ensure that the Program employees they hire are 
able to perform their jobs in a professionally com-
petent manner; 
(10) agree to carry out all grant-funded 
projects in a manner that is as ecologically sustain-
able as is reasonably possible; 
(11) agree to cooperate with the efforts of the 
Office of Assisted Placement in providing Program 
employment or grant-funded training for individuals 
eligible for assisted placement under section 308; 
and 
(12) agree to cooperate with the procedures es-
tablished by the Office of Dispute Resolution in re-
solving disputes in accord with the provisions of sec-
tion 313. 
SEC. 305. PROGRAM EMPLOYMENT DESCRIBED. 
Employment funded under this section shall meet the 
following specifications: 
(1) Any employer that employs an individual 
whose employment is funded under the grant shall— 
(A) continue to employ such individual ab-
sent good cause for the termination of the indi-
vidual’s employment for as long as the project 
has need of the services provided by the indi-
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vidual or until the individual resigns, whichever 
comes first; 
(B) employ such individual for between 35 
and 40 hours per week if the individual desires 
full-time employment, and for a mutually 
agreed number of hours per week less than 35 
if the individual desires part-time employment, 
except that this requirement shall not apply if 
a grant recipient’s Employment Opportunity 
Grant provides otherwise for good cause shown 
during the application process; 
(C) comply with the responsible contractor 
standards of the Federal Acquisition Regulation 
(48 C.F.R. 1 et seq.); 
(D) pursuant to guidelines established by 
the Secretary, provide compensation to such in-
dividual that is comparable in value to the com-
pensation provided public sector employees who 
perform similar work in the community where 
such individual is employed or, if no public sec-
tor employees perform such similar work, pro-
vide compensation that is of comparable value 
to the compensation provided public sector em-
ployees hired to perform work of comparable 
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worth in the community where such individual 
is employed; 
(E) if such employment is in construction, 
provide compensation to any laborer or me-
chanic employed under the grant at rates not 
less than those prevailing on similar construc-
tion in the locality as determined by the Sec-
retary in accordance with subchapter IV of 
chapter 31 of title 40, United States Code; and 
(F) offer affirmative assistance to such in-
dividual in— 
(i) applying for social benefits for 
which such individual or the members of 
such individual’s family may be eligible; 
and 
(ii) satisfying continuing reporting ob-
ligations required to maintain eligibility for 
social benefits such individual or the mem-
bers of such individual’s family are receiv-
ing. 
(2) Any grant recipient that operates a training 
Program funded under this title shall— 
(A) provide Program trainees a cost-of-liv-
ing stipend set pursuant to standards estab-
lished by the Secretary and made payable to the 
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Program trainee as long as the Program trainee 
maintains satisfactory attendance, participation, 
and progress in the training Program; and 
(B) offer affirmative assistance to individ-
uals enrolled in the training program in— 
(i) applying for social benefits for 
which they or the members of their family 
may be eligible; and 
(ii) satisfying continuing reporting ob-
ligations required to maintain eligibility for 
social benefits they or members of their 
family are receiving. 
(3) No individual whose employment is funded 
under this Act may work for an employer at which 
a collective bargaining agreement is in effect cov-
ering the same or similar work, unless— 
(A) the consent of the union at such em-
ployer is obtained; and 
(B) negotiations have taken place between 
such union and the employer as to the terms 
and conditions of such employment. 
(4) No individual may be hired by a not-for- 
profit organization in a position funded under this 
Act to perform functions or services that are cus-
tomarily performed, either exclusively or almost ex-
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clusive by a Unit of General Local Government un-
less the Unit of General Local Government in ques-
tion refuses to apply for Program funding to expand 
or improve its own performance of the functions or 
services in question. 
