requirements for Residential 
                Windows, Doors, and Skylights, Version 5.0 (or any 
                subsequent version of such requirements which is in 
                effect after January 4, 2010),
                    ``(B) in the case of any component placed in 
                service after the date of the enactment of the American 
                Jobs and Closing Tax Loopholes Act of 2010 and on or 
                before the date which is 90 days after such date, such 
                component meets the criteria described in subparagraph 
                (A) or is equal to or below a U factor of 0.30 and SHGC 
                of 0.30, and
                    ``(C) in the case of any component which is a 
                garage door, such component is equal to or below a U 
                factor of 0.30 and SHGC of 0.30.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

                   Subtitle B--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

SEC. 221. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY 
              SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2009'' and inserting ``2009, or 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 222. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL REAL 
              PROPERTY TAXES.

    (a) In General.--Subparagraph (C) of section 63(c)(1) is amended by 
striking ``or 2009'' and inserting ``2009, or 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 223. DEDUCTION OF STATE AND LOCAL SALES TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 224. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR 
              CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2009.

SEC. 225. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND RELATED 
              EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    (c) Temporary Coordination With Hope and Lifetime Learning 
Credits.--In the case of any taxpayer for any taxable year beginning in 
2010, no deduction shall be allowed under section 222 of the Internal 
Revenue Code of 1986 if--
            (1) the taxpayer's net Federal income tax reduction which 
        would be attributable to such deduction for such taxable year, 
        is less than
            (2) the credit which would be allowed to the taxpayer for 
        such taxable year under section 25A of such Code (determined 
        without regard to sections 25A(e) and 26 of such Code).

SEC. 226. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR 
              CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2009.

SEC. 227. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK IN 
              DETERMINING GROSS ESTATE OF NONRESIDENTS.

    (a) In General.--Paragraph (3) of section 2105(d) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to estates of decedents dying after December 31, 2009.

                  PART II--LOW-INCOME HOUSING CREDITS

SEC. 231. ELECTION FOR DIRECT PAYMENT OF LOW-INCOME HOUSING CREDIT FOR 
              2010.

    (a) In General.--Section 42 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) the 
following new subsection:
    ``(n) Election for Direct Payment of Credit.--
            ``(1) In general.--The housing credit agency of each State 
        shall be allowed a credit in an amount equal to such State's 
        2010 low-income housing refundable credit election amount, 
        which shall be payable by the Secretary as provided in 
        paragraph (5).
            ``(2) 2010 low-income housing refundable credit election 
        amount.--For purposes of this subsection, the term `2010 low-
        income housing refundable credit election amount' means, with 
        respect to any State, such amount as the State may elect which 
        does not exceed 85 percent of the product of--
                    ``(A) the sum of--
                            ``(i) 100 percent of the State housing 
                        credit ceiling for 2010 which is attributable 
                        to amounts described in clauses (i) and (iii) 
                        of subsection (h)(3)(C), and
                            ``(ii) 40 percent of the State housing 
                        credit ceiling for 2010 which is attributable 
                        to amounts described in clauses (ii) and (iv) 
                        of such subsection, multiplied by
                    ``(B) 10.
            ``(3) Coordination with non-refundable credit.--For 
        purposes of this section, the amounts described in clauses (i) 
        through (iv) of subsection (h)(3)(C) with respect to any State 
        for 2010 shall each be reduced by so much of such amount as is 
        taken into account in determining the amount of the credit 
        allowed with respect to such State under paragraph (1).
            ``(4) Special rule for basis.--Basis of a qualified low-
        income building shall not be reduced by the amount of any 
        payment made under this subsection.
            ``(5) Payment of credit; use to finance low-income 
        buildings.--The Secretary shall pay to the housing credit 
        agency of each State an amount equal to the credit allowed 
        under paragraph (1). Rules similar to the rules of subsections 
        (c) and (d) of section 1602 of the American Recovery and 
        Reinvestment Tax Act of 2009 shall apply with respect to any 
        payment made under this paragraph, except that such subsection 
        (d) shall be applied by substituting `January 1, 2012' for 
        `January 1, 2011'.''.
    (b) Conforming Amendment.--Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ``42(n),'' after ``36C,''.

                    Subtitle C--Business Tax Relief

SEC. 241. RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2009.

SEC. 242. INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 243. NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (F) of section 45D(f)(1) is amended 
by inserting ``and 2010'' after ``2009''.
    (b) Conforming Amendment.--Paragraph (3) of section 45D(f) is 
amended by striking ``2014'' and inserting ``2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after 2009.

SEC. 244. RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred in taxable years beginning after 
December 31, 2009.

SEC. 245. MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Credit Allowable Against AMT.--Subparagraph (B) of section 
38(c)(4), as amended by section 105, is amended--
            (1) by redesignating clauses (vii) through (x) as clauses 
        (viii) through (xi), respectively; and
            (2) by inserting after clause (vi) the following new 
        clause:
                            ``(vii) the credit determined under section 
                        45N,''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2009.
            (2) Allowance against amt.--The amendments made by 
        subsection (b) shall apply to credits determined for taxable 
        years beginning after December 31, 2009, and to carrybacks of 
        such credits.

SEC. 246. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY 
              MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2009.

SEC. 247. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY AND 
              EQUIPMENT.

    (a) In General.--Clause (vii) of section 168(e)(3)(B) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 248. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD 
              IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND 
              IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) are each amended by striking ``January 1, 2010'' and 
inserting ``January 1, 2011''.
    (b) Conforming Amendments.--
            (1) Clause (i) of section 168(e)(7)(A) is amended by 
        striking ``if such building is placed in service after December 
        31, 2008, and before January 1, 2010,''.
            (2) Paragraph (8) of section 168(e) is amended by striking 
        subparagraph (E).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009.

SEC. 249. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT 
              COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 250. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN INDIAN 
              RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 251. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.

SEC. 252. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
              INVENTORIES TO PUBLIC SCHOOLS.

    (a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.

SEC. 253. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS OF 
              COMPUTER INVENTORY FOR EDUCATIONAL PURPOSES.

    (a) In General.--Subparagraph (G) of section 170(e)(6) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.

SEC. 254. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 255. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION 
              PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to productions commencing after December 31, 2009.

SEC. 256. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) In General.--Subsection (h) of section 198 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred after December 31, 2009.

SEC. 257. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
            (1) by striking ``first 4 taxable years'' and inserting 
        ``first 5 taxable years''; and
            (2) by striking ``January 1, 2010'' and inserting ``January 
        1, 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 258. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO 
              CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2009.

SEC. 259. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF CERTAIN 
              BROWNFIELD SITES FROM UNRELATED BUSINESS INCOME.

    (a) In General.--Subparagraph (K) of section 512(b)(19) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property acquired after December 31, 2009.

SEC. 260. TIMBER REIT MODERNIZATION.

    (a) In General.--Paragraph (8) of section 856(c) is amended by 
striking ``means'' and all that follows and inserting ``means December 
31, 2010.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (I) of section 856(c)(2) is amended by 
        striking ``the first taxable year beginning after the date of 
        the enactment of this subparagraph'' and inserting ``a taxable 
        year beginning on or before the termination date''.
            (2) Clause (iii) of section 856(c)(5)(H) is amended by 
        inserting ``in taxable years beginning'' after 
        ``dispositions''.
            (3) Clause (v) of section 857(b)(6)(D) is amended by 
        inserting ``in a taxable year beginning'' after ``sale''.
            (4) Subparagraph (G) of section 857(b)(6) is amended by 
        inserting ``in a taxable year beginning'' after ``In the case 
        of a sale''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after May 22, 2009.

SEC. 261. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT 
              COMPANIES.

    (a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are 
each amended by striking ``December 31, 2009'' and inserting ``December 
31, 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 262. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.

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

SEC. 263. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

    (a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Conforming Amendment.--Section 953(e)(10) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2009, and to taxable years of United States shareholders with or 
within which any such taxable year of such foreign corporation ends.

SEC. 264. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED CONTROLLED 
              FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL HOLDING 
              COMPANY RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2009, and to taxable years of United States shareholders with or within 
which any such taxable year of such foreign corporation ends.

SEC. 265. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE 
              CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.

SEC. 266. EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Section 1391 is amended--
            (1) by striking ``December 31, 2009'' in subsection 
        (d)(1)(A)(i) and inserting ``December 31, 2010''; and
            (2) by striking the last sentence of subsection (h)(2).
    (b) Increased Exclusion of Gain on Stock of Empowerment Zone 
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
            (1) by striking ``December 31, 2014'' and inserting 
        ``December 31, 2015''; and
            (2) by striking ``2014'' in the heading and inserting 
        ``2015''.
    (c) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of an empowerment zone the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A)(i) of 
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation unless, after the date 
of the enactment of this section, the entity which made such nomination 
reconfirms such termination date, or amends the nomination to provide 
for a new termination date, in such manner as the Secretary of the 
Treasury (or the Secretary's designee) may provide.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2009.

SEC. 267. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.

    (a) In General.--Subsection (f) of section 1400 is amended by 
striking ``December 31, 2009'' each place it appears and inserting 
``December 31, 2010''.
    (b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of 
section 1400A is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010''.
    (c) Zero-percent Capital Gains Rate.--
            (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
        (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each 
        amended by striking ``January 1, 2010'' and inserting ``January 
        1, 2011''.
            (2) Limitation on period of gains.--
                    (A) In general.--Paragraph (2) of section 1400B(e) 
                is amended--
                            (i) by striking ``December 31, 2014'' and 
                        inserting ``December 31, 2015''; and
                            (ii) by striking ``2014'' in the heading 
                        and inserting ``2015''.
                    (B) Partnerships and s-corps.--Paragraph (2) of 
                section 1400B(g) is amended by striking ``December 31, 
                2014'' and inserting ``December 31, 2015''.
    (d) First-time Homebuyer Credit.--Subsection (i) of section 1400C 
is amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        periods after December 31, 2009.
            (2) Tax-exempt dc empowerment zone bonds.--The amendment 
        made by subsection (b) shall apply to bonds issued after 
        December 31, 2009.
            (3) Acquisition dates for zero-percent capital gains 
        rate.--The amendments made by subsection (c) shall apply to 
        property acquired or substantially improved after December 31, 
        2009.
            (4) Homebuyer credit.--The amendment made by subsection (d) 
        shall apply to homes purchased after December 31, 2009.

SEC. 268. RENEWAL COMMUNITY TAX INCENTIVES.

    (a) In General.--Subsection (b) of section 1400E is amended--
            (1) by striking ``December 31, 2009'' in paragraphs (1)(A) 
        and (3) and inserting ``December 31, 2010''; and
            (2) by striking ``January 1, 2010'' in paragraph (3) and 
        inserting ``January 1, 2011''.
    (b) Zero-percent Capital Gains Rate.--
            (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
        (4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended 
        by striking ``January 1, 2010'' and inserting ``January 1, 
        2011''.
            (2) Limitation on period of gains.--Paragraph (2) of 
        section 1400F(c) is amended--
                    (A) by striking ``December 31, 2014'' and inserting 
                ``December 31, 2015''; and
                    (B) by striking ``2014'' in the heading and 
                inserting ``2015''.
            (3) Clerical amendment.--Subsection (d) of section 1400F is 
        amended by striking ``and `December 31, 2014' for `December 31, 
        2014'''.
    (c) Commercial Revitalization Deduction.--
            (1) In general.--Subsection (g) of section 1400I is amended 
        by striking ``December 31, 2009'' and inserting ``December 31, 
        2010''.
            (2) Conforming amendment.--Subparagraph (A) of section 
        1400I(d)(2) is amended by striking ``after 2001 and before 
        2010'' and inserting ``which begins after 2001 and before the 
        date referred to in subsection (g)''.
    (d) Increased Expensing Under Section 179.--Subparagraph (A) of 
section 1400J(b)(1) is amended by striking ``January 1, 2010'' and 
inserting ``January 1, 2011''.
    (e) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of a renewal community the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A) of section 
1400E(b)(1) of the Internal Revenue Code of 1986 (as in effect before 
the enactment of this Act), subparagraph (B) of such section shall not 
apply with respect to such designation unless, after the date of the 
enactment of this section, the entity which made such nomination 
reconfirms such termination date, or amends the nomination to provide 
for a new termination date, in such manner as the Secretary of the 
Treasury (or the Secretary's designee) may provide.
    (f) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        periods after December 31, 2009.
            (2) Acquisitions.--The amendments made by subsections 
        (b)(1) and (d) shall apply to acquisitions after December 31, 
        2009.
            (3) Commercial revitalization deduction.--
                    (A) In general.--The amendment made by subsection 
                (c)(1) shall apply to buildings placed in service after 
                December 31, 2009.
                    (B) Conforming amendment.--The amendment made by 
                subsection (c)(2) shall apply to calendar years 
                beginning after December 31, 2009.

SEC. 269. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAXES 
              TO PUERTO RICO AND THE VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2009.

SEC. 270. PAYMENT TO AMERICAN SAMOA IN LIEU OF EXTENSION OF ECONOMIC 
              DEVELOPMENT CREDIT.

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

SEC. 271. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS DETERMINED 
              BY DOMESTIC INVESTMENT.

    (a) In General.--Section 53 is amended by adding at the end the 
following new subsection:
    ``(g) Election for Corporations With New Domestic Investments.--
            ``(1) In general.--If a corporation elects to have this 
        subsection apply for its first taxable year beginning after 
        December 31, 2009, the limitation imposed by subsection (c) for 
        such taxable year shall be increased by the AMT credit 
        adjustment amount.
            ``(2) AMT credit adjustment amount.--For purposes of 
        paragraph (1), the term `AMT credit adjustment amount' means, 
        the lesser of--
                    ``(A) 50 percent of a corporation's minimum tax 
                credit for its first taxable year beginning after 
                December 31, 2009, determined under subsection (b), or
                    ``(B) 10 percent of new domestic investments made 
                during such taxable year.
            ``(3) New domestic investments.--For purposes of this 
        subsection, the term `new domestic investments' means the cost 
        of qualified property (as defined in section 168(k)(2)(A)(i))--
                    ``(A) the original use of which commences with the 
                taxpayer during the taxable year, and
                    ``(B) which is placed in service in the United 
                States by the taxpayer during such taxable year.
            ``(4) Credit refundable.--For purposes of subsection (b) of 
        section 6401, the aggregate increase in the credits allowable 
        under this part for any taxable year resulting from the 
        application of this subsection shall be treated as allowed 
        under subpart C (and not under any other subpart). For purposes 
        of section 6425, any amount treated as so allowed shall be 
        treated as a payment of estimated income tax for the taxable 
        year.
            ``(5) Election.--An election under this subsection shall be 
        made at such time and in such manner as prescribed by the 
        Secretary, and once made, may be revoked only with the consent 
        of the Secretary. Not later than 90 days after the date of the 
        enactment of this subsection, the Secretary shall issue 
        guidance specifying such time and manner.
            ``(6) Treatment of certain partnership investments.--For 
        purposes of this subsection, a corporation shall take into 
        account its allocable share of any new domestic investments by 
        a partnership for any taxable year if, and only if, more than 
        90 percent of the capital and profits interests in such 
        partnership are owned by such corporation (directly or 
        indirectly) at all times during such taxable year.
            ``(7) No double benefit.--
                    ``(A) In general.--A corporation making an election 
                under this subsection may not make an election under 
                subparagraph (H) of section 172(b)(1).
                    ``(B) Special rules with respect to taxpayers 
                previously electing applicable net operating losses.-- 
                In the case of a corporation which made an election 
                under subparagraph (H) of section 172(b)(1) and elects 
                the application of this subsection--
                            ``(i) Election of applicable net operating 
                        loss treated as revoked.--The election under 
                        such subparagraph (H) shall (notwithstanding 
                        clause (iii)(II) of such subparagraph) be 
                        treated as having been revoked by the taxpayer.
                            ``(ii) Coordination with provision for 
                        expedited refund.--The amount otherwise treated 
                        as a payment of estimated income tax under the 
                        last sentence of paragraph (4) shall be reduced 
                        (but not below zero) by the aggregate increase 
                        in unpaid tax liability determined under this 
                        chapter by reason of the revocation of the 
                        election under clause (i).
                            ``(iii) Application of statute of 
                        limitations.--With respect to the revocation of 
                        an election under clause (i)--
                                    ``(I) the statutory period for the 
                                assessment of any deficiency 
                                attributable to such revocation shall 
                                not expire before the end of the 3-year 
                                period beginning on the date of the 
                                election to have this subsection apply, 
                                and
                                    ``(II) such deficiency may be 
                                assessed before the expiration of such 
                                3-year period notwithstanding the 
                                provisions of any other law or rule of 
                                law which would otherwise prevent such 
                                assessment.
                    ``(C) Exception for eligible small businesses.--
                Subparagraphs (A) and (B) shall not apply to an 
                eligible small business as defined in section 
                172(b)(1)(H)(v)(II).
            ``(8) Regulations.--The Secretary may issue such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out the purposes of this subsection, 
        including to prevent fraud and abuse under this subsection.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) is amended by inserting 
        ``53(g),'' after ``53(e),''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``53(g),'' after ``53(e),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 272. STUDY OF EXTENDED TAX EXPENDITURES.

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

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

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

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

SEC. 282. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.

    (a) In General.--Subclause (I) of section 165(h)(3)(B)(i) is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (b) $500 Limitation.--Paragraph (1) of section 165(h) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to federally declared disasters occurring after December 
        31, 2009.
            (2) $500 limitation.--The amendment made by subsection (b) 
        shall apply to taxable years beginning after December 31, 2009.

SEC. 283. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED DISASTER 
              PROPERTY.

    (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters occurring after December 31, 2009.

SEC. 284. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
              DISASTERS.

    (a) In General.--Subclause (I) of section 172(j)(1)(A)(i) is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to losses attributable to disasters occurring after December 31, 2009.

SEC. 285. EXPENSING OF QUALIFIED DISASTER EXPENSES.

    (a) In General.--Subparagraph (A) of section 198A(b)(2) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures on account of disasters occurring after December 31, 
2009.

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

SEC. 291. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL AND 
              RESIDENTIAL REAL PROPERTY.

    (a) In General.--Subparagraph (A) of section 1400L(b)(2) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 292. TAX-EXEMPT BOND FINANCING.

    (a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

SEC. 295. INCREASE IN REHABILITATION CREDIT.

    (a) In General.--Subsection (h) of section 1400N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2009.

SEC. 296. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN 
              INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR EMPLOYERS 
              INSIDE DISASTER AREAS.

    (a) In General.--Paragraph (1) of section 201(b) of the Katrina 
Emergency Tax Relief Act of 2005 is amended by striking ``4-year'' and 
inserting ``5-year''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individuals hired after August 27, 2009.

SEC. 297. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN 
              GO ZONES.

    Section 1400N(c)(5) is amended by striking ``January 1, 2011'' and 
inserting ``January 1, 2013''.

                     TITLE III--PENSION PROVISIONS

                   Subtitle A--Pension Funding Relief

                     PART 1--SINGLE-EMPLOYER PLANS

SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT PLANS TO 
              AMORTIZE CERTAIN SHORTFALL AMORTIZATION BASES.

    (a) ERISA Amendments.--
            (1) In general.--Section 303(c)(2) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)(2)) 
        is amended by adding at the end the following subparagraphs:
                    ``(D) Special rule.--
                            ``(i) In general.--In the case of the 
                        shortfall amortization base of a plan for any 
                        applicable plan year, the shortfall 
                        amortization installments are the amounts 
                        described in clause (ii) or (iii), if made 
                        applicable by an election under clause (iv). In 
                        the absence of a timely election, such 
                        installments shall be determined without regard 
                        to this subparagraph.
                            ``(ii) 2 plus 7 amortization schedule.--The 
                        shortfall amortization installments described 
                        in this clause are--
                                    ``(I) in the case of the first 2 
                                plan years in the 9-plan-year period 
                                beginning with the applicable plan 
                                year, interest on the shortfall 
                                amortization base (determined by using 
                                the effective interest rate for the 
                                applicable plan year), and
                                    ``(II) in the case of the last 7 
                                plan years in such 9-plan-year period, 
                                the amounts necessary to amortize the 
                                balance of such shortfall amortization 
                                base in level annual installments over 
                                such last 7 plan years (determined 
                                using the segment rates determined 
                                under subparagraph (C) of subsection 
                                (h)(2) for the applicable plan year, 
                                applied under rules similar to the 
                                rules of subparagraph (B) of subsection 
                                (h)(2)).
                            ``(iii) 15-year amortization.--The 
                        shortfall amortization installments described 
                        in this clause are the amounts under 
                        subparagraphs (A) and (B) determined by 
                        substituting `15 plan-year period' for `7-plan-
                        year period'.
                            ``(iv) Election.--
                                    ``(I) In general.--The plan sponsor 
                                may, with respect to a plan, elect, 
                                with respect to any of not more than 2 
                                applicable plan years, to determine 
                                shortfall amortization installments 
                                under this subparagraph. An election 
                                under either clause (ii) or clause 
                                (iii) may be made with respect to 
                                either of such applicable plan years.
                                    ``(II) Eligibility for election.--
                                An election may be made to determine 
                                shortfall amortization installments 
                                under this subparagraph with respect to 
                                a plan only if, as of the date of the 
                                election--
                                            ``(aa) the plan sponsor is 
                                        not a debtor in a case under 
                                        title 11, United States Code, 
                                        or similar Federal or State 
                                        law,
                                            ``(bb) there are no unpaid 
                                        minimum required contributions 
                                        with respect to the plan for 
                                        purposes of section 4971 of the 
                                        Internal Revenue Code of 1986,
                                            ``(cc) there is no lien in 
                                        favor of the plan under 
                                        subsection (k) or under section 
                                        430(k) of such Code, and
                                            ``(dd) a distress 
                                        termination has not been 
                                        initiated for the plan under 
                                        section 4041(c).
                                    ``(III) Rules relating to 
                                election.--Such election shall be made 
                                at such times, and in such form and 
                                manner, as shall be prescribed by the 
                                Secretary of the Treasury and shall be 
                                irrevocable, except under such limited 
                                circumstances, and subject to such 
                                conditions, as such Secretary may 
                                prescribe.
                    ``(E) Applicable plan year.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `applicable plan year' 
                        means, subject to the election of the plan 
                        sponsor under subparagraph (D)(iv), each of not 
                        more than 2 of the plan years beginning in 
                        2008, 2009, 2010, or 2011.
                            ``(ii) Special rule relating to 2008.--A 
                        plan year may be elected as an applicable plan 
                        year pursuant to this subparagraph only if the 
                        due date under subsection (j)(1) for the 
                        payment of the minimum required contribution 
                        for such plan year occurs on or after March 10, 
                        2010.
                    ``(F) Increases in shortfall amortization 
                installments in cases of excess compensation or certain 
                dividends or stock redemptions.--
                            ``(i) In general.--If, with respect to an 
                        election for an applicable plan year under 
                        subparagraph (D), there is an installment 
                        acceleration amount with respect to a plan for 
                        any plan year in the restriction period (or if 
                        there is an installment acceleration amount 
                        carried forward to a plan year not in the 
                        restriction period), then the shortfall 
                        amortization installment otherwise determined 
                        and payable under this paragraph for such plan 
                        year shall be increased by such amount.
                            ``(ii) Back-end adjustment to amortization 
                        schedule.--Subject to rules prescribed by the 
                        Secretary of the Treasury, if a shortfall 
                        amortization installment with respect to any 
                        shortfall amortization base for an applicable 
                        plan year is required to be increased for any 
                        plan year under clause (i), subsequent 
                        shortfall amortization installments with 
                        respect to such base shall be reduced, in 
                        reverse order of the otherwise required 
                        installments beginning with the final scheduled 
                        installment, to the extent necessary to limit 
                        the present value of such subsequent shortfall 
                        amortization installments (after application of 
                        this subparagraph) to the present value of the 
                        remaining unamortized shortfall amortization 
                        base.
                            ``(iii) Installment acceleration amount.--
                        For purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `installment acceleration amount' 
                                means, with respect to any plan year in 
                                a restriction period with respect to an 
                                applicable plan year, the sum of--
                                            ``(aa) the aggregate amount 
                                        of excess employee compensation 
                                        determined under clause (iv) 
                                        for the plan year, plus
                                            ``(bb) the dividend and 
                                        redemption amount determined 
                                        under clause (v) for the plan 
                                        year.
                                    ``(II) Cumulative limitation.--The 
                                installment acceleration amount for any 
                                plan year shall not exceed the excess 
                                (if any) of--
                                            ``(aa) the sum of the 
                                        shortfall amortization 
                                        installments for the plan year 
                                        and all preceding plan years in 
                                        the amortization period elected 
                                        under subparagraph (D) with 
                                        respect to the shortfall 
                                        amortization base with respect 
                                        to an applicable year, 
                                        determined without regard to 
                                        subparagraph (D) and this 
                                        subparagraph, over
                                            ``(bb) the sum of the 
                                        shortfall amortization 
                                        installments for such plan year 
                                        and all such preceding plan 
                                        years, determined after 
                                        application of subparagraph (D) 
                                        (and in the case of any 
                                        preceding plan year, after 
                                        application of this 
                                        subparagraph).
                                    ``(III) Carryover of excess 
                                installment acceleration amounts.--
                                            ``(aa) In general.--If the 
                                        installment acceleration amount 
                                        for any plan year (determined 
                                        without regard to subclause 
                                        (II)) exceeds the limitation 
                                        under subclause (II), then, 
                                        subject to item (bb), such 
                                        excess shall be treated as an 
                                        installment acceleration amount 
                                        for the succeeding plan year.
                                            ``(bb) Cap to apply.--If 
                                        any amount treated as an 
                                        installment acceleration amount 
                                        under item (aa) or this item 
                                        with respect any succeeding 
                                        plan year, when added to other 
                                        installment acceleration 
                                        amounts (determined without 
                                        regard to subclause (II)) with 
                                        respect to the plan year, 
                                        exceeds the limitation under 
                                        subclause (II), the portion of 
                                        such amount representing such 
                                        excess shall be treated as an 
                                        installment acceleration amount 
                                        with respect to the next 
                                        succeeding plan year.
                                            ``(cc) Limitation on years 
                                        to which amounts carried 
                                        forward.--No amount shall be 
                                        carried forward under item (aa) 
                                        or (bb) to a plan year which 
                                        begins after the last plan year 
                                        in the restriction period (or 
                                        after the second plan year 
                                        following such last plan year 
                                        in the case of an election year 
                                        with respect to which 15-year 
                                        amortization was elected under 
                                        subparagraph (D)(iii)).
                                            ``(dd) Ordering rules.--For 
                                        purposes of applying item (bb), 
                                        installment acceleration 
                                        amounts for the plan year 
                                        (determined without regard to 
                                        any carryover under this 
                                        clause) shall be applied first 
                                        against the limitation under 
                                        subclause (II) and then 
                                        carryovers to such plan year 
                                        shall be applied against such 
                                        limitation on a first-in, 
                                        first-out basis.
                            ``(iv) Excess employee compensation.--
                                    ``(I) In general.--For purposes of 
                                this paragraph, the term `excess 
                                employee compensation' means the sum 
                                of--
                                            ``(aa) with respect to any 
                                        employee, for any plan year, 
                                        the excess (if any) of--

                                                    ``(AA) the 
                                                aggregate amount 
                                                includible in income 
                                                under chapter 1 of the 
                                                Internal Revenue Code 
                                                of 1986 for 
                                                remuneration during the 
                                                calendar year in which 
                                                such plan year begins 
                                                for services performed 
                                                by the employee for the 
                                                plan sponsor (whether 
                                                or not performed during 
                                                such calendar year), 
                                                over

                                                    ``(BB) $1,000,000, 
                                                plus

                                            ``(bb) the amount of assets 
                                        set aside or reserved (directly 
                                        or indirectly) in a trust (or 
                                        other arrangement as determined 
                                        by the Secretary of the 
                                        Treasury), or transferred to 
                                        such a trust or other 
                                        arrangement, during the 
                                        calendar year by a plan sponsor 
                                        for purposes of paying deferred 
                                        compensation of an employee 
                                        under a nonqualified deferred 
                                        compensation plan (as defined 
                                        in section 409A of such Code) 
                                        of the plan sponsor.
                                    ``(II) No double counting.--No 
                                amount shall be taken into account 
                                under subclause (I) more than once.
                                    ``(III) Employee; remuneration.--
                                For purposes of this clause, the term 
                                `employee' includes, with respect to a 
                                calendar year, a self-employed 
                                individual who is treated as an 
                                employee under section 401(c) of the 
                                Internal Revenue Code of 1986 for the 
                                taxable year ending during such 
                                calendar year, and the term 
                                `remuneration' shall include earned 
                                income of such an individual.
                                    ``(IV) Certain payments under 
                                existing contracts.--There shall not be 
                                taken into account under subclause 
                                (I)(aa) any remuneration consisting of 
                                nonqualified deferred compensation, 
                                restricted stock (or restricted stock 
                                units), stock options, or stock 
                                appreciation rights payable or granted 
                                under a written binding contract that 
                                was in effect on March 1, 2010, and 
                                which was not modified in any material 
                                respect before such remuneration is 
                                paid.
                                    ``(V) Only remuneration for post-
                                2009 services counted.--Remuneration 
                                shall be taken into account under 
                                subclause (I)(aa) only to the extent 
                                attributable to services performed by 
                                the employee for the plan sponsor after 
                                December 31, 2009.
                                    ``(VI) Commissions.--
                                            ``(aa) In general.--There 
                                        shall not be taken into account 
                                        under subclause (I)(aa) any 
                                        remuneration payable on a 
                                        commission basis solely on 
                                        account of income directly 
                                        generated by the individual 
                                        performance of the individual 
                                        to whom such remuneration is 
                                        payable.
                                            ``(bb) Specified 
                                        employees.--Item (aa) shall not 
                                        apply in the case of any 
                                        specified employee (within the 
                                        meaning of section 
                                        409A(a)(2)(B)(i) of the 
                                        Internal Revenue Code of 1986) 
                                        or any employee who would be 
                                        such a specified employee if 
                                        the plan sponsor were a 
                                        corporation described in such 
                                        section.
                                    ``(VII) Indexing of amount.--In the 
                                case of any calendar year beginning 
                                after 2010, the dollar amount under 
                                subclause (I)(aa)(BB) shall be 
                                increased by an amount equal to--
                                            ``(aa) such dollar amount, 
                                        multiplied by
                                            ``(bb) the cost-of-living 
                                        adjustment determined under 
                                        section 1(f)(3) of the Internal 
                                        Revenue Code of 1986 for the 
                                        calendar year, determined by 
                                        substituting `calendar year 
                                        2009' for `calendar year 1992' 
                                        in subparagraph (B) thereof.
                                If the amount of any increase under 
                                clause (i) is not a multiple of 
                                $20,000, such increase shall be rounded 
                                to the next lowest multiple of $20,000.
                            ``(v) Certain dividends and redemptions.--
                                    ``(I) In general.--The dividend and 
                                redemption amount determined under this 
                                clause for any plan year is the lesser 
                                of--
                                            ``(aa) the excess of--

                                                    ``(AA) the sum of 
                                                the dividends paid 
                                                during the plan year by 
                                                the plan sponsor, plus 
                                                the amounts paid for 
                                                the redemption of stock 
                                                of the plan sponsor 
                                                redeemed during the 
                                                plan year, over

                                                    ``(BB) an amount 
                                                equal to the average of 
                                                adjusted annual net 
                                                income of the plan 
                                                sponsor for the last 5 
                                                fiscal years of the 
                                                plan sponsor ending 
                                                before such plan year, 
                                                or

                                            ``(bb) the sum of--

                                                    ``(AA) the amounts 
                                                paid for the redemption 
                                                of stock of the plan 
                                                sponsor redeemed during 
                                                the plan year, plus

                                                    ``(BB) the excess 
                                                of dividends paid 
                                                during the plan year by 
                                                the plan sponsor over 
                                                the dividend base 
                                                amount.

                                    ``(II) Definitions.--
                                            ``(aa) Adjusted annual net 
                                        income.--For purposes of 
                                        subclause (I)(aa)(BB), the term 
                                        `adjusted annual net income' 
                                        with respect to any fiscal year 
                                        means annual net income, 
                                        determined in accordance with 
                                        generally accepted accounting 
                                        principles (before after-tax 
                                        gain or loss on any sale of 
                                        assets), but without regard to 
                                        any reduction by reason of 
                                        depreciation or amortization, 
                                        except that in no event shall 
                                        adjusted annual net income for 
                                        any fiscal year be less than 
                                        zero.
                                            ``(bb) Dividend base 
                                        amount.--For purposes of this 
                                        clause, the term `dividend base 
                                        amount' means, with respect to 
                                        a plan year, an amount equal to 
                                        the greater of--

                                                    ``(AA) the median 
                                                of the amounts of the 
                                                dividends paid during 
                                                each of the last 5 
                                                fiscal years of the 
                                                plan sponsor ending 
                                                before such plan year, 
                                                or

                                                    ``(BB) the amount 
                                                of dividends paid 
                                                during such plan year 
                                                on preferred stock that 
                                                was issued on or before 
                                                May 21, 2010, or that 
                                                is replacement stock 
                                                for such preferred 
                                                stock.

                                    ``(III) Only certain post-2009 
                                dividends and redemptions counted.--For 
                                purposes of subclause (I) (other than 
                                for purposes of calculating the 
                                dividend base amount), there shall only 
                                be taken into account dividends 
                                declared, and redemptions occurring, 
                                after February 28, 2010.
                                    ``(IV) Exception for intra-group 
                                dividends.--Dividends paid by one 
                                member of a controlled group (as 
                                defined in section 302(d)(3)) to 
                                another member of such group shall not 
                                be taken into account under subclause 
                                (I).
                                    ``(V) Exception for stock 
                                dividends.--Any distribution by the 
                                plan sponsor to its shareholders of 
                                stock issued by the plan sponsor shall 
                                not be taken into account under 
                                subclause (I).
                                    ``(VI) Exception for certain 
                                redemptions.--The following shall not 
                                be taken into account under subclause 
                                (I):
                                            ``(aa) Redemptions of 
                                        securities which, at the time 
                                        of redemption, are not listed 
                                        on an established securities 
                                        market and--

                                                    ``(AA) are made 
                                                pursuant to a pension 
                                                plan that is qualified 
                                                under section 401 of 
                                                the Internal Revenue 
                                                Code of 1986 or a 
                                                shareholder-approved 
                                                program, or

                                                    ``(BB) are made on 
                                                account of an 
                                                employee's termination 
                                                of employment with the 
                                                plan sponsor, or the 
                                                death or disability of 
                                                a shareholder.

                                            ``(bb) Redemptions of 
                                        securities which are not, 
                                        immediately after issuance, 
                                        listed on an established 
                                        securities market and are, or 
                                        had previously been--

                                                    ``(AA) held, 
                                                directly or indirectly, 
                                                by, or for the benefit 
                                                of, the Federal 
                                                Government or a Federal 
                                                reserve bank, or

                                                    ``(BB) held by a 
                                                national government (or 
                                                a government-related 
                                                entity of such a 
                                                government) or an 
                                                employee benefit plan 
                                                if such shares are 
                                                substantially identical 
                                                to shares described in 
                                                subitem (AA).

