I 
112TH CONGRESS 
1ST SESSION H. R. 3400 
To spur economic growth and create jobs. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 10, 2011 
Mr. GARRETT (for himself, Mr. JORDAN, Mr. SCALISE, Mr. MULVANEY, Mr. 
HUELSKAMP, Mr. LABRADOR, Mr. WALSH of Illinois, Mr. DUNCAN of 
South Carolina, Mr. HUIZENGA of Michigan, Mr. WALBERG, Mr. PENCE, 
Mrs. HARTZLER, Mrs. LUMMIS, Mr. POE of Texas, and Mr. GOWDY) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on Energy and Commerce, 
the Judiciary, Oversight and Government Reform, Natural Resources, 
Small Business, Transportation and Infrastructure, and Rules, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To spur economic growth and create jobs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Jobs Through Growth Act’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
TITLE I—PRO-GROWTH, PRO-FAMILY TAX REFORM 
Subtitle A—The Taxpayer Choice Act 
Sec. 101. Repeal of alternative minimum tax for noncorporate taxpayers. 
Sec. 102. Simplified individual income tax system. 
Subtitle B—Capital Gains Inflation Relief Act 
Sec. 111. Indexing of certain assets for purposes of determining gain or loss. 
Subtitle C—Corporate Income Tax Rate Reduction 
Sec. 121. Reduction of top corporate income tax rate to 25 percent. 
Subtitle D—Corporate Tax Reform 
Sec. 131. Recovery of lost revenue. 
Subtitle E—Freedom to Invest Act 
Sec. 141. Temporary dividends received deduction allowed for 2011 or 2012. 
Subtitle F—Death Tax Repeal Permanency Act 
Sec. 151. Repeal of estate and generation-skipping transfer taxes. 
Sec. 152. Modifications of gift tax. 
TITLE II—RED TAPE REDUCTION 
Subtitle A—Regulatory Moratorium 
Sec. 201. Definitions. 
Sec. 202. Significant regulatory actions. 
Sec. 203. Waivers. 
Sec. 204. Judicial review. 
Subtitle B—Increase of Size of Small Businesses Exempt From Federal Laws 
and Regulations 
Sec. 211. Increase of size of small businesses exempt from Federal laws and 
regulations. 
Subtitle C—The REINS Act 
Sec. 221. Purpose. 
Sec. 222. Congressional review of agency rulemaking. 
Subtitle D—Small Business Regulatory Freedom 
Sec. 231. Findings. 
Sec. 232. Including indirect economic impact in small entity analyses. 
Sec. 233. Judicial review to allow small entities to challenge proposed regula-
tions. 
Sec. 234. Periodic review and sunset of existing rules. 
Sec. 235. Requiring small business review panels for all agencies. 
Sec. 236. Expanding the Regulatory Flexibility Act to agency guidance docu-
ments. 
Sec. 237. Requiring the Internal Revenue Service to consider small entity im-
pact. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
Sec. 238. Mitigating penalties on small entities. 
Sec. 239. Requiring more detailed small entity analyses. 
Sec. 240. Ensuring that agencies consider small entity impact during the rule-
making process. 
Sec. 241. Qualifications of the Chief Counsel for Advocacy and authority for 
the Office of Advocacy. 
Sec. 242. Technical and conforming amendments. 
Subtitle E—Small Business Freedom of Commerce Act 
Sec. 251. Small business exemptions. 
TITLE III—AMERICAN ENERGY PRODUCTION 
Subtitle A—End of Presidential Permatorium on America’s Outer Continental 
Shelf Resources 
Sec. 301. Deadline for certain permit applications under existing leases. 
CHAPTER 1—OUTER CONTINENTAL SHELF 
Sec. 311. End moratorium of oil and gas leasing in certain areas of the Gulf 
of Mexico. 
Sec. 312. Outer Continental Shelf directed lease sales. 
Sec. 313. Leasing program considered approved. 
Sec. 314. Outer Continental Shelf lease sales. 
Sec. 315. Restrictions on leasing of the Outer Continental Shelf. 
Sec. 316. Sharing of OCS receipts with States and local governments. 
CHAPTER 2—ARCTIC COASTAL PLAIN 
Sec. 321. Definitions. 
Sec. 322. Leasing program for land within the Coastal Plain. 
Sec. 323. Lease sales. 
Sec. 324. Grant of leases by the Secretary. 
Sec. 325. Lease terms and conditions. 
Sec. 326. Expedited judicial review. 
Sec. 327. Rights-of-way across the Coastal Plain. 
Sec. 328. Conveyance. 
Subtitle B—Revocation of Energy-Restricting BLM Lockup 
Sec. 331. Revocation of Secretarial Order No. 3310. 
CHAPTER 1—EXPEDITED SHALE LEASING OF FEDERAL LANDS 
Sec. 341. Opening of lands to oil shale leasing. 
CHAPTER 2—JUDICIAL REVIEW REGARDING ENERGY PROJECTS 
Sec. 351. Exclusive jurisdiction over causes and claims relating to covered en-
ergy projects. 
Sec. 352. Time for filing complaint. 