(5) No individual whose employment is funded 
under this Act may be employed in a position if— 
(A) employing such individual will result in 
the layoff or partial displacement (such as a re-
duction in hours, wages, or employee benefits) 
of an existing employee of the employer; or 
(B) such individual will perform the same 
or substantially similar work that had pre-
viously been performed by an employee of the 
employer who has been laid off within the pre-
ceding 12 months or has been partially dis-
placed as that term is described in subpara-
graph (A) unless the employee has declined an 
offer of reinstatement to the position the em-
ployee occupied immediately prior to being laid 
off or partially displaced. 
(6) No individual may be hired for a position 
funded under this Act in a manner that infringes 
upon the promotional opportunities of an existing 
employee of the Program employer. 
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(7) Program employees shall qualify as public 
sector employees for purposes of all otherwise appli-
cable Federal, State, and local laws. 
SEC. 306. ELIGIBILITY FOR PROGRAM EMPLOYMENT. 
(a) CERTIFICATION BY ONE-STOP CENTER.—An in-
dividual seeking Program employment shall have his or 
her eligibility for such employment certified by a one-stop 
center serving the area where the Program employment 
is located. 
(b) REQUIREMENTS
FOR CERTIFICATION.—To be 
certified as eligible for such employment, the individual 
must satisfy at least one of the following conditions as 
of the date the individual is hired to fill a job funded under 
this Act: 
(1) The individual has been unemployed for less 
than 30 days and is eligible to receive Unemploy-
ment Insurance benefits. 
(2) The individual is unemployed and has been 
registered at and seeking employment with the as-
sistance of a one-stop center for not less than 30 
days prior to the date on which the individual is so 
hired. 
(3) The individual has been employed part-time 
while registered at and seeking full-time employment 
with the assistance of a one-stop center for not less 
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than 30 days prior to the date the individual is so 
hired. 
(c) AVAILABILITY
FOR
NON-PROGRAM
EMPLOY-
MENT.— 
(1) All Program employees shall be automati-
cally registered with the one-stop center serving the 
area where the individual resides as available for and 
seeking work. 
(2) The one-stop center serving the area where 
a Program employee resides shall screen inquiries 
from employers concerning available jobs and for-
ward those that seem suitable to qualified Program 
employees. 
(3) For purposes of paragraph (2), the term 
‘‘suitable’’, used with respect to a job, means an 
offer of employment that— 
(A) a newly unemployed individual who has 
just begun receiving Unemployment Insurance 
benefits would be required to accept in order to 
avoid forfeiting their eligibility for continued re-
ceipt of such benefits under the laws of the 
State in which the Program employee is em-
ployed; and 
(B) is reasonably expected to last at least 
6 months. 
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(4) Program employees shall be provided time 
off with pay to respond to inquiries regarding suit-
able non-Program job openings. 
(5) A Program employee who refuses a suitable 
job offer resulting from such an inquiry without 
good cause shall— 
(A) forfeit their eligibility for Program em-
ployment for a period of 30 days, subject to the 
same procedures and right of appeal that ap-
plies to recipients of Unemployment Insurance 
who refuse suitable employment; and 
(B) maintain their eligibility for Program 
employment until such proceedings are com-
pleted. 
(6) A Program employee who terminates their 
Program employment in order to accept other em-
ployment, and who subsequently is terminated from 
that other employment without fault on the individ-
ual’s part, or who terminates that employment vol-
untarily for good cause, shall be eligible for imme-
diate reemployment in a job funded under this Act. 
(d) INVOLUNTARY TERMINATION OF PROGRAM EM-
PLOYMENT.— 
(1) A Program employee who is involuntarily 
terminated from their Program Job for inadequate 
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performance of job responsibilities shall not lose 
their eligibility for employment in another Program- 
funded job. 
(2) A Program employee who is involuntarily 
terminated for misconduct shall lose their eligibility 
for Program employment for 30 days. 
SEC. 307. COMPENSATION. 
For purposes of section 305(1)(D)— 
(1) The term ‘‘compensation’’ shall mean hour-
ly wage rates, paid and unpaid leave time, retiree 
benefits, group life insurance, disability insurance, 
and health benefits. 