                            ``(vi) Other definitions and rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Plan sponsor.--The term `plan 
                                sponsor' includes any member of the 
                                plan sponsor's controlled group (as 
                                defined in section 302(d)(3)).
                                    ``(II) Restriction period.--The 
                                term `restriction period' means, with 
                                respect to any applicable plan year 
                                with respect to which an election is 
                                made under subparagraph (D)--
                                            ``(aa) except as provided 
                                        in item (bb), the 3-year period 
                                        beginning with the applicable 
                                        plan year (or, if later, the 
                                        first plan year beginning after 
                                        December 31, 2009), or
                                            ``(bb) if the plan sponsor 
                                        elects 15-year amortization for 
                                        the shortfall amortization base 
                                        for the applicable plan year, 
                                        the 5-year period beginning 
                                        with such plan year (or, if 
                                        later, the first plan year 
                                        beginning after December 31, 
                                        2009).
                                    ``(III) Elections for multiple 
                                plans.--If a plan sponsor makes 
                                elections under subparagraph (D) with 
                                respect to 2 or more plans, the 
                                Secretary of the Treasury shall provide 
                                rules for the application of this 
                                subparagraph to such plans, including 
                                rules for the ratable allocation of any 
                                installment acceleration amount among 
                                such plans on the basis of each plan's 
                                relative reduction in the plan's 
                                shortfall amortization installment for 
                                the first plan year in the amortization 
                                period described in clause (i) 
                                (determined without regard to this 
                                subparagraph).
                    ``(G) Mergers and acquisitions.--The Secretary of 
                the Treasury shall prescribe rules for the application 
                of subparagraphs (D) and (F) in any case where there is 
                a merger or acquisition involving a plan sponsor making 
                the election under subparagraph (D).
                    ``(H) Regulations and guidance.--The Secretary of 
                the Treasury may prescribe such regulations and other 
                guidance of general applicability as such Secretary may 
                determine necessary to achieve the purposes of 
                subparagraphs (D) and (F).''.
            (2) Notice requirement.--Section 204 of such Act (29 U.S.C. 
        1054) is amended--
                    (A) by redesignating subsection (k) as subsection 
                (l); and
                    (B) by inserting after subsection (j) the following 
                new subsection:
    ``(k) Notice in Connection With Shortfall Amortization Election.--
            ``(1) In general.--Not later 30 days after the date of an 
        election under clause (iv) of section 303(c)(2)(D) in 
        connection with a single-employer plan, the plan administrator 
        shall provide notice of such election in accordance with this 
        subsection to each plan participant and beneficiary, each labor 
        organization representing such participants and beneficiaries, 
        and the Pension Benefit Guaranty Corporation.
            ``(2) Matters included in notice.--Each notice provided 
        pursuant to this subsection shall set forth--
                    ``(A) a statement that recently enacted legislation 
                permits employers to delay pension funding;
                    ``(B) with respect to required contributions--
                            ``(i) the amount of contributions that 
                        would have been required had the election not 
                        been made;
                            ``(ii) the amount of the reduction in 
                        required contributions for the applicable plan 
                        year that occurs on account of the election; 
                        and
                            ``(iii) the number of plan years to which 
                        such reduction will apply;
                    ``(C) with respect to a plan's funding status as of 
                the end of the plan year preceding the applicable plan 
                year--
                            ``(i) the liabilities determined under 
                        section 4010(d)(1)(A); and
                            ``(ii) the market value of assets of the 
                        plan; and
                    ``(D) with respect to installment acceleration 
                amounts (as defined in section 303(c)(2)(F)(iii)(I))--
                            ``(i) an explanation of section 
                        303(c)(2)(F) (relating to increases in 
                        shortfall amortization installments in cases of 
                        excess compensation or certain dividends or 
                        stock redemptions); and
                            ``(ii) a statement that increases in 
                        required contributions may occur in the event 
                        of future payments of excess employee 
                        compensation or certain share repurchasing or 
                        dividend activity and that subsequent notices 
                        of any such payments or activity will be 
                        provided in the annual funding notice provided 
                        pursuant to section 101(f).
            ``(3) Other requirements.--
                    ``(A) Form.--The notice required by paragraph (1) 
                shall be written in a manner calculated to be 
                understood by the average plan participant. The 
                Secretary of the Treasury shall prescribe a model 
                notice that a plan administrator may use to satisfy the 
                requirements of paragraph (1).
                    ``(B) Provision to designated persons.--Any notice 
                under paragraph (1) may be provided to a person 
                designated, in writing, by the person to which it would 
                otherwise be provided.
            ``(4) Effect of egregious failure.--
                    ``(A) In general.--In the case of any egregious 
                failure to meet any requirement of this subsection with 
                respect to any election, such election shall be treated 
                as having not been made.
                    ``(B) Egregious failure.--For purposes of 
                subparagraph (A), there is an egregious failure to meet 
                the requirements of this subsection if such failure is 
                in the control of the plan sponsor and is--
                            ``(i) an intentional failure (including any 
                        failure to promptly provide the required notice 
                        or information after the plan administrator 
                        discovers an unintentional failure to meet the 
                        requirements of this subsection),
                            ``(ii) a failure to provide most of the 
                        participants and beneficiaries with most of the 
                        information they are entitled to receive under 
                        this subsection, or
                            ``(iii) a failure which is determined to be 
                        egregious under regulations prescribed by the 
                        Secretary of the Treasury.
            ``(5) Use of new technologies.--The Secretary of the 
        Treasury may, in consultation with the Secretary, by 
        regulations or other guidance of general applicability, allow 
        any notice under this subsection to be provided using new 
        technologies.''.
                    (C) Subsequent supplemental notices.--Section 
                101(f)(2)(C) of such Act (29 U.S.C. 1021(f)(2)(C)) is 
                amended--
                            (i) by striking ``and'' at the end of 
                        clause (i);
                            (ii) by redesignating clause (ii) as clause 
                        (iii); and
                            (iii) by inserting after clause (i) the 
                        following new clause:
                            ``(ii) any excess employee compensation 
                        amounts and any dividends and redemptions 
                        amounts determined under section 303(c)(2)(F) 
                        for the preceding plan year with respect to the 
                        plan, and''.
            (3) Disregard of installment acceleration amounts in 
        determining quarterly contributions.--Section 303(j)(3) of such 
        Act (29 U.S.C. 1083(j)(3)) is amended by adding at the end the 
        following new subparagraph:
                    ``(F) Disregard of installment acceleration 
                amounts.--Subparagraph (D) shall be applied without 
                regard to any increase under subsection (c)(2)(F).''.
            (4) Conforming amendment.--Section 303(c)(1) of such Act 
        (29 U.S.C. 1083(c)(1)) is amended by striking ``the shortfall 
        amortization bases for such plan year and each of the 6 
        preceding plan years'' and inserting ``any shortfall 
        amortization base which has not been fully amortized under this 
        subsection''.
    (b) IRC Amendments.--
            (1) In general.--Section 430(c)(2) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following 
        subparagraphs:
                    ``(D) Special rule.--
                            ``(i) In general.--In the case of the 
                        shortfall amortization base of a plan for any 
                        applicable plan year, the shortfall 
                        amortization installments are the amounts 
                        described in clause (ii) or (iii), if made 
                        applicable by an election under clause (iv). In 
                        the absence of a timely election, such 
                        installments shall be determined without regard 
                        to this subparagraph.
                            ``(ii) 2 plus 7 amortization schedule.--The 
                        shortfall amortization installments described 
                        in this clause are--
                                    ``(I) in the case of the first 2 
                                plan years in the 9-plan-year period 
                                beginning with the applicable plan 
                                year, interest on the shortfall 
                                amortization base (determined by using 
                                the effective interest rate for the 
                                applicable plan year), and
                                    ``(II) in the case of the last 7 
                                plan years in such 9-plan-year period, 
                                the amounts necessary to amortize the 
                                balance of such shortfall amortization 
                                base in level annual installments over 
                                such last 7 plan years (determined 
                                using the segment rates determined 
                                under subparagraph (C) of subsection 
                                (h)(2) for the applicable plan year, 
                                applied under rules similar to the 
                                rules of subparagraph (B) of subsection 
                                (h)(2)).
                            ``(iii) 15-year amortization.--The 
                        shortfall amortization installments described 
                        in this clause are the amounts under 
                        subparagraphs (A) and (B) determined by 
                        substituting `15 plan-year period' for `7-plan-
                        year period'.
                            ``(iv) Election.--
                                    ``(I) In general.--The plan sponsor 
                                may, with respect to a plan, elect, 
                                with respect to any of not more than 2 
                                applicable plan years, to determine 
                                shortfall amortization installments 
                                under this subparagraph. An election 
                                under either clause (ii) or clause 
                                (iii) may be made with respect to 
                                either of such applicable plan years.
                                    ``(II) Eligibility for election.--
                                An election may be made to determine 
                                shortfall amortization installments 
                                under this subparagraph with respect to 
                                a plan only if, as of the date of the 
                                election--
                                            ``(aa) the plan sponsor is 
                                        not a debtor in a case under 
                                        title 11, United States Code, 
                                        or similar Federal or State 
                                        law,
                                            ``(bb) there are no unpaid 
                                        minimum required contributions 
                                        with respect to the plan for 
                                        purposes of section 4971,
                                            ``(cc) there is no lien in 
                                        favor of the plan under 
                                        subsection (k) or under section 
                                        303(k) of the Employee 
                                        Retirement Income Security Act 
                                        of 1974, and
                                            ``(dd) a distress 
                                        termination has not been 
                                        initiated for the plan under 
                                        section 4041(c) of such Act.
                                    ``(III) Rules relating to 
                                election.--Such election shall be made 
                                at such times, and in such form and 
                                manner, as shall be prescribed by the 
                                Secretary and shall be irrevocable, 
                                except under such limited 
                                circumstances, and subject to such 
                                conditions, as the Secretary may 
                                prescribe.
                    ``(E) Applicable plan year.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `applicable plan year' 
                        means, subject to the election of the plan 
                        sponsor under subparagraph (D)(iv), each of not 
                        more than 2 of the plan years beginning in 
                        2008, 2009, 2010, or 2011.
                            ``(ii) Special rule relating to 2008.--A 
                        plan year may be elected as an applicable plan 
                        year pursuant to this subparagraph only if the 
                        due date under subsection (j)(1) for the 
                        payment of the minimum required contribution 
                        for such plan year occurs on or after March 10, 
                        2010.
                    ``(F) Increases in shortfall amortization 
                installments in cases of excess compensation or certain 
                dividends or stock redemptions.--
                            ``(i) In general.--If, with respect to an 
                        election for an applicable plan year under 
                        subparagraph (D), there is an installment 
                        acceleration amount with respect to a plan for 
                        any plan year in the restriction period (or if 
                        there is an installment acceleration amount 
                        carried forward to a plan year not in the 
                        restriction period), then the shortfall 
                        amortization installment otherwise determined 
                        and payable under this paragraph for such plan 
                        year shall be increased by such amount.
                            ``(ii) Back-end adjustment to amortization 
                        schedule.--Subject to rules prescribed by the 
                        Secretary, if a shortfall amortization 
                        installment with respect to any shortfall 
                        amortization base for an applicable plan year 
                        is required to be increased for any plan year 
                        under clause (i), subsequent shortfall 
                        amortization installments with respect to such 
                        base shall be reduced, in reverse order of the 
                        otherwise required installments beginning with 
                        the final scheduled installment, to the extent 
                        necessary to limit the present value of such 
                        subsequent shortfall amortization installments 
                        (after application of this subparagraph) to the 
                        present value of the remaining unamortized 
                        shortfall amortization base.
                            ``(iii) Installment acceleration amount.--
                        For purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `installment acceleration amount' 
                                means, with respect to any plan year in 
                                a restriction period with respect to an 
                                applicable plan year, the sum of--
                                            ``(aa) the aggregate amount 
                                        of excess employee compensation 
                                        determined under clause (iv) 
                                        for the plan year, plus
                                            ``(bb) the dividend and 
                                        redemption amount determined 
                                        under clause (v) for the plan 
                                        year.
                                    ``(II) Cumulative limitation.--The 
                                installment acceleration amount for any 
                                plan year shall not exceed the excess 
                                (if any) of--
                                            ``(aa) the sum of the 
                                        shortfall amortization 
                                        installments for the plan year 
                                        and all preceding plan years in 
                                        the amortization period elected 
                                        under subparagraph (D) with 
                                        respect to the shortfall 
                                        amortization base with respect 
                                        to an applicable year, 
                                        determined without regard to 
                                        subparagraph (D) and this 
                                        subparagraph, over
                                            ``(bb) the sum of the 
                                        shortfall amortization 
                                        installments for such plan year 
                                        and all such preceding plan 
                                        years, determined after 
                                        application of subparagraph (D) 
                                        (and in the case of any 
                                        preceding plan year, after 
                                        application of this 
                                        subparagraph).
                                    ``(III) Carryover of excess 
                                installment acceleration amounts.--
                                            ``(aa) In general.--If the 
                                        installment acceleration amount 
                                        for any plan year (determined 
                                        without regard to subclause 
                                        (II)) exceeds the limitation 
                                        under subclause (II), then, 
                                        subject to item (bb), such 
                                        excess shall be treated as an 
                                        installment acceleration amount 
                                        for the succeeding plan year.
                                            ``(bb) Cap to apply.--If 
                                        any amount treated as an 
                                        installment acceleration amount 
                                        under item (aa) or this item 
                                        with respect any succeeding 
                                        plan year, when added to other 
                                        installment acceleration 
                                        amounts (determined without 
                                        regard to subclause (II)) with 
                                        respect to the plan year, 
                                        exceeds the limitation under 
                                        subclause (II), the portion of 
                                        such amount representing such 
                                        excess shall be treated as an 
                                        installment acceleration amount 
                                        with respect to the next 
                                        succeeding plan year.
                                            ``(cc) Limitation on years 
                                        to which amounts carried 
                                        forward.--No amount shall be 
                                        carried forward under item (aa) 
                                        or (bb) to a plan year which 
                                        begins after the last plan year 
                                        in the restriction period (or 
                                        after the second plan year 
                                        following such last plan year 
                                        in the case of an election year 
                                        with respect to which 15-year 
                                        amortization was elected under 
                                        subparagraph (D)(iii)).
                                            ``(dd) Ordering rules.--For 
                                        purposes of applying item (bb), 
                                        installment acceleration 
                                        amounts for the plan year 
                                        (determined without regard to 
                                        any carryover under this 
                                        clause) shall be applied first 
                                        against the limitation under 
                                        subclause (II) and then 
                                        carryovers to such plan year 
                                        shall be applied against such 
                                        limitation on a first-in, 
                                        first-out basis.
                            ``(iv) Excess employee compensation.--
                                    ``(I) In general.--For purposes of 
                                this paragraph, the term `excess 
                                employee compensation' means the sum 
                                of--
                                            ``(aa) with respect to any 
                                        employee, for any plan year, 
                                        the excess (if any) of--

                                                    ``(AA) the 
                                                aggregate amount 
                                                includible in income 
                                                under chapter 1 for 
                                                remuneration during the 
                                                calendar year in which 
                                                such plan year begins 
                                                for services performed 
                                                by the employee for the 
                                                plan sponsor (whether 
                                                or not performed during 
                                                such calendar year), 
                                                over

                                                    ``(BB) $1,000,000, 
                                                plus

                                            ``(bb) the amount of assets 
                                        set aside or reserved (directly 
                                        or indirectly) in a trust (or 
                                        other arrangement as determined 
                                        by the Secretary), or 
                                        transferred to such a trust or 
                                        other arrangement, during the 
                                        calendar year by a plan sponsor 
                                        for purposes of paying deferred 
                                        compensation of an employee 
                                        under a nonqualified deferred 
                                        compensation plan (as defined 
                                        in section 409A) of the plan 
                                        sponsor.
                                    ``(II) No double counting.--No 
                                amount shall be taken into account 
                                under subclause (I) more than once.
                                    ``(III) Employee; remuneration.--
                                For purposes of this clause, the term 
                                `employee' includes, with respect to a 
                                calendar year, a self-employed 
                                individual who is treated as an 
                                employee under section 401(c) for the 
                                taxable year ending during such 
                                calendar year, and the term 
                                `remuneration' shall include earned 
                                income of such an individual.
                                    ``(IV) Certain payments under 
                                existing contracts.--There shall not be 
                                taken into account under subclause (I) 
                                any remuneration consisting of 
                                nonqualified deferred compensation, 
                                restricted stock (or restricted stock 
                                units), stock options, or stock 
                                appreciation rights payable or granted 
                                under a written binding contract that 
                                was in effect on March 1, 2010, and 
                                which was not modified in any material 
                                respect before such remuneration is 
                                paid.
                                    ``(V) Only remuneration for post-
                                2009 services counted.--Remuneration 
                                shall be taken into account under 
                                subclause (I)(aa) only to the extent 
                                attributable to services performed by 
                                the employee for the plan sponsor after 
                                December 31, 2009.
                                    ``(VI) Commissions.--
                                            ``(aa) In general.--There 
                                        shall not be taken into account 
                                        under subclause (I)(aa) any 
                                        remuneration payable on a 
                                        commission basis solely on 
                                        account of income directly 
                                        generated by the individual 
                                        performance of the individual 
                                        to whom such remuneration is 
                                        payable.
                                            ``(bb) Specified 
                                        employees.--Item (aa) shall not 
                                        apply in the case of any 
                                        specified employee (within the 
                                        meaning of section 
                                        409A(a)(2)(B)(i)) or any 
                                        employee who would be such a 
                                        specified employee if the plan 
                                        sponsor were a corporation 
                                        described in such section.
                                    ``(VII) Indexing of amount.--In the 
                                case of any calendar year beginning 
                                after 2010, the dollar amount under 
                                subclause (I)(aa)(BB) shall be 
                                increased by an amount equal to--
                                            ``(aa) such dollar amount, 
                                        multiplied by
                                            ``(bb) the cost-of-living 
                                        adjustment determined under 
                                        section 1(f)(3) for the 
                                        calendar year, determined by 
                                        substituting `calendar year 
                                        2009' for `calendar year 1992' 
                                        in subparagraph (B) thereof.
                                If the amount of any increase under 
                                clause (i) is not a multiple of 
                                $20,000, such increase shall be rounded 
                                to the next lowest multiple of $20,000.
                            ``(v) Certain dividends and redemptions.--
                                    ``(I) In general.--The dividend and 
                                redemption amount determined under this 
                                clause for any plan year is the lesser 
                                of--
                                            ``(aa) the excess of--

                                                    ``(AA) the sum of 
                                                the dividends paid 
                                                during the plan year by 
                                                the plan sponsor, plus 
                                                the amounts paid for 
                                                the redemption of stock 
                                                of the plan sponsor 
                                                redeemed during the 
                                                plan year, over

                                                    ``(BB) an amount 
                                                equal to the average of 
                                                adjusted annual net 
                                                income of the plan 
                                                sponsor for the last 5 
                                                fiscal years of the 
                                                plan sponsor ending 
                                                before such plan year, 
                                                or

                                            ``(bb) the sum of--

                                                    ``(AA) the amounts 
                                                paid for the redemption 
                                                of stock of the plan 
                                                sponsor redeemed during 
                                                the plan year, plus

                                                    ``(BB) the excess 
                                                of dividends paid 
                                                during the plan year by 
                                                the plan sponsor over 
                                                the dividend base 
                                                amount.

                                    ``(II) Definitions.--
                                            ``(aa) Adjusted annual net 
                                        income.--For purposes of 
                                        subclause (I)(aa)(BB), the term 
                                        `adjusted annual net income' 
                                        with respect to any fiscal year 
                                        means annual net income, 
                                        determined in accordance with 
                                        generally accepted accounting 
                                        principles (before after-tax 
                                        gain or loss on any sale of 
                                        assets), but without regard to 
                                        any reduction by reason of 
                                        depreciation or amortization, 
                                        except that in no event shall 
                                        adjusted annual net income for 
                                        any fiscal year be less than 
                                        zero.
                                            ``(bb) Dividend base 
                                        amount.--For purposes of this 
                                        clause, the term `dividend base 
                                        amount' means, with respect to 
                                        a plan year, an amount equal to 
                                        the greater of--

                                                    ``(AA) the median 
                                                of the amounts of the 
                                                dividends paid during 
                                                each of the last 5 
                                                fiscal years of the 
                                                plan sponsor ending 
                                                before such plan year, 
                                                or

                                                    ``(BB) the amount 
                                                of dividends paid 
                                                during such plan year 
                                                on preferred stock that 
                                                was issued on or before 
                                                May 21, 2010, or that 
                                                is replacement stock 
                                                for such preferred 
                                                stock.

                                    ``(III) Only certain post-2009 
                                dividends and redemptions counted.--For 
                                purposes of subclause (I) (other than 
                                for purposes of calculating the 
                                dividend base amount), there shall only 
                                be taken into account dividends 
                                declared, and redemptions occurring, 
                                after February 28, 2010.
                                    ``(IV) Exception for intra-group 
                                dividends.--Dividends paid by one 
                                member of a controlled group (as 
                                defined in section 412(d)(3)) to 
                                another member of such group shall not 
                                be taken into account under subclause 
                                (I).
                                    ``(V) Exception for stock 
                                dividends.--Any distribution by the 
                                plan sponsor to its shareholders of 
                                stock issued by the plan sponsor shall 
                                not be taken into account under 
                                subclause (I).
                                    ``(VI) Exception for certain 
                                redemptions.--The following shall not 
                                be taken into account under subclause 
                                (I):
                                            ``(aa) Redemptions of 
                                        securities which, at the time 
                                        of redemption, are not listed 
                                        on an established securities 
                                        market and--

                                                    ``(AA) are made 
                                                pursuant to a pension 
                                                plan that is qualified 
                                                under section 401 or a 
                                                shareholder-approved 
                                                program, or

                                                    ``(BB) are made on 
                                                account of an 
                                                employee's termination 
                                                of employment with the 
                                                plan sponsor, or the 
                                                death or disability of 
                                                a shareholder.

                                            ``(bb) Redemptions of 
                                        securities which are not, 
                                        immediately after issuance, 
                                        listed on an established 
                                        securities market and are, or 
                                        had previously been--

                                                    ``(AA) held, 
                                                directly or indirectly, 
                                                by, or for the benefit 
                                                of, the Federal 
                                                Government or a Federal 
                                                reserve bank, or

                                                    ``(BB) held by a 
                                                national government (or 
                                                a government-related 
                                                entity of such a 
                                                government) or an 
                                                employee benefit plan 
                                                if such shares are 
                                                substantially identical 
                                                to shares described in 
                                                subitem (AA).

                            ``(vi) Other definitions and rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Plan sponsor.--The term `plan 
                                sponsor' includes any group of which 
                                the plan sponsor is a member and which 
                                is treated as a single employer under 
                                subsection (b), (c), (m), or (o) of 
                                section 414.
                                    ``(II) Restriction period.--The 
                                term `restriction period' means, with 
                                respect to any applicable plan year 
                                with respect to which an election is 
                                made under subparagraph (D)--
                                            ``(aa) except as provided 
                                        in item (bb), the 3-year period 
                                        beginning with the applicable 
                                        plan year (or, if later, the 
                                        first plan year beginning after 
                                        December 31, 2009), or
                                            ``(bb) if the plan sponsor 
                                        elects 15-year amortization for 
                                        the shortfall amortization base 
                                        for the applicable plan year, 
                                        the 5-year period beginning 
                                        with such plan year (or, if 
                                        later, the first plan year 
                                        beginning after December 31, 
                                        2009).
                                    ``(III) Elections for multiple 
                                plans.--If a plan sponsor makes 
                                elections under subparagraph (D) with 
                                respect to 2 or more plans, the 
                                Secretary shall provide rules for the 
                                application of this subparagraph to 
                                such plans, including rules for the 
                                ratable allocation of any installment 
                                acceleration amount among such plans on 
                                the basis of each plan's relative 
                                reduction in the plan's shortfall 
                                amortization installment for the first 
                                plan year in the amortization period 
                                described in clause (i) (determined 
                                without regard to this subparagraph).
                    ``(G) Mergers and acquisitions.--The Secretary 
                shall prescribe rules for the application of 
                subparagraphs (D) and (F) in any case where there is a 
                merger or acquisition involving a plan sponsor making 
                the election under subparagraph (D).
                    ``(H) Regulations and guidance.--The Secretary may 
                prescribe such regulations and other guidance of 
                general applicability as the Secretary may determine 
                necessary to achieve the purposes of subparagraphs (D) 
                and (F).''.
            (2) Notice requirement.--
                    (A) In general.--Section 4980F of such Code is 
                amended--
                            (i) by striking ``subsection (e)'' each 
                        place it appears in subsection (a) and 
                        paragraphs (1) and (3) of subsection (c) and 
                        inserting ``subsections (e) and (f)'';
                            (ii) by striking ``subsection (e)'' in 
                        subsection (c)(2)(A) and inserting ``subsection 
                        (e), (f), or both, as the case may be''; and
                            (iii) by redesignating subsection (f) as 
                        subsection (g) and by inserting after 
                        subsection (e) the following new subsection:
    ``(f) Notice in Connection With Shortfall Amortization Election.--
            ``(1) In general.--Not later 30 days after the date of an 
        election under clause (iv) of section 430(c)(2)(D) in 
        connection with a plan, the plan administrator shall provide 
        notice of such election in accordance with this subsection to 
        each plan participant and beneficiary, each labor organization 
        representing such participants and beneficiaries, and the 
        Pension Benefit Guaranty Corporation.
            ``(2) Matters included in notice.--Each notice provided 
        pursuant to this subsection shall set forth--
                    ``(A) a statement that recently enacted legislation 
                permits employers to delay pension funding;
                    ``(B) with respect to required contributions--
                            ``(i) the amount of contributions that 
                        would have been required had the election not 
                        been made;
                            ``(ii) the amount of the reduction in 
                        required contributions for the applicable plan 
                        year that occurs on account of the election; 
                        and
                            ``(iii) the number of plan years to which 
                        such reduction will apply;
                    ``(C) with respect to a plan's funding status as of 
                the end of the plan year preceding the applicable plan 
                year--
                            ``(i) the liabilities determined under 
                        section 4010(d)(1)(A) of the Employee 
                        Retirement Income Security Act of 1974; and
                            ``(ii) the market value of assets of the 
                        plan; and
                    ``(D) with respect to installment acceleration 
                amounts (as defined in section 430(c)(2)(F)(iii)(I))--
                            ``(i) an explanation of section 
                        430(c)(2)(F) (relating to increases in 
                        shortfall amortization installments in cases of 
                        excess compensation or certain dividends or 
                        stock redemptions); and
                            ``(ii) a statement that increases in 
                        required contributions may occur in the event 
                        of future payments of excess employee 
                        compensation or certain share repurchasing or 
                        dividend activity and that subsequent notices 
                        of any such payments or activity will be 
                        provided in the annual funding notice provided 
                        pursuant to section 101(f) of the Employee 
                        Retirement Income Security Act of 1974.
            ``(3) Other requirements.--
                    ``(A) Form.--The notice required by paragraph (1) 
                shall be written in a manner calculated to be 
                understood by the average plan participant and shall 
                provide sufficient information (as determined in 
                accordance with regulations or other guidance of 
                general applicability prescribed by the Secretary) to 
                allow plan participants and beneficiaries to understand 
                the effect of the election. The Secretary shall 
                prescribe a model notice that a plan administrator may 
                use to satisfy the requirements of paragraph (1).
                    ``(B) Provision to designated persons.--Any notice 
                under paragraph (1) may be provided to a person 
                designated, in writing, by the person to which it would 
                otherwise be provided.''.
                    (B) Conforming amendment.--Subsection (g) of 
                section 4980F of such Code is amended by inserting ``or 
                (f)'' after ``subsection (e)''.
            (3) Disregard of installment acceleration amounts in 
        determining quarterly contributions.--Section 430(j)(3) of such 
        Code is amended by adding at the end the following new 
        subparagraph:
                    ``(F) Disregard of installment acceleration 
                amounts.--Subparagraph (D) shall be applied without 
                regard to any increase under subsection (c)(2)(F).''.
            (4) Conforming amendment.--Paragraph (1) of section 430(c) 
        of such Code is amended by striking ``the shortfall 
        amortization bases for such plan year and each of the 6 
        preceding plan years'' and inserting ``any shortfall 
        amortization base which has not been fully amortized under this 
        subsection''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2007.

SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO PLANS SUBJECT 
              TO PRIOR LAW FUNDING RULES.

    (a) In General.--Title I of the Pension Protection Act of 2006 is 
amended by redesignating section 107 as section 108 and by inserting 
the following after section 106:

``SEC. 107. APPLICATION OF FUNDING RELIEF TO PLANS WITH DELAYED 
              EFFECTIVE DATE.

    ``(a) Alternative Elections.--
            ``(1) In general.--Subject to this section, a plan sponsor 
        of a plan to which section 104, 105, or 106 of this Act applies 
        may either elect the application of subsection (b) with respect 
        to the plan for not more than 2 applicable plan years or elect 
        the application of subsection (c) with respect to the plan for 
        1 applicable plan year.
            ``(2) Eligibility for elections.--An election may be made 
        by a plan sponsor under paragraph (1) with respect to a plan 
        only if at the time of the election--
                    ``(A) the plan sponsor is not a debtor in a case 
                under title 11, United States Code, or similar Federal 
                or State law,
                    ``(B) there are no accumulated funding deficiencies 
                (as defined in section 302(a)(2) of the Employee 
                Retirement Income Security Act of 1974 (as in effect 
                immediately before the enactment of this Act) or in 
                section 412(a) of the Internal Revenue Code of 1986 (as 
                so in effect)) with respect to the plan,
                    ``(C) there is no lien in favor of the plan under 
                section 302(d) (as so in effect) or under section 
                412(n) of such Code (as so in effect), and
                    ``(D) a distress termination has not been initiated 
                for the plan under section 4041(c) of the Employee 
                Retirement Income Security Act of 1974.
    ``(b) Alternative Additional Funding Charge.--If the plan sponsor 
elects the application of this subsection with respect to the plan, for 
purposes of applying section 302(d) of the Employee Retirement Income 
Security Act of 1974 (as in effect before the amendments made by this 
subtitle and subtitle B) and section 412(l) of the Internal Revenue 
Code of 1986 (as so in effect)--
            ``(1) the deficit reduction contribution under paragraph 
        (2) of such section 302(d) and paragraph (2) of such section 
        412(l) for such plan for any applicable plan year, shall be 
        zero, and
            ``(2) the additional funding charge under paragraph (1) of 
        such section 302(d) and paragraph (1) of such section 412(l) 
        for such plan for any applicable plan year shall be increased 
        by an amount equal to the installment acceleration amount (as 
        defined in sections 303(c)(2)(F)(iii)(I) of such Act (as 
        amended by the American Jobs and Closing Tax Loopholes Act of 
        2010) and 430(c)(2)(F)(iii)(I) of such Code (as so amended)) 
        with respect to the plan sponsor for such plan year, determined 
        by treating the later of such plan year or the first plan year 
        beginning after December 31, 2009, as the restriction period.
    ``(c) Application of 15-year Amortization.--If the plan sponsor 
elects the application of this subsection with respect to the plan, for 
purposes of applying section 302(d) of such Act (as in effect before 
the amendments made by this subtitle and subtitle B) and section 412(l) 
of such Code (as so in effect)--
            ``(1) in the case of the increased unfunded new liability 
        of the plan, the applicable percentage described in paragraph 
        (4)(C) of such section 302(d) and paragraph (4)(C) of such 
        section 412(l) for any pre-effective date plan year beginning 
        with or after the applicable plan year shall be the ratio of--
                    ``(A) the annual installments payable in each plan 
                year if the increased unfunded new liability for such 
                plan year were amortized in equal installments over the 
                period beginning with such plan year and ending with 
                the last plan year in the period of 15 plan years 
                beginning with the applicable plan year, using an 
                interest rate equal to the third segment rate described 
                in sections 104(b), 105(b), and 106(b) of this Act, to
                    ``(B) the increased unfunded new liability for such 
                plan year,
            ``(2) in the case of the excess of the unfunded new 
        liability over the increased unfunded new liability, such 
        applicable percentage shall be determined without regard to 
        this section, and
            ``(3) the additional funding charge with respect to the 
        plan for a plan year shall be increased by an amount equal to 
        the installment acceleration amount (as defined in section 
        303(c)(2)(F)(iii) of such Act (as amended by the American Jobs 
        and Closing Tax Loopholes Act of 2010 and section 
        430(c)(2)(F)(iii) of such Code (as so amended)) with respect to 
        the plan sponsor for such plan year, determined without regard 
        to subclause (II) of such sections 303(c)(2)(F)(iii) and 
        430(c)(2)(F)(iii).
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable plan year.--
                    ``(A) In general.--The term `applicable plan year' 
                with respect to a plan means, subject to the election 
                of the plan sponsor under subsection (a), a plan year 
                beginning in 2009, 2010, or 2011.
                    ``(B) Election.--
                            ``(i) In general.--The election described 
                        in subsection (a) shall be made at such times, 
                        and in such form and manner, as shall be 
                        prescribed by the Secretary of the Treasury.
                            ``(ii) Reduction in years which may be 
                        elected.--The number of applicable plan years 
                        for which an election may be made under section 
                        303(c)(2)(D) of the Employee Retirement Income 
                        Security Act of 1974 (as amended by the 
                        American Jobs and Closing Tax Loopholes Act of 
                        2010) or section 430(c)(2)(D) of the Internal 
                        Revenue Code of 1986 (as so amended) shall be 
                        reduced by the number of applicable plan years 
                        for which an election under this section is 
                        made.
                    ``(C) Allocation of installment acceleration amount 
                for multiple plan election.--In the case of an election 
                under this section with respect to 2 or more plans by 
                the same plan sponsor, the installment acceleration 
                amount shall be apportioned ratably with respect to 
                such plans in proportion to the deficit reduction 
                contributions of the plans determined without regard to 
                subsection (b)(1).
            ``(2) Plan sponsor.--The term `plan sponsor' shall have the 
        meaning provided such term in section 303(c)(2)(F)(vi)(I) of 
        the Employee Retirement Income Security Act of 1974 (as amended 
        by the American Jobs and Closing Tax Loopholes Act of 2010) and 
        section 430(c)(2)(F)(vi)(I) of the Internal Revenue Code of 
        1986 (as so amended).
            ``(3) Pre-effective date plan year.--The term `pre-
        effective date plan year' means, with respect to a plan, any 
        plan year prior to the first year in which the amendments made 
        by this subtitle and subtitle B apply to the plan.
            ``(4) Increased unfunded new liability.--The term 
        `increased unfunded new liability' means, with respect to a 
        year, the excess (if any) of the unfunded new liability over 
        the amount of unfunded new liability determined as if the value 
        of the plan's assets determined under subsection 302(c)(2) of 
        such Act (as in effect before the amendments made by this 
        subtitle and subtitle B) and section 412(c)(2) of such Code (as 
        so in effect) equaled the product of the current liability of 
        the plan for the year multiplied by the funded current 
        liability percentage (as defined in section 302(d)(8)(B) of 
        such Act (as so in effect) and 412(l)(8)(B) of such Code (as so 
        in effect)) of the plan for the second plan year preceding the 
        first applicable plan year of such plan for which an election 
        under this section is made.
            ``(5) Other definitions.--The terms `unfunded new 
        liability' and `current liability' shall have the meanings set 
        forth in section 302(d) of such Act (as so in effect) and 
        section 412(l) of such Code (as so in effect).
            ``(6) Additional funding charge increase not to exceed 
        relief.--
                    ``(A) Election under subsection (b).--In the case 
                of an election under subsection (b), an increase 
                resulting from the application of subsection (b)(2) in 
                the additional funding charge with respect to a plan 
                for a plan year shall not exceed the excess (if any) 
                of--
                            ``(i) the deficit reduction contribution 
                        under section 302(d)(2) of such Act (as so in 
                        effect) and section 412(l)(2) of such Code (as 
                        so in effect) for such plan year, determined as 
                        if the election had not been made, over
                            ``(ii) the deficit reduction contribution 
                        under such sections for such plan (determined 
                        without regard to any increase under subsection 
                        (b)(2)).
                    ``(B) Election under subsection (c).--An increase 
                resulting from the application of subsection (c)(3) in 
                the additional funding charge with respect to a plan 
                for a plan year shall not exceed the excess (if any) 
                of--
                            ``(i) the sum of the deficit reduction 
                        contributions under section 302(d)(2) of such 
                        Act (as so in effect) and section 412(l)(2) of 
                        such Code (as so in effect) for such plan for 
                        such plan year and for all preceding plan years 
                        beginning with or after the applicable plan 
                        year, determined as if the election had not 
                        been made, over
                            ``(ii) the sum of the deficit reduction 
                        contributions under such sections for such plan 
                        years (determined without regard to any 
                        increase under subsection (c)(3)).
    ``(e) Notice.--Not later 30 days after the date of an election 
under subsection (a) in connection with a plan, the plan administrator 
shall provide notice pursuant to, and subject to, rules similar to the 
rules of sections 204(k) of the Employee Retirement Income Security Act 
of 1974 (as amended by the American Jobs and Closing Tax Loopholes Act 
of 2010) and 4980F(f) of the Internal Revenue Code of 1986 (as so 
amended).''.
    (b) Eligible Charity Plans.--Section 104 of such Act is amended--
            (1) by striking ``eligible cooperative plan'' wherever it 
        appears in subsections (a) and (b) and inserting ``eligible 
        cooperative plan or an eligible charity plan''; and
            (2) by adding at the end the following new subsection:
    ``(d) Eligible Charity Plan Defined.--For purposes of this section, 
a plan shall be treated as an eligible charity plan for a plan year 
if--
            ``(1) the plan is maintained by one or more employers 
        employing employees who are accruing benefits based on service 
        for the plan year,
            ``(2) such employees are employed in at least 20 States,
            ``(3) each such employee (other than a de minimis number of 
        employees) is employed by an employer described in section 
        501(c)(3) of such Code and the primary exempt purpose of each 
        such employer is to provide services with respect to children, 
        and
            ``(4) the plan sponsor elects (at such time and in such 
        form and manner as shall be prescribed by the Secretary of the 
        Treasury) to be so treated.
Any election under this subsection may be revoked only with the consent 
of the Secretary of the Treasury.''.
    (c) Regulations.--The Secretary of the Treasury may prescribe such 
regulations as may be necessary to carry out the purposes of the 
amendments made by this section.
    (d) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to plan years beginning on or after January 1, 2009.
            (2) Eligible charity plans.--The amendments made by 
        subsection (b) shall apply to plan years beginning after 
        December 31, 2009.

SEC. 303. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.

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

SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE.