Sec. 353. District Court for the District of Columbia deadline. 
Sec. 354. Ability to seek appellate review. 
Sec. 355. Deadline for appeal to the Supreme Court. 
Sec. 356. Covered energy project defined. 
Sec. 357. Limitation on application. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6211
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
CHAPTER 3—PERMITTING REFORM 
Sec. 361. Purposes. 
Sec. 362. Federal Coordinator. 
Sec. 363. Regional Offices and Regional Permit Coordinators. 
Sec. 364. Reviews and actions of Federal agencies. 
Sec. 365. State coordination. 
Sec. 366. Savings provision. 
Sec. 367. Administrative and judicial review. 
Sec. 368. Amendments to publication process. 
Sec. 369. Repeal of fee for permits to drill. 
Sec. 370. Alaska Offshore Continental Shelf Coordination Office. 
Subtitle C—Relief From Regulations and Prohibitions That Cause Artificial 
Price Increases 
CHAPTER 1—RELIEF FROM EPA CLIMATE CHANGE REGULATIONS AND 
FEDERAL PROHIBITIONS ON SYNTHETIC FUELS 
Sec. 371. Repeal of EPA climate change regulation. 
Sec. 372. Repeal of Federal ban on synthetic fuels purchasing requirement. 
CHAPTER 2—REFINERY REFORM 
Sec. 381. Refinery permitting process. 
Sec. 382. Existing refinery permit application deadline. 
Subtitle D—Extension of Certain Outer Continental Shelf Leases 
Sec. 391. Extension of certain outer continental shelf leases. 
Subtitle E—Expedited Consideration and Approval of the Construction and 
Operation of the Keystone XL Oil Pipeline 
Sec. 396. Expedited consideration and approval of the construction and oper-
ation of the Keystone XL oil pipeline. 
TITLE I—PRO-GROWTH, PRO- 
FAMILY TAX REFORM 
Subtitle A—The Taxpayer Choice 
Act 
SEC. 101. REPEAL OF ALTERNATIVE MINIMUM TAX FOR 
NONCORPORATE TAXPAYERS. 
(a) IN GENERAL.—Section 55(a) of the Internal Rev-
enue Code of 1986 (relating to alternative minimum tax 
imposed) is amended by adding at the end the following 
new flush sentence: 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘In the case of a taxpayer other than a corporation, no 
tax shall be imposed by this section for any taxable year 
beginning after December 31, 2010, and the tentative 
minimum tax of any taxpayer other than a corporation 
for any such taxable year shall be zero for purposes of 
this title.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 26(c) of such Code is amended by 
striking ‘‘the term ‘tentative minimum tax’ means 
the amount determined under section 55(b)(1)’’ and 
inserting ‘‘the tentative minimum tax is zero.’’. 
(2) Section 911(f)(2) of such Code is amended 
to read as follows: 
‘‘(2) the tentative minimum tax under section 
55 for the taxable year shall be zero.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 102. SIMPLIFIED INDIVIDUAL INCOME TAX SYSTEM. 
(a) IN GENERAL.—Part I of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to tax 
on individuals) is amended by redesignating section 5 as 
section 6 and by inserting after section 4 the following 
new section: 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘SEC. 5. SIMPLIFIED INDIVIDUAL INCOME TAX SYSTEM. 
‘‘(a) ELECTION.— 
‘‘(1) IN GENERAL.—A taxpayer other than a 
corporation may elect in accordance with this sub-
section to be subject to the tax imposed by this sec-
tion in lieu of the tax imposed by section 1 for a tax-
able year and all subsequent taxable years. 
‘‘(2) EFFECT OF ELECTION.—For purposes of 
this title, if an election is in effect under paragraph 
(1) for any taxable year, the tax imposed by this sec-
tion shall be treated as the tax imposed by section 
1 for the taxable year. 
‘‘(3) ELECTION.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii) of this subparagraph 
and clauses (ii) and (iii) of subparagraph 
(B), the election under paragraph (1) may 
only be made with respect to any taxable 
year beginning before January 1, 2022, on 
a timely filed return for the first taxable 
year for which the election applies. 
‘‘(ii) NEW TAXPAYERS.—In the case 
of an individual with no tax liability under 
this title before January 1, 2022, the elec-
tion under paragraph (1) may only be 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
made for the first taxable year beginning 
after December 31, 2021, for which such 
individual has tax liability under this title. 
‘‘(B) EFFECT OF ELECTION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), the election 
under paragraph (1), once made, shall be 
irrevocable. 
‘‘(ii) 
ONE-TIME
REVOCATION
OF 
ELECTION.—A taxpayer may revoke an 
election under paragraph (1) for a taxable 
year and all subsequent taxable years. The 
preceding sentence shall not apply if the 
taxpayer has made a revocation under such 
sentence for any prior taxable year. 
‘‘(iii) FILING STATUS CHANGES DUE 
TO MAJOR LIFE EVENTS.—In the case of 
any major life event described in clause 
(iv), a taxpayer may make an election 
under paragraph (1) or revoke such an 
election under clause (ii). Any such election 
or revocation shall apply for the taxable 
year for which made and all subsequent 
taxable years until the taxpayer makes an 
election under the preceding sentence for 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘If taxable income is: 
The tax is: 
Not over $50,000 ..........................