(2) The term ‘‘comparable in value’’ shall 
mean— 
(A) as regards hourly wage rates, the same 
hourly wage rate; 
(B) as regards paid and unpaid leave time, 
the same paid and unpaid leave time; 
(C) as regards retiree benefits, a defined 
contribution benefit of comparable actuarial 
value provided in a plan established and admin-
istered by the Secretary; 
(D) as regards group life and disability in-
surance benefits, an actuarially equivalent ben-
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efit provided in a plan established and adminis-
tered by the Secretary; and 
(E) as regards health benefits, access to 
health insurance that provides approximately 
the same level of benefits for approximately the 
same employee contribution under the provi-
sions of paragraph (3). 
(3) Unless a Program Grant provides otherwise 
for good cause shown by the grant applicant, a Pro-
gram employer shall satisfy the requirements of this 
section relating to the provision of health benefits by 
providing affirmative assistance to each of its Pro-
gram employees in obtaining health benefits through 
a State Health Exchange, as permitted by the fol-
lowing exceptions to the ACA that apply only to Pro-
gram employees as hereby enacted: 
(A) The acquisition by a Program em-
ployee of such benefits through a Health Ex-
change shall not trigger tax penalties that 
would otherwise apply to the employee or the 
employee’s employer under the ACA. 
(B) Program employees who apply for 
health benefits under this paragraph shall be el-
igible for the same State Health Subsidy Pro-
grams as employed individuals who do not have 
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access to an ‘‘eligible employer-sponsored plan’’ 
as that term is defined in section 5000A(f)(2) 
of title 26, United States Code. 
(C) Any premiums a Program employee is 
required to pay for a health plan obtained 
under this subparagraph shall be paid by the 
employee’s Program employer via payroll deduc-
tions. 
(D) A Program employee’s wages shall be 
adjusted on an individual basis to the extent 
necessary to satisfy the comparable-value re-
quirement of section 305(1)(D) taking into con-
sideration the tax treatment accorded any addi-
tions or subtractions from the employee’s wages 
required to satisfy that comparable-value re-
quirement. 
(E) Program employers shall not be sub-
ject to the penalty set forth in section 4980D 
of title 26, United States Code, based on wage 
adjustments that comply with this paragraph. 
(4) In consideration for the savings the Pro-
gram established under this Act will generate in 
health care spending by all levels of government, the 
subsidy costs borne by the Federal Government or 
by State and local governments in providing health 
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benefits to Program employees under paragraph (3) 
shall not be chargeable to or reimbursed from the 
Program’s budget. 
(5) Chapter 43 of the Internal Revenue Code of 
1986 is amended by— 
(A) renumbering section 4980D(c)(4) as 
section 4980D(c)(5); and 
(B) inserting the following new section 
4980D(c)(4): 
‘‘(4) TAX NOT TO APPLY TO CERTAIN PREMIUM 
REIMBURSEMENTS.—No tax shall be imposed by 
subsection (a) on payments or reimbursements of 
health insurance premiums made pursuant to section 
307(3)(C) or (D) of the Jobs for All Act.’’. 
(6) Chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 106(g) 
the following new subsection (h): 
‘‘(h) REIMBURSEMENTS OF CERTAIN HEALTH IN-
SURANCE PREMIUMS.—For purposes of this section, pay-
ments or reimbursements of health insurance premiums 
made pursuant to section 307(3)(C) or (D) of the Jobs 
for All Act shall not be included in the gross income of 
the employee.’’. 
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SEC. 308. ASSISTED PLACEMENT. 