    (a) Amendment to Erisa.--Paragraph (3) of section 303(f) of the 
Employee Retirement Income Security Act of 1974 is amended by adding 
the following at the end thereof:
                    ``(D) Special rule for certain plan years.--
                            ``(i) In general.--For purposes of applying 
                        subparagraph (C) for plan years beginning after 
                        June 30, 2009, and on or before December 31, 
                        2011, the ratio determined under such 
                        subparagraph for the preceding plan year shall 
                        be the greater of--
                                    ``(I) such ratio, as determined 
                                without regard to this subparagraph, or
                                    ``(II) the ratio for such plan for 
                                the plan year beginning after June 30, 
                                2007, and on or before June 30, 2008, 
                                as determined under rules prescribed by 
                                the Secretary of the Treasury.
                            ``(ii) Special rule.--In the case of a plan 
                        for which the valuation date is not the first 
                        day of the plan year--
                                    ``(I) clause (i) shall apply to 
                                plan years beginning after December 31, 
                                2008, and on or before December 31, 
                                2010, and
                                    ``(II) clause (i)(II) shall apply 
                                based on the last plan year beginning 
                                before July 1, 2007, as determined 
                                under rules prescribed by the Secretary 
                                of the Treasury.''.
    (b) Amendment to Internal Revenue Code of 1986.--Paragraph (3) of 
section 430(f) of the Internal Revenue Code of 1986 is amended by 
adding the following at the end thereof:
                    ``(D) Special rule for certain plan years.--
                            ``(i) In general.--For purposes of applying 
                        subparagraph (C) for plan years beginning after 
                        June 30, 2009, and on or before December 31, 
                        2011, the ratio determined under such 
                        subparagraph for the preceding plan year shall 
                        be the greater of--
                                    ``(I) such ratio, as determined 
                                without regard to this subparagraph, or
                                    ``(II) the ratio for such plan for 
                                the plan year beginning after June 30, 
                                2007, and on or before June 30, 2008, 
                                as determined under rules prescribed by 
                                the Secretary.
                            ``(ii) Special rule.--In the case of a plan 
                        for which the valuation date is not the first 
                        day of the plan year--
                                    ``(I) clause (i) shall apply to 
                                plan years beginning after December 31, 
                                2008, and on or before December 31, 
                                2010, and
                                    ``(II) clause (i)(II) shall apply 
                                based on the last plan year beginning 
                                before July 1, 2007, as determined 
                                under rules prescribed by the 
                                Secretary.''.

SEC. 305. INFORMATION REPORTING.

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

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

    (a) General Rules.--
            (1) Rollover of airline payment amount.--If a qualified 
        airline employee receives any airline payment amount and 
        transfers any portion of such amount to a traditional IRA 
        within 180 days of receipt of such amount (or, if later, within 
        180 days of the date of the enactment of this Act), then such 
        amount (to the extent so transferred) shall be treated as a 
        rollover contribution described in section 402(c) of the 
        Internal Revenue Code of 1986. A qualified airline employee 
        making such a transfer may exclude from gross income the amount 
        transferred, in the taxable year in which the airline payment 
        amount was paid to the qualified airline employee by the 
        commercial passenger airline carrier.
            (2) Transfer of amounts attributable to airline payment 
        amount following rollover to roth ira.--A qualified airline 
        employee who has contributed an airline payment amount to a 
        Roth IRA that is treated as a qualified rollover contribution 
        pursuant to section 125 of the Worker, Retiree, and Employer 
        Recovery Act of 2008 may transfer to a traditional IRA, in a 
        trustee-to-trustee transfer, all or any part of the 
        contribution (together with any net income allocable to such 
        contribution), and the transfer to the traditional IRA will be 
        deemed to have been made at the time of the rollover to the 
        Roth IRA, if such transfer is made within 180 days of the date 
        of the enactment of this Act. A qualified airline employee 
        making such a transfer may exclude from gross income the 
        airline payment amount previously rolled over to the Roth IRA, 
        to the extent an amount attributable to the previous rollover 
        was transferred to a traditional IRA, in the taxable year in 
        which the airline payment amount was paid to the qualified 
        airline employee by the commercial passenger airline carrier. 
        No amount so transferred to a traditional IRA may be treated as 
        a qualified rollover contribution with respect to a Roth IRA 
        within the 5-taxable year period beginning with the taxable 
        year in which such transfer was made.
            (3) Extension of time to file claim for refund.--A 
        qualified airline employee who excludes an amount from gross 
        income in a prior taxable year under paragraph (1) or (2) may 
        reflect such exclusion in a claim for refund filed within the 
        period of limitation under section 6511(a) (or, if later, April 
        15, 2011).
    (b) Treatment of Airline Payment Amounts and Transfers for 
Employment Taxes.--For purposes of chapter 21 of the Internal Revenue 
Code of 1986 and section 209 of the Social Security Act, an airline 
payment amount shall not fail to be treated as a payment of wages by 
the commercial passenger airline carrier to the qualified airline 
employee in the taxable year of payment because such amount is excluded 
from the qualified airline employee's gross income under subsection 
(a).
    (c) Definitions and Special Rules.--For purposes of this section--
            (1) Airline payment amount.--
                    (A) In general.--The term ``airline payment 
                amount'' means any payment of any money or other 
                property which is payable by a commercial passenger 
                airline carrier to a qualified airline employee--
                            (i) under the approval of an order of a 
                        Federal bankruptcy court in a case filed after 
                        September 11, 2001, and before January 1, 2007; 
                        and
                            (ii) in respect of the qualified airline 
                        employee's interest in a bankruptcy claim 
                        against the carrier, any note of the carrier 
                        (or amount paid in lieu of a note being 
                        issued), or any other fixed obligation of the 
                        carrier to pay a lump sum amount.
                The amount of such payment shall be determined without 
                regard to any requirement to deduct and withhold tax 
                from such payment under sections 3102(a) and 3402(a).
                    (B) Exception.--An airline payment amount shall not 
                include any amount payable on the basis of the 
                carrier's future earnings or profits.
            (2) Qualified airline employee.--The term ``qualified 
        airline employee'' means an employee or former employee of a 
        commercial passenger airline carrier who was a participant in a 
        defined benefit plan maintained by the carrier which--
                    (A) is a plan described in section 401(a) of the 
                Internal Revenue Code of 1986 which includes a trust 
                exempt from tax under section 501(a) of such Code; and
                    (B) was terminated or became subject to the 
                restrictions contained in paragraphs (2) and (3) of 
                section 402(b) of the Pension Protection Act of 2006.
            (3) Traditional ira.--The term ``traditional IRA'' means an 
        individual retirement plan (as defined in section 7701(a)(37) 
        of the Internal Revenue Code of 1986) which is not a Roth IRA.
            (4) Roth ira.--The term ``Roth IRA'' has the meaning given 
        such term by section 408A(b) of such Code.
    (d) Surviving Spouse.--If a qualified airline employee died after 
receiving an airline payment amount, or if an airline payment amount 
was paid to the surviving spouse of a qualified airline employee in 
respect of the qualified airline employee, the surviving spouse of the 
qualified airline employee may take all actions permitted under section 
125 of the Worker, Retiree and Employer Recovery Act of 2008, or under 
this section, to the same extent that the qualified airline employee 
could have done had the qualified airline employee survived.
    (e) Effective Date.--This section shall apply to transfers made 
after the date of the enactment of this Act with respect to airline 
payment amounts paid before, on, or after such date.

                      PART 2--MULTIEMPLOYER PLANS

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

    (a) Elective Special Relief Rules.--
            (1) ERISA amendment.--Section 304(b) of the Employee 
        Retirement Income Security Act of 1974 is amended by adding at 
        the end the following new paragraph:
            ``(8) Elective special relief rules.--Notwithstanding any 
        other provision of this subsection--
                    ``(A) Amortization of net investment losses.--
                            ``(i) In general.--The plan sponsor of a 
                        multiemployer plan with respect to which the 
                        solvency test under subparagraph (B) is met may 
                        elect to treat the portion of any experience 
                        loss or gain for a plan year that is 
                        attributable to the allocable portion of the 
                        net investment losses incurred in either or 
                        both of the first two plan years ending on or 
                        after June 30, 2008, as an experience loss 
                        separate from other experience losses or gains 
                        to be amortized in equal annual installments 
                        (until fully amortized) over the period--
                                    ``(I) beginning with the plan year 
                                for which the allocable portion is 
                                determined, and
                                    ``(II) ending with the last plan 
                                year in the 30-plan year period 
                                beginning with the plan year following 
                                the plan year in which such net 
                                investment loss was incurred.
                            ``(ii) Coordination with extensions.--If an 
                        election is made under clause (i) for any plan 
                        year--
                                    ``(I) no extension of the 
                                amortization period under clause (i) 
                                shall be allowed under subsection (d), 
                                and
                                    ``(II) if an extension was granted 
                                under subsection (d) for any plan year 
                                before the plan year for which the 
                                election under this subparagraph is 
                                made, such extension shall not result 
                                in such amortization period exceeding 
                                30 years.
                            ``(iii) Definitions and rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Net investment losses.--
                                            ``(aa) In general.--The net 
                                        investment loss incurred by a 
                                        plan in a plan year is equal to 
                                        the excess of--

                                                    ``(AA) the expected 
                                                value of the assets as 
                                                of the end of the plan 
                                                year, over

                                                    ``(BB) the market 
                                                value of the assets as 
                                                of the end of the plan 
                                                year,

                                        including any difference 
                                        attributable to a criminally 
                                        fraudulent investment 
                                        arrangement.
                                            ``(bb) Expected value.--For 
                                        purposes of item (aa), the 
                                        expected value of the assets as 
                                        of the end of a plan year is 
                                        the excess of--

                                                    ``(AA) the market 
                                                value of the assets at 
                                                the beginning of the 
                                                plan year plus 
                                                contributions made 
                                                during the plan year, 
                                                over

                                                    ``(BB) 
                                                disbursements made 
                                                during the plan year.

                                        The amounts described in 
                                        subitems (AA) and (BB) shall be 
                                        adjusted with interest at the 
                                        valuation rate to the end of 
                                        the plan year.
                                    ``(II) Criminally fraudulent 
                                investment arrangements.--The 
                                determination as to whether an 
                                arrangement is a criminally fraudulent 
                                investment arrangement shall be made 
                                under rules substantially similar to 
                                the rules prescribed by the Secretary 
                                of the Treasury for purposes of section 
                                165 of the Internal Revenue Code of 
                                1986.
                                    ``(III) Amount attributable to 
                                allocable portion of net investment 
                                loss.--The amount attributable to the 
                                allocable portion of the net investment 
                                loss for a plan year shall be an amount 
                                equal to the allocable portion of net 
                                investment loss for the plan year under 
                                subclauses (IV) and (V), increased with 
                                interest at the valuation rate 
                                determined from the plan year after the 
                                plan year in which the net investment 
                                loss was incurred.
                                    ``(IV) Allocable portion of net 
                                investment losses.--Except as provided 
                                in subclause (V), the net investment 
                                loss incurred in a plan year shall be 
                                allocated among the 5 plan years 
                                following the plan year in which the 
                                investment loss is incurred in 
                                accordance with the following table:
``Plan year after the plan year in                                     
which the net investment loss                  Allocable portion of net
was incurred                                            investment loss
        1st..........................................             \1/2\
        2nd..........................................                 0
        3rd..........................................             \1/6\
        4th..........................................             \1/6\
        5th..........................................             \1/6\
                                    ``(V) Special rule for plans that 
                                adopt longer smoother period.--If a 
                                plan sponsor elects an extended 
                                smoothing period for its asset 
                                valuation method under subsection 
                                (c)(2)(B), then the allocable portion 
                                of net investment loss for the first 
                                two plan years following the plan year 
                                the investment loss is incurred is the 
                                same as determined under subclause 
                                (IV), but the remaining \1/2\ of the 
                                net investment loss is allocated 
                                ratably over the period beginning with 
                                the third plan year following the plan 
                                year the net investment loss is 
                                incurred and ending with the last plan 
                                year in the extended smoothing period.
                                    ``(VI) Special rule for 
                                overstatement of loss.--If, for a plan 
                                year, there is an experience loss for 
                                the plan and the amount described in 
                                subclause (III) exceeds the total 
                                amount of the experience loss for the 
                                plan year, then the excess shall be 
                                treated as an experience gain.
                                    ``(VII) Special rule in years for 
                                which overall experience is gain.--If, 
                                for a plan year, there is no experience 
                                loss for the plan, then, in addition to 
                                amortization of net investment losses 
                                under clause (i), the amount described 
                                in subclause (III) shall be treated as 
                                an experience gain in addition to any 
                                other experience gain.
                    ``(B) Solvency test.--
                            ``(i) In general.--An election may be made 
                        under this paragraph if the election includes 
                        certification by the plan actuary in connection 
                        with the election that the plan is projected to 
                        have a funded percentage at the end of the 
                        first 15 plan years that is not less than 100 
                        percent of the funded percentage for the plan 
                        year of the election.
                            ``(ii) Funded percentage.-- For purposes of 
                        clause (i), the term `funded percentage' has 
                        the meaning provided in section 305(i)(2), 
                        except that the value of the plan's assets 
                        referred to in section 305(i)(2)(A) shall be 
                        the market value of such assets.
                            ``(iii) Actuarial assumptions.--In making 
                        any certification under this subparagraph, the 
                        plan actuary shall use the same actuarial 
                        estimates, assumptions, and methods as those 
                        applicable for the most recent certification 
                        under section 305, except that the plan actuary 
                        may take into account benefit reductions and 
                        increases in contribution rates, under either 
                        funding improvement plans adopted under section 
                        305(c) or under section 432(c) of the Internal 
                        Revenue Code of 1986 or rehabilitation plans 
                        adopted under section 305(e) or under section 
                        432(e) of such Code, that the plan actuary 
                        reasonably anticipates will occur without 
                        regard to any change in status of the plan 
                        resulting from the election.
                    ``(C) Additional restriction on benefit 
                increases.--If an election is made under subparagraph 
                (A), then, in addition to any other applicable 
                restrictions on benefit increases, a plan amendment 
                which is adopted on or after March 10, 2010, and which 
                increases benefits may not go into effect during the 
                period beginning on such date and ending with the 
                second plan year beginning after such date unless--
                            ``(i) the plan actuary certifies that--
                                    ``(I) any such increase is paid for 
                                out of additional contributions not 
                                allocated to the plan immediately 
                                before the election to have this 
                                paragraph apply to the plan, and
                                    ``(II) the plan's funded percentage 
                                and projected credit balances for the 
                                first 3 plan years ending on or after 
                                such date are reasonably expected to be 
                                at least as high as such percentage and 
                                balances would have been if the benefit 
                                increase had not been adopted, or
                            ``(ii) the amendment is required as a 
                        condition of qualification under part I of 
                        subchapter D of chapter 1 of the Internal 
                        Revenue Code of 1986 or to comply with other 
                        applicable law.
                    ``(D) Time, form, and manner of election.--An 
                election under this paragraph shall be made not later 
                than June 30, 2011, and shall be made in such form and 
                manner as the Secretary of the Treasury may prescribe.
                    ``(E) Reporting.--A plan sponsor of a plan to which 
                this paragraph applies shall--
                            ``(i) give notice of such election to 
                        participants and beneficiaries of the plan, and
                            ``(ii) inform the Pension Benefit Guaranty 
                        Corporation of such election in such form and 
                        manner as the Pension Benefit Guaranty 
                        Corporation may prescribe.''.
            (2) IRC amendment.--Section 431(b) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(8) Elective special relief rules.--Notwithstanding any 
        other provision of this subsection--
                    ``(A) Amortization of net investment losses.--
                            ``(i) In general.--The plan sponsor of a 
                        multiemployer plan with respect to which the 
                        solvency test under subparagraph (B) is met may 
                        elect to treat the portion of any experience 
                        loss or gain for a plan year that is 
                        attributable to the allocable portion of the 
                        net investment losses incurred in either or 
                        both of the first two plan years ending on or 
                        after June 30, 2008, as an experience loss 
                        separate from other experience losses and gains 
                        to be amortized in equal annual installments 
                        (until fully amortized) over the period--
                                    ``(I) beginning with the plan year 
                                for which the allocable portion is 
                                determined, and
                                    ``(II) ending with the last plan 
                                year in the 30-plan year period 
                                beginning with the plan year following 
                                the plan year in which such net 
                                investment loss was incurred.
                            ``(ii) Coordination with extensions.--If an 
                        election is made under clause (i) for any plan 
                        year--
                                    ``(I) no extension of the 
                                amortization period under clause (i) 
                                shall be allowed under subsection (d), 
                                and
                                    ``(II) if an extension was granted 
                                under subsection (d) for any plan year 
                                before the plan year for which the 
                                election under this subparagraph is 
                                made, such extension shall not result 
                                in such amortization period exceeding 
                                30 years.
                            ``(iii) Definitions and rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Net investment losses.--
                                            ``(aa) In general.--The net 
                                        investment loss incurred by a 
                                        plan in a plan year is equal to 
                                        the excess of--

                                                    ``(AA) the expected 
                                                value of the assets as 
                                                of the end of the plan 
                                                year, over

                                                    ``(BB) the market 
                                                value of the assets as 
                                                of the end of the plan 
                                                year,

                                        including any difference 
                                        attributable to a criminally 
                                        fraudulent investment 
                                        arrangement.
                                            ``(bb) Expected value.--For 
                                        purposes of item (aa), the 
                                        expected value of the assets as 
                                        of the end of a plan year is 
                                        the excess of--

                                                    ``(AA) the market 
                                                value of the assets at 
                                                the beginning of the 
                                                plan year plus 
                                                contributions made 
                                                during the plan year, 
                                                over

                                                    ``(BB) 
                                                disbursements made 
                                                during the plan year.

                                        The amounts described in 
                                        subitems (AA) and (BB) shall be 
                                        adjusted with interest at the 
                                        valuation rate to the end of 
                                        the plan year.
                                    ``(II) Criminally fraudulent 
                                investment arrangements.--The 
                                determination as to whether an 
                                arrangement is a criminally fraudulent 
                                investment arrangement shall be made 
                                under rules substantially similar to 
                                the rules prescribed by the Secretary 
                                for purposes of section 165.
                                    ``(III) Amount attributable to 
                                allocable portion of net investment 
                                loss.--The amount attributable to the 
                                allocable portion of the net investment 
                                loss for a plan year shall be an amount 
                                equal to the allocable portion of net 
                                investment loss for the plan year under 
                                subclauses (IV) and (V), increased with 
                                interest at the valuation rate 
                                determined from the plan year after the 
                                plan year in which the net investment 
                                loss was incurred.
                                    ``(IV) Allocable portion of net 
                                investment losses.--Except as provided 
                                in subclause (V), the net investment 
                                loss incurred in a plan year shall be 
                                allocated among the 5 plan years 
                                following the plan year in which the 
                                investment loss is incurred in 
                                accordance with the following table:
``Plan year after the plan year in                                     
which the net investment loss                  Allocable portion of net
was incurred                                            investment loss
        1st..........................................             \1/2\
        2nd..........................................                 0
        3rd..........................................             \1/6\
        4th..........................................             \1/6\
        5th..........................................             \1/6\
                                    ``(V) Special rule for plans that 
                                adopt longer smoother period.--If a 
                                plan sponsor elects an extended 
                                smoothing period for its asset 
                                valuation method under subsection 
                                (c)(2)(B), then the allocable portion 
                                of net investment loss for the first 
                                two plan years following the plan year 
                                the investment loss is incurred is the 
                                same as determined under subclause 
                                (IV), but the remaining \1/2\ of the 
                                net investment loss is allocated 
                                ratably over the period beginning with 
                                the third plan year following the plan 
                                year the net investment loss is 
                                incurred and ending with the last plan 
                                year in the extended smoothing period.
                                    ``(VI) Special rule for 
                                overstatement of loss.--If, for a plan 
                                year, there is an experience loss for 
                                the plan and the amount described in 
                                subclause (III) exceeds the total 
                                amount of the experience loss for the 
                                plan year, then the excess shall be 
                                treated as an experience gain.
                                    ``(VII) Special rule in years for 
                                which overall experience is gain.--If, 
                                for a plan year, there is no experience 
                                loss for the plan, then, in addition to 
                                amortization of net investment losses 
                                under clause (i), the amount described 
                                in subclause (III) shall be treated as 
                                an experience gain in addition to any 
                                other experience gain.
                    ``(B) Solvency test.--
                            ``(i) In general.--An election may be made 
                        under this paragraph if the election includes 
                        certification by the plan actuary in connection 
                        with the election that the plan is projected to 
                        have a funded percentage at the end of the 
                        first 15 plan years that is not less than 100 
                        percent of the funded percentage for the plan 
                        year of the election.
                            ``(ii) Funded percentage.-- For purposes of 
                        clause (i), the term `funded percentage' has 
                        the meaning provided in section 432(i)(2), 
                        except that the value of the plan's assets 
                        referred to in section 432(i)(2)(A) shall be 
                        the market value of such assets.
                            ``(iii) Actuarial assumptions.--In making 
                        any certification under this subparagraph, the 
                        plan actuary shall use the same actuarial 
                        estimates, assumptions, and methods as those 
                        applicable for the most recent certification 
                        under section 432, except that the plan actuary 
                        may take into account benefit reductions and 
                        increases in contribution rates, under either 
                        funding improvement plans adopted under section 
                        432(c) or under section 305(c) of the Employee 
                        Retirement Income Security Act of 1974 or 
                        rehabilitation plans adopted under section 
                        432(e) or under section 305(e) of such Act, 
                        that the plan actuary reasonably anticipates 
                        will occur without regard to any change in 
                        status of the plan resulting from the election.
                    ``(C) Additional restriction on benefit 
                increases.--If an election is made under subparagraph 
                (A), then, in addition to any other applicable 
                restrictions on benefit increases, a plan amendment 
                which is adopted on or after March 10, 2010, and which 
                increases benefits may not go into effect during the 
                period beginning on such date and ending with the 
                second plan year beginning after such date unless--
                            ``(i) the plan actuary certifies that--
                                    ``(I) any such increase is paid for 
                                out of additional contributions not 
                                allocated to the plan immediately 
                                before the election to have this 
                                paragraph apply to the plan, and
                                    ``(II) the plan's funded percentage 
                                and projected credit balances for the 
                                first 3 plan years ending on or after 
                                such date are reasonably expected to be 
                                at least as high as such percentage and 
                                balances would have been if the benefit 
                                increase had not been adopted, or
                            ``(ii) the amendment is required as a 
                        condition of qualification under part I or to 
                        comply with other applicable law.
                    ``(D) Time, form, and manner of election.--An 
                election under this paragraph shall be made not later 
                than June 30, 2011, and shall be made in such form and 
                manner as the Secretary may prescribe.
                    ``(E) Reporting.--A plan sponsor of a plan to which 
                this paragraph applies shall--
                            ``(i) give notice of such election to 
                        participants and beneficiaries of the plan, and
                            ``(ii) inform the Pension Benefit Guaranty 
                        Corporation of such election in such form and 
                        manner as the Pension Benefit Guaranty 
                        Corporation may prescribe.''.
    (b) Asset Smoothing for Multiemployer Plans.--
            (1) ERISA amendment.--Section 304(c)(2) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1084(c)(2)) 
        is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Extended asset smoothing period for certain 
                investment losses.--The Secretary of the Treasury shall 
                not treat the asset valuation method of a multiemployer 
                plan as unreasonable solely because such method spreads 
                the difference between expected and actual returns for 
                either or both of the first 2 plan years ending on or 
                after June 30, 2008, over a period of not more than 10 
                years. Any change in valuation method to so spread such 
                difference shall be treated as approved, but only if, 
                in the case that the plan sponsor has made an election 
                under subsection (b)(8), any resulting change in asset 
                value is treated for purposes of amortization as a net 
                experience loss or gain.''.
            (2) IRC amendment.--Section 431(c)(2) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Extended asset smoothing period for certain 
                investment losses.--The Secretary shall not treat the 
                asset valuation method of a multiemployer plan as 
                unreasonable solely because such method spreads the 
                difference between expected and actual returns for 
                either or both of the first 2 plan years ending on or 
                after June 30, 2008, over a period of not more than 10 
                years. Any change in valuation method to so spread such 
                difference shall be treated as approved, but only if, 
                in the case that the plan sponsor has made an election 
                under subsection (b)(8), any resulting change in asset 
                value is treated for purposes of amortization as a net 
                experience loss or gain.''.
    (c) Effective Date and Special Rules.--
            (1) Effective date.--The amendments made by this section 
        shall take effect as of the first day of the first plan year 
        beginning after June 30, 2008, except that any election a plan 
        sponsor makes pursuant to this section or the amendments made 
        thereby that affects the plan's funding standard account for 
        any plan year beginning before October 1, 2009, shall be 
        disregarded for purposes of applying the provisions of section 
        305 of the Employee Retirement Income Security Act of 1974 and 
        section 432 of the Internal Revenue Code of 1986 to that plan 
        year.
            (2) Deemed approval for certain funding method changes.--In 
        the case of a multiemployer plan with respect to which an 
        election has been made under section 304(b)(8) of the Employee 
        Retirement Income Security Act of 1974 (as amended by this 
        section) or section 431(b)(8) of the Internal Revenue Code of 
        1986 (as so amended)--
                    (A) any change in the plan's funding method for a 
                plan year beginning on or after July 1, 2008, and on or 
                before December 31, 2010, from a method that does not 
                establish a base for experience gains and losses to one 
                that does establish such a base shall be treated as 
                approved by the Secretary of the Treasury; and
                    (B) any resulting funding method change base shall 
                be treated for purposes of amortization as a net 
                experience loss or gain.

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

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

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

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

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

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

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

    (a) In General.--A plan actuary shall not be treated as failing to 
meet the requirements of section 305(b)(3)(A) of the Employee 
Retirement Income Security Act of 1974 and section 432(b)(3)(A) of the 
Internal Revenue Code of 1986 in connection with a certification 
required under such sections the deadline for which is after the date 
of the enactment of this Act if the plan actuary makes such 
certification at any time earlier than 75 days after the date of the 
enactment of this Act.
    (b) Revision of Prior Certification.--
            (1) In general.--If--
                    (A) a plan sponsor makes an election under section 
                304(b)(8) of the Employee Retirement Income Security 
                Act of 1974 and section 431(b)(8) of the Internal 
                Revenue Code of 1986, or under section 304(c)(2)(B) of 
                such Act and section 432(c)(2)(B) such Code, with 
                respect to a plan for a plan year beginning on or after 
                October 1, 2009; and
                    (B) the plan actuary's certification of the plan 
                status for such plan year (hereinafter in this 
                subsection referred to as ``original certification'') 
                did not take into account any election so made,
        then the plan sponsor may direct the plan actuary to make a new 
        certification with respect to the plan for the plan year which 
        takes into account such election (hereinafter in this 
        subsection referred to as ``new certification'') if the plan's 
        status under section 305 of such Act and section 432 of such 
        Code would change as a result of such election. Any such new 
        certification shall be treated as the most recent certification 
        referred to in section 304(b)(3)(B)(iii) of such Act and 
        section 431(b)(8)(B)(iii) of such Code.
            (2) Due date for new certification.--Any such new 
        certification shall be made pursuant to section 305(b)(3) of 
        such Act and section 432(b)(3) of such Code; except that any 
        such new certification shall be made not later than 75 days 
        after the date of the enactment of this Act.
            (3) Notice.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any such new certification shall be treated as the 
                original certification for purposes of section 
                305(b)(3)(D) of such Act and section 432(b)(3)(D) of 
                such Code.
                    (B) Notice already provided.--In any case in which 
                notice has been provided under such sections with 
                respect to the original certification, not later than 
                30 days after the new certification is made, the plan 
                sponsor shall provide notice of any change in status 
                under rules similar to the rules such sections.
            (4) Effect of change in status.--If a plan ceases to be in 
        critical status pursuant to the new certification, then the 
        plan shall, not later than 30 days after the due date described 
        in paragraph (2), cease any restriction of benefit payments, 
        and imposition of contribution surcharges, under section 305 of 
        such Act and section 432 of such Code by reason of the original 
        certification.

                       Subtitle B--Fee Disclosure

SEC. 321. SHORT TITLE OF SUBTITLE.

    This subtitle may be cited as the ``Defined Contribution Fee 
Disclosure Act of 2010''.

SEC. 322. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
              1974.

    (a) Requirements Relating to Service Providers and Plan 
Administrators of Individual Account Plans.--
            (1) In general.--Part 1 of subtitle B of title I of the 
        Employee Retirement Income Security Act of 1974 is amended--
                    (A) by redesignating section 111 (29 U.S.C. 1031) 
                as section 113; and
                    (B) by inserting after section 110 (29 U.S.C. 1030) 
                the following new sections:

``SEC. 111. REQUIREMENT TO PROVIDE NOTICE OF PLAN FEE INFORMATION TO 
              PLAN ADMINISTRATORS.

    ``(a) Initial Statement of Services Provided and Revenues 
Received.--
            ``(1) In general.--In any case in which a service provider 
        enters into a contract or arrangement to provide services to an 
        individual account plan, the service provider shall, before 
        entering into such contract or arrangement, provide to the plan 
        administrator a single written statement which includes, with 
        respect to the first plan year covered under such contract or 
        arrangement, the following information:
                    ``(A) A detailed description of the services which 
                will be provided to the plan by the service provider, 
                the amount of total expected annual revenue with 
                respect to such services, the manner in which such 
                revenue will be collected, and the extent to which such 
                revenue varies between specific investment options.
                    ``(B)(i) In the case of a service provider who is 
                providing recordkeeping services with respect to any 
                investment option, such information as is necessary for 
                the plan administrator to satisfy the requirements of 
                subparagraphs (B)(ii)(IV) and (C) of section 105(a)(2) 
                and paragraphs (1) and (3) of section 112(a) with 
                respect to such option, including specifying the method 
                used by the service provider in disclosing or 
                estimating expenses under subparagraphs (C)(iv) and (E) 
                of section 105(a)(2).
                    ``(ii) To the extent provided in regulations issued 
                by the Secretary, clause (i) shall not apply in the 
                case of a service provider described in such clause if 
                the service provider receives a written notification 
                from the plan administrator that the information 
                described in such clause in connection with the 
                investment option is provided by another service 
                provider pursuant to a contract or arrangement to 
                provide services to the plan.
                    ``(C) A statement indicating--
                            ``(i) the identity of any investment 
                        options offered under the plan with respect to 
                        which the service provider provides substantial 
                        investment, trustee, custodial, or 
                        administrative services, and
                            ``(ii) in the case of any investment 
                        option, whether the service provider expects to 
                        receive any component of total expected annual 
                        revenue described in paragraph (2)(A)(ii)(II) 
                        with respect to such option and the amount of 
                        any such component.
                    ``(D) The portion of total expected annual revenue 
                which is properly allocable to each of the following:
                            ``(i) Administration and recordkeeping.
                            ``(ii) Investment management.
                            ``(iii) Other services or amounts not 
                        described in clause (i) or (ii).
            ``(2) Definition of total expected annual revenue.--For 
        purposes of this section--
                    ``(A) In general.--The term `total expected annual 
                revenue' means, with respect to any plan year--
                            ``(i) any amount expected to be received 
                        during such plan year from the plan (including 
                        amounts paid from participant accounts), any 
                        participant or beneficiary, or any plan sponsor 
                        in connection with the contract or arrangement 
                        referred to in paragraph (1), and
                            ``(ii) any amount not taken into account 
                        under clause (i) which is expected to be 
                        received during such plan year by the service 
                        provider in connection with--
                                    ``(I) plan administration, 
                                recordkeeping, consulting, management, 
                                or investment or other service 
                                activities undertaken by the service 
                                provider with respect to the plan, or
                                    ``(II) plan administration, 
                                recordkeeping, consulting, management, 
                                or investment or other service 
                                activities undertaken by any other 
                                person with respect to the plan.
                    ``(B) Expressed as dollar amount or percentage of 
                assets.--Total expected annual revenue and any amount 
                indicated under paragraph (1)(C)(ii) may be expressed 
                as a dollar amount or as a percentage of assets (or a 
                combination thereof), as appropriate. To the extent 
                that total expected annual revenue is expressed as a 
                percentage of assets, such percentage shall be properly 
                allocated among clauses (i), (ii), and (iii) of 
                paragraph (1)(D).
                    ``(C) Provision of fee schedule for certain 
                participant initiated transactions.--In the case of 
                amounts expected to be received from participants or 
                beneficiaries under the plan (or from an account of a 
                participant or beneficiary) as a fee or charge in 
                connection with a transaction initiated by the 
                participant (other than loads, commissions, brokerage 
                fees, and other investment related transactions)--
                            ``(i) such amounts shall not be taken into 
                        account in determining total expected annual 
                        revenue, and
                            ``(ii) the service provider shall provide 
                        to the plan administrator, as part of the 
                        statement referred to in paragraph (1), a fee 
                        schedule which describes each such fee or 
                        charge, the amount thereof, and the manner in 
                        which such amount is collected.
                    ``(D) Estimations.--In determining under this 
                subsection any amount which is expected to be received 
                by the service provider, the service provider shall 
                provide a reasonable estimate of such amount and shall 
                indicate in the statement referred to in paragraph (1) 
                whether such amount disclosed is an estimate. Any such 
                estimate shall be based on reasonable assumptions 
                specified in such statement.
            ``(3) Allocation rules.--The Secretary shall provide rules 
        for defining total expected annual revenue and for the 
        appropriate and consistent allocation of total expected annual 
        revenue among clauses (i), (ii), and (iii) of paragraph (1)(D), 
        except that the entire amount of such revenue shall be 
        allocated among such clauses and no amount may be taken into 
        account under more than one clause.
            ``(4) Disclosure of different pricing of investment 
        options.--In the case of investment options with more than one 
        share class or price level, the Secretary shall prescribe 
        regulations for the disclosure of the different share classes 
        or price levels available as part of the statement in paragraph 
        (1). Such regulations shall provide guidance with respect to 
        the disclosure of the basis for qualifying for such share 
        classes or price levels, which may include amounts invested, 
        number of participants, or other factors.
            ``(5) Disclosure of investment transaction costs.--To the 
        extent provided in regulations issued by the Secretary, a 
        service provider shall separately disclose the transaction 
        costs (including sales commissions) for each investment option 
        for the preceding year or the plan's allocable share of such 
        costs for the preceding year.
    ``(b) Annual Statements.--With respect to each plan year after the 
plan year covered by the statement described in subsection (a), the 
service provider shall provide the plan administrator a single written 
statement which includes the information described in subsection (a) 
with respect to such subsequent plan year.
    ``(c) Material Change Statements.--In the case of any event or 
other change during a plan year which causes the information included 
in any statement described in subsection (a) or (b) with respect to 
such plan year to become materially incorrect, the service provider 
shall provide the plan administrator a written statement providing the 
corrected information not later than 30 days after the service provider 
knows, or exercising reasonable diligence would have known, of such 
event or other change.
    ``(d) Time and Manner of Providing Statement and Other Materials.--
The statement referred to in subsections (a)(1) and (b) shall be made 
at such time and in such manner as the Secretary may provide. Other 
materials required to be provided under this section shall be provided 
in such manner as the Secretary may provide. All information included 
in such statements and other materials shall be presented in a manner 
which is easily understood by the typical plan administrator.
    ``(e) Exception for Small Service Providers.--The requirements of 
this section shall not apply with respect to any contract or 
arrangement for services provided with respect to an individual account 
plan for any plan year if--
            ``(1) the total annual revenue expected by the service 
        provider to be received with respect to the plan for such plan 
        year is less than $5,000, and
            ``(2) the service provider provides a written statement to 
        the plan administrator that the total annual revenue expected 
        by the service provider to be received with respect to the plan 
        is less than $5,000.
Service providers who expect to receive de minimis annual revenue from 
the plan need not provide the written statement described in paragraph 
(2). The Secretary may by regulation or other guidance adjust the 
dollar amount specified in this subsection.
    ``(f) Definition of Service Provider.--For purposes of this 
section--
            ``(1) In general.--The term `service provider' includes any 
        person providing administration, recordkeeping, consulting, 
        investment management services, or investment advice to an 
        individual account plan under a contract or arrangement.
            ``(2) Controlled groups treated as one service provider.--
        All persons which would be treated as a single employer under 
        subsection (b) or (c) of section 414 of the Internal Revenue 
        Code of 1986 if section 1563(a)(1) of such Code were applied--
                    ``(A) except as provided by subparagraph (B), by 
                substituting `more than 50 percent' for `at least 80 
                percent' each place it appears therein, or
                    ``(B) for purposes of subsection (a)(1)(C)(i), by 
                substituting `at least 20 percent' for `at least 80 
                percent' each place it appears therein,
        shall be treated as one person for purposes of this section.

``SEC. 112. REQUIREMENT TO PROVIDE NOTICE TO PARTICIPANTS OF PLAN FEE 
              INFORMATION.