15% of alternative taxable income. 
Over $50,000 .................................
$7,500, plus 25% of the excess over 
$50,000. 
‘‘(c) MAXIMUM OF TAX ON NET CAPITAL GAIN OF 
NONCORPORATE TAXPAYERS.—If a taxpayer has a net 
capital gain for the taxable year, the tax imposed by sub-
section (b) for such taxable year shall not exceed the sum 
of— 
‘‘(1) the amount determined under subsection 
(b) computed at the rate and in the same manner 
as if this paragraph had not been enacted on modi-
fied taxable income reduced by the lesser of— 
‘‘(A) the net capital gain, or 
‘‘(B) the adjusted net capital gain, plus 
‘‘(2) 5 percent (0 percent in the case of taxable 
years beginning after 2007) of so much of the ad-
justed net capital gain (or, if less, modified taxable 
income) as does not exceed an amount equal to the 
excess described in section 1(h)(1)(B), plus 
‘‘(3) 15 percent of the adjusted net capital gain 
(or, if less, modified taxable income) in excess of the 
amount on which tax is determined under paragraph 
(2). 
Terms used in this paragraph which are also used in sec-
tion 1(h) shall have the respective meanings given such 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
terms by section 1(h) but computed with the adjustments 
under this section. 
‘‘(d) ALTERNATIVE TAXABLE INCOME.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘alternative tax-
able income’ means— 
‘‘(A) gross income, minus 
‘‘(B) the sum of— 
‘‘(i) the dependent allowance, plus 
‘‘(ii) the alternative standard deduc-
tion. 
‘‘(2) DEPENDENT
ALLOWANCE.—The depend-
ent allowance is $12,500 for each dependent (as de-
fined in section 152). 
‘‘(3) ALTERNATIVE
STANDARD
DEDUCTION.— 
The alternative standard deduction means— 
‘‘(A) $25,000 in the case of— 
‘‘(i) a joint return, or 
‘‘(ii) a surviving spouse (as defined in 
section 2(a)), and 
‘‘(B) $12,500 in the case of an indi-
vidual— 
‘‘(i) who is not married and is not a 
surviving spouse, or 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(ii) who is a married individual filing 
a separate return. 
‘‘(e) INFLATION ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2012, each 
of the dollar amounts for the rate brackets in sub-
section (b) and each of the dollar amounts in sub-
section (d)(2)(B), (d)(3), and (d)(4) shall be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, by sub-
stituting ‘calendar year 2011’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under clause (i) is not a multiple of $100, such 
amount shall be rounded to the nearest multiple of 
$100.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part I of subchapter A of chapter 1 of such Code 
is amended by striking the item relating to section 5 and 
inserting after the item relating to section 4 the following: 
‘‘Sec. 5. Simplified Individual Income Tax System. 
‘‘Sec. 6. Cross references relating to tax on individuals.’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6211
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(c) CAPITAL GAINS AND DIVIDENDS RATE MADE 
PERMANENT.—The Jobs and Growth Tax Relief Rec-
onciliation Act of 2003 is amended by striking section 
303. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
Subtitle B—Capital Gains Inflation 
Relief Act 
SEC. 111. INDEXING OF CERTAIN ASSETS FOR PURPOSES 
OF DETERMINING GAIN OR LOSS. 
(a) IN GENERAL.—Part II of subchapter O of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
basis rules of general application) is amended by redesig-
nating section 1023 as section 1024 and by inserting after 
section 1022 the following new section: 
‘‘SEC. 1023. INDEXING OF CERTAIN ASSETS FOR PURPOSES 
OF DETERMINING GAIN OR LOSS. 
‘‘(a) GENERAL RULE.— 
‘‘(1) INDEXED
BASIS
SUBSTITUTED
FOR
AD-
JUSTED BASIS.—Solely for purposes of determining 
gain or loss on the sale or other disposition by a tax-
payer (other than a corporation) of an indexed asset 
which has been held for more than 3 years, the in-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
dexed basis of the asset shall be substituted for its 
adjusted basis. 
‘‘(2) EXCEPTION
FOR
DEPRECIATION, ETC.— 
The deductions for depreciation, depletion, and am-
ortization shall be determined without regard to the 
application of paragraph (1) to the taxpayer or any 
other person. 
‘‘(3) WRITTEN
DOCUMENTATION
REQUIRE-
MENT.—Paragraph (1) shall apply only with respect 
to indexed assets for which the taxpayer has written 
documentation of the original purchase price paid or 
incurred by the taxpayer to acquire such asset. 
‘‘(b) INDEXED ASSET.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘indexed asset’ means— 
‘‘(A) common stock in a C corporation 
(other than a foreign corporation), or 
‘‘(B) tangible property, 
which is a capital asset or property used in the trade 
or business (as defined in section 1231(b)). 