(a) INDIVIDUALS ELIGIBLE FOR ASSISTED PLACE-
MENT.—Individuals eligible for assisted placement shall 
include— 
(1) individuals who have been unable to find 
Program employment within 30 days following the 
certification of their eligibility for such employment; 
(2) individuals who are certified as eligible for 
assisted placement by a one-stop center because of 
special circumstances that make it unlikely the indi-
vidual will be able to find employment within a rea-
sonable period of time without assisted placement 
services; and 
(3) individuals whose qualifications and work 
experience are such that they need additional train-
ing to qualify for a job that pays enough to meet 
their own and their dependent’s reasonable needs. 
(A) For purposes of this paragraph and 
subsection (c) of this section, the term ‘‘depend-
ents’’ shall mean persons claimable as depend-
ents on the individual’s Federal income tax re-
turn. 
(B) The Secretary shall engage in notice- 
and-comment rulemaking to establish a method-
ology for developing reasonable-needs standards 
for use in implementing this paragraph. 
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(b) ASSISTED PLACEMENT SERVICES.—Upon the 
registration of an eligible individual for assisted placement 
services, the Assisted Placement Office shall— 
(1) assess the individual’s qualifications for em-
ployment and his or her interests in particular kinds 
of employment or training; 
(2) identify opportunities for Program employ-
ment that appear to be suitable for the individual in 
light of the individual’s qualifications and interests, 
along with any training opportunities that also may 
be of interest to the individual; 
(3) discuss these opportunities for Program em-
ployment and training with the individual; 
(4) for those opportunities the individual ex-
presses an interest in pursuing, contact the grant re-
cipient offering the opportunity, remind the grant 
recipient of its obligation to cooperate with the As-
sisted Placement Office in placing individuals in 
Program employment or desired training, and ar-
range an interview for the individual to explore 
whether a mutually acceptable placement is possible 
with the grant recipient; 
(5) follow up with both the individual and grant 
recipients to whom the individual has been referred 
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to ascertain whether a placement has been achieved, 
and if not why; 
(6) provide individual counseling and support 
services for individuals eligible for assisted place-
ment as needed to achieve a successful placement; 
(7) provide support services and additional 
funding to grant recipients, as needed, to accommo-
date the special needs of individuals who need such 
accommodation to find and succeed in Program em-
ployment or training; and 
(8) continue to work with the individual until a 
successful placement in Program employment or 
grant-funded training has been achieved, or until the 
Assisted Placement Office concludes, supported by 
adequate documentation, that the individual is un-
able or unwilling to provide the level of cooperation 
required to obtain and succeed in Program employ-
ment or grant-funded training, in which case the As-
sisted Placement Office shall offer assistance to the 
individual in arranging appropriate services to ad-
dress the problems that are interfering with the indi-
vidual’s ability to find and succeed in Program em-
ployment or training. 
(c) ADDITIONAL ASSISTANCE AVAILABLE.—To the 
extent necessary to ensure that individuals who qualify for 
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assisted placement under this section are able to earn 
enough to meet their own reasonable needs and those of 
their dependents, the Assisted Placement Office shall have 
the authority— 
(1) to arrange preferential placement for such 
individuals in grant-funded training programs, and 
following the completion of their training, provide 
assisted placement services to such individuals to en-
sure that they secure employment inside or outside 
the Program in a job that utilizes their newly ac-
quired skills; 
(2) to the extent necessary, to meet their rea-
sonable needs, provide such individuals with pref-
erential access to goods and services produced by the 
Program, such as affordable housing and childcare 
services; 
(3) to supplement the income of such individ-
uals with the equivalent of a voucher for housing as-
sistance under section 8(o) of the United States 
Housing Act of 1937, if such a voucher is not other-
wise available; and 
(4) to furnish such individuals with other in-
come supplements that expand eligibility for or add 
value to the Earned Income Tax Credit (26 U.S.C. 
32), the Child Tax Credit (26 U.S.C. 24), or the 
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Low Income Home Energy Assistance program (42 
U.S.C. 8621 et seq.). 
