I 

111TH CONGRESS 

2D SESSION H. R. 4513 

To create jobs by providing targeted tax relief to individuals and small 

businesses, curb frivolous lawsuits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 26, 2010 

Mr. BUCHANAN introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To create jobs by providing targeted tax relief to individuals 

and small businesses, curb frivolous lawsuits, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Job Creation Act of 

5 2010’’. 


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1 TITLE I—GENERAL PROVISIONS 

2 AFFECTING SMALL BUSINESS 

3 SEC. 101. EXTENSION OF INCREASED EXPENSING FOR 

4 SMALL BUSINESSES. 

5 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

6 of the Internal Revenue Code of 1986 is amended— 

7 (1) by striking ‘‘or 2009’’ and inserting ‘‘2009, 

8 or 2010’’, and 

9 (2) by striking ‘‘AND 2009’’ in the heading 

10 thereof and inserting ‘‘2009, OR 2010’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2009. 

14 SEC. 102. ONE YEAR ELIMINATION OF THE CAPITAL GAINS 

15 TAX FOR SMALL BUSINESSES. 

16 (a) IN GENERAL.—Subsection (a) of section 1202 of 

17 the Internal Revenue Code of 1986 (relating to partial ex18 clusion for gain from certain small business stock) is 

19 amended by adding at the end the following new para20 graph: 

21 ‘‘(4) SPECIAL RULE FOR 2010.—In the case of 

22 qualified small business stock acquired after Decem23 ber 31, 2009, and before January 1, 2011— 

24 ‘‘(A) paragraph (1) shall be applied by 

25 substituting ‘100 percent’ for ‘50 percent’, and 


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1 ‘‘(B) paragraph (2) shall not apply.’’. 

2 (b) CONFORMING AMENDMENTS.—Section 

3 1202(a)(3) of such Code is amended— 

4 (1) by striking ‘‘2011’’ and inserting ‘‘2010’’, 

5 and 

6 (2) by striking ‘‘AND 2010’’ in the heading. 

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

8 this section shall apply to stock acquired after December 

9 31, 2009. 

10 SEC. 103. UNEMPLOYMENT BENEFITS EXCLUDED FROM IN11 COME TAX FOR 2010. 

12 (a) IN GENERAL.—Section 85 of the Internal Rev13 enue Code of 1986 (relating to unemployment compensa14 tion) is amended by adding at the end the following new 

15 subsection: 

16 ‘‘(d) SPECIAL RULE FOR 2009.—Subsection (a) shall 

17 not apply in the case of any taxable year beginning in 

18 2010.’’. 

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

20 subsection (a) shall apply to taxable years beginning after 

21 December 31, 2009. 


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1 SEC. 104. REDUCTION IN TROUBLED ASSET PURCHASES 

2 THAT MAY BE OUTSTANDING AS TARP FUNDS 

3 ARE REPAID. 

4 Section 106(d) of the Emergency Economic Stabiliza5 tion Act of 2008 is amended by adding at the end the 

6 following new sentence: ‘‘The maximum amount of pur7 chase authority for troubled assets that is authorized to 

8 be outstanding at any one time under section 115 shall 

9 be reduced by the amount of any payment into the Treas10 ury under the preceding sentence after the date of the en11 actment of the Job Creation Act of 2010.’’. 

12 TITLE II—FEDERAL RULES OF 

13 CIVIL PROCEDURE IMPROVE14 MENTS 

15 SEC. 201. ATTORNEY ACCOUNTABILITY. 

16 Rule 11(c) of the Federal Rules of Civil Procedure 

17 is amended— 

18 (1) by amending the first sentence to read as 

19 follows: ‘‘If a pleading, motion, or other paper is 

20 signed in violation of this rule, the court, upon mo21 tion or upon its own initiative, shall impose upon the 

22 attorney, law firm, or parties that have violated this 

23 subdivision or are responsible for the violation, an 

24 appropriate sanction, which may include an order to 

25 pay the other party or parties for the reasonable ex26 penses incurred as a direct result of the filing of the 


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1 pleading, motion, or other paper, that is the subject 

2 of the violation, including a reasonable attorney’s 

3 fee.’’; 