‘‘(2) STOCK
IN
CERTAIN
FOREIGN
CORPORA-
TIONS INCLUDED.—For purposes of this section— 
‘‘(A) IN
GENERAL.—The term ‘indexed 
asset’ includes common stock in a foreign cor-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
poration which is regularly traded on an estab-
lished securities market. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to— 
‘‘(i) stock of a foreign investment 
company, 
‘‘(ii) stock in a passive foreign invest-
ment company (as defined in section 
1296), 
‘‘(iii) stock in a foreign corporation 
held by a United States person who meets 
the requirements of section 1248(a)(2), 
and 
‘‘(iv) stock in a foreign personal hold-
ing company. 
‘‘(C) TREATMENT OF AMERICAN DEPOSI-
TORY RECEIPTS.—An American depository re-
ceipt for common stock in a foreign corporation 
shall be treated as common stock in such cor-
poration. 
‘‘(c) INDEXED BASIS.—For purposes of this sec-
tion— 
‘‘(1) GENERAL RULE.—The indexed basis for 
any asset is— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(d) SUSPENSION OF HOLDING PERIOD WHERE DI-
MINISHED
RISK
OF
LOSS; TREATMENT
OF
SHORT 
SALES.— 
‘‘(1) IN GENERAL.—If the taxpayer (or a re-
lated person) enters into any transaction which sub-
stantially reduces the risk of loss from holding any 
asset, such asset shall not be treated as an indexed 
asset for the period of such reduced risk. 
‘‘(2) SHORT SALES.— 
‘‘(A) IN GENERAL.—In the case of a short 
sale of an indexed asset with a short sale period 
in excess of 3 years, for purposes of this title, 
the amount realized shall be an amount equal 
to the amount realized (determined without re-
gard to this paragraph) increased by the appli-
cable inflation adjustment. In applying sub-
section (c)(2) for purposes of the preceding sen-
tence, the date on which the property is sold 
short shall be treated as the date of acquisition 
and the closing date for the sale shall be treat-
ed as the date of disposition. 
‘‘(B) SHORT SALE PERIOD.—For purposes 
of subparagraph (A), the short sale period be-
gins on the day that the property is sold and 
ends on the closing date for the sale. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(e) TREATMENT
OF
REGULATED
INVESTMENT 
COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.— 
‘‘(1) ADJUSTMENTS AT ENTITY LEVEL.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the adjustment 
under subsection (a) shall be allowed to any 
qualified investment entity (including for pur-
poses of determining the earnings and profits of 
such entity). 
‘‘(B) EXCEPTION FOR CORPORATE SHARE-
HOLDERS.—Under regulations— 
‘‘(i) in the case of a distribution by a 
qualified investment entity (directly or in-
directly) to a corporation— 
‘‘(I) the determination of whether 
such distribution is a dividend shall be 
made without regard to this section, 
and 
‘‘(II) the amount treated as gain 
by reason of the receipt of any capital 
gain dividend shall be increased by the 
percentage by which the entity’s net 
capital gain for the taxable year (de-
termined without regard to this sec-
tion) exceeds the entity’s net capital 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
gain for such year determined with re-
gard to this section, and 
‘‘(ii) there shall be other appropriate 
adjustments (including deemed distribu-
tions) so as to ensure that the benefits of 
this section are not allowed (directly or in-
directly) to corporate shareholders of quali-
fied investment entities. 
For purposes of the preceding sentence, any 
amount includible in gross income under section 
852(b)(3)(D) shall be treated as a capital gain 
dividend and an S corporation shall not be 
treated as a corporation. 
‘‘(C) 
EXCEPTION
FOR
QUALIFICATION 
PURPOSES.—This section shall not apply for 
purposes of sections 851(b) and 856(c). 
‘‘(D) EXCEPTION FOR CERTAIN TAXES IM-
POSED AT ENTITY LEVEL.— 
‘‘(i) TAX ON FAILURE TO DISTRIBUTE 
ENTIRE GAIN.—If any amount is subject to 
tax under section 852(b)(3)(A) for any 
taxable year, the amount on which tax is 
imposed under such section shall be in-
creased by the percentage determined 
under subparagraph (B)(i)(II). A similar 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
rule shall apply in the case of any amount 
subject to tax under paragraph (2) or (3) 
of section 857(b) to the extent attributable 
to the excess of the net capital gain over 
the deduction for dividends paid deter-
mined with reference to capital gain divi-
dends only. The first sentence of this 
clause shall not apply to so much of the 
amount subject to tax under section 
852(b)(3)(A) as is designated by the com-
pany under section 852(b)(3)(D). 
‘‘(ii) OTHER
TAXES.—This section 
shall not apply for purposes of determining 
the amount of any tax imposed by para-
graph (4), (5), or (6) of section 857(b). 
‘‘(2) ADJUSTMENTS
TO
INTERESTS
HELD
IN 
ENTITY.— 
‘‘(A) REGULATED
INVESTMENT
COMPA-
NIES.—Stock in a regulated investment com-
pany (within the meaning of section 851) shall 
be an indexed asset for any calendar quarter in 
the same ratio as— 
‘‘(i) the average of the fair market 
values of the indexed assets held by such 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
company at the close of each month during 
such quarter, bears to 
‘‘(ii) the average of the fair market 
values of all assets held by such company 
at the close of each such month. 