(d) GRANT RECIPIENT’S OBLIGATION TO COOPER-
ATE.—Grant recipients shall cooperate with efforts to pro-
vide assisted placement to individuals eligible for assisted 
placement under subsection (a). This duty shall mean, 
among other things, that a grant recipients must have 
good cause to refuse Program employment to a person re-
ferred to it for assisted placement. 
SEC. 309. PRIORITY GIVEN TO CERTAIN PROJECTS. 
Priority in the award of Employment Opportunity 
Grants shall be accorded to projects that— 
(1) provide goods and services, such as 
childcare, transportation, affordable housing, job 
training, and peer support, that make it easier for 
individuals who want to work to do so; or 
(2) serve areas with the greatest level of eco-
nomic need, determined for each such area by fac-
tors such as— 
(A) the unemployment rate; 
(B) the rate of poverty; 
(C) the number of census tracts in the 
area with concentrated poverty; 
(D) the level of median income in the area; 
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(E) the percentage of residential units in 
the area that appear to have been abandoned; 
(F) the percentage of homes in the area 
that are in foreclosure; and 
(G) indicators of poor resident health, in-
cluding high rates of chronic disease, infant 
mortality, and low life expectancy. 
SEC. 310. STARTUP PERIOD. 
Since it will take time for the Program established 
by this Act to develop the project-management experience 
and project-development capacity needed to fully achieve 
the Act’s goals, the Secretary shall have the authority to 
establish reasonable priorities in planning and executing 
the implementation of this Act, provided— 
(1) the number of jobs created in each commu-
nity during the startup period is roughly propor-
tionate to the level of unemployment, involuntary 
part-time employment, and non-labor force partici-
pation by persons who want and are available to ac-
cept jobs in each community, and 
(2) the type of jobs created in each community 
disproportionately favor those individuals and popu-
lation groups who enjoy the fewest alternative em-
ployment opportunities. 
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SEC. 
311. 
SECRETARY’S 
AUTHORITY 
TO 
ADMINISTER 
PROJECTS DIRECTLY. 
(a) IN GENERAL.—The Secretary shall have the au-
thority to use Trust Fund monies to establish and directly 
administer job creation projects during the startup period 
provided for in section 310. 
(b) WHEN THE STARTUP PERIOD HAS ENDED.— 
Once the startup period described in section 125 has 
ended, the Secretary shall have a continuing obligation to 
ensure the availability of enough jobs to provide suitable 
work for everyone who wants it everywhere in the Nation, 
including by the direct administration of job creation 
projects to the extent necessary or useful in achieving the 
purposes of this Act. 
SEC. 312. REPORTS. 
(a) REPORTS
BY GRANT RECIPIENTS.—Not later 
than 90 days after the last day of each fiscal year for 
which grant funding has been provided under this title, 
grant recipients shall submit to the Secretary a report con-
taining such information as the Secretary requires con-
cerning their use of their grant. 
(b) REPORT TO CONGRESS.—At least once every 6 
months, the Secretary shall report to Congress on the 
Act’s implementation and effects. 
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SEC. 313. DISPUTE RESOLUTION. 
(a) DISPUTES CONCERNING THE ALLOCATION OR 
USE OF PROGRAM FUNDS.—Alleged improprieties involv-
ing the allocation or use of Program funds, including, 
without limitation, alleged violations of paragraph (3), (4), 
or (5) of section 304, shall be investigated by the Office 
of Dispute Resolution pursuant to rules and procedures 
established by the Secretary. Those rules and procedures 
shall be designed to ensure a prompt and fair review of 
the contested matter based on the obligation of all inter-
ested parties to full and transparent cooperation with the 
investigation. A failure to provide such cooperation shall 
be deemed to support a conclusion that the information 
being sought would be adverse to the noncooperating par-
ty’s interests. Any administrative response ordered by the 
Office of Dispute Resolution as a result of its investigation 
shall be designed to further the goals and integrity of the 
Program. 