    ``(a) Disclosures to Participants and Beneficiaries.--
            ``(1) Advance notice of available investment options.--
                    ``(A) In general.--The plan administrator of an 
                applicable individual account plan shall provide to the 
                participant or beneficiary notice of the investment 
                options available under the plan before--
                            ``(i) the earliest date provided for under 
                        the plan for the participant's initial 
                        investment of any contribution made on behalf 
                        of such participant, and
                            ``(ii) the effective date of any change in 
                        the list of investment options available under 
                        the plan, unless such advance notice is 
                        impracticable, and in such case, as soon as is 
                        practicable.
                    ``(B) Information included in notice.--The notice 
                required under subparagraph (A) shall--
                            ``(i) set forth, with respect to each 
                        available investment option--
                                    ``(I) the name of the option,
                                    ``(II) a general description of the 
                                option's investment objectives and 
                                principal investment strategies, 
                                principal risk and return 
                                characteristics, and the name of the 
                                option's investment manager,
                                    ``(III) whether the investment 
                                option is designed to be a 
                                comprehensive, stand-alone investment 
                                for retirement that provides varying 
                                degrees of long-term appreciation and 
                                capital preservation through a mix of 
                                equity and fixed income exposures,
                                    ``(IV) the extent to which the 
                                investment option is actively managed 
                                or passively managed in relation to an 
                                index and the difference between active 
                                management and passive management,
                                    ``(V) where, and the manner in 
                                which, additional plan-specific, 
                                option-specific, and generally 
                                available investment information may be 
                                obtained, and
                                    ``(VI) a statement explaining that 
                                investment options should not be 
                                evaluated solely on the basis of the 
                                charges for each option but should also 
                                be based on consideration of other key 
                                factors, including the risk level of 
                                the option, the investment objectives 
                                of the option, historical returns of 
                                the option, and the participant's 
                                personal investment objectives,
                            ``(ii) include a statement of the right 
                        under paragraph (2) of participants and 
                        beneficiaries to request, and a description of 
                        how a participant or beneficiary may request, a 
                        copy of the statements received by the plan 
                        administrator under section 111 with respect to 
                        the plan, and
                            ``(iii) include the plan fee comparison 
                        chart described in subparagraph (C).
                    ``(C) Plan fee comparison chart.--
                            ``(i) In general.--
                                    ``(I) In general.--The notice 
                                provided under this paragraph shall 
                                include a plan fee comparison chart 
                                consisting of a comparison of the 
                                service and investment charges that 
                                will or could be assessed against the 
                                account of the participant or 
                                beneficiary with respect to the plan 
                                year.
                                    ``(II) Expressed as dollar amount 
                                or formula.--For purposes of this 
                                subparagraph, such charges shall be 
                                provided in the form of a dollar amount 
                                or as a formula (such as a percentage 
                                of assets), as appropriate.
                            ``(ii) Categorization of charges.--The plan 
                        fee comparison chart shall provide information 
                        in relation to the following categories of 
                        charges that will or could be assessed against 
                        the account of the participant or beneficiary:
                                    ``(I) Asset-based charges specific 
                                to investment.--Charges that vary 
                                depending on the investment options 
                                selected by the participant or 
                                beneficiary, including the annual 
                                operating expenses of the investment 
                                option and investment-specific asset-
                                based charges (such as loads, 
                                commissions, brokerage fees, exchange 
                                fees, redemption fees, and surrender 
                                charges). Except as provided by the 
                                Secretary in regulations under this 
                                section, the information relating to 
                                such charges shall include a statement 
                                noting any charges for 1 or more 
                                investment options which pay for 
                                services other than investment 
                                management.
                                    ``(II) Recurring asset-based 
                                charges not specific to investment.--
                                Charges that are assessed as a 
                                percentage of the total assets in the 
                                account of the participant or 
                                beneficiary, regardless of the 
                                investment option selected.
                                    ``(III) Administrative and 
                                transaction-based charges.--
                                Administration and transaction-based 
                                charges, including fees charged to 
                                participants to cover plan 
                                administration, compliance, and 
                                recordkeeping costs, plan loan 
                                origination fees, possible redemption 
                                fees, and possible surrender charges, 
                                that are not assessed as a percentage 
                                of the total assets in the account and 
                                are either automatically deducted each 
                                year or result from certain 
                                transactions engaged in by the 
                                participant or beneficiary.
                                    ``(IV) Other charges.--Any other 
                                charges which may be deducted from 
                                participants' or beneficiaries' 
                                accounts and which are not described in 
                                subclauses (I), (II), and (III).
                            ``(iii) Fees and historical returns.--The 
                        plan fee comparison chart shall include--
                                    ``(I) the historical returns, net 
                                of fees and expenses, for the previous 
                                year, 5 years, and 10 years (or for the 
                                period since inception, if shorter) 
                                with respect to such investment option, 
                                and
                                    ``(II) the historical returns of an 
                                appropriate benchmark, index, or other 
                                point of comparison for each such 
                                period.
                    ``(D) Model notices.--The Secretary shall prescribe 
                one or more model notices that may be used for purposes 
                of satisfying the requirements of this paragraph, 
                including model plan fee comparison charts.
                    ``(E) Estimations.--For purposes of providing the 
                notice required under this paragraph, the plan 
                administrator may provide a reasonable and 
                representative estimate for any charges or percentages 
                disclosed under subparagraph (B) or (C) and shall 
                indicate whether the amount of any such charges or 
                percentages disclosed is an estimate.
            ``(2) Disclosure of service provider statements.--The plan 
        administrator shall provide to any participant or beneficiary a 
        copy of any statement received pursuant to section 111 within 
        30 days after receipt of a request for such a statement.
            ``(3) Notice of material changes.--In the case of any event 
        or other change which causes the information included in any 
        notice described in paragraph (1) to become materially 
        incorrect, the plan administrator shall provide participants 
        and beneficiaries a written statement providing the corrected 
        information not later than 30 days after the plan administrator 
        knows, or exercising reasonable diligence would have known, of 
        such event or other change.
            ``(4) Time and manner of providing notices and 
        disclosures.--
                    ``(A) In general.--The notices described in 
                paragraph (1) shall be provided at such times and in 
                such manner as the Secretary may provide. Other notices 
                and materials required to be provided under this 
                subsection shall be provided in such manner as the 
                Secretary may provide.
                    ``(B) Manner of presentation.--
                            ``(i) In general.--All information included 
                        in such notices or explanations shall be 
                        presented in a manner which is easily 
                        understood by the typical participant.
                            ``(ii) Generic example of operating 
                        expenses of investment options.--The 
                        information described in paragraph 
                        (1)(C)(ii)(I) shall include a generic example 
                        describing the charges that would apply during 
                        an annual period with respect to a $10,000 
                        investment in the investment option.
    ``(b) Applicable Individual Account Plan.--For purposes of this 
section, the term `applicable individual account plan' means the 
portion of any individual account plan which permits a participant or 
beneficiary to exercise control over assets in his or her account.
    ``(c) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance 
which--
            ``(1) provide a later deadline for providing the notice of 
        investment menu changes described in subsection (a)(3) in 
        appropriate circumstances, and
            ``(2) provide guidelines, and a safe harbor, for the 
        selection of an appropriate benchmark, index, or other point of 
        comparison for an investment option under subsection 
        (a)(1)(C)(iii)(II).''.
            (2) Clerical amendment.--The table of contents in section 1 
        of such Act is amended by striking the item relating to section 
        111 and inserting the following new items:

``Sec. 111. Requirement to provide notice of plan fee information to 
                            plan administrators.
``Sec. 112. Requirement to provide notice to participants of plan fee 
                            information.
``Sec. 113. Repeal and effective date.''.
    (b) Quarterly Benefit Statements.--Section 105 of such Act (29 
U.S.C. 1025) is amended--
            (1) in subsection (a)(2)--
                    (A) by redesignating subparagraph (C) as 
                subparagraph (G);
                    (B) in subparagraph (B)(ii)--
                            (i) in subclause (II), by striking 
                        ``diversified, and'' and inserting 
                        ``diversified,'';
                            (ii) in subclause (III) by striking the 
                        period and inserting ``,  and''; and
                            (iii) by adding after subclause (III) the 
                        following new subclause:
                                    ``(IV) with respect to the portion 
                                of a participant's account for which 
                                the participant has the right to direct 
                                the investment of assets, the 
                                information described in subparagraph 
                                (C).''; and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraphs:
                    ``(C) Quarterly benefit statements.--The plan 
                administrator shall provide to each participant and 
                beneficiary, at least once each calendar quarter, an 
                explanation describing the investment options in which 
                the participant's or beneficiary's account is invested 
                as of the last day of the preceding quarter. Such 
                explanation shall provide, to the extent applicable, 
                the following for the preceding quarter:
                            ``(i) As of the last day of the quarter, a 
                        statement of the different asset classes that 
                        the participant's or beneficiary's account is 
                        invested in and the percentage of the account 
                        allocated to each asset class.
                            ``(ii) A statement of the starting and 
                        ending balance of the participant's or 
                        beneficiary's account for such quarter.
                            ``(iii) A statement of the total 
                        contributions made to the participant's or 
                        beneficiary's account during the quarter and a 
                        separate statement of--
                                    ``(I) the amount of such 
                                contributions, and the total amount of 
                                any restorative payments, which were 
                                made by the employer during the 
                                quarter, and
                                    ``(II) the amount of such 
                                contributions which were made by the 
                                employee.
                            ``(iv) A statement of the total fees and 
                        expenses which were directly deducted from the 
                        participant's or beneficiary's account during 
                        the quarter and an itemization of such fees and 
                        expenses.
                            ``(v) A statement of the net returns for 
                        the year to date, expressed as a percentage, 
                        and a statement as to whether the net returns 
                        include amounts described in clause (iv).
                            ``(vi) With respect to each investment 
                        option in which the participant or beneficiary 
                        was invested as of the last day of the quarter, 
                        the following:
                                    ``(I) A statement of the percentage 
                                of the participant's or beneficiary's 
                                account that is invested in such option 
                                as of the last day of such quarter.
                                    ``(II) A statement of the starting 
                                and ending balance of the participant's 
                                or beneficiary's account that is 
                                invested in such option for such 
                                quarter.
                                    ``(III) A statement of the annual 
                                operating expenses of the investment 
                                option.
                                    ``(IV) A statement of whether the 
                                disclosure described in clause (iv) 
                                includes the annual operating expenses 
                                of the investment options of the 
                                participant or beneficiary.
                            ``(vii) The statement described in section 
                        112(a)(1)(B)(i)(VI).
                            ``(viii) A statement regarding how a 
                        participant or beneficiary may access the 
                        information required to be disclosed under 
                        section 112(a)(1).
                    ``(D) Model explanations.--The Secretary shall 
                prescribe one or more model explanations that may be 
                used for purposes of satisfying the requirements of 
                subparagraph (C).
                    ``(E) Determination of expenses.--For purposes of 
                subparagraph (C)(vi)(III)--
                            ``(i) Expenses may be expressed as a dollar 
                        amount or as a percentage of assets (or a 
                        combination thereof).
                            ``(ii) The plan administrator may provide 
                        disclosure of the expenses for the quarter or 
                        may provide a reasonable and representative 
                        estimate of such expenses and shall indicate 
                        any such estimate as being an estimate. Any 
                        such estimate shall be based on reasonable 
                        assumptions stated together with such estimate.
                            ``(iii) To the extent that estimated 
                        expenses are expressed as a percentage of 
                        assets, the disclosure shall also include one 
                        of the following, stated in dollar amounts:
                                    ``(I) an estimate of the expenses 
                                for the quarter based on the amount 
                                invested in the option; or
                                    ``(II) an example describing the 
                                expenses that would apply during the 
                                quarter with respect to a hypothetical 
                                $10,000 investment in the option.
                    ``(F) Annual compliance for small plans.--A plan 
                that has fewer than 100 participants and beneficiaries 
                as of the first day of the plan year may provide the 
                explanation described in subparagraph (C) on an annual 
                rather than a quarterly basis.''.
    (c) Assistance From the Department of Labor.--Section 105 of such 
Act (29 U.S.C. 1025) is amended by adding at the end the following new 
subsections:
    ``(d) Assistance to Small Employers.--The Secretary shall make 
available to employers with 100 or fewer employees--
            ``(1) educational and compliance materials designed to 
        assist such employers in selecting and monitoring service 
        providers for individual account plans which permit a 
        participant or beneficiary to exercise control over the assets 
        in the account of the participant or beneficiary, investment 
        options under such plans, and charges relating to such options, 
        and
            ``(2) services designed to assist such employers in finding 
        and understanding affordable investment options for such plans 
        and in comparing the investment performance of, and charges 
        for, such options on an ongoing basis against appropriate 
        benchmarks or other appropriate measures.
    ``(e) Assistance to Plan Sponsors and Plan Participants and 
Beneficiaries.--The Secretary shall provide plan administrators and 
plan sponsors of individual account plans and participants and 
beneficiaries under such plans assistance with any questions or 
problems regarding compliance with the requirements of subparagraphs 
(B)(ii)(IV) and (C) of subsection (a)(2) and section 112.''.
    (d) Enforcement.--
            (1) Penalties.--Section 502 of such Act (29 U.S.C. 1132) is 
        amended--
                    (A) in subsection (a)(6), by striking ``under 
                paragraph (2)'' and all that follows through 
                ``subsection (c)'' and inserting ``under paragraph (2), 
                (4), (5), (6), (7), (8), (9), (10), (11), or (12) of 
                subsection (c)''; and
                    (B) in subsection (c), by redesignating the second 
                paragraph (10) as paragraph (13), and by inserting 
                after the first paragraph (10) the following new 
                paragraphs:
    ``(11)(A) In the case of any failure by a service provider (as 
defined in section 111(f)(1)) to provide a statement in violation of 
section 111, the service provider may be assessed by the Secretary a 
civil penalty of up to $1,000 for each day in the noncompliance period.
    ``(B) For purposes of subparagraph (A), the noncompliance period 
with respect to the failure to provide any statement is the period 
beginning on the date that such statement was required to be provided 
and ending on the date that such statement is provided or the failure 
is otherwise corrected.
    ``(C)(i) The total amount of a penalty assessed under this 
paragraph on any service provider with respect to any individual 
account plan for any plan year shall not exceed an amount equal to the 
lesser of--
            ``(I) 10 percent of the assets of the plan, determined as 
        of the first day of such plan year, or
            ``(II) $1,000,000.
    ``(ii) No penalty shall be imposed by subparagraph (A) on any 
failure if--
            ``(I) the service provider subject to liability for the 
        penalty under subparagraph (A) exercised reasonable diligence 
        to meet the requirement with respect to which the failure 
        relates, and
            ``(II) such service provider provides the information 
        required under section 111 during the 30-day period beginning 
        on the date such person knew, or exercising reasonable 
        diligence would have known, that such failure existed.
    ``(iii) In the case of a failure which is due to reasonable cause 
and not to willful neglect, the Secretary may waive part or all of the 
penalty under subparagraph (A) to the extent that the payment of such 
penalty would be excessive or otherwise inequitable relative to the 
failure involved.
    ``(D) The penalty imposed under this paragraph with respect to any 
failure shall be reduced by the amount of any tax imposed on such 
person with respect to such failure under section 4980J of the Internal 
Revenue Code of 1986.
    ``(12)(A) Any plan administrator with respect to a plan who fails 
or refuses to provide a notice, explanation, or statement to 
participants and beneficiaries in accordance with subparagraphs 
(B)(ii)(IV) and (C) of section 105(a)(2) and section 112 may be 
assessed by the Secretary a civil penalty of up to $110 for each day in 
the noncompliance period.
    ``(B) For purposes of subparagraph (A), the noncompliance period 
with respect to the failure to provide any notice, explanation, or 
statement referred to in subparagraph (B)(ii)(IV) or (C) of section 
105(a)(2) or section 112 with respect to any participant or beneficiary 
is the period beginning on the date that such notice, explanation, or 
statement was required to be provided and ending on the date that such 
notice, explanation, or statement is provided or the failure is 
otherwise corrected.
    ``(C)(i) The total amount of penalty assessed under this paragraph 
with respect to any plan for any plan year shall not exceed an amount 
equal to the lesser of--
            ``(I) 10 percent of the assets of the plan, determined as 
        of the first day of such plan year, or
            ``(II) $500,000.
    ``(ii) No penalty shall be imposed under subparagraph (A) on any 
failure to meet the requirements of subparagraphs (B)(ii)(IV) and (C) 
of section 105(a)(2) and section 112 if--
            ``(I) any person subject to liability for the penalty under 
        subparagraph (A) exercised reasonable diligence to meet such 
        requirements, and
            ``(II) such person provides the notice, explanation, or 
        statement to which the failure relates during the 30-day period 
        beginning on the date such person knew, or exercising 
        reasonable diligence would have known, that such failure 
        existed.
    ``(iii) In the case of a failure which is due to reasonable cause 
and not to willful neglect, the Secretary shall waive part or all of 
the penalty under subparagraph (A) to the extent that the payment of 
such penalty would be excessive or otherwise inequitable relative to 
the failure involved.
    ``(iv) The penalty imposed under this paragraph with respect to any 
failure shall be reduced by the amount of any tax imposed on such 
person with respect to such failure under section 4980K of the Internal 
Revenue Code of 1986.''.
            (2) Enforcement coordination and review by the department 
        of labor.--Section 502 of such Act (29 U.S.C. 1132) is amended 
        by adding at the end the following new subsection:
    ``(n) Enforcement Coordination of Certain Disclosure Requirements 
Relating to Individual Account Plans and Review by the Department of 
Labor.--
            ``(1) Notification and action relating to service 
        providers.--The Secretary shall notify the applicable 
        regulatory authority in any case in which the Secretary 
        determines that a service provider is engaged in a pattern or 
        practice that precludes compliance by plan administrators with 
        subparagraphs (B)(ii)(IV) and (C) of section 105(a)(2) and 
        section 112. The Secretary shall, in consultation with the 
        applicable authority, take such timely enforcement action under 
        this title as is necessary to assure that such pattern or 
        practice ceases and desists and assess any appropriate 
        penalties.
            ``(2) Annual audit of representative sampling of individual 
        account plans.--The Secretary shall annually audit a 
        representative sampling of individual account plans covered by 
        this title to determine compliance with the requirements of 
        subparagraphs (B)(ii)(IV) and (C) of section 105(a)(2), section 
        111, and section 112. The Secretary shall annually report the 
        results of such audit and any related recommendations of the 
        Secretary to the Committee on Education and Labor of the House 
        of Representatives and the Committee on Health, Education, 
        Labor, and Pensions of the Senate.''.
    (e) Review and Report to the Congress by Secretary of Labor 
Relating to Reporting and Disclosure Requirements.--
            (1) Study.--As soon as practicable after the date of the 
        enactment of this Act, the Secretary of Labor shall review the 
        reporting and disclosure requirements of part 1 of subtitle B 
        of title I of the Employee Retirement Income Security Act of 
        1974 and related provisions of the Pension Protection Act of 
        2006.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Secretary of Labor, in consultation 
        with the Secretary of the Treasury, shall make such 
        recommendations as the Secretary of Labor considers appropriate 
        to the appropriate committees of the Congress to consolidate, 
        simplify, standardize, and improve the applicable reporting and 
        disclosure requirements so as to simplify reporting for 
        employee pension benefit plans and ensure that needed 
        understandable information is provided to participants and 
        beneficiaries of such plans.

SEC. 323. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    (a) In General.--Chapter 43 of the Internal Revenue Code of 1986 
(relating to qualified pension, etc. plans) is amended by adding at the 
end the following new sections:

``SEC. 4980J. FAILURE TO PROVIDE NOTICE OF PLAN FEE INFORMATION TO PLAN 
              ADMINISTRATORS.

    ``(a) Imposition of Tax.--
            ``(1) In general.--There is hereby imposed a tax on each 
        failure of a service provider to meet the requirements of 
        paragraph (2) with respect to any applicable defined 
        contribution plan.
            ``(2) Failures described.--The failures described in this 
        paragraph are--
                    ``(A) any failure to provide an initial statement 
                described in subsection (d),
                    ``(B) any failure to provide an annual statement 
                described in subsection (e), and
                    ``(C) any failure to provide a material change 
                statement described in subsection (f).
    ``(b) Amount of Tax.--
            ``(1) In general.--The amount of the tax imposed by 
        subsection (a) on any failure shall be $1,000 for each day in 
        the noncompliance period.
            ``(2) Noncompliance period.--For purposes of paragraph (1), 
        the noncompliance period with respect to the failure to provide 
        any statement is the period beginning on the date that such 
        statement was required to be provided and ending on the date 
        that such statement is provided or the failure is otherwise 
        corrected.
    ``(c) Limitations.--
            ``(1) Aggregate limitation.--The total amount of tax 
        imposed by this section on any service provider with respect to 
        any applicable defined contribution plan for any plan year 
        shall not exceed an amount equal to the lesser of--
                    ``(A) 10 percent of the assets of the plan, 
                determined as of the first day of such plan year, or
                    ``(B) $1,000,000.
            ``(2) Tax not to apply to failures corrected within 30 
        days.--No tax shall be imposed by subsection (a) on any failure 
        if--
                    ``(A) the service provider subject to liability for 
                the tax under subsection (a) exercised reasonable 
                diligence to meet the requirement with respect to which 
                the failure relates, and
                    ``(B) such service provider provides the 
                information required under subsection (a) during the 
                30-day period beginning on the date such person knew, 
                or exercising reasonable diligence would have known, 
                that such failure existed.
            ``(3) Waiver by secretary.--In the case of a failure which 
        is due to reasonable cause and not to willful neglect, the 
        Secretary may waive part or all of the tax imposed by 
        subsection (a) to the extent that the payment of such tax would 
        be excessive or otherwise inequitable relative to the failure 
        involved.
    ``(d) Initial Statement of Services Provided and Revenues 
Received.--
            ``(1) In general.--Before entering into any contract or 
        arrangement to provide services to an applicable defined 
        contribution plan, the service provider shall provide to the 
        plan administrator a single written statement which includes, 
        with respect to the first plan year covered under such contract 
        or arrangement, the following:
                    ``(A) A detailed description of the services which 
                will be provided to the plan by the service provider, 
                the amount of total expected annual revenue with 
                respect to such services, the manner in which such 
                revenue will be collected, and the extent to which such 
                revenue varies between specific investment options.
                    ``(B)(i) In the case of a service provider who is 
                providing recordkeeping services with respect to any 
                investment option, such information as is necessary for 
                the plan administrator to satisfy the requirements of 
                paragraphs (1), (2) and (4) of section 4980K(e) with 
                respect to such option, including specifying the method 
                used by the service provider in disclosing or 
                estimating expenses under subparagraphs (A)(iv) and (C) 
                of such paragraph (2).
                    ``(ii) To the extent provided in regulations issued 
                by the Secretary of Labor, clause (i) shall not apply 
                in the case of a service provider described in such 
                clause if the service provider receives a written 
                notification from the plan administrator that the 
                information described in such clause in connection with 
                the investment option is provided by another service 
                provider pursuant to a contract or arrangement to 
                provide services to the plan.
                    ``(C) A statement indicating--
                            ``(i) the identity of any investment 
                        options offered under the plan with respect to 
                        which the service provider provides substantial 
                        investment, trustee, custodial, or 
                        administrative services, and
                            ``(ii) in the case of any investment 
                        option, whether the service provider expects to 
                        receive any component of total expected annual 
                        revenue described in paragraph (2)(A)(ii)(II) 
                        with respect to such option and the amount of 
                        any such component.
                    ``(D) The portion of total expected annual revenue 
                which is properly allocable to each of the following:
                            ``(i) Administration and recordkeeping.
                            ``(ii) Investment management.
                            ``(iii) Other services or amounts not 
                        described in clause (i) or (ii).
            ``(2) Definition of total expected annual revenue.--For 
        purposes of this section--
                    ``(A) In general.--The term `total expected annual 
                revenue' means, with respect to any plan year--
                            ``(i) any amount expected to be received 
                        during such plan year from the plan (including 
                        amounts paid from participant accounts), any 
                        participant or beneficiary, or any plan sponsor 
                        in connection with the contract or arrangement 
                        referred to in paragraph (1), and
                            ``(ii) any amount not taken into account 
                        under clause (i) which is expected to be 
                        received during such plan year by the service 
                        provider in connection with--
                                    ``(I) plan administration, 
                                recordkeeping, consulting, management, 
                                or investment or other service 
                                activities undertaken by the service 
                                provider with respect to the plan, or
                                    ``(II) plan administration, 
                                recordkeeping, consulting, management, 
                                or investment or other service 
                                activities undertaken by any other 
                                person with respect to the plan.
                    ``(B) Expressed as dollar amount or percentage of 
                assets.--Total expected annual revenue and any amount 
                indicated under paragraph (1)(C)(ii) may be expressed 
                as a dollar amount or as a percentage of assets (or a 
                combination thereof), as appropriate. To the extent 
                that total expected annual revenue is expressed as a 
                percentage of assets, such percentage shall be properly 
                allocated among clauses (i), (ii), and (iii) of 
                paragraph (1)(D).
                    ``(C) Provision of fee schedule for certain 
                participant initiated transactions.--In the case of 
                amounts expected to be received from participants or 
                beneficiaries under the plan (or from the account of a 
                participant or beneficiary) as a fee or charge in 
                connection with a transaction initiated by the 
                participant (other than loads, commissions, brokerage 
                fees, and other investment related transactions)--
                            ``(i) such amounts shall not be taken into 
                        account in determining total expected annual 
                        revenue, and
                            ``(ii) the service provider shall provide 
                        to the plan administrator, as part of the 
                        statement referred to in paragraph (1), a fee 
                        schedule which describes each such fee or 
                        charge, the amount thereof, and the manner in 
                        which such amount is collected.
                    ``(D) Estimations.--In determining under this 
                subsection any amount which is expected to be received 
                by the service provider, the service provider shall 
                provide a reasonable estimate of such amount and shall 
                indicate in the statement referred to in paragraph (1) 
                whether such amount disclosed is an estimate. Any such 
                estimate shall be based on reasonable assumptions 
                specified in such statement.
            ``(3) Allocation rules.--The Secretary of Labor shall 
        provide rules for defining total expected annual revenue and 
        for the appropriate and consistent allocation of total expected 
        annual revenue among clauses (i), (ii), and (iii) of paragraph 
        (1)(D), except that the entire amount of such revenue shall be 
        allocated among such clauses and no amount may be taken into 
        account under more than one clause.
            ``(4) Disclosure of different pricing of investment 
        options.--In the case of investment options with more than one 
        share class or price level, the Secretary of Labor shall 
        prescribe regulations for the disclosure of the different share 
        classes or price levels available as part of the statement in 
        paragraph (1). Such regulations shall provide guidance with 
        respect to the disclosure of the basis for qualifying for such 
        share classes or price levels, which may include amounts 
        invested, number of participants, or other factors.
            ``(5) Disclosure of investment transaction costs.--To the 
        extent provided in regulations issued by the Secretary of 
        Labor, a service provider shall separately disclose the 
        transaction costs (including sales commissions) for each 
        investment option for the preceding year or the plan's 
        allocable share of such costs for the preceding year.
    ``(e) Annual Statements.--With respect to each plan year after the 
plan year covered by the statement described in subsection (d), the 
service provider shall provide the plan administrator a single written 
statement which includes the information described in subsection (d) 
with respect to such subsequent plan year.
    ``(f) Material Change Statements.--In the case of any event or 
other change during a plan year which causes the information included 
in any statement described in subsection (d) or (e) with respect to 
such plan year to become materially incorrect, the service provider 
shall provide the plan administrator a written statement providing the 
corrected information not later than 30 days after the service provider 
knows, or exercising reasonable diligence would have known, of such 
event or other change.
    ``(g) Time and Manner of Providing Statement and Other Materials.--
The statement referred to in subsections (d)(1) and (e) shall be made 
at such time and in such manner as the Secretary of Labor may provide. 
Other materials required to be provided under this section shall be 
provided in such manner as such Secretary may provide. All information 
included in such statements and other materials shall be presented in a 
manner which is easily understood by the typical plan administrator.
    ``(h) Exception for Small Service Providers.--The requirements of 
this section shall not apply with respect to any contract or 
arrangement for services provided with respect to an individual account 
plan for any plan year if--
            ``(1) the total annual revenue expected by the service 
        provider to be received with respect to the plan for such plan 
        year is less than $5,000, and
            ``(2) the service provider provides a written statement to 
        the plan administrator that the total annual revenue expected 
        by the service provider to be received with respect to the plan 
        is less than $5,000.
Service providers who expect to receive de minimis annual revenue from 
the plan need not provide the written statement described in paragraph 
(2). The Secretary of Labor may by regulation or other guidance adjust 
the dollar amount specified in this subsection.
    ``(i) Definitions.--For purposes of this section--
            ``(1) Service provider.--
                    ``(A) In general.--The term `service provider' 
                includes any person providing administration, 
                recordkeeping, consulting, investment management 
                services, or investment advice to an applicable defined 
                contribution plan under a contract or arrangement.
                    ``(B) Controlled groups treated as one service 
                provider.--All persons which would be treated as a 
                single employer under subsection (b) or (c) of section 
                414 if section 1563(a)(1) were applied--
                            ``(i) except as provided by subparagraph 
                        (B), by substituting `more than 50 percent' for 
                        `at least 80 percent' each place it appears 
                        therein, or
                            ``(ii) for purposes of subsection 
                        (d)(1)(C)(i), by substituting `at least 20 
                        percent' for `at least 80 percent' each place 
                        it appears therein,
                shall be treated as one person for purposes of this 
                section.
            ``(2) Applicable defined contribution plan.--The term 
        `applicable defined contribution plan' means any defined 
        contribution plan described in clauses (iii) through (vi) of 
        section 402(c)(8)(B).
            ``(3) Plan administrator.--The term `plan administrator' 
        has the meaning given such term by section 414(g).

``SEC. 4980K. FAILURE TO PROVIDE NOTICE TO PARTICIPANTS OF PLAN FEE 
              INFORMATION.

    ``(a) Imposition of Tax.--
            ``(1) In general.--There is hereby imposed a tax on each 
        failure of a plan administrator of an applicable defined 
        contribution plan to meet the requirements of paragraph (2) 
        with respect to any participant or beneficiary.
            ``(2) Failures described.--The failures described in this 
        paragraph are--
                    ``(A) any failure to provide an advance notice of 
                available investment options described in subsection 
                (e)(1),
                    ``(B) any failure to provide an account explanation 
                described in subsection (e)(2),
                    ``(C) any failure to provide a service provider 
                statement referred to in subsection (e)(3), and
                    ``(D) any failure to provide a notice of material 
                change described in subsection (e)(4).
    ``(b) Amount of Tax.--
            ``(1) In general.--The amount of the tax imposed by 
        subsection (a) on any failure with respect to any participant 
        or beneficiary shall be $100 for each day in the noncompliance 
        period.
            ``(2) Noncompliance period.--For purposes of paragraph (1), 
        the noncompliance period with respect to the failure to provide 
        any notice, explanation, or statement referred to in subsection 
        (a)(2) with respect to any participant or beneficiary is the 
        period beginning on the date that such notice, explanation, or 
        statement was required to be provided and ending on the date 
        that such notice, explanation, or statement is provided or the 
        failure is otherwise corrected.
    ``(c) Limitations on Amount of Tax.--
            ``(1) Aggregate limitation.--The total amount of tax 
        imposed by this section with respect to any plan for any plan 
        year shall not exceed an amount equal to the lesser of--
                    ``(A) 10 percent of the assets of the plan, 
                determined as of the first day of such plan year, or
                    ``(B) $500,000.
            ``(2) Tax not to apply to failures corrected within 30 
        days.--No tax shall be imposed by subsection (a) on any failure 
        if--
                    ``(A) any person subject to liability for the tax 
                under subsection (a) exercised reasonable diligence to 
                meet the requirements of subsection (e), and
                    ``(B) such person provides the notice, explanation, 
                or statement to which the failure relates during the 
                30-day period beginning on the date such person knew, 
                or exercising reasonable diligence would have known, 
                that such failure existed.
            ``(3) Waiver by secretary.--In the case of a failure which 
        is due to reasonable cause and not to willful neglect, the 
        Secretary shall waive part or all of the tax imposed by 
        subsection (a) to the extent that the payment of such tax would 
        be excessive or otherwise inequitable relative to the failure 
        involved.
    ``(d) Liability for Tax.--The plan administrator shall be liable 
for the tax imposed by subsection (a).
    ``(e) Disclosures to Participants and Beneficiaries.--
            ``(1) Advance notice of available investment options.--
                    ``(A) In general.--The plan administrator of an 
                applicable defined contribution plan shall provide to 
                the participant or beneficiary notice of the investment 
                options available under the plan before--
                            ``(i) the earliest date provided for under 
                        the plan for the participant's initial 
                        investment of any contribution made on behalf 
                        of such participant, and
                            ``(ii) the effective date of any change in 
                        the list of investment options available under 
                        the plan, unless such advance notice is 
                        impracticable, and in such case, as soon as is 
                        practicable.
                    ``(B) Information included in notice.--The notice 
                required under subparagraph (A) shall--
                            ``(i) set forth, with respect to each 
                        available investment option--
                                    ``(I) the name of the option,
                                    ``(II) a general description of the 
                                option's investment objectives and 
                                principal investment strategies, 
                                principal risk and return 
                                characteristics, and the name of the 
                                option's investment manager,
                                    ``(III) whether the investment 
                                option is designed to be a 
                                comprehensive, stand-alone investment 
                                for retirement that provides varying 
                                degrees of long-term appreciation and 
                                capital preservation through a mix of 
                                equity and fixed income exposures,
                                    ``(IV) the extent to which the 
                                investment option is actively managed 
                                or passively managed in relation to an 
                                index and the difference between active 
                                management and passive management,
                                    ``(V) where, and the manner in 
                                which, additional plan-specific, 
                                option-specific, and generally 
                                available investment information may be 
                                obtained, and
                                    ``(VI) a statement explaining that 
                                investment options should not be 
                                evaluated solely on the basis of the 
                                charges for each option but should also 
                                be based on consideration of other key 
                                factors, including the risk level of 
                                the option, the investment objectives 
                                of the option, historical returns of 
                                the option, and the participant's 
                                personal investment objectives,
                            ``(ii) include a statement of the right 
                        under paragraph (3) of participants and 
                        beneficiaries to request, and a description of 
                        how participant or beneficiary may request, a 
                        copy of the statements received by the plan 
                        administrator under section 4980J with respect 
                        to the plan, and
                            ``(iii) include the plan fee comparison 
                        chart described in subparagraph (C).
                    ``(C) Plan fee comparison chart.--
                            ``(i) In general.--
                                    ``(I) In general.--The notice 
                                provided under this paragraph shall 
                                include a plan fee comparison chart 
                                consisting of a comparison of the 
                                service and investment charges that 
                                will or could be assessed against the 
                                account of the participant or 
                                beneficiary with respect to the plan 
                                year.
                                    ``(II) Expressed as dollar amount 
                                or formula.--For purposes of this 
                                subparagraph, such charges shall be 
                                provided in the form of a dollar amount 
                                or as a formula (such as a percentage 
                                of assets), as appropriate.
                            ``(ii) Categorization of charges.--The plan 
                        fee comparison chart shall provide information 
                        in relation to the following categories of 
                        charges that will or could be assessed against 
                        the account of the participant or beneficiary:
                                    ``(I) Asset-based charges specific 
                                to investment.--Charges that vary 
                                depending on the investment options 
                                selected by the participant or 
                                beneficiary, including the annual 
                                operating expenses of the investment 
                                option and investment-specific asset-
                                based charges (such as loads, 
                                commissions, brokerage fees, exchange 
                                fees, redemption fees, and surrender 
                                charges). Except as provided by the 
                                Secretary of Labor in regulations under 
                                this section, the information relating 
                                to such charges shall include a 
                                statement noting any charges for 1 or 
                                more investment options which pay for 
                                services other than investment 
                                management.
                                    ``(II) Recurring asset-based 
                                charges not specific to investment.--
                                Charges that are assessed as a 
                                percentage of the total assets in the 
                                account of the participant or 
                                beneficiary, regardless of the 
                                investment option selected.
                                    ``(III) Administrative and 
                                transaction-based charges.--
                                Administration and transaction-based 
                                charges, including fees charged to 
                                participants to cover plan 
                                administration, compliance, and 
                                recordkeeping costs, plan loan 
                                origination fees, possible redemption 
                                fees, and possible surrender charges, 
                                that are not assessed as a percentage 
                                of the total assets in the account and 
                                are either automatically deducted each 
                                year or result from certain 
                                transactions engaged in by the 
                                participant or beneficiary.
                                    ``(IV) Other charges.--Any other 
                                charges which may be deducted from 
                                participants' or beneficiaries' 
                                accounts and which are not described in 
                                subclauses (I), (II), and (III).
                            ``(iii) Fees and historical returns.--The 
                        plan fee comparison chart shall include--
                                    ``(I) the historical returns, net 
                                of fees and expenses, for the previous 
                                year, 5 years, and 10 years (or for the 
                                period since inception, if shorter) 
                                with respect to such investment option, 
                                and
                                    ``(II) the historical returns of an 
                                appropriate benchmark, index, or other 
                                point of comparison for each such 
                                period.
                    ``(D) Model notices.--The Secretary of Labor shall 
                prescribe one or more model notices that may be used 
                for purposes of satisfying the requirements of this 
                paragraph, including model plan fee comparison charts.
                    ``(E) Estimations.--For purposes of providing the 
                notice required under this paragraph, the plan 
                administrator may provide a reasonable and 
                representative estimate for any charges or percentages 
                disclosed under subparagraph (B) or (C) and shall 
                indicate whether the amount of any such charges or 
                percentages disclosed is an estimate.
            ``(2) Quarterly benefit statement.--
                    ``(A) Requirements.--The plan administrator shall 
                provide to each participant and beneficiary, at least 
                once each calendar quarter, an explanation describing 
                the investment options in which the participant's or 
                beneficiary's account is invested as of the last day of 
                the preceding quarter. Such explanation shall provide, 
                to the extent applicable, the following for the 
                preceding quarter:
                            ``(i) As of the last day of the quarter, a 
                        statement of the different asset classes that 
                        the participant's or beneficiary's account is 
                        invested in and the percentage of the account 
                        allocated to each asset class.
                            ``(ii) A statement of the starting and 
                        ending balance of the participant's or 
                        beneficiary's account for such quarter.
                            ``(iii) A statement of the total 
                        contributions made to the participant's or 
                        beneficiary's account during the quarter and a 
                        separate statement of--
                                    ``(I) the amount of such 
                                contributions, and the total amount of 
                                any restorative payments, which were 
                                made by the employer during the 
                                quarter, and
                                    ``(II) the amount of such 
                                contributions which were made by the 
                                employee.
                            ``(iv) A statement of the total fees and 
                        expenses which were directly deducted from the 
                        participant's or beneficiary's account during 
                        the quarter and an itemization of such fees and 
                        expenses.
                            ``(v) A statement of the net returns for 
                        the year to date, expressed as a percentage, 
                        and a statement as to whether the net returns 
                        include amounts described in clause (iv).
                            ``(vi) With respect to each investment 
                        option in which the participant or beneficiary 
                        was invested as of the last day of the quarter, 
                        the following:
                                    ``(I) A statement of the percentage 
                                of the participant's or beneficiary's 
                                account that is invested in such option 
                                as of the last day of such quarter.
                                    ``(II) A statement of the starting 
                                and ending balance of the participant's 
                                or beneficiary's account that is 
                                invested in such option for such 
                                quarter.
                                    ``(III) A statement of the annual 
                                operating expenses of the investment 
                                option.
                                    ``(IV) A statement of whether the 
                                disclosure described in clause (iv) 
                                includes the annual operating expenses 
                                of the investment options of the 
                                participant or beneficiary.
                            ``(vii) The statement described in 
                        paragraph (1)(B)(i)(VI).
                            ``(viii) A statement regarding how a 
                        participant or beneficiary may access the 
                        information required to be disclosed under 
                        paragraph (1).
                    ``(B) Model explanations.--The Secretary of Labor 
                shall prescribe one or more model explanations that may 
                be used for purposes of satisfying the requirements of 
                this paragraph.
                    ``(C) Determination of expenses.--For purposes of 
                subparagraph (A)(vi)(III)--
                            ``(i) Expenses may be expressed as a dollar 
                        amount or as a percentage of assets (or a 
                        combination thereof).
                            ``(ii) The plan administrator may provide 
                        disclosure of the expenses for the quarter or 
                        may provide a reasonable and representative 
                        estimate of such expenses and shall indicate 
                        any such estimate as being an estimate. Any 
                        such estimate shall be based on reasonable 
                        assumptions stated together with such estimate.
                            ``(iii) To the extent that estimated 
                        expenses are expressed as a percentage of 
                        assets, the disclosure shall also include one 
                        of the following, stated in dollar amounts:
                                    ``(I) an estimate of the expenses 
                                for the quarter based on the amount 
                                invested in the option; or
                                    ``(II) an example describing the 
                                expenses that would apply during the 
                                quarter with respect to a hypothetical 
                                $10,000 investment in the option.
            ``(3) Disclosure of service provider statements.--The plan 
        administrator shall provide to any participant or beneficiary a 
        copy of any statement received pursuant to section 4980J within 
        30 days after receipt of a request for such a statement.
            ``(4) Notice of material changes.--In the case of any event 
        or other change which causes the information included in any 
        notice described in paragraph (1) to become materially 
        incorrect, the plan administrator shall provide participants 
        and beneficiaries a written statement providing the corrected 
        information not later than 30 days after the plan administrator 
        knows, or exercising reasonable diligence would have known, of 
        such event or other change.
            ``(5) Time and manner of providing notices and 
        disclosures.--
                    ``(A) In general.--The notices described in 
                paragraph (1) shall be provided at such times and in 
                such manner as the Secretary of Labor may provide. 
                Other notices and materials required to be provided 
                under this subsection shall be provided in such manner 
                as such Secretary may provide.
                    ``(B) Manner of presentation.--
                            ``(i) In general.--All information included 
                        in such notices or explanations shall be 
                        presented in a manner which is easily 
                        understood by the typical participant.
                            ``(ii) Generic example of operating 
                        expenses of investment options.--The 
                        information described in paragraphs 
                        (1)(C)(ii)(I) shall include a generic example 
                        describing the charges that would apply during 
                        an annual period with respect to a $10,000 
                        investment in the investment option.
                    ``(C) Annual compliance for small plans.--A plan 
                that has fewer than 100 participants and beneficiaries 
                as of the first day of the plan year may provide the 
                explanation described in paragraph (2) on an annual 
                rather than a quarterly basis.
    ``(f) Definitions.--
            ``(1) Applicable defined contribution plan.--The term 
        `applicable defined contribution plan' means the portion of any 
        defined contribution plan which--
                    ``(A) permits a participant or beneficiary to 
                exercise control over assets in his or her account, and
                    ``(B) is described in clauses (iii) through (vi) of 
                section 402(c)(8)(B).
            ``(2) Plan administrator.--The term `plan administrator' 
        has the meaning given such term by section 414(g).
    ``(g) Regulations.--The Secretary of Labor shall prescribe such 
regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including regulations or other 
guidance which--
            ``(1) provide a later deadline for providing the notice of 
        investment menu changes described in subsection (e)(4) in 
        appropriate circumstances, and
            ``(2) provide guidelines, and a safe harbor, for the 
        selection of an appropriate benchmark, index, or other point of 
        comparison for an investment option under subsection 
        (e)(1)(C)(iii)(II).''.
    (b) Clerical Amendment.--The table of sections for chapter 43 of 
such Code is amended by adding at the end the following new items:

``Sec. 4980J. Failure to provide notice of plan fee information to plan 
                            administrators.
``Sec. 4980K. Failure to provide notice to participants of plan fee 
                            information.''.

SEC. 324. REGULATORY AUTHORITY AND COORDINATION.

    (a) Regulatory Authority.--The Secretary of Labor shall prescribe 
regulations or other guidance to the extent the Secretary determines 
necessary or appropriate to carry out the purposes of sections 105, 
111, and 112 of the Employee Retirement Income Security Act of 1974 and 
sections 4980J and 4980K of the Internal Revenue Code of 1986, 
including regulations or other guidance which--
            (1) provide safe harbor and simplified methods for making 
        the allocations described in subsection (a)(1)(D) of such 
        section 111 and subsection (d)(1)(D) of such section 4980J; and
            (2) provide special rules for the application of such 
        sections to--
                    (A) investments with a guaranteed rate of return;
                    (B) investments with an insurance component; and
                    (C) employer sponsored retirement plans funded 
                through an individual retirement account.
            (3) address notices with respect to investments provided 
        through participant directed brokerage trading;
            (4) address the disclosure of information that is not 
        proprietary to the service provider; and
            (5) provide rules to allow service providers to consolidate 
        information to satisfy the requirements of such sections with 
        respect to all such service providers.
    (b) Certain Electronic Disclosures Permitted.--Any disclosure 
required under section 112 of the Employee Retirement Income Security 
Act of 1974 or section 4980K of the Internal Revenue Code of 1986 may 
be provided through an electronic medium under such rules as shall be 
prescribed under such section by the Secretary of Labor not later than 
1 year after the date of the enactment of this Act. Such rules shall be 
similar to those applicable under the Internal Revenue Code of 1986 
with respect to notices to participants in pension plans. Such 
Secretary shall regularly modify such rules as appropriate to take into 
account new developments, including new forms of electronic media, and 
to fairly take into consideration the interests of plan sponsors, 
service providers, and participants. The rules prescribed by such 
Secretary pursuant to this subsection shall provide for a method for 
the typical participant or beneficiary to obtain without undue burden 
any such disclosure in writing on paper in lieu of receipt through an 
electronic medium.

SEC. 325. EFFECTIVE DATE OF SUBTITLE.

    (a) In General.--The amendments made by this subtitle shall apply 
to plan years beginning after December 31, 2011.
    (b) Application of Service Provider Disclosures to Existing 
Contracts and Arrangements.--For purposes of section 111 of the 
Employee Retirement Income Security Act of 1974 and section 4980J of 
the Internal Revenue Code of 1986, any contract or arrangement to 
provide services to a plan which is in effect on January 1, 2012, shall 
be treated as a new contract or arrangement entered into on such date.
    (c) Special Rule for Compliance With Subtitle.--Until 12 months 
after final regulations are issued by the Secretary of Labor pursuant 
to the amendments made by this subtitle, a service provider or plan 
administrator shall be treated as having complied with such amendments 
if such service provider or plan administrator complies with a 
reasonable good faith interpretation of such amendments.

                       TITLE IV--REVENUE OFFSETS

                     Subtitle A--Foreign Provisions

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

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

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

    ``(a) In General.--If there is a foreign tax credit splitting event 
with respect to a foreign income tax paid or accrued by the taxpayer, 
such tax shall not be taken into account for purposes of this title 
before the taxable year in which the related income is taken into 
account under this chapter by the taxpayer.
    ``(b) Special Rules With Respect to Section 902 Corporations.--If 
there is a foreign tax credit splitting event with respect to a foreign 
income tax paid or accrued by a section 902 corporation, such tax shall 
not be taken into account--
            ``(1) for purposes of section 902 or 960, or
            ``(2) for purposes of determining earnings and profits 
        under section 964(a),
 before the taxable year in which the related income is taken into 
account under this chapter by such section 902 corporation or a 
domestic corporation which meets the ownership requirements of 
subsection (a) or (b) of section 902 with respect to such section 902 
corporation.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Application to partnerships, etc.--In the case of a 
        partnership, subsections (a) and (b) shall be applied at the 
        partner level. Except as otherwise provided by the Secretary, a 
        rule similar to the rule of the preceding sentence shall apply 
        in the case of any S corporation or trust.
            ``(2) Treatment of foreign taxes after suspension.--In the 
        case of any foreign income tax not taken into account by reason 
        of subsection (a) or (b), except as otherwise provided by the 
        Secretary, such tax shall be so taken into account in the 
        taxable year referred to in such subsection (other than for 
        purposes of section 986(a)) as a foreign income tax paid or 
        accrued in such taxable year.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Foreign tax credit splitting event.--There is a 
        foreign tax credit splitting event with respect to a foreign 
        income tax if the related income is (or will be) taken into 
        account under this chapter by a covered person.
            ``(2) Foreign income tax.--The term `foreign income tax' 
        means any income, war profits, or excess profits tax paid or 
        accrued to any foreign country or to any possession of the 
        United States.
            ``(3) Related income.--The term `related income' means, 
        with respect to any portion of any foreign income tax, the 
        income (or, as appropriate, earnings and profits) to which such 
        portion of foreign income tax relates.
            ``(4) Covered person.--The term `covered person' means, 
        with respect to any person who pays or accrues a foreign income 
        tax (hereafter in this paragraph referred to as the `payor')--
                    ``(A) any entity in which the payor holds, directly 
                or indirectly, at least a 10 percent ownership interest 
                (determined by vote or value),
                    ``(B) any person which holds, directly or 
                indirectly, at least a 10 percent ownership interest 
                (determined by vote or value) in the payor,
                    ``(C) any person which bears a relationship to the 
                payor described in section 267(b) or 707(b), and
                    ``(D) any other person specified by the Secretary 
                for purposes of this paragraph.
            ``(5) Section 902 corporation.--The term `section 902 
        corporation' means any foreign corporation with respect to 
        which one or more domestic corporations meets the ownership 
        requirements of subsection (a) or (b) of section 902.
    ``(e) Regulations.--The Secretary may issue such regulations or 
other guidance as is necessary or appropriate to carry out the purposes 
of this section, including regulations or other guidance which 
provides--
            ``(1) appropriate exceptions from the provisions of this 
        section, and
            ``(2) for the proper application of this section with 
        respect to hybrid instruments.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part III of subchapter N of chapter 1 is amended by adding at the end 
the following new item:

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

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

    (a) In General.--Section 901 is amended by redesignating subsection 
(m) as subsection (n) and by inserting after subsection (l) the 
following new subsection:
    ``(m) Denial of Foreign Tax Credit With Respect to Foreign Income 
Not Subject to United States Taxation by Reason of Covered Asset 
Acquisitions.--
            ``(1) In general.--In the case of a covered asset 
        acquisition, the disqualified portion of any foreign income tax 
        determined with respect to the income or gain attributable to 
        the relevant foreign assets--
                    ``(A) shall not be taken into account in 
                determining the credit allowed under subsection (a), 
                and
                    ``(B) in the case of a foreign income tax paid by a 
                section 902 corporation (as defined in section 
                909(d)(5)), shall not be taken into account for 
                purposes of section 902 or 960.
            ``(2) Covered asset acquisition.--For purposes of this 
        section, the term `covered asset acquisition' means--
                    ``(A) a qualified stock purchase (as defined in 
                section 338(d)(3)) to which section 338(a) applies,
                    ``(B) any transaction which--
                            ``(i) is treated as an acquisition of 
                        assets for purposes of this chapter, and
                            ``(ii) is treated as the acquisition of 
                        stock of a corporation (or is disregarded) for 
                        purposes of the foreign income taxes of the 
                        relevant jurisdiction,
                    ``(C) any acquisition of an interest in a 
                partnership which has an election in effect under 
                section 754, and
                    ``(D) to the extent provided by the Secretary, any 
                other similar transaction.
            ``(3) Disqualified portion.--For purposes of this section--
                    ``(A) In general.--The term `disqualified portion' 
                means, with respect to any covered asset acquisition, 
                for any taxable year, the ratio (expressed as a 
                percentage) of--
                            ``(i) the aggregate basis differences (but 
                        not below zero) allocable to such taxable year 
                        under subparagraph (B) with respect to all 
                        relevant foreign assets, divided by
                            ``(ii) the income on which the foreign 
                        income tax referred to in paragraph (1) is 
                        determined (or, if the taxpayer fails to 
                        substantiate such income to the satisfaction of 
                        the Secretary, such income shall be determined 
                        by dividing the amount of such foreign income 
                        tax by the highest marginal tax rate applicable 
                        to such income in the relevant jurisdiction).
                    ``(B) Allocation of basis difference.--For purposes 
                of subparagraph (A)(i)--
                            ``(i) In general.--The basis difference 
                        with respect to any relevant foreign asset 
                        shall be allocated to taxable years using the 
                        applicable cost recovery method under this 
                        chapter.
                            ``(ii) Special rule for disposition of 
                        assets.--Except as otherwise provided by the 
                        Secretary, in the case of the disposition of 
                        any relevant foreign asset--
                                    ``(I) the basis difference 
                                allocated to the taxable year which 
                                includes the date of such disposition 
                                shall be the excess of the basis 
                                difference with respect to such asset 
                                over the aggregate basis difference 
                                with respect to such asset which has 
                                been allocated under clause (i) to all 
                                prior taxable years, and
                                    ``(II) no basis difference with 
                                respect to such asset shall be 
                                allocated under clause (i) to any 
                                taxable year thereafter.
                    ``(C) Basis difference.--
                            ``(i) In general.--The term `basis 
                        difference' means, with respect to any relevant 
                        foreign asset, the excess of--
                                    ``(I) the adjusted basis of such 
                                asset immediately after the covered 
                                asset acquisition, over
                                    ``(II) the adjusted basis of such 
                                asset immediately before the covered 
                                asset acquisition.
                            ``(ii) Built-in loss assets.--In the case 
                        of a relevant foreign asset with respect to 
                        which the amount described in clause (i)(II) 
                        exceeds the amount described in clause (i)(I), 
                        such excess shall be taken into account under 
                        this subsection as a basis difference of a 
                        negative amount.
                            ``(iii) Special rule for section 338 
                        elections.--In the case of a covered asset 
                        acquisition described in paragraph (2)(A), the 
                        covered asset acquisition shall be treated for 
                        purposes of this subparagraph as occurring at 
                        the close of the acquisition date (as defined 
                        in section 338(h)(2)).
            ``(4) Relevant foreign assets.--For purposes of this 
        section, the term `relevant foreign asset' means, with respect 
        to any covered asset acquisition, any asset (including any 
        goodwill, going concern value, or other intangible) with 
        respect to such acquisition if income, deduction, gain, or loss 
        attributable to such asset is taken into account in determining 
        the foreign income tax referred to in paragraph (1).
            ``(5) Foreign income tax.--For purposes of this section, 
        the term `foreign income tax' means any income, war profits, or 
        excess profits tax paid or accrued to any foreign country or to 
        any possession of the United States.
            ``(6) Taxes allowed as a deduction, etc.--Sections 275 and 
        78 shall not apply to any tax which is not allowable as a 
        credit under subsection (a) by reason of this subsection.
            ``(7) Regulations.--The Secretary may issue such 
        regulations or other guidance as is necessary or appropriate to 
        carry out the purposes of this subsection, including to exempt 
        from the application of this subsection certain covered asset 
        acquisitions, and relevant foreign assets with respect to which 
        the basis difference is de minimis.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to covered asset 
        acquisitions (as defined in section 901(m)(2) of the Internal 
        Revenue Code of 1986, as added by this section) after--
                    (A) May 20, 2010, if the transferor and the 
                transferee are related; and
                    (B) the date of the enactment of this Act in any 
                other case.
            (2) Transition rule.--The amendments made by this section 
        shall not apply to any covered asset acquisition (as so 
        defined) with respect to which the transferor and the 
        transferee are not related if such acquisition is--
                    (A) made pursuant to a written agreement which was 
                binding on May 20, 2010, and at all times thereafter,
                    (B) described in a ruling request submitted to the 
                Internal Revenue Service on or before such date; or
                    (C) described on or before such date in a public 
                announcement or in a filing with the Securities and 
                Exchange Commission.
            (3) Related persons.--For purposes of this subsection, a 
        person shall be treated as related to another person if the 
        relationship between such persons is described in section 267 
        or 707(b) of the Internal Revenue Code of 1986.

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

    (a) In General.--Subsection (d) of section 904 is amended by 
redesignating paragraph (6) as paragraph (7) and by inserting after 
paragraph (5) the following new paragraph:
            ``(6) Separate application to items resourced under 
        treaties.--
                    ``(A) In general.--If--
                            ``(i) without regard to any treaty 
                        obligation of the United States, any item of 
                        income would be treated as derived from sources 
                        within the United States,
                            ``(ii) under a treaty obligation of the 
                        United States, such item would be treated as 
                        arising from sources outside the United States, 
                        and
                            ``(iii) the taxpayer chooses the benefits 
                        of such treaty obligation,
                subsections (a), (b), and (c) of this section and 
                sections 902, 907, and 960 shall be applied separately 
                with respect to each such item.
                    ``(B) Coordination with other provisions.--This 
                paragraph shall not apply to any item of income to 
                which subsection (h)(10) or section 865(h) applies.
                    ``(C) Regulations.--The Secretary may issue such 
                regulations or other guidance as is necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations or other guidance 
                which provides that related items of income may be 
                aggregated for purposes of this paragraph.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

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

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

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

    (a) In General.--Paragraph (5) of section 304(b) is amended by 
redesignating subparagraph (B) as subparagraph (C) and by inserting 
after subparagraph (A) the following new subparagraph:
                    ``(B) Special rule in case of foreign acquiring 
                corporation.--In the case of any acquisition to which 
                subsection (a) applies in which the acquiring 
                corporation is a foreign corporation, no earnings and 
                profits shall be taken into account under paragraph 
                (2)(A) (and subparagraph (A) shall not apply) if more 
                than 50 percent of the dividends arising from such 
                acquisition (determined without regard to this 
                subparagraph) would not--
                            ``(i) be subject to tax under this chapter 
                        for the taxable year in which the dividends 
                        arise, or
                            ``(ii) be includible in the earnings and 
                        profits of a controlled foreign corporation (as 
                        defined in section 957 and without regard to 
                        section 953(c)).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to acquisitions after May 20, 2010.

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

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

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

    (a) In General.--Paragraph (1) of section 861(a) is amended by 
striking subparagraph (A) and by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively.
    (b) Grandfather Rule With Respect to Withholding on Interest and 
Dividends Received From Persons Meeting the 80-percent Foreign Business 
Requirements.--
            (1) In general.--Subparagraph (B) of section 871(i)(2) is 
        amended to read as follows:
                    ``(B) The active foreign business percentage of--
                            ``(i) any dividend paid by an existing 80/
                        20 company, and
                            ``(ii) any interest paid by an existing 80/
                        20 company.''.
            (2) Definitions and special rules.--Section 871 is amended 
        by redesignating subsections (l) and (m) as subsections (m) and 
        (n), respectively, and by inserting after subsection (k) the 
        following new subsection:
    ``(l) Rules Relating to Existing 80/20 Companies.--For purposes of 
this subsection and subsection (i)(2)(B)--
            ``(1) Existing 80/20 company.--
                    ``(A) In general.--The term `existing 80/20 
                company' means any corporation if--
                            ``(i) such corporation met the 80-percent 
                        foreign business requirements of section 
                        861(c)(1) (as in effect before the enactment of 
                        this subsection) for such corporation's last 
                        taxable year beginning before January 1, 2011,
                            ``(ii) such corporation meets the 80-
                        percent foreign business requirements of 
                        subparagraph (B) with respect to each taxable 
                        year after the taxable year referred to in 
                        clause (i), and
                            ``(iii) there has not been an addition of a 
                        substantial line of business with respect to 
                        such corporation after the date of the 
                        enactment of this subsection.
                    ``(B) Foreign business requirements.--
                            ``(i) In general.--A corporation meets the 
                        80-percent foreign business requirements of 
                        this subparagraph if it is shown to the 
                        satisfaction of the Secretary that at least 80 
                        percent of the gross income from all sources of 
                        such corporation for the testing period is 
                        active foreign business income.
                            ``(ii) Active foreign business income.--For 
                        purposes of clause (i), the term `active 
                        foreign business income' means gross income 
                        which--
                                    ``(I) is derived from sources 
                                outside the United States (as 
                                determined under this subchapter), and
                                    ``(II) is attributable to the 
                                active conduct of a trade or business 
                                in a foreign country or possession of 
                                the United States.
                            ``(iii) Testing period.--For purposes of 
                        this subsection, the term `testing period' 
                        means the 3-year period ending with the close 
                        of the taxable year of the corporation 
                        preceding the payment (or such part of such 
                        period as may be applicable). If the 
                        corporation has no gross income for such 3-year 
                        period (or part thereof), the testing period 
                        shall be the taxable year in which the payment 
                        is made.
            ``(2) Active foreign business percentage.--The term `active 
        foreign business percentage' means, with respect to any 
        existing 80/20 company, the percentage which--
                    ``(A) the active foreign business income of such 
                company for the testing period, is of
                    ``(B) the gross income of such company for the 
                testing period from all sources.
            ``(3) Aggregation rules.--For purposes of applying 
        paragraph (1) (other than subparagraph (A)(i) thereof) and 
        paragraph (2)--
                    ``(A) In general.--The corporation referred to in 
                paragraph (1)(A) and all of such corporation's 
                subsidiaries shall be treated as one corporation.
                    ``(B) Subsidiaries.--For purposes of subparagraph 
                (A), the term `subsidiary' means any corporation in 
                which the corporation referred to in subparagraph (A) 
                owns (directly or indirectly) stock meeting the 
                requirements of section 1504(a)(2) (determined by 
                substituting `50 percent' for `80 percent' each place 
                it appears and without regard to section 1504(b)(3)).
            ``(4) Regulations.--The Secretary may issue such 
        regulations or other guidance as is necessary or appropriate to 
        carry out the purposes of this section, including regulations 
        or other guidance which provide for the proper application of 
        the aggregation rules described in paragraph (3).''.
    (c) Conforming Amendments.--
            (1) Section 861 is amended by striking subsection (c) and 
        by redesignating subsections (d), (e), and (f) as subsections 
        (c), (d), and (e), respectively.
            (2) Paragraph (9) of section 904(h) is amended to read as 
        follows:
            ``(9) Treatment of certain domestic corporations.--In the 
        case of any dividend treated as not from sources within the 
        United States under section 861(a)(2)(A), the corporation 
        paying such dividend shall be treated for purposes of this 
        subsection as a United States-owned foreign corporation.''.
            (3) Subsection (c) of section 2104 is amended in the last 
        sentence by striking ``or to a debt obligation of a domestic 
        corporation'' and all that follows and inserting a period.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2010.
            (2) Grandfather rule for outstanding debt obligations.--
                    (A) In general.--The amendments made by this 
                section shall not apply to payments of interest on 
                obligations issued before the date of the enactment of 
                this Act.
                    (B) Exception for related party debt.--Subparagraph 
                (A) shall not apply to any interest which is payable to 
                a related person (determined under rules similar to the 
                rules of section 954(d)(3)).
                    (C) Significant modifications treated as new 
                issues.--For purposes of subparagraph (A), a 
                significant modification of the terms of any obligation 
                (including any extension of the term of such 
                obligation) shall be treated as a new issue.

SEC. 408. SOURCE RULES FOR INCOME ON GUARANTEES.