‘‘(B) 
REAL
ESTATE
INVESTMENT 
TRUSTS.—Stock in a real estate investment 
trust (within the meaning of section 856) shall 
be an indexed asset for any calendar quarter in 
the same ratio as— 
‘‘(i) the fair market value of the in-
dexed assets held by such trust at the close 
of such quarter, bears to 
‘‘(ii) the fair market value of all as-
sets held by such trust at the close of such 
quarter. 
‘‘(C) RATIO OF 80 PERCENT OR MORE.—If 
the ratio for any calendar quarter determined 
under subparagraph (A) or (B) would (but for 
this subparagraph) be 80 percent or more, such 
ratio for such quarter shall be 100 percent. 
‘‘(D) RATIO OF 20 PERCENT OR LESS.—If 
the ratio for any calendar quarter determined 
under subparagraph (A) or (B) would (but for 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
this subparagraph) be 20 percent or less, such 
ratio for such quarter shall be zero. 
‘‘(E) LOOK-THRU OF PARTNERSHIPS.—For 
purposes of this paragraph, a qualified invest-
ment entity which holds a partnership interest 
shall be treated (in lieu of holding a partnership 
interest) as holding its proportionate share of 
the assets held by the partnership. 
‘‘(3) TREATMENT OF RETURN OF CAPITAL DIS-
TRIBUTIONS.—Except as otherwise provided by the 
Secretary, a distribution with respect to stock in a 
qualified investment entity which is not a dividend 
and which results in a reduction in the adjusted 
basis of such stock shall be treated as allocable to 
stock acquired by the taxpayer in the order in which 
such stock was acquired. 
‘‘(4) QUALIFIED
INVESTMENT
ENTITY.—For 
purposes of this subsection, the term ‘qualified in-
vestment entity’ means— 
‘‘(A) a regulated investment company 
(within the meaning of section 851), and 
‘‘(B) a real estate investment trust (within 
the meaning of section 856). 
‘‘(f) OTHER PASS-THRU ENTITIES.— 
‘‘(1) PARTNERSHIPS.— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(3) COMMON TRUST FUNDS.—In the case of a 
common trust fund, the adjustment made under sub-
section (a) at the trust level shall be passed through 
to the participants. 
‘‘(4) INDEXING ADJUSTMENT DISREGARDED IN 
DETERMINING LOSS ON SALE OF INTEREST IN ENTI-
TY.—Notwithstanding the preceding provisions of 
this subsection, for purposes of determining the 
amount of any loss on a sale or exchange of an in-
terest in a partnership, S corporation, or common 
trust fund, the adjustment made under subsection 
(a) shall not be taken into account in determining 
the adjusted basis of such interest. 
‘‘(g) DISPOSITIONS BETWEEN RELATED PERSONS.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to any sale or other disposition of property between 
related persons except to the extent that the basis 
of such property in the hands of the transferee is a 
substituted basis. 
‘‘(2) RELATED PERSONS DEFINED.—For pur-
poses of this section, the term ‘related persons’ 
means— 
‘‘(A) persons bearing a relationship set 
forth in section 267(b), and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) persons treated as single employer 
under subsection (b) or (c) of section 414. 
‘‘(h) TRANSFERS TO INCREASE INDEXING ADJUST-
MENT.—If any person transfers cash, debt, or any other 
property to another person and the principal purpose of 
such transfer is to secure or increase an adjustment under 
subsection (a), the Secretary may disallow part or all of 
such adjustment or increase. 
‘‘(i) SPECIAL RULES.—For purposes of this section— 
‘‘(1) TREATMENT OF IMPROVEMENTS, ETC.—If 
there is an addition to the adjusted basis of any tan-
gible property or of any stock in a corporation dur-
ing the taxable year by reason of an improvement to 
such property or a contribution to capital of such 
corporation— 
‘‘(A) such addition shall never be taken 
into account under subsection (c)(1)(A) if the 
aggregate amount thereof during the taxable 
year with respect to such property or stock is 
less than $1,000, and 
‘‘(B) such addition shall be treated as a 
separate asset acquired at the close of such tax-
able year if the aggregate amount thereof dur-
ing the taxable year with respect to such prop-
erty or stock is $1,000 or more. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
A rule similar to the rule of the preceding sentence 
shall apply to any other portion of an asset to the 
extent that separate treatment of such portion is ap-
propriate to carry out the purposes of this section. 
‘‘(2) ASSETS WHICH ARE NOT INDEXED ASSETS 
THROUGHOUT HOLDING PERIOD.—The applicable in-
flation adjustment shall be appropriately reduced for 
periods during which the asset was not an indexed 
asset. 
‘‘(3) TREATMENT
OF
CERTAIN
DISTRIBU-
TIONS.—A distribution with respect to stock in a 
corporation which is not a dividend shall be treated 
as a disposition. 