4 (2) in paragraph (1)(A)— 

5 (A) by striking ‘‘Rule 5’’ and all that fol6 lows through ‘‘corrected.’’ and inserting ‘‘Rule 

7 5.’’; and 

8 (B) by striking ‘‘the court may award’’ 

9 and inserting ‘‘the court shall award’’; and 

10 (3) in paragraph (2), by striking ‘‘shall be lim11 ited to what is sufficient’’ and all that follows 

12 through the end of the paragraph (including sub13 paragraphs (A) and (B)) and inserting ‘‘shall be suf14 ficient to deter repetition of such conduct or com15 parable conduct by others similarly situated, and to 

16 compensate the parties that were injured by such 

17 conduct. The sanction may consist of an order to 

18 pay to the party or parties the amount of the rea19 sonable expenses incurred as a direct result of the 

20 filing of the pleading, motion, or other paper that is 

21 the subject of the violation, including a reasonable 

22 attorney’s fee.’’. 


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1 SEC. 202. APPLICABILITY OF RULE 11 TO STATE CASES AF2 FECTING INTERSTATE COMMERCE. 

3 In any civil action in State court, the court, upon mo4 tion, shall determine within 30 days after the filing of such 

5 motion whether the action substantially affects interstate 

6 commerce. Such court shall make such determination 

7 based on an assessment of the costs to the interstate econ8 omy, including the loss of jobs, were the relief requested 

9 granted. If the court determines such action substantially 

10 affects interstate commerce, the provisions of Rule 11 of 

11 the Federal Rules of Civil Procedure shall apply to such 

12 action. 

13 SEC. 203. PREVENTION OF FORUM-SHOPPING. 

14 (a) IN GENERAL.—Subject to subsection (b), a per15 sonal injury claim filed in State or Federal court may be 

16 filed only in the State and, within that State, in the county 

17 (or if there is no State court in the county, the nearest 

18 county where a court of general jurisdiction is located), 

19 or Federal district in which— 

20 (1) the person bringing the claim, including an 

21 estate in the case of a decedent and a parent or 

22 guardian in the case of a minor or incompetent— 

23 (A) resides at the time of filing; or 

24 (B) resided at the time of the alleged in25 jury; 


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1 (2) the alleged injury or circumstances giving 

2 rise to the personal injury claim allegedly occurred; 

3 (3) the defendant’s principal place of business 

4 is located, if the defendant is a corporation; or 

5 (4) the defendant resides, if the defendant is an 

6 individual. 

7 (b) DETERMINATION OF MOST APPROPRIATE

8 FORUM.—If a person alleges that the injury or cir9 cumstances giving rise to the personal injury claim oc10 curred in more than one county (or Federal district), the 

11 trial court shall determine which State and county (or 

12 Federal district) is the most appropriate forum for the 

13 claim. If the court determines that another forum would 

14 be the most appropriate forum for a claim, the court shall 

15 dismiss the claim. Any otherwise applicable statute of limi16 tations shall be tolled beginning on the date the claim was 

17 filed and ending on the date the claim is dismissed under 

18 this subsection. 

19 (c) DEFINITIONS.—In this section: 

20 (1) The term ‘‘personal injury claim’’— 

21 (A) means a civil action brought under 

22 State law by any person to recover for a per23 son’s personal injury, illness, disease, death, 

24 mental or emotional injury, risk of disease, or 

25 other injury, or the costs of medical monitoring 


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1 or surveillance (to the extent such claims are 

2 recognized under State law), including any de3 rivative action brought on behalf of any person 

4 on whose injury or risk of injury the action is 

5 based by any representative party, including a 

6 spouse, parent, child, or other relative of such 

7 person, a guardian, or an estate; 

8 (B) does not include a claim brought as a 

9 class action; and 

10 (C) does not include a claim against a 

11 debtor in a case pending under title 11 of the 

12 United States Code that is a personal injury 

13 tort or wrongful death claim within the mean14 ing of section 157(b)(5) of title 28, United 

15 States Code. 

16 (2) The term ‘‘person’’ means any individual, 

17 corporation, company, association, firm, partnership, 

18 society, joint stock company, or any other entity, but 

19 not any governmental entity. 

20 (3) The term ‘‘State’’ includes the District of 

21 Columbia, the Commonwealth of Puerto Rico, the 

22 United States Virgin Islands, Guam, and any other 

23 territory or possession of the United States. 