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

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

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

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

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

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

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

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

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

    ``(a) Treatment of Distributive Share of Partnership Items.--For 
purposes of this title, in the case of an investment services 
partnership interest--
            ``(1) In general.--Notwithstanding section 702(b)--
                    ``(A) any net income with respect to such interest 
                for any partnership taxable year shall be treated as 
                ordinary income, and
                    ``(B) any net loss with respect to such interest 
                for such year, to the extent not disallowed under 
                paragraph (2) for such year, shall be treated as an 
                ordinary loss.
        All items of income, gain, deduction, and loss which are taken 
        into account in computing net income or net loss shall be 
        treated as ordinary income or ordinary loss (as the case may 
        be).
            ``(2) Treatment of losses.--
                    ``(A) Limitation.--Any net loss with respect to 
                such interest shall be allowed for any partnership 
                taxable year only to the extent that such loss does not 
                exceed the excess (if any) of--
                            ``(i) the aggregate net income with respect 
                        to such interest for all prior partnership 
                        taxable years, over
                            ``(ii) the aggregate net loss with respect 
                        to such interest not disallowed under this 
                        subparagraph for all prior partnership taxable 
                        years.
                    ``(B) Carryforward.--Any net loss for any 
                partnership taxable year which is not allowed by reason 
                of subparagraph (A) shall be treated as an item of loss 
                with respect to such partnership interest for the 
                succeeding partnership taxable year.
                    ``(C) Basis adjustment.--No adjustment to the basis 
                of a partnership interest shall be made on account of 
                any net loss which is not allowed by reason of 
                subparagraph (A).
                    ``(D) Prior partnership years.--Any reference in 
                this paragraph to prior partnership taxable years shall 
                only include prior partnership taxable years to which 
                this section applies.
            ``(3) Net income and loss.--For purposes of this section--
                    ``(A) Net income.--The term `net income' means, 
                with respect to any investment services partnership 
                interest for any partnership taxable year, the excess 
                (if any) of--
                            ``(i) all items of income and gain taken 
                        into account by the holder of such interest 
                        under section 702 with respect to such interest 
                        for such year, over
                            ``(ii) all items of deduction and loss so 
                        taken into account.
                    ``(B) Net loss.--The term `net loss' means, with 
                respect to such interest for such year, the excess (if 
                any) of the amount described in subparagraph (A)(ii) 
                over the amount described in subparagraph (A)(i).
            ``(4) Special rule for dividends.--Any dividend taken into 
        account in determining net income or net loss for purposes of 
        paragraph (1) shall not be treated as qualified dividend income 
        for purposes of section 1(h).
    ``(b) Dispositions of Partnership Interests.--
            ``(1) Gain.--Any gain on the disposition of an investment 
        services partnership interest shall be--
                    ``(A) treated as ordinary income, and
                    ``(B) recognized notwithstanding any other 
                provision of this subtitle.
            ``(2) Loss.--Any loss on the disposition of an investment 
        services partnership interest shall be treated as an ordinary 
        loss to the extent of the excess (if any) of--
                    ``(A) the aggregate net income with respect to such 
                interest for all partnership taxable years to which 
                this section applies, over
                    ``(B) the aggregate net loss with respect to such 
                interest allowed under subsection (a)(2) for all 
                partnership taxable years to which this section 
                applies.
            ``(3) Exception for the disposition of an interest in a 
        publicly traded partnership by an individual.--Paragraphs (1) 
        and (2) shall not apply in the case of the disposition by an 
        individual of an investment services partnership interest which 
        is an interest in a publicly traded partnership (as defined in 
        section 7704) if neither such individual nor any member of such 
        individual's family (within the meaning of section 318(a)(1)) 
        has (at any time) provided any of the services described in 
        subsection (c)(1) with respect to assets held (directly or 
        indirectly) by such publicly traded partnership.
            ``(4) Election with respect to certain exchanges.--
        Paragraph (1)(B) shall not apply to the contribution of an 
        investment services partnership interest to a partnership in 
        exchange for an interest in such partnership if--
                    ``(A) the taxpayer makes an irrevocable election to 
                treat the partnership interest received in the exchange 
                as an investment services partnership interest, and
                    ``(B) the taxpayer agrees to comply with such 
                reporting and recordkeeping requirements as the 
                Secretary may prescribe.
            ``(5) Disposition of portion of interest.--In the case of 
        any disposition of an investment services partnership interest, 
        the amount of net loss which otherwise would have (but for 
        subsection (a)(2)(C)) applied to reduce the basis of such 
        interest shall be disregarded for purposes of this section for 
        all succeeding partnership taxable years.
            ``(6) Distributions of partnership property.--In the case 
        of any distribution of property by a partnership with respect 
        to any investment services partnership interest held by a 
        partner--
                    ``(A) the excess (if any) of--
                            ``(i) the fair market value of such 
                        property at the time of such distribution, over
                            ``(ii) the adjusted basis of such property 
                        in the hands of the partnership,
                shall be taken into account as an increase in such 
                partner's distributive share of the taxable income of 
                the partnership (except to the extent such excess is 
                otherwise taken into account in determining the taxable 
                income of the partnership),
                    ``(B) such property shall be treated for purposes 
                of subpart B of part II as money distributed to such 
                partner in an amount equal to such fair market value, 
                and
                    ``(C) the basis of such property in the hands of 
                such partner shall be such fair market value.
        Subsection (b) of section 734 shall be applied without regard 
        to the preceding sentence. In the case of a taxpayer which 
        satisfies requirements similar to the requirements of 
        subparagraphs (A) and (B) of paragraph (4), this paragraph and 
        paragraph (1)(B) shall not apply to the distribution of a 
        partnership interest if such distribution is in connection with 
        a contribution (or deemed contribution) of any property of the 
        partnership to which section 721 applies pursuant to a 
        transaction described in paragraph (1)(B) or (2) of section 
        708(b).
            ``(7) Application of section 751.--In applying section 751, 
        an investment services partnership interest shall be treated as 
        an inventory item.
    ``(c) Investment Services Partnership Interest.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' means any interest in a partnership which 
        is held (directly or indirectly) by any person if it was 
        reasonably expected (at the time that such person acquired such 
        interest) that such person (or any person related to such 
        person) would provide (directly or indirectly) a substantial 
        quantity of any of the following services with respect to 
        assets held (directly or indirectly) by the partnership:
                    ``(A) Advising as to the advisability of investing 
                in, purchasing, or selling any specified asset.
                    ``(B) Managing, acquiring, or disposing of any 
                specified asset.
                    ``(C) Arranging financing with respect to acquiring 
                specified assets.
                    ``(D) Any activity in support of any service 
                described in subparagraphs (A) through (C).
            ``(2) Specified asset.--The term `specified asset' means 
        securities (as defined in section 475(c)(2) without regard to 
        the last sentence thereof), real estate held for rental or 
        investment, interests in partnerships, commodities (as defined 
        in section 475(e)(2)), or options or derivative contracts with 
        respect to any of the foregoing.
            ``(3) Exception for family farms.--The term `specified 
        asset' shall not include any farm used for farming purposes if 
        such farm is held by a partnership all of the interests in 
        which are held (directly or indirectly) by members of the same 
        family. Terms used in the preceding sentence which are also 
        used in section 2032A shall have the same meaning as when used 
        in such section.
            ``(4) Related persons.--A person shall be treated as 
        related to another person if the relationship between such 
        persons is described in section 267 or 707(b).
    ``(d) Exception for Certain Capital Interests.--
            ``(1) In general.--In the case of any portion of an 
        investment services partnership interest which is a qualified 
        capital interest, all items of income, gain, loss, and 
        deduction which are allocated to such qualified capital 
        interest shall not be taken into account under subsection (a) 
        if--
                    ``(A) allocations of items are made by the 
                partnership to such qualified capital interest in the 
                same manner as such allocations are made to other 
                qualified capital interests held by partners who do not 
                provide any services described in subsection (c)(1) and 
                who are not related to the partner holding the 
                qualified capital interest, and
                    ``(B) the allocations made to such other interests 
                are significant compared to the allocations made to 
                such qualified capital interest.
            ``(2) Authority to provide exceptions to allocation 
        requirements.--To the extent provided by the Secretary in 
        regulations or other guidance--
                    ``(A) Allocations to portion of qualified capital 
                interest.--Paragraph (1) may be applied separately with 
                respect to a portion of a qualified capital interest.
                    ``(B) No or insignificant allocations to nonservice 
                providers.--In any case in which the requirements of 
                paragraph (1)(B) are not satisfied, items of income, 
                gain, loss, and deduction shall not be taken into 
                account under subsection (a) to the extent that such 
                items are properly allocable under such regulations or 
                other guidance to qualified capital interests.
                    ``(C) Allocations to service providers' qualified 
                capital interests which are less than other 
                allocations.--Allocations shall not be treated as 
                failing to meet the requirement of paragraph (1)(A) 
                merely because the allocations to the qualified capital 
                interest represent a lower return than the allocations 
                made to the other qualified capital interests referred 
                to in such paragraph.
            ``(3) Special rule for changes in services.--In the case of 
        an interest in a partnership which is not an investment 
        services partnership interest and which, by reason of a change 
        in the services with respect to assets held (directly or 
        indirectly) by the partnership, would (without regard to the 
        reasonable expectation exception of subsection (c)(1)) have 
        become such an interest--
                    ``(A) notwithstanding subsection (c)(1), such 
                interest shall be treated as an investment services 
                partnership interest as of the time of such change, and
                    ``(B) for purposes of this subsection, the 
                qualified capital interest of the holder of such 
                partnership interest immediately after such change 
                shall not be less than the fair market value of such 
                interest (determined immediately before such change).
            ``(4) Special rule for tiered partnerships.--Except as 
        otherwise provided by the Secretary, in the case of tiered 
        partnerships, all items which are allocated in a manner which 
        meets the requirements of paragraph (1) to qualified capital 
        interests in a lower-tier partnership shall retain such 
        character to the extent allocated on the basis of qualified 
        capital interests in any upper-tier partnership.
            ``(5) Exception for no-self-charged carry and management 
        fee provisions.--Except as otherwise provided by the Secretary, 
        an interest shall not fail to be treated as satisfying the 
        requirement of paragraph (1)(A) merely because the allocations 
        made by the partnership to such interest do not reflect the 
        cost of services described in subsection (c)(1) which are 
        provided (directly or indirectly) to the partnership by the 
        holder of such interest (or a related person).
            ``(6) Special rule for dispositions.--In the case of any 
        investment services partnership interest any portion of which 
        is a qualified capital interest, subsection (b) shall not apply 
        to so much of any gain or loss as bears the same proportion to 
        the entire amount of such gain or loss as--
                    ``(A) the distributive share of gain or loss that 
                would have been allocated to the qualified capital 
                interest (consistent with the requirements of paragraph 
                (1)) if the partnership had sold all of its assets at 
                fair market value immediately before the disposition, 
                bears to
                    ``(B) the distributive share of gain or loss that 
                would have been so allocated to the investment services 
                partnership interest of which such qualified capital 
                interest is a part.
            ``(7) Qualified capital interest.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified capital 
                interest' means so much of a partner's interest in the 
                capital of the partnership as is attributable to--
                            ``(i) the fair market value of any money or 
                        other property contributed to the partnership 
                        in exchange for such interest (determined 
                        without regard to section 752(a)),
                            ``(ii) any amounts which have been included 
                        in gross income under section 83 with respect 
                        to the transfer of such interest, and
                            ``(iii) the excess (if any) of--
                                    ``(I) any items of income and gain 
                                taken into account under section 702 
                                with respect to such interest, over
                                    ``(II) any items of deduction and 
                                loss so taken into account.
                    ``(B) Adjustment to qualified capital interest.--
                            ``(i) Distributions and losses.--The 
                        qualified capital interest shall be reduced by 
                        distributions from the partnership with respect 
                        to such interest and by the excess (if any) of 
                        the amount described in subparagraph 
                        (A)(iii)(II) over the amount described in 
                        subparagraph (A)(iii)(I).
                            ``(ii) Special rule for contributions of 
                        property.--In the case of any contribution of 
                        property described in subparagraph (A)(i) with 
                        respect to which the fair market value of such 
                        property is not equal to the adjusted basis of 
                        such property immediately before such 
                        contribution, proper adjustments shall be made 
                        to the qualified capital interest to take into 
                        account such difference consistent with such 
                        regulations or other guidance as the Secretary 
                        may provide.
            ``(8) Treatment of certain loans.--
                    ``(A) Proceeds of partnership loans not treated as 
                qualified capital interest of service providing 
                partners.--For purposes of this subsection, an 
                investment services partnership interest shall not be 
                treated as a qualified capital interest to the extent 
                that such interest is acquired in connection with the 
                proceeds of any loan or other advance made or 
                guaranteed, directly or indirectly, by any other 
                partner or the partnership (or any person related to 
                any such other partner or the partnership).
                    ``(B) Reduction in allocations to qualified capital 
                interests for loans from nonservice providing partners 
                to the partnership.--For purposes of this subsection, 
                any loan or other advance to the partnership made or 
                guaranteed, directly or indirectly, by a partner not 
                providing services described in subsection (c)(1) to 
                the partnership (or any person related to such partner) 
                shall be taken into account in determining the 
                qualified capital interests of the partners in the 
                partnership.
    ``(e) Other Income and Gain in Connection With Investment 
Management Services.--
            ``(1) In general.--If--
                    ``(A) a person performs (directly or indirectly) 
                investment management services for any entity,
                    ``(B) such person holds (directly or indirectly) a 
                disqualified interest with respect to such entity, and
                    ``(C) the value of such interest (or payments 
                thereunder) is substantially related to the amount of 
                income or gain (whether or not realized) from the 
                assets with respect to which the investment management 
                services are performed,
        any income or gain with respect to such interest shall be 
        treated as ordinary income. Rules similar to the rules of 
        subsections (a)(4) and (d) shall apply for purposes of this 
        subsection.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Disqualified interest.--
                            ``(i) In general.--The term `disqualified 
                        interest' means, with respect to any entity--
                                    ``(I) any interest in such entity 
                                other than indebtedness,
                                    ``(II) convertible or contingent 
                                debt of such entity,
                                    ``(III) any option or other right 
                                to acquire property described in 
                                subclause (I) or (II), and
                                    ``(IV) any derivative instrument 
                                entered into (directly or indirectly) 
                                with such entity or any investor in 
                                such entity.
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) a partnership interest,
                                    ``(II) except as provided by the 
                                Secretary, any interest in a taxable 
                                corporation, and
                                    ``(III) except as provided by the 
                                Secretary, stock in an S corporation.
                    ``(B) Taxable corporation.--The term `taxable 
                corporation' means--
                            ``(i) a domestic C corporation, or
                            ``(ii) a foreign corporation substantially 
                        all of the income of which is--
                                    ``(I) effectively connected with 
                                the conduct of a trade or business in 
                                the United States, or
                                    ``(II) subject to a comprehensive 
                                foreign income tax (as defined in 
                                section 457A(d)(2)).
                    ``(C) Investment management services.--The term 
                `investment management services' means a substantial 
                quantity of any of the services described in subsection 
                (c)(1).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as is necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance to--
            ``(1) provide modifications to the application of this 
        section (including treating related persons as not related to 
        one another) to the extent such modification is consistent with 
        the purposes of this section,
            ``(2) prevent the avoidance of the purposes of this 
        section, and
            ``(3) coordinate this section with the other provisions of 
        this title.
    ``(g) Special Rules for Individuals.--In the case of an 
individual--
            ``(1) In general.--Subsection (a)(1) shall apply only to 
        the applicable percentage of the net income or net loss 
        referred to in such subsection.
            ``(2) Dispositions, etc.--The amount which (but for this 
        paragraph) would be treated as ordinary income by reason of 
        subsection (b) or (e) shall be the applicable percentage of 
        such amount.
            ``(3) Pro rata allocation to items.--For purposes of 
        applying subsections (a) and (e) the aggregate amount treated 
        as ordinary income for any such taxable year shall be allocated 
        ratably among the items of income, gain, loss, and deduction 
        taken into account in determining such amount.
            ``(4) Special rule for recognition of gain.--Gain which 
        (but for this section) would not be recognized shall be 
        recognized by reason of subsection (b) only to the extent that 
        such gain is treated as ordinary income after application of 
        paragraph (2).
            ``(5) Coordination with limitation on losses.--For purposes 
        of applying paragraph (2) of subsection (a) with respect to any 
        net loss for any taxable year--
                    ``(A) such paragraph shall only apply with respect 
                to the applicable percentage of such net loss for such 
                taxable year,
                    ``(B) in the case of a prior partnership taxable 
                year referred to in clause (i) or (ii) of subparagraph 
                (A) of such paragraph, only the applicable percentage 
                (as in effect for such prior taxable year) of net 
                income or net loss for such prior partnership taxable 
                year shall be taken into account, and
                    ``(C) any net loss carried forward to the 
                succeeding partnership taxable year under subparagraph 
                (B) of such paragraph shall--
                            ``(i) be taken into account in such 
                        succeeding year without reduction under this 
                        subsection, and
                            ``(ii) in lieu of being taken into account 
                        as an item of loss in such succeeding year, 
                        shall be taken into account--
                                    ``(I) as an increase in net loss or 
                                as a reduction in net income (including 
                                below zero), as the case may be, and
                                    ``(II) after any reduction in the 
                                amount of such net loss or net income 
                                under this subsection.
        A rule similar to the rule of the preceding sentence shall 
        apply for purposes of subsection (b)(2)(A).
            ``(6) Coordination with treatment of dividends.--Subsection 
        (a)(4) shall only apply to the applicable percentage of 
        dividends described therein.
            ``(7) Applicable percentage.--For purposes of this 
        subsection, the term `applicable percentage' means 75 percent 
        (50 percent in the case of any taxable year beginning before 
        January 1, 2013).
    ``(h) Cross Reference.--For 40 percent penalty on certain 
underpayments due to the avoidance of this section, see section 
6662.''.
    (b) Treatment for Purposes of Section 7704.--Subsection (d) of 
section 7704 is amended by adding at the end the following new 
paragraph:
            ``(6) Income from investment services partnership interests 
        not qualified.--
                    ``(A) In general.--Items of income and gain shall 
                not be treated as qualifying income if such items are 
                treated as ordinary income by reason of the application 
                of section 710 (relating to special rules for partners 
                providing investment management services to 
                partnership). The preceding sentence shall not apply to 
                any item described in paragraph (1)(E) (or so much of 
                paragraph (1)(F) as relates to paragraph (1)(E)).
                    ``(B) Special rules for certain partnerships.--
                            ``(i) Certain partnerships owned by real 
                        estate investment trusts.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) Such partnership is treated 
                                as publicly traded under this section 
                                solely by reason of interests in such 
                                partnership being convertible into 
                                interests in a real estate investment 
                                trust which is publicly traded.
                                    ``(II) 50 percent or more of the 
                                capital and profits interests of such 
                                partnership are owned, directly or 
                                indirectly, at all times during the 
                                taxable year by such real estate 
                                investment trust (determined with the 
                                application of section 267(c)).
                                    ``(III) Such partnership meets the 
                                requirements of paragraphs (2), (3), 
                                and (4) of section 856(c).
                            ``(ii) Certain partnerships owning other 
                        publicly traded partnerships.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) Substantially all of the 
                                assets of such partnership consist of 
                                interests in one or more publicly 
                                traded partnerships (determined without 
                                regard to subsection (b)(2)).
                                    ``(II) Substantially all of the 
                                income of such partnership is ordinary 
                                income or section 1231 gain (as defined 
                                in section 1231(a)(3)).
                    ``(C) Transitional rule.--Subparagraph (A) shall 
                not apply to any taxable year of the partnership 
                beginning before the date which is 10 years after the 
                date of the enactment of this paragraph.''.
    (c) Imposition of Penalty on Underpayments.--
            (1) In general.--Subsection (b) of section 6662 is amended 
        by inserting after paragraph (7) the following new paragraph:
            ``(8) The application of subsection (e) of section 710 or 
        the regulations prescribed under section 710(f) to prevent the 
        avoidance of the purposes of section 710.''.
            (2) Amount of penalty.--
                    (A) In general.--Section 6662 is amended by adding 
                at the end the following new subsection:
    ``(k) Increase in Penalty in Case of Property Transferred for 
Investment Management Services.--In the case of any portion of an 
underpayment to which this section applies by reason of subsection 
(b)(8), subsection (a) shall be applied with respect to such portion by 
substituting `40 percent' for `20 percent'.''.
                    (B) Conforming amendment.--Subparagraph (B) of 
                section 6662A(e)(2) is amended by striking ``or (i)'' 
                and inserting ``, (i), or (k)''.
            (3) Special rules for application of reasonable cause 
        exception.--Subsection (c) of section 6664 is amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively;
                    (B) by striking ``paragraph (3)'' in paragraph 
                (5)(A), as so redesignated, and inserting ``paragraph 
                (4)''; and
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Special rule for underpayments attributable to 
        investment management services.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any portion of an underpayment to which this section 
                applies by reason of subsection (b)(8) unless--
                            ``(i) the relevant facts affecting the tax 
                        treatment of the item are adequately disclosed,
                            ``(ii) there is or was substantial 
                        authority for such treatment, and
                            ``(iii) the taxpayer reasonably believed 
                        that such treatment was more likely than not 
                        the proper treatment.
                    ``(B) Rules relating to reasonable belief.--Rules 
                similar to the rules of subsection (d)(3) shall apply 
                for purposes of subparagraph (A)(iii).''.
    (d) Income and Loss From Investment Services Partnership Interests 
Taken Into Account in Determining Net Earnings From Self-Employment.--
            (1) Internal revenue code.--Section 1402(a) is amended by 
        striking ``and'' at the end of paragraph (16), by striking the 
        period at the end of paragraph (17) and inserting ``; and'', 
        and by inserting after paragraph (17) the following new 
        paragraph:
            ``(18) notwithstanding the preceding provisions of this 
        subsection, in the case of any individual engaged in the trade 
        or business of providing services described in section 
        710(c)(1) with respect to any entity, any amount treated as 
        ordinary income or ordinary loss of such individual under 
        section 710 with respect to such entity shall be taken into 
        account in determining the net earnings from self-employment of 
        such individual.''.
            (2) Social security act.--Section 211(a) of the Social 
        Security Act is amended by striking ``and'' at the end of 
        paragraph (15), by striking the period at the end of paragraph 
        (16) and inserting ``; and'', and by inserting after paragraph 
        (16) the following new paragraph:
            ``(17) Notwithstanding the preceding provisions of this 
        subsection, in the case of any individual engaged in the trade 
        or business of providing services described in section 
        710(c)(1) of the Internal Revenue Code of 1986 with respect to 
        any entity, any amount treated as ordinary income or ordinary 
        loss of such individual under section 710 of such Code with 
        respect to such entity shall be taken into account in 
        determining the net earnings from self-employment of such 
        individual.''.
    (e) Conforming Amendments.--
            (1) Subsection (d) of section 731 is amended by inserting 
        ``section 710(b)(4) (relating to distributions of partnership 
        property),'' after ``to the extent otherwise provided by''.
            (2) Section 741 is amended by inserting ``or section 710 
        (relating to special rules for partners providing investment 
        management services to partnership)'' before the period at the 
        end.
            (3) The table of sections for part I of subchapter K of 
        chapter 1 is amended by adding at the end the following new 
        item:

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

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

    (a) In General.--Section 1402 is amended by adding at the end the 
following new subsection:
    ``(m) Special Rules for Professional Service Businesses.--
            ``(1) Shareholders providing services to disqualified s 
        corporations.--
                    ``(A) In general.--In the case of any disqualified 
                S corporation, each shareholder of such disqualified S 
                corporation who provides substantial services with 
                respect to the professional service business referred 
                to in subparagraph (C) shall take into account such 
                shareholder's pro rata share of all items of income or 
                loss described in section 1366 which are attributable 
                to such business in determining the shareholder's net 
                earnings from self-employment.
                    ``(B) Treatment of family members.--Except as 
                otherwise provided by the Secretary, the shareholder's 
                pro rata share of items referred to in subparagraph (A) 
                shall be increased by the pro rata share of such items 
                of each member of such shareholder's family (within the 
                meaning of section 318(a)(1)) who does not provide 
                substantial services with respect to such professional 
                service business.
                    ``(C) Disqualified s corporation.--For purposes of 
                this subsection, the term `disqualified S corporation' 
                means--
                            ``(i) any S corporation which is a partner 
                        in a partnership which is engaged in a 
                        professional service business if substantially 
                        all of the activities of such S corporation are 
                        performed in connection with such partnership, 
                        and
                            ``(ii) any other S corporation which is 
                        engaged in a professional service business if 
                        the principal asset of such business is the 
                        reputation and skill of 3 or fewer employees.
            ``(2) Partners.--In the case of any partnership which is 
        engaged in a professional service business, subsection (a)(13) 
        shall not apply to any partner who provides substantial 
        services with respect to such professional service business.
            ``(3) Professional service business.--For purposes of this 
        subsection, the term `professional service business' means any 
        trade or business if substantially all of the activities of 
        such trade or business involve providing services in the fields 
        of health, law, lobbying, engineering, architecture, 
        accounting, actuarial science, performing arts, consulting, 
        athletics, investment advice or management, or brokerage 
        services.
            ``(4) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of this subsection, including regulations which 
        prevent the avoidance of the purposes of this subsection 
        through tiered entities or otherwise.
            ``(5) Cross reference.--For employment tax treatment of 
        wages paid to shareholders of S corporations, see subtitle 
        C.''.
    (b) Conforming Amendment.--Section 211 of the Social Security Act 
is amended by adding at the end the following new subsection:
    ``(l) Special Rules for Professional Service Businesses.--
            ``(1) Shareholders providing services to disqualified s 
        corporations.--
                    ``(A) In general.--In the case of any disqualified 
                S corporation, each shareholder of such disqualified S 
                corporation who provides substantial services with 
                respect to the professional service business referred 
                to in subparagraph (C) shall take into account such 
                shareholder's pro rata share of all items of income or 
                loss described in section 1366 of the Internal Revenue 
                Code of 1986 which are attributable to such business in 
                determining the shareholder's net earnings from self-
                employment.
                    ``(B) Treatment of family members.--Except as 
                otherwise provided by the Secretary of the Treasury, 
                the shareholder's pro rata share of items referred to 
                in subparagraph (A) shall be increased by the pro rata 
                share of such items of each member of such 
                shareholder's family (within the meaning of section 
                318(a)(1) of the Internal Revenue Code of 1986) who 
                does not provide substantial services with respect to 
                such professional service business.
                    ``(C) Disqualified s corporation.--For purposes of 
                this subsection, the term `disqualified S corporation' 
                means--
                            ``(i) any S corporation which is a partner 
                        in a partnership which is engaged in a 
                        professional service business if substantially 
                        all of the activities of such S corporation are 
                        performed in connection with such partnership, 
                        and
                            ``(ii) any other S corporation which is 
                        engaged in a professional service business if 
                        the principal asset of such business is the 
                        reputation and skill of 3 or fewer employees.
            ``(2) Partners.--In the case of any partnership which is 
        engaged in a professional service business, subsection (a)(12) 
        shall not apply to any partner who provides substantial 
        services with respect to such professional service business.
            ``(3) Professional service business.--For purposes of this 
        subsection, the term `professional service business' means any 
        trade or business if substantially all of the activities of 
        such trade or business involve providing services in the fields 
        of health, law, lobbying, engineering, architecture, 
        accounting, actuarial science, performing arts, consulting, 
        athletics, investment advice or management, or brokerage 
        services.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.

                    Subtitle C--Corporate Provisions

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

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

SEC. 422. TAXATION OF BOOT RECEIVED IN REORGANIZATIONS.

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

                      Subtitle D--Other Provisions

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

    (a) Extension of Application of Oil Spill Liability Trust Fund 
Financing Rate.--Paragraph (2) of section 4611(f) is amended by 
striking ``December 31, 2017'' and inserting ``December 31, 2020''.
    (b) Increase in Oil Spill Liability Trust Fund Financing Rate.--
Subparagraph (B) of section 4611(c)(2) is amended to read as follows:
                    ``(B) the Oil Spill Liability Trust Fund financing 
                rate is 34 cents a barrel.''.
    (c) Increase in Per Incident Limitations on Expenditures.--
Subparagraph (A) of section 9509(c)(2) is amended--
            (1) by striking ``$1,000,000,000'' in clause (i) and 
        inserting ``$5,000,000,000'';
            (2) by striking ``$500,000,000'' in clause (ii) and 
        inserting ``$2,500,000,000''; and
            (3) by striking ``$1,000,000,000 per incident, etc'' in the 
        heading and inserting ``Per incident limitations''.
    (d) Effective Date.--
            (1) Extension of financing rate.--Except as provided in 
        paragraph (2), the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Increase in financing rate.--The amendment made by 
        subsection (b) shall apply to crude oil received and petroleum 
        products entered during calendar quarters beginning more than 
        60 days after the date of the enactment of this Act.

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

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

          TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE

        Subtitle A--Unemployment Insurance and Other Assistance

SEC. 501. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

    (a) In General.--(1) Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended--
            (A) by striking ``June 2, 2010'' each place it appears and 
        inserting ``November 30, 2010'';
            (B) in the heading for subsection (b)(2), by striking 
        ``june 2, 2010'' and inserting ``november 30, 2010''; and
            (C) in subsection (b)(3), by striking ``November 6, 2010'' 
        and inserting ``April 30, 2011''.
    (2) Section 2002(e) of the Assistance for Unemployed Workers and 
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C. 
3304 note; 123 Stat. 438), is amended--
            (A) in paragraph (1)(B), by striking ``June 2, 2010'' and 
        inserting ``November 30, 2010'';
            (B) in the heading for paragraph (2), by striking ``june 2, 
        2010'' and inserting ``november 30, 2010''; and
            (C) in paragraph (3), by striking ``December 7, 2010'' and 
        inserting ``May 31, 2011''.
    (3) Section 2005 of the Assistance for Unemployed Workers and 
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C. 
3304 note; 123 Stat. 444), is amended--
            (A) by striking ``June 2, 2010'' each place it appears and 
        inserting ``December 1, 2010''; and
            (B) in subsection (c), by striking ``November 6, 2010'' and 
        inserting ``May 1, 2011''.
    (4) Section 5 of the Unemployment Compensation Extension Act of 
2008 (Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking 
``November 6, 2010'' and inserting ``April 30, 2011''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (D), by striking ``and'' at the end; 
        and
            (2) by inserting after subparagraph (E) the following:
                    ``(F) the amendments made by section 501(a)(1) of 
                the American Jobs and Closing Tax Loopholes Act of 
                2010; and''.
    (c) Conditions for Receiving Emergency Unemployment Compensation.--
Section 4001(d)(2) of the Supplemental Appropriations Act, 2008 (Public 
Law 110-252; 26 U.S.C. 3304 note) is amended, in the matter preceding 
subparagraph (A), by inserting before ``shall apply'' the following: 
``(including terms and conditions relating to availability for work, 
active search for work, and refusal to accept work)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the Continuing Extension Act 
of 2010 (Public Law 111-157).

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

    (a) Certain Individuals Not Ineligible by Reason of New Entitlement 
to Regular Benefits.--Section 4002 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
adding at the end the following:
    ``(g) Coordination of Emergency Unemployment Compensation With 
Regular Compensation.--
            ``(1) If--
                    ``(A) an individual has been determined to be 
                entitled to emergency unemployment compensation with 
                respect to a benefit year,
                    ``(B) that benefit year has expired,
                    ``(C) that individual has remaining entitlement to 
                emergency unemployment compensation with respect to 
                that benefit year, and
                    ``(D) that individual would qualify for a new 
                benefit year in which the weekly benefit amount of 
                regular compensation is at least either $100 or 25 
                percent less than the individual's weekly benefit 
                amount in the benefit year referred to in subparagraph 
                (A),
        then the State shall determine eligibility for compensation as 
        provided in paragraph (2).
            ``(2) For individuals described in paragraph (1), the State 
        shall determine whether the individual is to be paid emergency 
        unemployment compensation or regular compensation for a week of 
        unemployment using one of the following methods:
                    ``(A) The State shall, if permitted by State law, 
                establish a new benefit year, but defer the payment of 
                regular compensation with respect to that new benefit 
                year until exhaustion of all emergency unemployment 
                compensation payable with respect to the benefit year 
                referred to in paragraph (1)(A);
                    ``(B) The State shall, if permitted by State law, 
                defer the establishment of a new benefit year (which 
                uses all the wages and employment which would have been 
                used to establish a benefit year but for the 
                application of this paragraph), until exhaustion of all 
                emergency unemployment compensation payable with 
                respect to the benefit year referred to in 
                paragraph(1)(A);
                    ``(C) The State shall pay, if permitted by State 
                law--
                            ``(i) regular compensation equal to the 
                        weekly benefit amount established under the new 
                        benefit year, and
                            ``(ii) emergency unemployment compensation 
                        equal to the difference between that weekly 
                        benefit amount and the weekly benefit amount 
                        for the expired benefit year; or
                    ``(D) The State shall determine rights to emergency 
                unemployment compensation without regard to any rights 
                to regular compensation if the individual elects to not 
                file a claim for regular compensation under the new 
                benefit year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals whose benefit years, as described in section 
4002(g)(1)(B) the Supplemental Appropriations Act, 2008 (Public Law 
110-252; 26 U.S.C. 3304 note), as amended by this section, expire after 
the date of enactment of this Act.

SEC. 503. EXTENSION OF THE EMERGENCY CONTINGENCY FUND.

    (a) In General.--Section 403(c) of the Social Security Act (42 
U.S.C. 603(c)) is amended--
            (1) in paragraph (2)(A), by inserting ``, and for fiscal 
        year 2011, $2,500,000,000'' before ``for payment'';
            (2) by striking paragraph (2)(B) and inserting the 
        following:
                    ``(B) Availability and use of funds.--
                            ``(i) Fiscal years 2009 and 2010.--The 
                        amounts appropriated to the Emergency Fund 
                        under subparagraph (A) for fiscal year 2009 
                        shall remain available through fiscal year 2010 
                        and shall be used to make grants to States in 
                        each of fiscal years 2009 and 2010 in 
                        accordance with paragraph (3), except that the 
                        amounts shall remain available through fiscal 
                        year 2011 to make grants and payments to States 
                        in accordance with paragraph (3)(C) to cover 
                        expenditures to subsidize employment positions 
                        held by individuals placed in the positions 
                        before fiscal year 2011.
                            ``(ii) Fiscal year 2011.--Subject to clause 
                        (iii), the amounts appropriated to the 
                        Emergency Fund under subparagraph (A) for 
                        fiscal year 2011 shall remain available through 
                        fiscal year 2012 and shall be used to make 
                        grants to States based on expenditures in 
                        fiscal year 2011 for benefits and services 
                        provided in fiscal year 2011 in accordance with 
                        the requirements of paragraph (3).
                            ``(iii) Reservation of funds.--Of the 
                        amounts appropriated to the Emergency Fund 
                        under subparagraph (A) for fiscal year 2011, 
                        $500,000 shall be placed in reserve for use in 
                        fiscal year 2012, and shall be used to award 
                        grants for any expenditures described in this 
                        subsection incurred by States after September 
                        30, 2011.'';
            (3) in paragraph (2)(C), by striking ``2010'' and inserting 
        ``2012'';
            (4) in paragraph (3)--
                    (A) in clause (i) of each of subparagraphs (A), 
                (B), and (C)--
                            (i) by striking ``year 2009 or 2010'' and 
                        inserting ``years 2009 through 2011'';
                            (ii) by striking ``and'' at the end of 
                        subclause (I);
                            (iii) by striking the period at the end of 
                        subclause (II) and inserting ``; and''; and
                            (iv) by adding at the end the following:
                                    ``(III) if the quarter is in fiscal 
                                year 2011, has provided the Secretary 
                                with such information as the Secretary 
                                may find necessary in order to make the 
                                determinations, or take any other 
                                action, described in paragraph 
                                (5)(C).''; and
                    (B) in subparagraph (C), by adding at the end the 
                following:
                            ``(iv) Limitation on expenditures for 
                        subsidized employment.--An expenditure for 
                        subsidized employment shall be taken into 
                        account under clause (ii) only if the 
                        expenditure is used to subsidize employment 
                        for--
                                    ``(I) a member of a needy family 
                                (without regard to whether the family 
                                is receiving assistance under the State 
                                program funded under this part); or
                                    ``(II) an individual who has 
                                exhausted (or, within 60 days, will 
                                exhaust) all rights to receive 
                                unemployment compensation under Federal 
                                and State law, and who is a member of a 
                                needy family.'';
            (5) by striking paragraph (5) and inserting the following:
            ``(5) Limitations on payments; adjustment authority.--
                    ``(A) Fiscal years 2009 and 2010.--The total amount 
                payable to a single State under subsection (b) and this 
                subsection for fiscal years 2009 and 2010 combined 
                shall not exceed 50 percent of the annual State family 
                assistance grant.
                    ``(B) Fiscal year 2011.--Subject to subparagraph 
                (C), the total amount payable to a single State under 
                subsection (b) and this subsection for fiscal year 2011 
                shall not exceed 30 percent of the annual State family 
                assistance grant.
                    ``(C) Adjustment authority.--If the Secretary 
                determines that the Emergency Fund is at risk of being 
                depleted before September 30, 2011, or that funds are 
                available to accommodate additional State requests 
                under this subsection, the Secretary may, through 
                program instructions issued without regard to the 
                requirements of section 553 of title 5, United States 
                Code--
                            ``(i) specify priority criteria for 
                        awarding grants to States during fiscal year 
                        2011; and
                            ``(ii) adjust the percentage limitation 
                        applicable under subparagraph (B) with respect 
                        to the total amount payable to a single State 
                        for fiscal year 2011.''; and
            (6) in paragraph (6), by inserting ``or for expenditures 
        described in paragraph (3)(C)(iv)'' before the period.
    (b) Conforming Amendments.--Section 2101 of division B of the 
American Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
amended--
            (1) in subsection (a)(2)--
                    (A) by striking ``2010'' and inserting ``2011''; 
                and
                    (B) by striking all that follows ``repealed'' and 
                inserting a period; and
            (2) in subsection (d)(1), by striking ``2010'' and 
        inserting ``2011''.
    (c) Program Guidance.--The Secretary of Health and Human Services 
shall issue program guidance, without regard to the requirements of 
section 553 of title 5, United States Code, which ensures that the 
funds provided under the amendments made by this section to a 
jurisdiction for subsidized employment do not support any subsidized 
employment position the annual salary of which is greater than, at 
State option--
            (1) 200 percent of the poverty line (within the meaning of 
        section 673(2) of the Omnibus Budget Reconciliation Act of 
        1981, including any revision required by such section 673(2)) 
        for a family of 4; or
            (2) the median wage in the jurisdiction.

                     Subtitle B--Health Provisions

SEC. 511. EXTENSION OF SECTION 508 RECLASSIFICATIONS.

    (a) In General.--Section 106(a) of division B of the Tax Relief and 
Health Care Act of 2006 (42 U.S.C. 1395 note), as amended by section 
117 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
Law 110-173), section 124 of the Medicare Improvements for Patients and 
Providers Act of 2008 (Public Law 110-275), and sections 3137(a) and 
10317 of Public Law 111-148, is amended by striking ``September 30, 
2010'' and inserting ``September 30, 2011''.
    (b) Application.--For fiscal year 2011, the Secretary of Health and 
Human Services may implement the amendment made by subsection (a) by 
posting on the Internet website of the Centers for Medicare & Medicaid 
Services a list of the areas and the hospitals whose reclassifications 
will be extended pursuant to such amendment. Hospitals located in or 
reclassified to labor market areas that are affected by such extension 
may terminate or withdraw their reclassifications by following the 
procedures included in section 412.273 of title 42, Code of Federal 
Regulations, except that any request for such termination or withdrawal 
must be received by the Medicare Geographic Classification Review Board 
not later than the date that is 5 business days after the day of such 
posting on the Internet website of the Centers for Medicare & Medicaid 
Services or June 18, 2010, whichever date is later.
    (c) Conforming Amendment.--Section 117(a)(3) of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173)), is 
amended by inserting ``in fiscal years 2008 and 2009'' after ``For 
purposes of implementation of this subsection''.

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

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

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

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

SEC. 514. FUNDING FOR CLAIMS REPROCESSING.

    For purposes of carrying out the provisions of, and amendments made 
by, this Act that relate to title XVIII of the Social Security Act, and 
other provisions of such title that involve reprocessing of claims, 
there are appropriated to the Secretary of Health and Human Services 
for the Centers for Medicare & Medicaid Services Program Management 
Account, from amounts in the general fund of the Treasury not otherwise 
appropriated, $175,000,000. Amounts appropriated under the preceding 
sentence shall remain available until expended.

SEC. 515. MEDICAID AND CHIP TECHNICAL CORRECTIONS.

    (a) Repeal of Exclusion of Certain Individuals and Entities From 
Medicaid.--Section 6502 of Public Law 111-148 is repealed and the 
provisions of law amended by such section are restored as if such 
section had never been enacted. Nothing in the previous sentence shall 
affect the execution or placement of the insertion made by section 6503 
of such Act.
    (b) Income Level for Certain Children Under Medicaid.--Effective as 
if included in the enactment of Public Law 111-148, section 
2001(a)(5)(B) of such Act is amended by striking all that follows ``is 
amended'' and inserting the following: ``by inserting after `100 
percent' the following: `(or, beginning January 1, 2014, 133 
percent)'.''.
    (c) Calculation and Publication of Payment Error Rate Measurement 
for Certain Years.--Section 601(b) of the Children's Health Insurance 
Program Reauthorization Act of 2009 (Public Law 111-3) is amended by 
adding at the end the following: ``The Secretary is not required under 
this subsection to calculate or publish a national or a State-specific 
error rate for fiscal year 2009 or fiscal year 2010.''.
    (d) Corrections to Exceptions to Exclusion of Children of Certain 
Employees.--Section 2110(b)(6) of the Social Security Act (42 U.S.C. 
1397jj(b)(6)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``per person'' in the heading; and
                    (B) by striking ``each employee'' and inserting 
                ``employees''; and
            (2) in subparagraph (C), by striking ``, on a case-by-case 
        basis,''.
    (e) Electronic Health Records.--Effective as if included in the 
enactment of section 4201(a)(2) of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5), section 1903(t) of the 
Social Security Act (42 U.S.C. 1396b(t)) is amended--
            (1) in paragraph (3)(E), by striking ``reduced by any 
        payment that is made to such Medicaid provider from any other 
        source (other than under this subsection or by a State or local 
        government)'' and inserting ``reduced by the average payment 
        the Secretary estimates will be made to such Medicaid providers 
        (determined on a percentage or other basis for such classes or 
        types of providers as the Secretary may specify) from other 
        sources (other than under this subsection, or by the Federal 
        government or a State or local government)''; and
            (2) in paragraph (6)(B), by inserting before the period the 
        following: ``and shall be determined to have met such 
        responsibility to the extent that the payment to the Medicaid 
        provider is not in excess of 85 percent of the net average 
        allowable cost''.
    (f) Corrections of Designations.--
            (1) Section 1902 of the Social Security Act (42 U.S.C. 
        1396a) is amended--
                    (A) in subsection (a)(10), in the matter following 
                subparagraph (G), by striking ``and'' before ``(XVI) 
                the medical'' and by striking ``(XVI) if'' and 
                inserting ``(XVII) if''; and
                    (B) in subsection (ii)(2), by striking ``(XV)'' and 
                inserting ``(XVI)''.
            (2) Section 2107(e)(1) of the Social Security Act (42 
        U.S.C. 1397gg(e)(1)) is amended by redesignating the 
        subparagraph (N) of that section added by 2101(e) of Public Law 
        111-148 as subparagraph (O).