(b) DISPUTES ARISING OUT OF PROGRAM EMPLOY-
MENT AND TRAINING.—Disputes regarding an individ-
ual’s eligibility for Program employment or training, the 
terms and conditions of the individual’s Program employ-
ment or training, the imposition of discipline on a Pro-
gram employee or Program trainee, the involuntary termi-
nation of an individual’s Program employment or training, 
or any other individual right, whether created by this Act 
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or based on otherwise existing law, may be submitted by 
the adversely affected individual for resolution pursuant 
to the rules and procedures established for the resolution 
of such disputes by the Office of Dispute Resolution. 
(c) WAIVER OF RIGHTS.—For disputes falling within 
the scope of subsection (b), the election by an individual 
to pursue a legal remedy other than that provided by the 
Program’s dispute resolution system shall automatically 
waive the individual’s right to submit the dispute to the 
Program’s dispute resolution system unless all parties to 
the dispute agree to the termination of the other legal pro-
ceeding and the submission of the dispute for resolution 
under subsection (b). 
(d) BREACHES
OF
A
COLLECTIVE
BARGAINING 
AGREEMENT.—If a dispute falling within the scope of sub-
section (a) or (b) includes an alleged breach of a collective 
bargaining agreement (‘‘CBA’’), the jurisdiction of the 
Program’s Office of Dispute Resolution may not be in-
voked to decide any issue that depends on the interpreta-
tion of the CBA, but it may be invoked under subsection 
(a) or (b), as appropriate, to decide other aspects of the 
dispute, either before the contract dispute is resolved if 
both parties to the CBA agree to the submission, or after 
the contract dispute has been resolved if issues remain 
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that are suitable for resolution by the Office of Dispute 
Resolution. 
(e) OTHER DISPUTES.—Persons or entities that 
claim to have suffered a legally cognizable detriment as 
a result of a violation of this Act that does not fall within 
the scope of subsection (a) or (b) may have their claim 
investigated and obtain an appropriate administrative re-
sponse by filing a complaint with the Office of Dispute 
Resolution. 
(f) WHISTLEBLOWER HOTLINE.—In addition to the 
procedures established by the Secretary to formally invoke 
the jurisdiction of the Office of Dispute Resolution, infor-
mation involving alleged violations of this Act may be re-
ported informally to the Office of Dispute Resolution. 
SEC. 314. TAX ON SECURITIES TRANSACTIONS. 
(a) IN GENERAL.—Chapter 36 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
chapter B the following new subchapter: 
‘‘Subchapter C—Tax on Securities 
Transactions 
‘‘SEC. 4475. TAX ON TRADING TRANSACTIONS. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
a tax on the transfer of ownership in each covered trans-
action with respect to any security. 
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‘‘(b) RATE OF TAX.—The tax imposed under sub-
section (a) with respect to any covered transaction shall 
be the applicable percentage of the specified base amount 
with respect to such covered transaction. The applicable 
percentage shall be— 
‘‘(1) 0.2 percent in the case of a security de-
scribed in subparagraph (A) or (B) of subsection 
(e)(1), 
‘‘(2) 0.06 percent in the case of a security de-
scribed in subparagraph (C) of subsection (e)(1), 
‘‘(3) 0.2 percent in the case of a security de-
scribed in subparagraph (D) of subsection (e)(1) if 
the underlying assets on which the rights and obliga-
tions created by the security are based consist of 
other securities described in subparagraph (A) or 
(B) of subsection (e)(1), 
‘‘(4) 0.2 percent in the case of a security de-
scribed in subparagraph (F) of subsection (e)(1) if 
the index on which the rights and obligations created 
by the security are based is an index referencing the 
values of securities described in subparagraph (A) or 
(B) of subsection (e)(1)(A), and 
‘‘(5) 0.06 percent in the case of any security 
described in subparagraph (D), (E), or (F) of sub-
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section (e)(1) (other than a security described in 
paragraph (3) or (4)). 