‘‘(4) SECTION
CANNOT
INCREASE
ORDINARY 
LOSS.—To the extent that (but for this paragraph) 
this section would create or increase a net ordinary 
loss to which section 1231(a)(2) applies or an ordi-
nary loss to which any other provision of this title 
applies, such provision shall not apply. The taxpayer 
shall be treated as having a long-term capital loss in 
an amount equal to the amount of the ordinary loss 
to which the preceding sentence applies. 
‘‘(5) ACQUISITION
DATE
WHERE
THERE
HAS 
BEEN
PRIOR
APPLICATION
OF
SUBSECTION (a)(1) 
WITH RESPECT TO THE TAXPAYER.—If there has 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
been a prior application of subsection (a)(1) to an 
asset while such asset was held by the taxpayer, the 
date of acquisition of such asset by the taxpayer 
shall be treated as not earlier than the date of the 
most recent such prior application. 
‘‘(j) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part II of subchapter O of chapter 1 of such Code 
is amended by striking the item relating to section 1023 
and by inserting after the item relating to section 1022 
the following new item: 
‘‘Sec. 1023. Indexing of certain assets for purposes of determining gain or loss. 
‘‘Sec. 1024. Cross references.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to indexed assets acquired by the 
taxpayer after December 31, 2010, in taxable years ending 
after such date. 
Subtitle C—Corporate Income Tax 
Rate Reduction 
SEC. 121. REDUCTION OF TOP CORPORATE INCOME TAX 
RATE TO 25 PERCENT. 
(1) IN
GENERAL.—Paragraph (1) of section 
11(b) of the Internal Revenue Code of 1986 is 
amended by adding ‘‘and’’ at the end of paragraph 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(1), by striking the comma at the end of paragraph 
(2) and inserting a period, and by striking all that 
follows paragraph (2). 
(2) CONFORMING AMENDMENTS.— 
(A) Paragraph (2) of section 11(b) of such 
Code is amended by striking ‘‘35 percent’’ and 
inserting ‘‘25 percent’’. 
(B) Section 1201(a) is amended by strik-
ing ‘‘35 percent’’ each place it appears and in-
serting ‘‘25 percent’’. 
(C) Paragraphs (1) and (2) of section 
1445(e) are each amended by striking ‘‘35 per-
cent’’ and inserting ‘‘25 percent’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall apply to taxable years beginning 
after December 31, 2011. 
Subtitle D—Corporate Tax Reform 
SEC. 131. RECOVERY OF LOST REVENUE. 
The Committee on Ways and Means of the House 
of Representatives shall report legislation to the House of 
Representatives proposing changes to existing law within 
the Committee’s jurisdiction with provisions that— 
(1) broaden the tax base for the corporate in-
come tax, and 
(2) transition to a territorial tax system. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
Subtitle E—Freedom to Invest Act 
SEC. 141. TEMPORARY DIVIDENDS RECEIVED DEDUCTION 
ALLOWED FOR 2011 OR 2012. 
(a) ELECTION.—Subsection (f) of section 965 of the 
Internal Revenue Code of 1986 (relating to election) is 
amended to read as follows: 
‘‘(f) ELECTION.—The taxpayer may elect to apply 
this section to— 
‘‘(1) the taxpayer’s last taxable year which be-
gins before the date of the enactment of this sub-
section, or 
‘‘(2) the taxpayer’s first taxable year which be-
gins during the 1-year period beginning on such 
date. 
Such election may be made for a taxable year only if made 
on or before the due date (including extensions) for filing 
the return of tax for such taxable year.’’. 
(b) LIMITATION.—Paragraph (1) of section 965(b) of 
such Code is amended to read as follows: 
‘‘(1) IN GENERAL.—The amount of dividends 
taken into account under subsection (a) shall not ex-
ceed the sum of the current and accumulated earn-
ings and profits described in section 959(c)(3) for 
the year a deduction is claimed under subsection (a), 
without diminution by reason of any distributions 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
made during the election year, for all controlled for-
eign corporations of the United States shareholder.’’. 
(c) FAILURE TO MAINTAIN EMPLOYMENT LEV-
ELS.—Paragraph (4) of section 965(b) of such Code (re-
lating to limitations) is amended to read as follows: 
‘‘(4) REDUCTION IN BENEFITS FOR FAILURE 
TO MAINTAIN EMPLOYMENT LEVELS.— 
‘‘(A) IN GENERAL.—If, during the period 
consisting of the calendar month in which the 
taxpayer first receives a distribution described 
in subsection (a)(1) and the succeeding 23 cal-
endar months, the taxpayer does not maintain 
an average employment level at least equal to 
the taxpayer’s prior average employment, an 
additional amount equal to $25,000 multiplied 
by the number of employees by which the tax-
payer’s average employment level during such 
period falls below the prior average employment 
(but not exceeding the aggregate amount al-
lowed as a deduction pursuant to subsection 
(a)(1)) shall be taken into income by the tax-
payer during the taxable year that includes the 
final day of such period. 
‘‘(B) AVERAGE
EMPLOYMENT
LEVEL.— 
For purposes of this paragraph, the taxpayer’s 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
average employment level for a period shall be 
the average number of full-time United States 
employees of the taxpayer, measured at the end 
of each month during the period. 