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

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

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

    ``(a) Requirements for Agreements With the Secretary.--
            ``(1) In general.--
                    ``(A) Agreement.--The Secretary shall enter into an 
                agreement with each manufacturer of covered inpatient 
                drugs under which the amount required to be paid 
                (taking into account any rebate or discount, as 
                provided by the Secretary) to the manufacturer for 
                covered inpatient drugs (other than drugs described in 
                paragraph (3)) purchased by a covered entity on or 
                after January 1, 2011, does not exceed an amount equal 
                to the average manufacturer price for the drug under 
                title XIX of the Social Security Act in the preceding 
                calendar quarter, reduced by the rebate percentage 
                described in paragraph (2). For a covered inpatient 
                drug that also is a covered outpatient drug under 
                section 340B, the amount required to be paid under the 
                preceding sentence shall be equal to the amount 
                required to be paid under section 340B(a)(1) for such 
                drug. The agreement with a manufacturer under this 
                subparagraph may, at the discretion of the Secretary, 
                be included in the agreement with the same manufacturer 
                under section 340B.
                    ``(B) Ceiling price.--Each such agreement shall 
                require that the manufacturer furnish the Secretary 
                with reports, on a quarterly basis, of the price for 
                each covered inpatient drug subject to the agreement 
                that, according to the manufacturer, represents the 
                maximum price that covered entities may permissibly be 
                required to pay for the drug (referred to in this 
                section as the `ceiling price'), and shall require that 
                the manufacturer offer each covered entity covered 
                inpatient drugs for purchase at or below the applicable 
                ceiling price if such drug is made available to any 
                other purchaser at any price.
                    ``(C) Allocation method.--Each such agreement shall 
                require that, if the supply of a covered inpatient drug 
                is insufficient to meet demand, then the manufacturer 
                may use an allocation method that is reported in 
                writing to, and approved by, the Secretary and does not 
                discriminate on the basis of the price paid by covered 
                entities or on any other basis related to the 
                participation of an entity in the program under this 
                section.
            ``(2) Rebate percentage defined.--
                    ``(A) In general.--For a covered inpatient drug 
                purchased in a calendar quarter, the `rebate 
                percentage' is the amount (expressed as a percentage) 
                equal to--
                            ``(i) the average total rebate required 
                        under section 1927(c) of the Social Security 
                        Act (or the average total rebate that would be 
                        required if the drug were a covered outpatient 
                        drug under such section) with respect to the 
                        drug (for a unit of the dosage form and 
                        strength involved) during the preceding 
                        calendar quarter; divided by
                            ``(ii) the average manufacturer price for 
                        such a unit of the drug during such quarter.
                    ``(B) Over the counter drugs.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), in the case of over the 
                        counter drugs, the `rebate percentage' shall be 
                        determined as if the rebate required under 
                        section 1927(c) of the Social Security Act is 
                        based on the applicable percentage provided 
                        under section 1927(c)(3) of such Act.
                            ``(ii) Definition.--The term `over the 
                        counter drug' means a drug that may be sold 
                        without a prescription and which is prescribed 
                        by a physician (or other persons authorized to 
                        prescribe such drug under State law).
            ``(3) Drugs provided under state medicaid plans.--Drugs 
        described in this paragraph are drugs purchased by the entity 
        for which payment is made by the State under the State plan for 
        medical assistance under title XIX of the Social Security Act.
            ``(4) Requirements for covered entities.--
                    ``(A) Prohibiting duplicate discounts or rebates.--
                            ``(i) In general.--A covered entity shall 
                        not request payment under title XIX of the 
                        Social Security Act for medical assistance 
                        described in section 1905(a)(12) of such Act 
                        with respect to a drug that is subject to an 
                        agreement under this section if the drug is 
                        subject to the payment of a rebate to the State 
                        under section 1927 of such Act.
                            ``(ii) Establishment of mechanism.--The 
                        Secretary shall establish a mechanism to ensure 
                        that covered entities comply with clause (i). 
                        If the Secretary does not establish a mechanism 
                        under the previous sentence within 12 months of 
                        the enactment of this section, the requirements 
                        of section 1927(a)(5)(C) of the Social Security 
                        Act shall apply.
                            ``(iii) Prohibiting disclosure to group 
                        purchasing organizations.--In the event that a 
                        covered entity is a member of a group 
                        purchasing organization, such entity shall not 
                        disclose the price or any other information 
                        pertaining to any purchases under this section 
                        directly or indirectly to such group purchasing 
                        organization.
                    ``(B) Prohibiting resale, dispensing, or 
                administration of drugs except to certain patients.--
                With respect to any covered inpatient drug that is 
                subject to an agreement under this subsection, a 
                covered entity shall not dispense, administer, resell, 
                or otherwise transfer the covered inpatient drug to a 
                person unless--
                            ``(i) such person is a patient of the 
                        entity; and
                            ``(ii) such person does not have health 
                        plan coverage (as defined in subsection (c)(3)) 
                        that provides prescription drug coverage in the 
                        inpatient setting with respect to such covered 
                        inpatient drug.
                For purposes of clause (ii), a person shall be treated 
                as having health plan coverage (as defined in 
                subsection (c)(3)) with respect to a covered inpatient 
                drug if benefits are not payable under such coverage 
                with respect to such drug for reasons such as the 
                application of a deductible or cost sharing or the use 
                of utilization management.
                    ``(C) Auditing.--A covered entity shall permit the 
                Secretary and the manufacturer of a covered inpatient 
                drug that is subject to an agreement under this 
                subsection with the entity (acting in accordance with 
                procedures established by the Secretary relating to the 
                number, duration, and scope of audits) to audit at the 
                Secretary's or the manufacturer's expense the records 
                of the entity that directly pertain to the entity's 
                compliance with the requirements described in 
                subparagraph (A) or (B) with respect to drugs of the 
                manufacturer. The use or disclosure of information for 
                performance of such an audit shall be treated as a use 
                or disclosure required by law for purposes of section 
                164.512(a) of title 45, Code of Federal Regulations.
                    ``(D) Additional sanction for noncompliance.--If 
                the Secretary finds, after notice and hearing, that a 
                covered entity is in violation of a requirement 
                described in subparagraph (A) or (B), the covered 
                entity shall be liable to the manufacturer of the 
                covered inpatient drug that is the subject of the 
                violation in an amount equal to the reduction in the 
                price of the drug (as described in subparagraph (A)) 
                provided under the agreement between the Secretary and 
                the manufacturer under this subsection.
                    ``(E) Maintenance of records.--
                            ``(i) In general.--A covered entity shall 
                        establish and maintain an effective 
                        recordkeeping system to comply with this 
                        section and shall certify to the Secretary that 
                        such entity is in compliance with subparagraphs 
                        (A) and (B). The Secretary shall require that 
                        hospitals that purchase covered inpatient drugs 
                        for inpatient dispensing or administration 
                        under this subsection appropriately segregate 
                        inventory of such covered inpatient drugs, 
                        either physically or electronically, from drugs 
                        for outpatient use, as well as from drugs for 
                        inpatient dispensing or administration to 
                        individuals who have (for purposes of 
                        subparagraph (B)) health plan coverage 
                        described in clause (ii) of such subparagraph.
                            ``(ii) Certification of no third-party 
                        payer.--A covered entity shall maintain records 
                        that contain certification by the covered 
                        entity that no third party payment was received 
                        for any covered inpatient drug that is subject 
                        to an agreement under this subsection and that 
                        was dispensed to an inpatient.
            ``(5) Treatment of distinct units of hospitals.--In the 
        case of a covered entity that is a distinct part of a hospital, 
        the distinct part of the hospital shall not be considered a 
        covered entity under this subsection unless the hospital is 
        otherwise a covered entity under this subsection.
            ``(6) Notice to manufacturers.--The Secretary shall notify 
        manufacturers of covered inpatient drugs and single State 
        agencies under section 1902(a)(5) of the Social Security Act of 
        the identities of covered entities under this subsection, and 
        of entities that no longer meet the requirements of paragraph 
        (4), by means of timely updates of the Internet website 
        supported by the Department of Health and Human Services 
        relating to this section.
            ``(7) No prohibition on larger discount.--Nothing in this 
        subsection shall prohibit a manufacturer from charging a price 
        for a drug that is lower than the maximum price that may be 
        charged under paragraph (1).
    ``(b) Covered Entity Defined.--In this section, the term `covered 
entity' means an entity that meets the requirements described in 
subsection (a)(4) and is one of the following:
            ``(1) A subsection (d) hospital (as defined in section 
        1886(d)(1)(B) of the Social Security Act) that--
                    ``(A) is owned or operated by a unit of State or 
                local government, is a public or private non-profit 
                corporation which is formally granted governmental 
                powers by a unit of State or local government, or is a 
                private nonprofit hospital which has a contract with a 
                State or local government to provide health care 
                services to low income individuals who are not entitled 
                to benefits under title XVIII of the Social Security 
                Act or eligible for assistance under the State plan for 
                medical assistance under title XIX of such Act; and
                    ``(B) for the most recent cost reporting period 
                that ended before the calendar quarter involved, had a 
                disproportionate share adjustment percentage (as 
                determined using the methodology under section 
                1886(d)(5)(F) of the Social Security Act as in effect 
                on the date of enactment of this section) greater than 
                20.20 percent or was described in section 
                1886(d)(5)(F)(i)(II) of such Act (as so in effect on 
                the date of enactment of this section).
            ``(2) A children's hospital excluded from the Medicare 
        prospective payment system pursuant to section 
        1886(d)(1)(B)(iii) of the Social Security Act that would meet 
        the requirements of paragraph (1), including the 
        disproportionate share adjustment percentage requirement under 
        subparagraph (B) of such paragraph, if the hospital were a 
        subsection (d) hospital as defined by section 1886(d)(1)(B) of 
        the Social Security Act.
            ``(3) A free-standing cancer hospital excluded from the 
        Medicare prospective payment system pursuant to section 
        1886(d)(1)(B)(v) of the Social Security Act that would meet the 
        requirements of paragraph (1), including the disproportionate 
        share adjustment percentage requirement under subparagraph (B) 
        of such paragraph, if the hospital were a subsection (d) 
        hospital as defined by section 1886(d)(1)(B) of the Social 
        Security Act.
            ``(4) An entity that is a critical access hospital (as 
        determined under section 1820(c)(2) of the Social Security 
        Act), and that meets the requirements of paragraph (1)(A).
            ``(5) An entity that is a rural referral center, as defined 
        by section 1886(d)(5)(C)(i) of the Social Security Act, or a 
        sole community hospital, as defined by section 
        1886(d)(5)(C)(iii) of such Act, and that both meets the 
        requirements of paragraph (1)(A) and has a disproportionate 
        share adjustment percentage equal to or greater than 8 percent.
    ``(c) Other Definitions.--In this section:
            ``(1) Average manufacturer price.--
                    ``(A) In general.--The term `average manufacturer 
                price'--
                            ``(i) has the meaning given such term in 
                        section 1927(k) of the Social Security Act, 
                        except that such term shall be applied under 
                        this section with respect to covered inpatient 
                        drugs in the same manner (as applicable) as 
                        such term is applied under such section 1927(k) 
                        with respect to covered outpatient drugs (as 
                        defined in such section); and
                            ``(ii) with respect to a covered inpatient 
                        drug for which there is no average manufacturer 
                        price (as defined in clause (i)), shall be the 
                        amount determined under regulations promulgated 
                        by the Secretary under subparagraph (B).
                    ``(B) Rulemaking.--The Secretary shall by 
                regulation, in consultation with the Administrator of 
                the Centers for Medicare & Medicaid Services, establish 
                a method for determining the average manufacturer price 
                for covered inpatient drugs for which there is no 
                average manufacturer price (as defined in subparagraph 
                (A)(i)). Regulations promulgated with respect to 
                covered inpatient drugs under the preceding sentence 
                shall provide for the application of methods for 
                determining the average manufacturer price that are the 
                same as the methods used to determine such price in 
                calculating rebates required for such drugs under an 
                agreement between a manufacturer and a State that 
                satisfies the requirements of section 1927(b) of the 
                Social Security Act, as applicable.
            ``(2) Covered inpatient drug.--The term `covered inpatient 
        drug' means a drug--
                    ``(A) that is described in section 1927(k)(2) of 
                the Social Security Act;
                    ``(B) that, notwithstanding paragraph (3)(A) of 
                section 1927(k) of such Act, is used in connection with 
                an inpatient service provided by a covered entity that 
                is enrolled to participate in the drug discount program 
                under this section; and
                    ``(C) that is not purchased by the covered entity 
                through or under contract with a group purchasing 
                organization.
            ``(3) Health plan coverage.--The term `health plan 
        coverage' means--
                    ``(A) health insurance coverage (as defined in 
                section 2791, and including coverage under a State 
                health benefits risk pool);
                    ``(B) coverage under a group health plan (as 
                defined in such section, and including coverage under a 
                church plan, a governmental plan, or a collectively 
                bargained plan);
                    ``(C) coverage under a Federal health care program 
                (as defined by section 1128B(f) of the Social Security 
                Act); or
                    ``(D) such other health benefits coverage as the 
                Secretary recognizes for purposes of this section.
            ``(4) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in section 1927(k) of the Social 
        Security Act.
    ``(d) Program Integrity.--
            ``(1) Manufacturer compliance.--
                    ``(A) In general.--From amounts appropriated under 
                subsection (f), the Secretary shall provide for 
                improvements in compliance by manufacturers with the 
                requirements of this section in order to prevent 
                overcharges and other violations of the discounted 
                pricing requirements specified in this section.
                    ``(B) Improvements.--The improvements described in 
                subparagraph (A) shall include the following:
                            ``(i) The establishment of a process to 
                        enable the Secretary to verify the accuracy of 
                        ceiling prices calculated by manufacturers 
                        under subsection (a)(1) and charged to covered 
                        entities, which shall include the following:
                                    ``(I) Developing and publishing 
                                through an appropriate policy or 
                                regulatory issuance, precisely defined 
                                standards and methodology for the 
                                calculation of ceiling prices under 
                                such subsection.
                                    ``(II) Comparing regularly the 
                                ceiling prices calculated by the 
                                Secretary with the quarterly pricing 
                                data that is reported by manufacturers 
                                to the Secretary.
                                    ``(III) Conducting periodic 
                                monitoring of sales transactions by 
                                covered entities.
                                    ``(IV) Inquiring into any 
                                discrepancies between ceiling prices 
                                and manufacturer pricing data that may 
                                be identified and taking, or requiring 
                                manufacturers to take, corrective 
                                action in response to such 
                                discrepancies, including the issuance 
                                of refunds pursuant to the procedures 
                                set forth in clause (ii).
                            ``(ii) The establishment of procedures for 
                        manufacturers to issue refunds to covered 
                        entities in the event that there is an 
                        overcharge by the manufacturers, including the 
                        following:
                                    ``(I) Providing the Secretary with 
                                an explanation of why and how the 
                                overcharge occurred, how the refunds 
                                will be calculated, and to whom the 
                                refunds will be issued.
                                    ``(II) Oversight by the Secretary 
                                to ensure that the refunds are issued 
                                accurately and within a reasonable 
                                period of time.
                            ``(iii) The provision of access through the 
                        Internet website supported by the Department of 
                        Health and Human Services to the applicable 
                        ceiling prices for covered inpatient drugs as 
                        calculated and verified by the Secretary in 
                        accordance with this section, in a manner (such 
                        as through the use of password protection) that 
                        limits such access to covered entities and 
                        adequately assures security and protection of 
                        privileged pricing data from unauthorized re-
                        disclosure.
                            ``(iv) The development of a mechanism by 
                        which--
                                    ``(I) rebates, discounts, or other 
                                price concessions provided by 
                                manufacturers to other purchasers 
                                subsequent to the sale of covered 
                                inpatient drugs to covered entities are 
                                reported to the Secretary; and
                                    ``(II) appropriate credits and 
                                refunds are issued to covered entities 
                                if such discounts, rebates, or other 
                                price concessions have the effect of 
                                lowering the applicable ceiling price 
                                for the relevant quarter for the drugs 
                                involved.
                            ``(v) Selective auditing of manufacturers 
                        and wholesalers to ensure the integrity of the 
                        drug discount program under this section.
                            ``(vi) The establishment of a requirement 
                        that manufacturers and wholesalers use the 
                        identification system developed by the 
                        Secretary for purposes of facilitating the 
                        ordering, purchasing, and delivery of covered 
                        inpatient drugs under this section, including 
                        the processing of chargebacks for such drugs.
                            ``(vii) The imposition of sanctions in the 
                        form of civil monetary penalties, which--
                                    ``(I) shall be assessed according 
                                to standards and procedures established 
                                in regulations to be promulgated by the 
                                Secretary not later than January 1, 
                                2011;
                                    ``(II) shall not exceed $10,000 per 
                                single dosage form of a covered 
                                inpatient drug purchased by a covered 
                                entity where a manufacturer knowingly 
                                charges such covered entity a price for 
                                such drug that exceeds the ceiling 
                                price under subsection (a)(1); and
                                    ``(III) shall not exceed $100,000 
                                for each instance where a manufacturer 
                                withholds or provides materially false 
                                information to the Secretary or to 
                                covered entities under this section or 
                                knowingly violates any provision of 
                                this section (other than subsection 
                                (a)(1)).
            ``(2) Covered entity compliance.--
                    ``(A) In general.--From amounts appropriated under 
                subsection (f), the Secretary shall provide for 
                improvements in compliance by covered entities with the 
                requirements of this section in order to prevent 
                diversion and violations of the duplicate discount 
                provision and other requirements specified under 
                subsection (a)(4).
                    ``(B) Improvements.--The improvements described in 
                subparagraph (A) shall include the following:
                            ``(i) The development of procedures to 
                        enable and require covered entities to update 
                        at least annually the information on the 
                        Internet website supported by the Department of 
                        Health and Human Services relating to this 
                        section.
                            ``(ii) The development of procedures for 
                        the Secretary to verify the accuracy of 
                        information regarding covered entities that is 
                        listed on the website described in clause (i).
                            ``(iii) The development of more detailed 
                        guidance describing methodologies and options 
                        available to covered entities for billing 
                        covered inpatient drugs to State Medicaid 
                        agencies in a manner that avoids duplicate 
                        discounts pursuant to subsection (a)(4)(A).
                            ``(iv) The establishment of a single, 
                        universal, and standardized identification 
                        system by which each covered entity site and 
                        each covered entity's purchasing status under 
                        sections 340B and this section can be 
                        identified by manufacturers, distributors, 
                        covered entities, and the Secretary for 
                        purposes of facilitating the ordering, 
                        purchasing, and delivery of covered inpatient 
                        drugs under this section, including the 
                        processing of chargebacks for such drugs.
                            ``(v) The imposition of sanctions in the 
                        form of civil monetary penalties, which--
                                    ``(I) shall be assessed according 
                                to standards and procedures established 
                                in regulations promulgated by the 
                                Secretary; and
                                    ``(II) shall not exceed $10,000 for 
                                each instance where a covered entity 
                                knowingly violates subsection (a)(4)(B) 
                                or knowingly violates any other 
                                provision of this section.
                            ``(vi) The termination of a covered 
                        entity's participation in the program under 
                        this section, for a period of time to be 
                        determined by the Secretary, in cases in which 
                        the Secretary determines, in accordance with 
                        standards and procedures established by 
                        regulation, that--
                                    ``(I) the violation by a covered 
                                entity of a requirement of this section 
                                was repeated and knowing; and
                                    ``(II) imposition of a monetary 
                                penalty would be insufficient to 
                                reasonably ensure compliance with the 
                                requirements of this section.
                            ``(vii) The referral of matters, as 
                        appropriate, to the Food and Drug 
                        Administration, the Office of the Inspector 
                        General of the Department of Health and Human 
                        Services, or other Federal or State agencies.
            ``(3) Administrative dispute resolution process.--From 
        amounts appropriated under subsection (f), the Secretary may 
        establish and implement an administrative process for the 
        resolution of the following:
                    ``(A) Claims by covered entities that manufacturers 
                have violated the terms of their agreement with the 
                Secretary under subsection (a)(1).
                    ``(B) Claims by manufacturers that covered entities 
                have violated subsection (a)(4)(A) or (a)(4)(B).
    ``(e) Audit and Sanctions.--
            ``(1) Audit.--From amounts appropriated under subsection 
        (f), the Inspector General of the Department of Health and 
        Human Services (referred to in this subsection as the 
        `Inspector General') shall audit covered entities under this 
        section to verify compliance with criteria for eligibility and 
        participation under this section, including the antidiversion 
        prohibitions under subsection (a)(4)(B), and take enforcement 
        action or provide information to the Secretary who shall take 
        action to ensure program compliance, as appropriate. A covered 
        entity shall provide to the Inspector General, upon request, 
        records relevant to such audits.
            ``(2) Report.--For each audit conducted under paragraph 
        (1), the Inspector General shall prepare and publish in a 
        timely manner a report which shall include findings and 
        recommendations regarding--
                    ``(A) the appropriateness of covered entity 
                eligibility determinations and, as applicable, 
                certifications;
                    ``(B) the effectiveness of antidiversion 
                prohibitions; and
                    ``(C) the effectiveness of restrictions on 
                inpatient dispensing and administration.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2011 and each succeeding fiscal year.''.
    (b) Rulemaking.--Not later than January 1, 2011, the Secretary 
shall promulgate regulations implementing section 340B-1 of the Public 
Health Service Act (as added by subsection (a)).
    (c) Conforming Amendment to Section 340B.--Paragraph (1) of section 
340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)) is amended 
by adding at the end the following: ``Such agreement shall further 
require that, if the supply of a covered outpatient drug is 
insufficient to meet demand, then the manufacturer may use an 
allocation method that is reported in writing to, and approved by, the 
Secretary and does not discriminate on the basis of the price paid by 
covered entities or on any other basis related to the participation of 
an entity in the program under this section. The agreement with a 
manufacturer under this paragraph may, at the discretion of the 
Secretary, be included in the agreement with the same manufacturer 
under section 340B-1.''.
    (d) Conforming Amendments to Medicaid.--Section 1927 of the Social 
Security Act (42 U.S.C. 1396r-8) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the first sentence, by 
                striking ``and paragraph (6)'' and inserting ``, 
                paragraph (6), and paragraph (8)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(8) Limitation on prices of drugs purchased by 340b-1-
        covered entities.--
                    ``(A) Agreement with secretary.--A manufacturer 
                meets the requirements of this paragraph if the 
                manufacturer has entered into an agreement with the 
                Secretary that meets the requirements of section 340B-1 
                of the Public Health Service Act with respect to 
                covered inpatient drugs (as defined in such section) 
                purchased by a 340B-1-covered entity on or after 
                January 1, 2011.
                    ``(B) 340B-1-covered entity defined.--In this 
                subsection, the term `340B-1-covered entity' means an 
                entity described in section 340B-1(b) of the Public 
                Health Service Act.''; and
            (2) in subsection (c)(1)(C)(i)(I)--
                    (A) by striking ``or'' before ``a covered entity''; 
                and
                    (B) by inserting before the semicolon the 
                following: ``, or a covered entity for a covered 
                inpatient drug (as such terms are defined in section 
                340B-1of the Public Health Service Act)''.

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

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

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

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

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

    (a) Authority to Disclose Return Information Concerning Outstanding 
Tax Debts for Purposes of Enhancing Medicare Program Integrity.--
            (1) In general.--Section 6103(l) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(22) Disclosure of return information to department of 
        health and human services for purposes of enhancing medicare 
        program integrity.--
                    ``(A) In general.--The Secretary shall, upon 
                written request from the Secretary of Health and Human 
                Services, disclose to officers and employees of the 
                Department of Health and Human Services return 
                information with respect to a taxpayer who has applied 
                to enroll, or reenroll, as a provider of services or 
                supplier under the Medicare program under title XVIII 
                of the Social Security Act. Such return information 
                shall be limited to--
                            ``(i) the taxpayer identity information 
                        with respect to such taxpayer;
                            ``(ii) the amount of the delinquent tax 
                        debt owed by that taxpayer; and
                            ``(iii) the taxable year to which the 
                        delinquent tax debt pertains.
                    ``(B) Restriction on disclosure.--Return 
                information disclosed under subparagraph (A) may be 
                used by officers and employees of the Department of 
                Health and Human Services for the purposes of, and to 
                the extent necessary in, establishing the taxpayer's 
                eligibility for enrollment or reenrollment in the 
                Medicare program, or in any administrative or judicial 
                proceeding relating to, or arising from, a denial of 
                such enrollment or reenrollment, or in determining the 
                level of enhanced oversight to be applied with respect 
                to such taxpayer pursuant to section 1866(j)(3) of the 
                Social Security Act.
                    ``(C) Delinquent tax debt.--For purposes of this 
                paragraph, the term `delinquent tax debt' means an 
                outstanding debt under this title for which a notice of 
                lien has been filed pursuant to section 6323, but the 
                term does not include a debt that is being paid in a 
                timely manner pursuant to an agreement under section 
                6159 or 7122, or a debt with respect to which a 
                collection due process hearing under section 6330 is 
                requested, pending, or completed and no payment is 
                required.''.
            (2) Conforming amendments.--Section 6103(p)(4) of such 
        Code, as amended by sections 1414 and 3308 of Public Law 111-
        148, in the matter preceding subparagraph (A) and in 
        subparagraph (F)(ii), is amended by striking ``or (17)'' and 
        inserting ``(17), or (22)'' each place it appears.
    (b) Secretary's Authority to Use Information From the Department of 
Treasury in Medicare Enrollments and Reenrollments.--Section 1866(j)(2) 
of the Social Security Act (42 U.S.C. 1395cc(j)), as inserted by 
section 6401(a) of Public Law 111-148, is further amended--
            (1) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) Use of information from the department of 
                treasury concerning tax debts.--In reviewing the 
                application of a provider of services or supplier to 
                enroll or reenroll under the program under this title, 
                the Secretary shall take into account the information 
                supplied by the Secretary of the Treasury pursuant to 
                section 6103(l)(22) of the Internal Revenue Code of 
                1986, in determining whether to deny such application 
                or to apply enhanced oversight to such provider of 
                services or supplier pursuant to paragraph (3) if the 
                Secretary determines such provider of services or 
                supplier owes such a debt.''.
    (c) Authority to Adjust Payments of Providers of Services and 
Suppliers With the Same Tax Identification Number for Medicare 
Obligations.--Section 1866(j)(5) of the Social Security Act (42 U.S.C. 
1395cc(j)(5)), as inserted by section 6401(a) of Public Law 111-148, is 
amended--
            (1) in the paragraph heading, by striking ``past-due'' and 
        inserting ``medicare'';
            (2) in subparagraph (A), by striking ``past-due obligations 
        described in subparagraph (B)(ii) of an'' and inserting 
        ``amount described in subparagraph (B)(ii) due from such''; and
            (3) in subparagraph (B)(ii), by striking ``a past-due 
        obligation'' and inserting ``an amount that is more than the 
        amount required to be paid''.

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

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

SEC. 521. PHYSICIAN PAYMENT UPDATE.

    (a) In General.--Section 1848(d) of the Social Security Act (42 
U.S.C. 1395w-4(d)) is amended--
            (1) in paragraph (10), in the heading, by striking 
        ``portion'' and inserting ``the first 5 months ''; and
            (2) by adding at the end the following new paragraphs:
            ``(11) Update for the last 7 months of 2010.--
                    ``(A) In general.--Subject to paragraphs (7)(B), 
                (8)(B), (9)(B), and (10)(B), in lieu of the update to 
                the single conversion factor established in paragraph 
                (1)(C) that would otherwise apply for 2010 for the 
                period beginning on June 1, 2010, and ending on 
                December 31, 2010, the update to the single conversion 
                factor shall be 2.2 percent.
                    ``(B) No effect on computation of conversion factor 
                for 2011 and subsequent years.--The conversion factor 
                under this subsection shall be computed under paragraph 
                (1)(A) for 2011 and subsequent years as if subparagraph 
                (A) had never applied.
            ``(12) Update for 2011.--
                    ``(A) In general.--Subject to paragraphs (7)(B), 
                (8)(B), (9)(B), (10)(B), and (11)(B), in lieu of the 
                update to the single conversion factor established in 
                paragraph (1)(C) that would otherwise apply for 2011, 
                the update to the single conversion factor shall be 1.0 
                percent.
                    ``(B) No effect on computation of conversion factor 
                for 2012 and subsequent years.--The conversion factor 
                under this subsection shall be computed under paragraph 
                (1)(A) for 2012 and subsequent years as if subparagraph 
                (A) had never applied.''.
    (b) Statutory Paygo.--The budgetary effects of this Act, for the 
purpose of complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement titled 
``Budgetary Effects of PAYGO Legislation'' for this Act, jointly 
submitted for printing in the Congressional Record by the Chairmen of 
the House and Senate Budget Committees, provided that such statement 
has been submitted prior to the vote on passage in the House acting 
first on this conference report or amendment between the Houses.

SEC. 522. ADJUSTMENT TO MEDICARE PAYMENT LOCALITIES.

    (a) In General.--Section 1848(e) of the Social Security Act (42 
U.S.C.1395w-4(e)) is amended by adding at the end the following new 
paragraph:
            ``(6) Transition to use of msas as fee schedule areas in 
        california.--
                    ``(A) In general.--
                            ``(i) Revision.--Subject to clause (ii) and 
                        notwithstanding the previous provisions of this 
                        subsection, for services furnished on or after 
                        January 1, 2012, the Secretary shall revise the 
                        fee schedule areas used for payment under this 
                        section applicable to the State of California 
                        using the Metropolitan Statistical Area (MSA) 
                        iterative Geographic Adjustment Factor 
                        methodology as follows:
                                    ``(I) The Secretary shall configure 
                                the physician fee schedule areas using 
                                the Metropolitan Statistical Areas 
                                (each in this paragraph referred to as 
                                an `MSA'), as defined by the Director 
                                of the Office of Management and Budget 
                                as of the date of the enactment of this 
                                paragraph, as the basis for the fee 
                                schedule areas.
                                    ``(II) For purposes of this clause, 
                                the Secretary shall treat all areas not 
                                included in an MSA as a single rest-of-
                                State MSA and any reference in this 
                                paragraph to an MSA shall be deemed to 
                                include a reference to such rest-of-
                                State MSA.
                                    ``(III) The Secretary shall list 
                                all MSAs within the State by Geographic 
                                Adjustment Factor described in 
                                paragraph (2) (in this paragraph 
                                referred to as a `GAF') in descending 
                                order.
                                    ``(IV) In the first iteration, the 
                                Secretary shall compare the GAF of the 
                                highest cost MSA in the State to the 
                                weighted-average GAF of all the 
                                remaining MSAs in the State. If the 
                                ratio of the GAF of the highest cost 
                                MSA to the weighted-average of the GAF 
                                of remaining lower cost MSAs is 1.05 or 
                                greater, the highest cost MSA shall be 
                                a separate fee schedule area.
                                    ``(V) In the next iteration, the 
                                Secretary shall compare the GAF of the 
                                MSA with the second-highest GAF to the 
                                weighted-average GAF of the all the 
                                remaining MSAs (excluding MSAs that 
                                become separate fee schedule areas). If 
                                the ratio of the second-highest MSA's 
                                GAF to the weighted-average of the 
                                remaining lower cost MSAs is 1.05 or 
                                greater, the second-highest MSA shall 
                                be a separate fee schedule area.
                                    ``(VI) The iterative process shall 
                                continue until the ratio of the GAF of 
                                the MSA with highest remaining GAF to 
                                the weighted-average of the remaining 
                                MSAs with lower GAFs is less than 1.05, 
                                and the remaining group of MSAs with 
                                lower GAFs shall be treated as a single 
                                rest-of-State fee schedule area.
                                    ``(VII) For purposes of the 
                                iterative process described in this 
                                clause, if two MSAs have identical 
                                GAFs, they shall be combined.
                            ``(ii) Transition.--For services furnished 
                        on or after January 1, 2012, and before January 
                        1, 2017, in the State of California, after 
                        calculating the work, practice expense, and 
                        malpractice geographic indices that would 
                        otherwise be determined under clauses (i), 
                        (ii), and (iii) of paragraph (1)(A) for a fee 
                        schedule area determined under clause (i), if 
                        the index for a county within a fee schedule 
                        area is less than the index that would 
                        otherwise be in effect for such county, the 
                        Secretary shall instead apply the index that 
                        would otherwise be in effect for such county.
                    ``(B) Subsequent revisions.--After the transition 
                described in subparagraph (A)(ii), not less than every 
                3 years the Secretary shall review and update the fee 
                schedule areas using the methodology described in 
                subparagraph (A)(i) and any updated MSAs as defined by 
                the Director of the Office of Management and Budget. 
                The Secretary shall review and make any changes 
                pursuant to such reviews concurrent with the 
                application of the periodic review of the adjustment 
                factors required under paragraph (1)(C) for California.
                    ``(C) References to fee schedule areas.--Effective 
                for services furnished on or after January 1, 2012, for 
                the State of California, any reference in this section 
                to a fee schedule area shall be deemed a reference to a 
                fee schedule area established in accordance with this 
                paragraph.''.
    (b) Conforming Amendment to Definition of Fee Schedule Area.--
Section 1848(j)(2) of the Social Security Act (42 U.S.C. 1395w(j)(2)) 
is amended by striking ``The term'' and inserting ``Except as provided 
in subsection (e)(6)(C), the term''.

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

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

                       TITLE VI--OTHER PROVISIONS

SEC. 601. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Extension.--Section 129 of the Continuing Appropriations 
Resolution, 2010 (Public Law 111-68), as amended by section 7(a) of 
Public Law 111-157, is amended by striking ``by substituting'' and all 
that follows through the period at the end, and inserting ``by 
substituting December 31, 2010, for the date specified in each such 
section.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
considered to have taken effect on May 31, 2010.

SEC. 602. ALLOCATION OF GEOTHERMAL RECEIPTS.

    Notwithstanding any other provision of law, for fiscal year 2010 
only, all funds received from sales, bonuses, royalties, and rentals 
under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) shall 
be deposited in the Treasury, of which--
            (1) 50 percent shall be used by the Secretary of the 
        Treasury to make payments to States within the boundaries of 
        which the leased land and geothermal resources are located;
            (2) 25 percent shall be used by the Secretary of the 
        Treasury to make payments to the counties within the boundaries 
        of which the leased land or geothermal resources are located; 
        and
            (3) 25 percent shall be deposited in miscellaneous 
        receipts.

SEC. 603. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTENSIONS.

    (a) Appropriation.--There is appropriated, out of any funds in the 
Treasury not otherwise appropriated, for an additional amount for 
``Small Business Administration--Business Loans Program Account'', 
$505,000,000, to remain available through December 31, 2010, for the 
cost of--
            (1) fee reductions and eliminations under section 501 of 
        division A of the American Recovery and Reinvestment Act of 
        2009 (Public Law 111-5; 123 Stat. 151), as amended by this 
        section; and
            (2) loan guarantees under section 502 of division A of the 
        American Recovery and Reinvestment Act of 2009 (Public Law 111-
        5; 123 Stat. 152), as amended by this section.
Such costs, including the cost of modifying such loans, shall be as 
defined in section 502 of the Congressional Budget Act of 1974.
    (b) Extension of Programs.--
            (1) Fees.--Section 501 of division A of the American 
        Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
        Stat. 151) is amended by striking ``September 30, 2010'' each 
        place it appears and inserting ``December 31, 2010''.
            (2) Loan guarantees.--Section 502(f) of division A of the 
        American Recovery and Reinvestment Act of 2009 (Public Law 111-
        5; 123 Stat. 153) is amended by striking ``May 31, 2010'' and 
        inserting ``December 31, 2010''.
    (c) Appropriation.--There is appropriated for an additional amount, 
out of any funds in the Treasury not otherwise appropriated, for 
administrative expenses to carry out sections 501 and 502 of division A 
of the American Recovery and Reinvestment Act of 2009 (Public Law 111-
5), $5,000,000, to remain available until expended, which may be 
transferred and merged with the appropriation for ``Small Business 
Administration--Salaries and Expenses''.

SEC. 604. EMERGENCY AGRICULTURAL DISASTER ASSISTANCE.