‘‘(c) SPECIFIED BASE AMOUNT.—For purposes of 
this section, the term ‘specified base amount’ means— 
‘‘(1) except as provided in paragraph (2), the 
fair market value of the security (determined as of 
the time of the covered transaction), and 
‘‘(2) in the case of any payment described in 
subsection (h), the amount of such payment. 
‘‘(d) COVERED TRANSACTION.—For purposes of this 
section, the term ‘covered transaction’ means— 
‘‘(1) except as provided in paragraph (2), any 
purchase if— 
‘‘(A) such purchase occurs or is cleared on 
a facility located in the United States, or 
‘‘(B) the purchaser or seller is a United 
States person, and 
‘‘(2) any transaction with respect to a security 
described in subparagraph (D), (E), or (F) of sub-
section (e)(1), if— 
‘‘(A) such security is traded or cleared on 
a facility located in the United States, or 
‘‘(B) any party with rights under such se-
curity is a United States person. 
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‘‘(3) SPECIFIED
INDEX.—The term ‘specified 
index’ means any one or more of any combination 
of— 
‘‘(A) a fixed rate, price, or amount, or 
‘‘(B) a variable rate, price, or amount, 
which is based on any current objectively deter-
minable information which is not within the 
control of any of the parties to the contract or 
instrument and is not unique to any of the par-
ties’ circumstances. 
‘‘(4) TREATMENT OF EXCHANGES.— 
‘‘(A) IN GENERAL.—An exchange shall be 
treated as the sale of the property transferred 
and a purchase of the property received by each 
party to the exchange. 
‘‘(B) CERTAIN DEEMED EXCHANGES.—In 
the case of a distribution treated as an ex-
change for stock under section 302 or 331, the 
corporation making such distribution shall be 
treated as having purchased such stock for pur-
poses of this section. 
‘‘(f) EXCEPTIONS.— 
‘‘(1) EXCEPTION FOR INITIAL ISSUES.—No tax 
shall be imposed under subsection (a) on any cov-
ered transaction with respect to the initial issuance 
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of any security described in subparagraph (A), (B), 
or (C) of subsection (e)(1). 
‘‘(2) EXCEPTION FOR CERTAIN TRADED SHORT- 
TERM INDEBTEDNESS.—A note, bond, debenture, or 
other evidence of indebtedness which— 
‘‘(A) is traded on a trading facility located 
in the United States, and 
‘‘(B) has a fixed maturity of not more 
than 60 days, shall not be treated as described 
in subsection (e)(1)(C). 
‘‘(3) EXCEPTION FOR SECURITIES LENDING AR-
RANGEMENTS.—No tax shall be imposed under sub-
section (a) on any covered transaction with respect 
to which gain or loss is not recognized by reason of 
section 1058. 
‘‘(4) EXCEPTION FOR INTERESTS IN MUTUAL 
FUNDS.—No tax shall be imposed under subsection 
(a) with respect to the purchase or sale of any inter-
est in a regulated investment company (as defined in 
section 851). 
‘‘(g) BY WHOM PAID.— 
‘‘(1) IN GENERAL.—The tax imposed by this 
section shall be paid by— 
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‘‘(A) in the case of a transaction which oc-
curs or is cleared on a facility located in the 
United States, such facility, and 
‘‘(B) in the case of a purchase not de-
scribed in subparagraph (A) which is executed 
by a broker (as defined in section 6045(c)(1)), 
the broker. 
‘‘(2) SPECIAL
RULES
FOR
DIRECT, 
ETC., 
TRANSACTIONS.—In the case of any transaction to 
which paragraph (1) does not apply, the tax imposed 
by this section shall be paid by— 
‘‘(A) in the case of a transaction described 
in subsection (d)(1)— 
‘‘(i) the purchaser if the purchaser is 
a United States person, and 
‘‘(ii) the seller if the purchaser is not 
a United States person, and 
‘‘(B) in the case of a transaction described 
in subsection (d)(2)— 
‘‘(i) the payor if the payor is a United 
States person, and 
‘‘(ii) the payee if the payor is not a 
United States person. 