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1 (d) APPLICABILITY.—This section applies to any per2 sonal injury claim filed in Federal or State court on or 

3 after the date of the enactment of this Act. 

4 SEC. 204. RULE OF CONSTRUCTION. 

5 Nothing in section 202 or in the amendments made 

6 by section 201 shall be construed to bar or impede the 

7 assertion or development of new claims or remedies under 

8 Federal, State, or local civil rights law. 

9 SEC. 205. THREE-STRIKES RULE FOR SUSPENDING ATTOR10 NEYS WHO COMMIT MULTIPLE RULE 11 VIO11 LATIONS. 

12 (a) MANDATORY SUSPENSION.—Whenever a Federal 

13 district court determines that an attorney has violated 

14 Rule 11 of the Federal Rules of Civil Procedure, the court 

15 shall determine the number of times that the attorney has 

16 violated that rule in that Federal district court during that 

17 attorney’s career. If the court determines that the number 

18 is three or more, the Federal district court— 

19 (1) shall suspend that attorney from the prac20 tice of law in that Federal district court for one 

21 year; and 

22 (2) may suspend that attorney from the prac23 tice of law in that Federal district court for any ad24 ditional period that the court considers appropriate. 


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1 (b) APPEAL; STAY.—An attorney has the right to ap2 peal a suspension under subsection (a). While such an ap3 peal is pending, the suspension shall be stayed. 

4 (c) REINSTATEMENT.—To be reinstated to the prac5 tice of law in a Federal district court after completion of 

6 a suspension under subsection (a), the attorney involved 

7 must first petition the court for reinstatement under such 

8 procedures and conditions as the court may prescribe. 

9 SEC. 206. PRESUMPTION OF RULE 11 VIOLATION FOR RE10 PEATEDLY RELITIGATING SAME ISSUE. 

11 Whenever a party presents to a Federal court a 

12 pleading, written motion, or other paper, that includes a 

13 claim or defense that the party has already litigated and 

14 lost on the merits in any forum in final decisions not sub15 ject to appeal on three consecutive occasions, and the 

16 claim or defense, respectively, involves the same plaintiff 

17 and the same defendant on each occasion, there shall be 

18 a rebuttable presumption that the presentation of such 

19 paper is in violation of Rule 11 of the Federal Rules of 

20 Civil Procedure. 

21 SEC. 207. ENHANCED SANCTIONS FOR DOCUMENT DE22 STRUCTION IN PENDING FEDERAL COURT 

23 PROCEEDINGS. 

24 Whoever willfully and intentionally influences, ob25 structs, or impedes, or attempts to influence, or obstruct, 


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1 or impede, a pending Federal court proceeding through 

2 the willful and intentional destruction of documents 

3 sought pursuant to the rules of such Federal court pro4 ceeding and highly relevant to that proceeding— 

5 (1) shall be punished with mandatory civil sanc6 tions of a degree commensurate with the civil sanc7 tions available under Rule 11 of the Federal Rules 

8 of Civil Procedure, in addition to any other civil 

9 sanctions that otherwise apply; and 

10 (2) shall be held in contempt of court; and if 

11 an attorney, referred to one or more appropriate 

12 State bar associations for disciplinary proceedings. 

13 SEC. 208. BAN ON CONCEALMENT OF UNLAWFUL CONDUCT. 

14 (a) IN GENERAL.—In any Rule 11 of the Federal 

15 Rules of Civil Procedure proceeding, a court may not order 

16 that a court record not be disclosed unless the court makes 

17 a finding of fact that identifies the interest that justifies 

18 the order and determines that interest outweighs any in19 terest in the public health and safety that the court deter20 mines would be served by disclosing the court record. 

21 (b) APPLICABILITY.—This section applies to any 

22 record formally filed with a court, but shall not include 

23 any records subject to— 

24 (1) the attorney-client privilege or any other 

25 privilege recognized under Federal or State law that 


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1 grants the right to prevent disclosure of certain in2 formation unless the privilege has been waived; or 

3 (2) applicable State or Federal laws that pro4 tect the confidentiality of crime victims, including 

5 victims of sexual abuse. 

Æ 


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