    (a) Definitions.--Except as otherwise provided in this section, in 
this section:
            (1) Disaster county.--
                    (A) In general.--The term ``disaster county'' means 
                a county included in the geographic area covered by a 
                qualifying natural disaster declaration for the 2009 
                crop year.
                    (B) Exclusion.--The term ``disaster county'' does 
                not include a contiguous county.
            (2) Eligible aquaculture producer.--The term ``eligible 
        aquaculture producer'' means an aquaculture producer that 
        during the 2009 calendar year, as determined by the Secretary--
                    (A) produced an aquaculture species for which feed 
                costs represented a substantial percentage of the input 
                costs of the aquaculture operation; and
                    (B) experienced a substantial price increase of 
                feed costs above the previous 5-year average.
            (3) Eligible producer.--The term ``eligible producer'' 
        means an agricultural producer in a disaster county.
            (4) Eligible specialty crop producer.--The term ``eligible 
        specialty crop producer'' means an agricultural producer that, 
        for the 2009 crop year, as determined by the Secretary--
                    (A) produced, or was prevented from planting, a 
                specialty crop; and
                    (B) experienced specialty crop losses in a disaster 
                county due to drought, excessive rainfall, or a related 
                condition.
            (5) Qualifying natural disaster declaration.--The term 
        ``qualifying natural disaster declaration'' means a natural 
        disaster declared by the Secretary for production losses under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (7) Specialty crop.--The term ``specialty crop'' has the 
        meaning given the term in section 3 of the Specialty Crops 
        Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 
        note).
    (b) Supplemental Direct Payment.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use such sums as are necessary 
        to make supplemental payments under sections 1103 and 1303 of 
        the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 
        8753) to eligible producers on farms located in disaster 
        counties that had at least 1 crop of economic significance 
        (other than specialty crops or crops intended for grazing) 
        suffer at least a 5-percent crop loss on a farm due to a 
        natural disaster, including quality losses, as determined by 
        the Secretary, in an amount equal to 90 percent of the direct 
        payment the eligible producers received for the 2009 crop year 
        on the farm.
            (2) ACRE program.--Eligible producers that received direct 
        payments under section 1105 of the Food, Conservation, and 
        Energy Act of 2008 (7 U.S.C. 8715) for the 2009 crop year and 
        that otherwise meet the requirements of paragraph (1) shall be 
        eligible to receive supplemental payments under that paragraph 
        in an amount equal to 112.5 percent of the reduced direct 
        payment the eligible producers received for the 2009 crop year 
        under section 1103 or 1303 of the Food, Conservation, and 
        Energy Act of 2008 (7 U.S.C. 8713, 8753).
            (3) Relationship to other law.--Assistance received under 
        this subsection shall be included in the calculation of farm 
        revenue for the 2009 crop year under section 531(b)(4)(A) of 
        the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
        section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
        2497(b)(4)(A)).
    (c) Specialty Crop Assistance.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than 
        $300,000,000, to remain available until September 30, 2011, to 
        carry out a program of grants to States to assist eligible 
        specialty crop producers for losses due to a natural disaster 
        affecting the 2009 crops, of which not more than--
                    (A) $150,000,000 shall be used to assist eligible 
                specialty crop producers in counties that have been 
                declared a disaster as the result of drought; and
                    (B) $150,000,000 shall be used to assist eligible 
                specialty crop producers in counties that have been 
                declared a disaster as the result of excessive rainfall 
                or a related condition.
            (2) Notification.--Not later than 45 days after the date of 
        enactment of this Act, the Secretary shall notify the State 
        department of agriculture (or similar entity) in each State of 
        the availability of funds to assist eligible specialty crop 
        producers, including such terms as are determined by the 
        Secretary to be necessary for the equitable treatment of 
        eligible specialty crop producers.
            (3) Provision of grants.--
                    (A) In general.--The Secretary shall make grants to 
                States for disaster counties on a pro rata basis based 
                on the value of specialty crop losses in those counties 
                during the 2009 calendar year, as determined by the 
                Secretary.
                    (B) Administrative costs.--State Secretary of 
                Agriculture may not use more than five percent of the 
                funds provided for costs associated with the 
                administration of the grants provided in paragraph (1).
                    (C) Administration of grants.--State Secretary of 
                Agriculture may enter into a contract with the 
                Department of Agriculture to administer the grants 
                provided in paragraph (1).
                    (D) Timing.--Not later than 90 days after the date 
                of enactment of this Act, the Secretary shall make 
                grants to States to provide assistance under this 
                subsection.
                    (E) Maximum grant.--The maximum amount of a grant 
                made to a State for counties described in paragraph 
                (1)(B) may not exceed $40,000,000.
            (4) Requirements.--The Secretary shall make grants under 
        this subsection only to States that demonstrate to the 
        satisfaction of the Secretary that the State will--
                    (A) use grant funds to issue payments to eligible 
                specialty crop producers;
                    (B) provide assistance to eligible specialty crop 
                producers not later than 60 days after the date on 
                which the State receives grant funds; and
                    (C) not later than 30 days after the date on which 
                the State provides assistance to eligible specialty 
                crop producers, submit to the Secretary a report that 
                describes--
                            (i) the manner in which the State provided 
                        assistance;
                            (ii) the amounts of assistance provided by 
                        type of specialty crop; and
                            (iii) the process by which the State 
                        determined the levels of assistance to eligible 
                        specialty crop producers.
                    (D) Relation to other law.--Assistance received 
                under this subsection shall be included in the 
                calculation of farm revenue for the 2009 crop year 
                under section 531(b)(4)(A) of the Federal Crop 
                Insurance Act (7 U.S.C. 1531(b)(4)(A)) and section 
                901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
                2497(b)(4)(A)).
    (d) Cottonseed Assistance.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than $42,000,000 
        to provide supplemental assistance to eligible producers and 
        first-handlers of the 2009 crop of cottonseed in a disaster 
        county.
            (2) General terms.--Except as otherwise provided in this 
        subsection, the Secretary shall provide disaster assistance 
        under this subsection under the same terms and conditions as 
        assistance provided under section 3015 of the Emergency 
        Agricultural Disaster Assistance Act of 2006 (title III of 
        Public Law 109-234; 120 Stat. 477).
            (3) Distribution of assistance.--The Secretary shall 
        distribute assistance to first handlers for the benefit of 
        eligible producers in a disaster county in an amount equal to 
        the product obtained by multiplying--
                    (A) the payment rate, as determined under paragraph 
                (4); and
                    (B) the county-eligible production, as determined 
                under paragraph (5).
            (4) Payment rate.--The payment rate shall be equal to the 
        quotient obtained by dividing--
                    (A) the total funds made available to carry out 
                this subsection; by
                    (B) the sum of the county-eligible production, as 
                determined under paragraph (5).
            (5) County-eligible production.--The county-eligible 
        production shall be equal to the product obtained by 
        multiplying--
                    (A) the number of acres planted to cotton in the 
                disaster county, as reported to the Secretary by first 
                handlers;
                    (B) the expected cotton lint yield for the disaster 
                county, as determined by the Secretary based on the 
                best available information; and
                    (C) the national average seed-to-lint ratio, as 
                determined by the Secretary based on the best available 
                information for the 5 crop years immediately preceding 
                the 2009 crop, excluding the year in which the average 
                ratio was the highest and the year in which the average 
                ratio was the lowest in such period.
    (e) Aquaculture Assistance.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than $25,000,000, 
        to remain available until September 30, 2011, to carry out a 
        program of grants to States to assist eligible aquaculture 
        producers for losses associated with high feed input costs 
        during the 2009 calendar year.
            (2) Notification.--Not later than 45 days after the date of 
        enactment of this Act, the Secretary shall notify the State 
        department of agriculture (or similar entity) in each State of 
        the availability of funds to assist eligible aquaculture 
        producers, including such terms as are determined by the 
        Secretary to be necessary for the equitable treatment of 
        eligible aquaculture producers.
            (3) Provision of grants.--
                    (A) In general.--The Secretary shall make grants to 
                States under this subsection on a pro rata basis based 
                on the amount of aquaculture feed used in each State 
                during the 2009 calendar year, as determined by the 
                Secretary.
                    (B) Timing.--Not later than 90 days after the date 
                of enactment of this Act, the Secretary shall make 
                grants to States to provide assistance under this 
                subsection.
            (4) Requirements.--The Secretary shall make grants under 
        this subsection only to States that demonstrate to the 
        satisfaction of the Secretary that the State will--
                    (A) use grant funds to assist eligible aquaculture 
                producers;
                    (B) provide assistance to eligible aquaculture 
                producers not later than 60 days after the date on 
                which the State receives grant funds; and
                    (C) not later than 30 days after the date on which 
                the State provides assistance to eligible aquaculture 
                producers, submit to the Secretary a report that 
                describes--
                            (i) the manner in which the State provided 
                        assistance;
                            (ii) the amounts of assistance provided per 
                        species of aquaculture; and
                            (iii) the process by which the State 
                        determined the levels of assistance to eligible 
                        aquaculture producers.
            (5) Reduction in payments.--An eligible aquaculture 
        producer that receives assistance under this subsection shall 
        not be eligible to receive any other assistance under the 
        supplemental agricultural disaster assistance program 
        established under section 531 of the Federal Crop Insurance Act 
        (7 U.S.C. 1531) and section 901 of the Trade Act of 1974 (19 
        U.S.C. 2497) for any losses in 2009 relating to the same 
        species of aquaculture.
            (6) Report to congress.--Not later than 240 days after the 
        date of enactment of this Act, the Secretary shall submit to 
        the appropriate committees of Congress a report that--
                    (A) describes in detail the manner in which this 
                subsection has been carried out; and
                    (B) includes the information reported to the 
                Secretary under paragraph (4)(C).
    (f) Hawaii Transportation Cooperative.--Notwithstanding any other 
provision of law, the Secretary shall use $21,000,000 of funds of the 
Commodity Credit Corporation to make a payment to an agricultural 
transportation cooperative in the State of Hawaii, the members of which 
are eligible to participate in the commodity loan program of the Farm 
Service Agency, for assistance to maintain and develop employment.
    (g) Livestock Forage Disaster Program.--
            (1) Definition of disaster county.--In this subsection:
                    (A) In general.--The term ``disaster county'' means 
                a county included in the geographic area covered by a 
                qualifying natural disaster declaration announced by 
                the Secretary in calendar year 2009.
                    (B) Inclusion.--The term ``disaster county'' 
                includes a contiguous county.
            (2) Payments.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than $50,000,000 
        to carry out a program to make payments to eligible producers 
        that had grazing losses in disaster counties in calendar year 
        2009.
            (3) Criteria.--
                    (A) In general.--Except as provided in subparagraph 
                (B), assistance under this subsection shall be 
                determined under the same criteria as are used to carry 
                out the programs under section 531(d) of the Federal 
                Crop Insurance Act (7 U.S.C. 1531(d)) and section 
                901(d) of the Trade Act of 1974 (19 U.S.C. 2497(d)).
                    (B) Drought intensity.--For purposes of this 
                subsection, an eligible producer shall not be required 
                to meet the drought intensity requirements of section 
                531(d)(3)(D)(ii) of the Federal Crop Insurance Act (7 
                U.S.C. 1531(d)(3)(D)(ii)) and section 901(d)(3)(D)(ii) 
                of the Trade Act of 1974 (19 U.S.C. 2497(d)(3)(D)(ii)).
            (4) Amount.--Assistance under this subsection shall be in 
        an amount equal to 1 monthly payment using the monthly payment 
        rate under section 531(d)(3)(B) of the Federal Crop Insurance 
        Act (7 U.S.C. 1531(d)(3)(B)) and section 901(d)(3)(B) of the 
        Trade Act of 1974 (19 U.S.C. 2497(d)(3)(B)).
            (5) Relation to other law.--An eligible producer that 
        receives assistance under this subsection shall be ineligible 
        to receive assistance for 2009 grazing losses under the program 
        carried out under section 531(d) of the Federal Crop Insurance 
        Act (7 U.S.C. 1531(d)) and section 901(d) of the Trade Act of 
        1974 (19 U.S.C. 2497(d)).
    (h) Emergency Loans for Poultry Producers.--
            (1) Definitions.--In this subsection:
                    (A) Announcement date.--The term ``announcement 
                date'' means the date on which the Secretary announces 
                the emergency loan program under this subsection.
                    (B) Poultry integrator.--The term ``poultry 
                integrator'' means a poultry integrator that filed 
                proceedings under chapter 11 of title 11, United States 
                Code, in United States Bankruptcy Court during the 30-
                day period beginning on December 1, 2008.
            (2) Loan program.--
                    (A) In general.--Of the funds of the Commodity 
                Credit Corporation, the Secretary shall use not more 
                than $75,000,000, to remain available until expended, 
                for the cost of making no-interest emergency loans 
                available to poultry producers that meet the 
                requirements of this subsection.
                    (B) Terms and conditions.--Except as otherwise 
                provided in this subsection, emergency loans under this 
                subsection shall be subject to such terms and 
                conditions as are determined by the Secretary.
            (3) Loans.--
                    (A) In general.--An emergency loan made to a 
                poultry producer under this subsection shall be for the 
                purpose of providing financing to the poultry producer 
                in response to financial losses associated with the 
                termination or nonrenewal of any contract between the 
                poultry producer and a poultry integrator.
                    (B) Eligibility.--
                            (i) In general.--To be eligible for an 
                        emergency loan under this subsection, not later 
                        than 90 days after the announcement date, a 
                        poultry producer shall submit to the Secretary 
                        evidence that--
                                    (I) the contract of the poultry 
                                producer described in subparagraph (A) 
                                was not continued; and
                                    (II) no similar contract has been 
                                awarded subsequently to the poultry 
                                producer.
                            (ii) Requirement to offer loans.--
                        Notwithstanding any other provision of law, if 
                        a poultry producer meets the eligibility 
                        requirements described in clause (i), subject 
                        to the availability of funds under paragraph 
                        (2)(A), the Secretary shall offer to make a 
                        loan under this subsection to the poultry 
                        producer with a minimum term of 2 years.
            (4) Additional requirements.--
                    (A) In general.--A poultry producer that receives 
                an emergency loan under this subsection may use the 
                emergency loan proceeds only to repay the amount that 
                the poultry producer owes to any lender for the 
                purchase, improvement, or operation of the poultry 
                farm.
                    (B) Conversion of the loan.--A poultry producer 
                that receives an emergency loan under this subsection 
                shall be eligible to have the balance of the emergency 
                loan converted, but not refinanced, to a loan that has 
                the same terms and conditions as an operating loan 
                under subtitle B of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1941 et seq.).
    (i) State and Local Governments.--Section 1001(f)(6)(A) of the Food 
Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is amended by inserting 
``(other than the conservation reserve program established under 
subchapter B of chapter 1 of subtitle D of title XII of this Act)'' 
before the period at the end.
    (j) Administration.--
            (1) Regulations.--
                    (A) In general.--As soon as practicable after the 
                date of enactment of this Act, the Secretary shall 
                promulgate such regulations as are necessary to 
                implement this section and the amendment made by this 
                section.
                    (B) Procedure.--The promulgation of the regulations 
                and administration of this section and the amendment 
                made by this section shall be made without regard to--
                            (i) the notice and comment provisions of 
                        section 553 of title 5, United States Code;
                            (ii) the Statement of Policy of the 
                        Secretary of Agriculture effective July 24, 
                        1971 (36 Fed. Reg. 13804), relating to notices 
                        of proposed rulemaking and public participation 
                        in rulemaking; and
                            (iii) chapter 35 of title 44, United States 
                        Code (commonly known as the ``Paperwork 
                        Reduction Act'').
                    (C) Congressional review of agency rulemaking.--In 
                carrying out this paragraph, the Secretary shall use 
                the authority provided under section 808 of title 5, 
                United States Code.
            (2) Administrative costs.--Of the funds of the Commodity 
        Credit Corporation, the Secretary may use up to $10,000,000 to 
        pay administrative costs incurred by the Secretary that are 
        directly related to carrying out this Act.
            (3) Prohibition.--None of the funds of the Agricultural 
        Disaster Relief Trust Fund established under section 902 of the 
        Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry out 
        this Act.

SEC. 605. SUMMER EMPLOYMENT FOR YOUTH.

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

SEC. 606. HOUSING TRUST FUND.

    (a) Funding.--There is hereby appropriated for the Housing Trust 
Fund established pursuant to section 1338 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568), $1,065,000,000, for use under such section: Provided, That of 
the total amount provided under this heading, $65,000,000 shall be 
available to the Secretary of Housing and Urban Development only for 
incremental project-based voucher assistance to be allocated to States 
to be used solely in conjunction with grant funds awarded under such 
section 1338, pursuant to the formula established under section 1338 
and taking into account different per unit subsidy needs among states, 
as determined by the Secretary.
    (b) Amendments.--Section 1338 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568) is 
amended--
            (1) in subsection (c)--
                    (A) in paragraph (4)(A) by inserting after the 
                period at the end the following: ``Notwithstanding any 
                other provision of law, for the fiscal year following 
                enactment of this sentence and thereafter, the 
                Secretary may make such notice available only on the 
                Internet at the appropriate government website or 
                websites or through other electronic media, as 
                determined by the Secretary.'';
                    (B) in paragraph (5)(C), by striking ``(8)'' and 
                inserting ``(9)''; and
                    (C) in paragraph (7)(A)--
                            (i) by striking ``section 1335(a)(2)(B)'' 
                        and inserting ``section 1335(a)(1)(B)''; and
                            (ii) by inserting ``the units funded 
                        under'' after ``75 percent of''; and
            (2) by adding at the end the following new subsection:
    ``(k) Environmental Review.--For the purpose of environmental 
compliance review, funds awarded under this section shall be subject to 
section 288 of the HOME Investment Partnerships Act (12 U.S.C. 12838) 
and shall be treated as funds under the program established by such 
Act.''.

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

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

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

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

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

    (a) Phased Expansion Concurrent Receipt.--Subsection (a) of section 
1414 of title 10, United States Code, is amended to read as follows:
    ``(a) Payment of Both Retired Pay and Disability Compensation.--
            ``(1) Payment of both required.--
                    ``(A) In general.--Subject to subsection (b), a 
                member or former member of the uniformed services who 
                is entitled for any month to retired pay and who is 
                also entitled for that month to veterans' disability 
                compensation for a qualifying service-connected 
                disability (in this section referred to as a `qualified 
                retiree') is entitled to be paid both for that month 
                without regard to sections 5304 and 5305 of title 38.
                    ``(B) Applicability of full concurrent receipt 
                phase-in requirement.--During the period beginning on 
                January 1, 2004, and ending on December 31, 2013, 
                payment of retired pay to a qualified retiree is 
                subject to subsection (c).
                    ``(C) Phase-in exception for 100 percent disabled 
                retirees.--The payment of retired pay is subject to 
                subsection (c) only during the period beginning on 
                January 1, 2004, and ending on December 31, 2004, in 
                the case of the following qualified retirees:
                            ``(i) A qualified retiree receiving 
                        veterans' disability compensation for a 
                        disability rated as 100 percent.
                            ``(ii) A qualified retiree receiving 
                        veterans' disability compensation at the rate 
                        payable for a 100 percent disability by reason 
                        of a determination of individual 
                        unemployability.
                    ``(D) Temporary phase-in exception for certain 
                chapter 61 disability retirees; termination.--Subject 
                to subsection (b), during the period beginning on 
                January 1, 2011, and ending on September 30, 2012, 
                subsection (c) shall not apply to a qualified retiree 
                described in subparagraph (B) or (C) of paragraph (2).
            ``(2) Qualifying service-connected disability defined.--In 
        this section:
                    ``(A) 50 percent rating threshold.--In the case of 
                a member or former member receiving retired pay under 
                any provision of law other than chapter 61 of this 
                title, or under chapter 61 with 20 years or more of 
                service otherwise creditable under section 1405 or 
                computed under section 12732 of this title, the term 
                `qualifying service-connected disability' means a 
                service-connected disability or combination of service-
                connected disabilities that is rated as not less than 
                50 percent disabling by the Secretary of Veterans 
                Affairs. However, during the period specified in 
                paragraph (1)(D), members or former members receiving 
                retired pay under chapter 61 with 20 years or more of 
                creditable service computed under section 12732 of this 
                title, but not otherwise entitled to retired pay under 
                any other provision of this title, shall qualify in 
                accordance with subparagraphs (B) and (C).
                    ``(B) Inclusion of members not otherwise entitled 
                to retired pay.--In the case of a member or former 
                member receiving retired pay under chapter 61 of this 
                title, but who is not otherwise entitled to retired pay 
                under any other provision of this title, the term 
                `qualifying service-connected disability' means a 
                service-connected disability or combination of service-
                connected disabilities that is rated by the Secretary 
                of Veterans Affairs at the disabling level specified in 
                one of the following clauses (which, subject to 
                paragraph (3), is effective on or after the date 
                specified in the applicable clause):
                            ``(i) January 1, 2011, rated 100 percent, 
                        or a rate payable at 100 percent by reason of 
                        individual unemployability or rated 90 percent.
                            ``(ii) January 1, 2012, rated 80 percent or 
                        70 percent.
                            ``(iii) January 1, 2013, rated 60 percent 
                        or 50 percent.
                    ``(C) Elimination of rating threshold.--In the case 
                of a member or former member receiving retired pay 
                under chapter 61 regardless of being otherwise eligible 
                for retirement, the term `qualifying service-connected 
                disability' means a service-connected disability or 
                combination of service-connected disabilities that is 
                rated by the Secretary of Veterans Affairs at the 
                disabling level specified in one of the following 
                clauses (which, subject to paragraph (3), is effective 
                on or after the date specified in the applicable 
                clause):
                            ``(i) January 1, 2014, rated 40 percent or 
                        30 percent.
                            ``(ii) January 1, 2015, any rating.
            ``(3) Limited duration.--Notwithstanding the effective date 
        specified in each clause of subparagraphs (B) and (C) of 
        paragraph (2), the clause--
                    ``(A) shall apply only if the termination date 
                specified in paragraph (1)(D) would occur during or 
                after the calendar year specified in the clause; and
                    ``(B) shall not apply beyond the termination date 
                specified in paragraph (1)(D).''.
    (b) Conforming Amendment to Special Rules for Chapter 61 Disability 
Retirees.--Subsection (b) of such section is amended to read as 
follows:
    ``(b) Special Rules for Chapter 61 Disability Retirees When 
Eligibility Has Been Established for Such Retirees.--
            ``(1) General reduction rule.--The retired pay of a member 
        retired under chapter 61 of this title is subject to reduction 
        under sections 5304 and 5305 of title 38, but only to the 
        extent that the amount of the members retired pay under chapter 
        61 of this title exceeds the amount of retired pay to which the 
        member would have been entitled under any other provision of 
        law based upon the member's service in the uniformed services 
        if the member had not been retired under chapter 61 of this 
        title.
            ``(2) Chapter 61 retirees not otherwise entitled to retired 
        pay.--
                    ``(A) Before termination date.--If a member with a 
                qualifying service-connected disability (as defined in 
                subsection (a)(2)) is retired under chapter 61 of this 
                title, but is not otherwise entitled to retired pay 
                under any other provision of this title, and the 
                termination date specified in subsection (a)(1)(D) has 
                not occurred, the retired pay of the member is subject 
                to reduction under sections 5304 and 5305 of title 38, 
                but only to the extent that the amount of the member's 
                retired pay under chapter 61 of this title exceeds the 
                amount equal to 2\1/2\ percent of the member's years of 
                creditable service multiplied by the member's retired 
                pay base under section 1406(b)(1) or 1407 of this 
                title, whichever is applicable to the member.
                    ``(B) After termination date.--Subsection (a) does 
                not apply to a member described in subparagraph (A) if 
                the termination date specified in subsection (a)(1)(D) 
                has occurred.''.
    (c) Conforming Amendment to Full Concurrent Receipt Phase-in.--
Subsection (c) of such section is amended by striking ``the second 
sentence of''.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 1414. Concurrent receipt of retired pay and veterans' disability 
              compensation''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 71 of such title is amended by striking 
        the item related to section 1414 and inserting the following 
        new item:

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

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

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

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

    (a) In General.--Subchapter A of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
              PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.

    ``(a) In General.--Notwithstanding any other provision of law, any 
refund (or advance payment with respect to a refundable credit) made to 
any individual under this title shall not be taken into account as 
income, and shall not be taken into account as resources for a period 
of 12 months from receipt, for purposes of determining the eligibility 
of such individual (or any other individual) for benefits or assistance 
(or the amount or extent of benefits or assistance) under any Federal 
program or under any State or local program financed in whole or in 
part with Federal funds.
    ``(b) Termination.--Subsection (a) shall not apply to any amount 
received after December 31, 2010.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by adding at the end the following new item:

``Sec. 6409. Refunds disregarded in the administration of Federal 
                            programs and federally assisted 
                            programs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2009.

SEC. 612. STATE COURT IMPROVEMENT PROGRAM.

    Section 438 of the Social Security Act (42 U.S.C. 629h) is 
amended--
            (1) in subsection (c)(2)(A), by striking ``2010'' and 
        inserting ``2011''; and
            (2) in subsection (e), by striking ``2010'' and inserting 
        ``2011''.

SEC. 613. QUALIFYING TIMBER CONTRACT OPTIONS.

    (a) Definitions.--In this section:
            (1) Qualifying contract.--The term ``qualifying contract'' 
        means a contract that has not been terminated by the Bureau of 
        Land Management for the sale of timber on lands administered by 
        the Bureau of Land Management that meets all of the following 
        criteria:
                    (A) The contract was awarded during the period 
                beginning on January 1, 2005, and ending on December 
                31, 2008.
                    (B) There is unharvested volume remaining for the 
                contract.
                    (C) The contract is not a salvage sale.
                    (D) The Secretary determined there is not an urgent 
                need to harvest under the contract due to deteriorating 
                timber conditions that developed after the award of the 
                contract.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of Bureau of Land 
        Management.
            (3) Timber purchaser.--The term ``timber purchaser'' means 
        the party to the qualifying contract for the sale of timber 
        from lands administered by the Bureau of Land Management.
    (b) Market-related Contract Extension Option.--Upon a timber 
purchaser's written request, the Secretary may make a one-time 
modification to the qualifying contract to add 3 years to the contract 
expiration date if the written request--
            (1) is received by the Secretary not later than 90 days 
        after the date of enactment of this Act; and
            (2) contains a provision releasing the United States from 
        all liability, including further consideration or compensation, 
        resulting from the modification under this subsection of the 
        term of a qualifying contract.
    (c) Reporting.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
detailing a plan and timeline to promulgate new regulations authorizing 
the Bureau of Land Management to extend timber contracts due to changes 
in market conditions.
    (d) Regulations.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary shall promulgate new regulations 
authorizing the Bureau of Land Management to extend timber contracts 
due to changes in market conditions.
    (e) No Surrender of Claims.--This section shall not have the effect 
of surrendering any claim by the United States against any timber 
purchaser that arose under a timber sale contract, including a 
qualifying contract, before the date on which the Secretary adjusts the 
contract term under subsection (b).

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

    (a) Modification of Allocation Rules.--Section 411(d) of the 
Surface Transportation Extension Act of 2010 (Public Law 111-147; 124 
Stat. 80) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``1301, 1302,''; and
                            (ii) by striking ``1198, 1204,''; and
                    (B) in subparagraph (A)--
                            (i) in the matter preceding clause (i) by 
                        striking ``apportioned under sections 104(b) 
                        and 144 of title 23, United States Code,'' and 
                        inserting ``specified in section 105(a)(2) of 
                        title 23, United States Code (except the high 
                        priority projects program),''; and
                            (ii) in clause (ii) by striking 
                        ``apportioned under such sections of such 
                        Code'' and inserting ``specified in such 
                        section 105(a)(2) (except the high priority 
                        projects program)'';
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``1301, 1302,''; and
                            (ii) by striking ``1198, 1204,''; and
                    (B) in subparagraph (A)--
                            (i) in the matter preceding clause (i) by 
                        striking ``apportioned under sections 104(b) 
                        and 144 of title 23, United States Code,'' and 
                        inserting ``specified in section 105(a)(2) of 
                        title 23, United States Code (except the high 
                        priority projects program),''; and
                            (ii) in clause (ii) by striking 
                        ``apportioned under such sections of such 
                        Code'' and inserting ``specified in such 
                        section 105(a)(2) (except the high priority 
                        projects program)''; and
            (3) by adding at the end the following:
            ``(5) Projects of national and regional significance and 
        national corridor infrastructure improvement programs.--
                    ``(A) Redistribution among states.--Notwithstanding 
                sections 1301(m) and 1302(e) of SAFETEA-LU (119 Stat. 
                1202 and 1205), the Secretary shall apportion funds 
                authorized to be appropriated under subsection (b) for 
                the projects of national and regional significance 
                program and the national corridor infrastructure 
                improvement program among all States such that each 
                State's share of the funds so apportioned is equal to 
                the State's share for fiscal year 2009 of funds 
                apportioned or allocated for the programs specified in 
                section 105(a)(2) of title 23, United States Code.
                    ``(B) Distribution among programs.--Funds 
                apportioned to a State pursuant to subparagraph (A) 
                shall be--
                            ``(i) made available to the State for the 
                        programs specified in section 105(a)(2) of 
                        title 23, United States Code (except the high 
                        priority projects program), and in the same 
                        proportion for each such program that--
                                    ``(I) the amount apportioned to the 
                                State for that program for fiscal year 
                                2009; bears to
                                    ``(II) the amount apportioned to 
                                the State for fiscal year 2009 for all 
                                such programs; and
                            ``(ii) administered in the same manner and 
                        with the same period of availability as funding 
                        is administered under programs identified in 
                        clause (i).''.
    (b) Expenditure Authority From Highway Trust Fund.--Paragraph (1) 
of section 9503(c) of the Internal Revenue Code of 1986 is amended by 
striking ``Surface Transportation Extension Act of 2010'' and inserting 
``American Jobs and Closing Tax Loopholes Act of 2010''.
    (c) Effective Date.--The amendments made by this section shall take 
effect upon the date of enactment of the Surface Transportation 
Extension Act of 2010 (Public Law 111-147; 124 Stat. 78 et seq.) and 
shall be treated as being included in that Act at the time of the 
enactment of that Act.
    (d) Savings Clause.--
            (1) In general.--For fiscal year 2010 and for the period 
        beginning on October 1, 2010, and ending on December 31, 2010, 
        the amount of funds apportioned to each State under section 
        411(d) of the Surface Transportation Extension Act of 2010 
        (Public Law 111-147) that is determined by the amount that the 
        State received or was authorized to receive for fiscal year 
        2009 to carry out the projects of national and regional 
        significance program and national corridor infrastructure 
        improvement program shall be the greater of--
                    (A) the amount that the State was authorized to 
                receive under section 411(d) of the Surface 
                Transportation Extension Act of 2010 with respect to 
                each such program according to the provisions of that 
                Act, as in effect on the day before the date of 
                enactment of this Act; or
                    (B) the amount that the State is authorized to 
                receive under section 411(d) of the Surface 
                Transportation Extension Act of 2010 with respect to 
                each such program pursuant to the provisions of that 
                Act, as amended by the amendments made by this section.
            (2) Obligation authority.--For fiscal year 2010, the amount 
        of obligation authority distributed to each State shall be the 
        greater of--
                    (A) the amount that the State was authorized to 
                receive pursuant to section 120(a)(4)(A) (as it 
                pertains to the Appalachian Development Highway System 
                program) of title I of division A of the Consolidated 
                Appropriations Act, 2010 (Public Law 111-117) and 
                sections 120(a)(4)(B) and 120(a)(6) of such title, as 
                of the day before the date of enactment of this Act; or
                    (B) the amount that the State is authorized to 
                receive pursuant to section 120(a)(4)(A) (as it 
                pertains to the Appalachian Development Highway System 
                program) of title I of division A of the Consolidated 
                Appropriations Act, 2010 (Public Law 111-117) and 
                sections 120(a)(4)(B) and 120(a)(6) of such title, as 
                of the date of enactment of this Act.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated out of the Highway Trust Fund (other than 
        the Mass Transit Account) such sums as may be necessary to 
        carry out this subsection.
            (4) Increase in obligation limitation.--The limitation 
        under the heading ``Federal-aid Highways (Limitation on 
        Obligations) (Highway Trust Fund)'' in Public Law 111-117 is 
        increased by such sums as may be necessary to carry out this 
        subsection.
            (5) Contract authority.--Funds made available to carry out 
        this subsection shall be available for obligation and 
        administered in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States Code.
            (6) Amounts.--The dollar amount specified in section 
        105(d)(1) of title 23, United States Code, the dollar amount 
        specified in section 120(a)(4)(B) of title I of division A of 
        the Consolidated Appropriations Act, 2010 (Public Law 111-117), 
        and the dollar amount specified in section 120(b)(10) of such 
        title shall each be increased as necessary to carry out this 
        subsection.

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

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

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

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

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

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

SEC. 618. DEPARTMENT OF COMMERCE STUDY.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Commerce shall report to Congress detailing--
            (1) the pattern of job loss in the New England, Mid-
        Atlantic, and Midwest States over the past 20 years;
            (2) the role of the off-shoring of manufacturing jobs in 
        overall job loss in the regions; and
            (3) recommendations to attract industries and bring jobs to 
        the region.

SEC. 619. ARRA PLANNING AND REPORTING.

    Section 1512 of the American Recovery and Reinvestment Act of 2009 
(Public Law 111-5; 123 Stat. 287) is amended--
            (1) in subsection (d)--
                    (A) in the subsection heading, by inserting ``Plans 
                and'' after ``Agency'';
                    (B) by striking ``Not later than'' and inserting 
                the following:
            ``(1) Definition.--In this subsection, the term `covered 
        program' means a program for which funds are appropriated under 
        this division--
                    ``(A) in an amount that is--
                            ``(i) more than $2,000,000,000; and
                            ``(ii) more than 150 percent of the funds 
                        appropriated for the program for fiscal year 
                        2008; or
                    ``(B) that did not exist before the date of 
                enactment of this Act.
            ``(2) Plans.--Not later than July 1, 2010, the head of each 
        agency that distributes recovery funds shall submit to Congress 
        and make available on the website of the agency a plan for each 
        covered program, which shall, at a minimum, contain--
                    ``(A) a description of the goals for the covered 
                program using recovery funds;
                    ``(B) a discussion of how the goals described in 
                subparagraph (A) relate to the goals for ongoing 
                activities of the covered program, if applicable;
                    ``(C) a description of the activities that the 
                agency will undertake to achieve the goals described in 
                subparagraph (A);
                    ``(D) a description of the total recovery funding 
                for the covered program and the recovery funding for 
                each activity under the covered program, including 
                identifying whether the activity will be carried out 
                using grants, contracts, or other types of funding 
                mechanisms;
                    ``(E) a schedule of milestones for major phases of 
                the activities under the covered program, with planned 
                delivery dates;
                    ``(F) performance measures the agency will use to 
                track the progress of each of the activities under the 
                covered program in meeting the goals described in 
                subparagraph (A), including performance targets, the 
                frequency of measurement, and a description of the 
                methodology for each measure;
                    ``(G) a description of the process of the agency 
                for the periodic review of the progress of the covered 
                program towards meeting the goals described in 
                subparagraph (A); and
                    ``(H) a description of how the agency will hold 
                program managers accountable for achieving the goals 
                described in subparagraph (A).
            ``(3) Reports.--
                    ``(A) In general.--Not later than''; and
                    (C) by adding at the end the following:
                    ``(B) Reports on plans.--Not later than 30 days 
                after the end of the calendar quarter ending September 
                30, 2010, and every calendar quarter thereafter during 
                which the agency obligates or expends recovery funds, 
                the head of each agency that developed a plan for a 
                covered program under paragraph (2) shall submit to 
                Congress and make available on a website of the agency 
                a report for each covered program that--
                            ``(i) discusses the progress of the agency 
                        in implementing the plan;
                            ``(ii) describes the progress towards 
                        achieving the goals described in paragraph 
                        (2)(A) for the covered program;
                            ``(iii) discusses the status of each 
                        activity carried out under the covered program, 
                        including whether the activity is completed;
                            ``(iv) details the unobligated and 
                        unexpired balances and total obligations and 
                        outlays under the covered program;
                            ``(v) discusses--
                                    ``(I) whether the covered program 
                                has met the milestones for the covered 
                                program described in paragraph (2)(E);
                                    ``(II) if the covered program has 
                                failed to meet the milestones, the 
                                reasons why; and
                                    ``(III) any changes in the 
                                milestones for the covered program, 
                                including the reasons for the change;
                            ``(vi) discusses the performance of the 
                        covered program, including--
                                    ``(I) whether the covered program 
                                has met the performance measures for 
                                the covered program described in 
                                paragraph (2)(F);
                                    ``(II) if the covered program has 
                                failed to meet the performance 
                                measures, the reasons why; and
                                    ``(III) any trends in information 
                                relating to the performance of the 
                                covered program; and
                            ``(vii) evaluates the ability of the 
                        covered program to meet the goals of the 
                        covered program given the performance of the 
                        covered program.'';
            (2) in subsection (f)--
                    (A) by striking ``Within 180 days'' and inserting 
                the following:
            ``(1) In general.--Within 180 days''; and
                    (B) by adding at the end the following:
            ``(2) Penalties.--
                    ``(A) In general.--Subject to subparagraphs (B), 
                (C), and (D), the Attorney General may bring a civil 
                action in an appropriate United States district court 
                against a recipient of recovery funds from an agency 
                that does not provide the information required under 
                subsection (c) or knowingly provides information under 
                subsection (c) that contains a material omission or 
                misstatement. In a civil action under this paragraph, 
                the court may impose a civil penalty on a recipient of 
                recovery funds in an amount not more than $250,000. Any 
                amounts received from a civil penalty under this 
                paragraph shall be deposited in the general fund of the 
                Treasury.
                    ``(B) Notification.--
                            ``(i) In general.--The head of an agency 
                        shall provide a written notification to a 
                        recipient of recovery funds from the agency 
                        that fails to provide the information required 
                        under subsection (c). A notification under this 
                        subparagraph shall provide the recipient with 
                        information on how to comply with the necessary 
                        reporting requirements and notice of the 
                        penalties for failing to do so.
                            ``(ii) Limitation.--A court may not impose 
                        a civil penalty under subparagraph (A) relating 
                        to the failure to provide information required 
                        under subsection (c) if, not later than 31 days 
                        after the date of the notification under clause 
                        (i), the recipient of the recovery funds 
                        provides the information.
                    ``(C) Considerations.--In determining the amount of 
                a penalty under this paragraph for a recipient of 
                recovery funds, a court shall consider--
                            ``(i) the number of times the recipient has 
                        failed to provide the information required 
                        under subsection (c);
                            ``(ii) the amount of recovery funds 
                        provided to the recipient;
                            ``(iii) whether the recipient is a 
                        government, nonprofit entity, or educational 
                        institution; and
                            ``(iv) whether the recipient is a small 
                        business concern (as defined under section 3 of 
                        the Small Business Act (15 U.S.C. 632)), with 
                        particular consideration given to businesses 
                        with not more than 50 employees.
                    ``(D) Applicability.--This paragraph shall apply to 
                any report required to be submitted on or after the 
                date of enactment of this paragraph.
                    ``(E) Nonexclusivity.--The imposition of a civil 
                penalty under this subsection shall not preclude any 
                other criminal, civil, or administrative remedy 
                available to the United States or any other person 
                under Federal or State law.
            ``(3) Technical assistance.--Each agency distributing 
        recovery funds shall provide technical assistance, as 
        necessary, to assist recipients of recovery funds in complying 
        with the requirements to provide information under subsection 
        (c), which shall include providing recipients with a reminder 
        regarding each reporting requirement.
            ``(4) Public listing.--
                    ``(A) In general.--Not later than 45 days after the 
                end of each calendar quarter, and subject to the 
                notification requirements under paragraph (2)(B), the 
                Board shall make available on the website established 
                under section 1526 a list of all recipients of recovery 
                funds that did not provide the information required 
                under subsection (c) for the calendar quarter.
                    ``(B) Contents.--A list made available under 
                subparagraph (A) shall, for each recipient of recovery 
                funds on the list, include the name and address of the 
                recipient, the identification number for the award, the 
                amount of recovery funds awarded to the recipient, a 
                description of the activity for which the recovery 
                funds were provided, and, to the extent known by the 
                Board, the reason for noncompliance.
            ``(5) Regulations and reporting.--
                    ``(A) Regulations.--Not later than 90 days after 
                the date of enactment of this paragraph, the Attorney 
                General, in consultation with the Director of the 
                Office of Management and Budget and the Chairperson, 
                shall promulgate regulations regarding implementation 
                of this section.
                    ``(B) Reporting.--
                            ``(i) In general.--Not later than July 1, 
                        2010, and every 3 months thereafter, the 
                        Director of the Office of Management and 
                        Budget, in consultation with the Chairperson, 
                        shall submit to Congress a report on the extent 
                        of noncompliance by recipients of recovery 
                        funds with the reporting requirements under 
                        this section.
                            ``(ii) Contents.--Each report submitted 
                        under clause (i) shall include--
                                    ``(I) information, for the quarter 
                                and in total, regarding the number and 
                                amount of civil penalties imposed and 
                                collected under this subsection, sorted 
                                by agency and program;
                                    ``(II) information on the steps 
                                taken by the Federal Government to 
                                reduce the level of noncompliance; and
                                    ``(III) any other information 
                                determined appropriate by the 
                                Director.''; and
            (3) by adding at the end the following:
    ``(i) Termination.--The reporting requirements under this section 
shall terminate on September 30, 2013.''.

                    TITLE VII--BUDGETARY PROVISIONS

SEC. 701. BUDGETARY PROVISIONS.

    (a) Statutory Paygo.--The budgetary effects of this Act, for the 
purpose of complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement titled 
`Budgetary Effects of PAYGO Legislation' for this Act, jointly 
submitted for printing in the Congressional Record by the Chairmen of 
the House and Senate Budget Committees, provided that such statement 
has been submitted prior to the vote on passage in the House acting 
first on this conference report or amendment between the Houses.
    (b) Emergency Designations.--Sections 501, 511, and 516--
            (1) are designated as an emergency requirement pursuant to 
        section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (Public 
        Law 111-139; 2 U.S.C. 933(g));
            (2) in the House of Representatives, are designated as an 
        emergency for purposes of pay-as-you-go principles; and
            (3) in the Senate, are designated as an emergency 
        requirement pursuant to section 403(a) of S. Con. Res. 13 
        (111th Congress), the concurrent resolution on the budget for 
        fiscal year 2010.

            Attest:

                                                                 Clerk.
111th CONGRESS

  2d Session

                               H.R. 4213

_______________________________________________________________________

                  HOUSE AMENDMENT TO SENATE AMENDMENT
```