‘‘(h) CERTAIN PAYMENTS TREATED AS SEPARATE 
TRANSACTIONS.—Except as otherwise provided by the 
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Secretary, any payment with respect to a security de-
scribed in subparagraph (D), (E), or (F) of subsection 
(e)(1) shall be treated as a separate transaction for pur-
poses of this section, including— 
‘‘(1) any net initial payment, net final or termi-
nating payment, or net periodical payment with re-
spect to a notional principal contract (or similar fi-
nancial instrument), 
‘‘(2) any payment with respect to any forward 
contract (or similar financial instrument), and 
‘‘(3) any premium paid with respect to any op-
tion (or similar financial instrument). 
‘‘(i) ADMINISTRATION.—The Secretary shall carry 
out this section in consultation with the Securities and Ex-
change Commission and the Commodity Futures Trading 
Commission. 
‘‘(j) GUIDANCE; REGULATIONS.—The Secretary 
shall— 
‘‘(1) provide guidance regarding such informa-
tion reporting concerning covered transactions as the 
Secretary deems appropriate, including reporting by 
the payor of the tax in cases where the payor is not 
the purchaser, and 
‘‘(2) prescribe such regulations as are necessary 
or appropriate to prevent avoidance of the purposes 
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of this section, including the use of non-United 
States persons in such transactions. 
‘‘(k) WHISTLEBLOWERS.—See section 7623 for pro-
visions relating to whistleblowers.’’. 
(b) PENALTY FOR FAILURE TO INCLUDE COVERED 
TRANSACTION INFORMATION WITH RETURN.—Part I of 
subchapter B of chapter 68 of the Internal Revenue Code 
of 1986 is amended by inserting after section 6707A the 
following new section: 
‘‘SEC. 6707B. PENALTY FOR FAILURE TO INCLUDE COV-
ERED TRANSACTION INFORMATION WITH RE-
TURN. 
‘‘(a) IMPOSITION
OF PENALTY.—Any person who 
fails to include on any return or statement any informa-
tion with respect to a covered transaction which is re-
quired pursuant to section 4475(j)(1) to be included with 
such return or statement shall pay a penalty in the 
amount determined under subsection (b). 
‘‘(b) AMOUNT OF PENALTY.—Except as otherwise 
provided in this subsection, the amount of the penalty 
under subsection (a) with respect to any covered trans-
action shall be determined by the Secretary. 
‘‘(c) COVERED TRANSACTION.—For purposes of this 
section, the term ‘covered transaction’ has the meaning 
given such term by section 4475(d). 
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‘‘(d) AUTHORITY TO RESCIND PENALTY.— 
‘‘(1) IN GENERAL.—The Commissioner of In-
ternal Revenue may rescind all or any portion of any 
penalty imposed by this section with respect to any 
violation if rescinding the penalty would promote 
compliance with the requirements of this title and 
effective tax administration. 
‘‘(2) NO
JUDICIAL
APPEAL.—Notwithstanding 
any other provision of law, any determination under 
this subsection may not be reviewed in any judicial 
proceeding. 
‘‘(3) RECORDS.—If a penalty is rescinded under 
paragraph (1), the Commissioner shall place in the 
file in the Office of the Commissioner the opinion of 
the Commissioner with respect to the determination, 
including— 
‘‘(A) a statement of the facts and cir-
cumstances relating to the violation, 
‘‘(B) the reasons for the rescission, and 
‘‘(C) the amount of the penalty rescinded. 
‘‘(e) COORDINATION WITH OTHER PENALTIES.—The 
penalty imposed by this section shall be in addition to any 
other penalty imposed by this title.’’. 
(c) CLERICAL AMENDMENTS.— 
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