‘‘(C) PRIOR AVERAGE EMPLOYMENT.—For 
purposes of this paragraph, the taxpayer’s 
‘prior average employment’ shall be the average 
number of full-time United States employees of 
the taxpayer during the period consisting of the 
24 calendar months immediately preceding the 
calendar month in which the taxpayer first re-
ceives a distribution described in subsection 
(a)(1). 
‘‘(D) FULL-TIME
UNITED
STATES
EM-
PLOYEE.—For purposes of this paragraph— 
‘‘(i) IN
GENERAL.—The term ‘full- 
time United States employee’ means an in-
dividual who provides services in the 
United States as a full-time employee, 
based on the employer’s standards and 
practices; except that regardless of the em-
ployer’s classification of the employee, an 
employee whose normal schedule is 40 
hours or more per week is considered a 
full-time employee. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(ii) EXCEPTION
FOR
CHANGES
IN 
OWNERSHIP OF TRADES OR BUSINESSES.— 
Such term does not include— 
‘‘(I) any individual who was an 
employee, on the date of acquisition, 
of any trade or business acquired by 
the taxpayer during the 24-month pe-
riod referred to in subparagraph (A); 
and 
‘‘(II) any individual who was an 
employee of any trade or business dis-
posed of by the taxpayer during the 
24-month period referred to in sub-
paragraph (A) or the 24-month period 
referred to in subparagraph (C). 
‘‘(E) AGGREGATION
RULES.—In deter-
mining the taxpayer’s average employment level 
and prior average employment, all domestic 
members of a controlled group shall be treated 
as a single taxpayer.’’. 
(d) THRESHOLD PERIOD.—Section 965 of such Code 
is amended by striking ‘‘June 30, 2003’’ each place it oc-
curs and inserting ‘‘June 30, 2010’’. 
(e) BASE PERIOD.—Paragraph (2) of subsection 
965(c) of such Code is amended by inserting at the end 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
of subparagraph (A) the following flush sentence: ‘‘For 
purposes of this paragraph, taxable years shall not include 
any year for which an election under section 965 was in 
effect.’’. 
(f) INDEBTEDNESS DETERMINATION DATE.—Sub-
paragraph (B) of section 965(b)(3) of such Code is 
amended by striking ‘‘October 3, 2004’’ and inserting 
‘‘January 19, 2011’’. 
(g) CONFORMING AMENDMENTS.— 
(1) Subsection 965(c) of such Code, as amend-
ed by subsection (e), is amended by striking para-
graph (1) and redesignating paragraphs (2), (3), 
(4), and (5) as paragraphs (1), (2), (3), and (4), re-
spectively. 
(2) Paragraph 965(c)(4) of such Code, as re-
designated by paragraph (1), is amended to read as 
follows: 
‘‘(4) CONTROLLED GROUPS.—All United States 
shareholders which are members of an affiliated 
group filing a consolidated return under section 
1501 shall be treated as one United States share-
holder.’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending on or after 
the date of the enactment of this Act. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
Subtitle F—Death Tax Repeal 
Permanency Act 
SEC. 151. REPEAL OF ESTATE AND GENERATION-SKIPPING 
TRANSFER TAXES. 
(a) ESTATE TAX REPEAL.—Subchapter C of chapter 
11 of subtitle B of the Internal Revenue Code of 1986 
is amended by adding at the end the following new section: 
‘‘SEC. 2210. TERMINATION. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), this chapter shall not apply to the estates of decedents 
dying on or after the date of the enactment of the Jobs 
Through Growth Act. 
‘‘(b) CERTAIN DISTRIBUTIONS FROM QUALIFIED 
DOMESTIC TRUSTS.—In applying section 2056A with re-
spect to the surviving spouse of a decedent dying before 
the date of the enactment of the Jobs Through Growth 
Act— 
‘‘(1) section 2056A(b)(1)(A) shall not apply to 
distributions made after the 10-year period begin-
ning on such date, and 
‘‘(2) section 2056A(b)(1)(B) shall not apply on 
or after such date.’’. 
(b) GENERATION-SKIPPING
TRANSFER
TAX
RE-
PEAL.—Subchapter G of chapter 13 of subtitle B of such 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
Code is amended by adding at the end the following new 
section: 
‘‘SEC. 2664. TERMINATION. 
‘‘This chapter shall not apply to generation-skipping 
transfers on or after the date of the enactment of the Jobs 
Through Growth Act.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The table of sections for subchapter C of 
chapter 11 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 2210. Termination.’’. 
(2) The table of sections for subchapter G of 
chapter 13 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 2664. Termination.’’. 
(d) RESTORATION
OF PRE-EGTRRA PROVISIONS 
NOT APPLICABLE.— 
(1) IN GENERAL.—Section 301 of the Tax Re-
lief, Unemployment Insurance Reauthorization, and 
Job Creation Act of 2010 shall not apply to estates 
of decedents dying, and transfers made, on or after 
the date of the enactment of this Act. 
(2) EXCEPTION
FOR
STEPPED-UP
BASIS.— 
Paragraph (1) shall not apply to the provisions of 
law amended by subtitle E of title V of the Eco-
nomic Growth and Tax Relief Reconciliation Act of 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
2001 (relating to carryover basis at death; other 
changes taking effect with repeal). 
(e) SUNSET NOT APPLICABLE.— 
(1) Section 901 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 shall not 
apply to title V of such Act in the case of estates 
of decedents dying, and transfers made, on or after 
the date of the enactment of this Act. 
(2) Section 304 of the Tax Relief, Unemploy-
ment Insurance Reauthorization, and Job Creation 
Act of 2010 is hereby repealed. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to the estates of decedents dying, 
and generation-skipping transfers, after the date of the 
enactment of this Act. 
SEC. 152. MODIFICATIONS OF GIFT TAX. 
(a) COMPUTATION OF GIFT TAX.—Subsection (a) of 
section 2502 of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(a) COMPUTATION OF TAX.— 
‘‘(1) IN GENERAL.—The tax imposed by section 
2501 for each calendar year shall be an amount 
equal to the excess of— 
‘‘(A) a tentative tax, computed under para-
graph (2), on the aggregate sum of the taxable 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
gifts for such calendar year and for each of the 
preceding calendar periods, over 
‘‘(B) a tentative tax, computed under para-
graph (2), on the aggregate sum of the taxable 
gifts for each of the preceding calendar periods. 
‘‘(2) RATE SCHEDULE.— 
‘‘If the amount with respect to which the 
tentative tax to be computed is:.
The tentative tax 
is: 
Not over $10,000 ...........................................................
18% of such amount. 
Over $10,000 but not over $20,000 ..............................
$1,800, plus 20% of 
the excess over 
$10,000. 
Over $20,000 but not over $40,000 ..............................
$3,800, plus 22% of 
the excess over 
$20,000. 
Over $40,000 but not over $60,000 ..............................
$8,200, plus 24% of 
the excess over 
$40,000. 
Over $60,000 but not over $80,000 ..............................
$13,000, plus 26% of 
the excess over 
$60,000. 
Over $80,000 but not over $100,000 ............................
$18,200, plus 28% of 
the excess over 
$80,000. 
Over $100,000 but not over $150,000 ..........................
$23,800, plus 30% of 
the excess over 
$100,000. 
Over $150,000 but not over $250,000 ..........................
$38,800, plus 32% of 
the excess of 
$150,000. 
Over $250,000 but not over $500,000 ..........................
$70,800, plus 34% of 
the excess over 
$250,000. 
Over $500,000 ...............................................................
$155,800, plus 35% of 
the excess of 
$500,000.’’. 
(b) TREATMENT
OF
CERTAIN
TRANSFERS
IN 
TRUST.—Section 2511 (relating to transfers in general) 
is amended by adding at the end the following new sub-
section: 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(c) TREATMENT
OF
CERTAIN
TRANSFERS
IN 
TRUST.—Notwithstanding any other provision of this sec-
tion and except as provided in regulations, a transfer in 
trust shall be treated as a taxable gift under section 2503, 
unless the trust is treated as wholly owned by the donor 
or the donor’s spouse under subpart E of part I of sub-
chapter J of chapter 1.’’. 
(c) LIFETIME GIFT EXEMPTION.—Paragraph (1) of 
section 2505(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(1) the amount of the tentative tax which 
would be determined under the rate schedule set 
forth in section 2502(a)(2) if the amount with re-
spect to which such tentative tax is to be computed 
were $5,000,000, reduced by’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 2505(a) of such Code is amended 
by striking the last sentence. 
(2) The heading for section 2505 of such Code 
is amended by striking ‘‘UNIFIED’’. 
(3) The item in the table of sections for sub-
chapter A of chapter 12 of such Code relating to 
section 2505 is amended to read as follows: 
‘‘Sec. 2505. Credit against gift tax.’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6211
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to gifts made on or after the date 
of the enactment of this Act. 
(f) TRANSITION RULE.— 
(1) IN
GENERAL.—For purposes of applying 
sections 1015(d), 2502, and 2505 of the Internal 
Revenue Code of 1986, the calendar year in which 
this Act is enacted shall be treated as 2 separate cal-
endar years one of which ends on the day before the 
date of the enactment of this Act and the other of 
which begins on such date of enactment. 
(2) APPLICATION
OF
SECTION 2504(b).—For 
purposes of applying section 2504(b) of the Internal 
Revenue Code of 1986, the calendar year in which 
this Act is enacted shall be treated as one preceding 
calendar period. 
TITLE II—RED TAPE REDUCTION 
Subtitle A—Regulatory 
Moratorium 
SEC. 201. DEFINITIONS. 
In this subtitle— 
(1) the term ‘‘agency’’ has the meaning given 
under section 3502(1) of title 44, United States 
Code; 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(2) the term ‘‘regulatory action’’ means any 
substantive action by an agency that promulgates or 
is expected to lead to the promulgation of a final 
regulation, including notices of inquiry, advance no-
tices of proposed rulemaking, and notices of pro-
posed rulemaking; 
(3) the term ‘‘significant regulatory action’’ 
means any regulatory action that is likely to result 
in a rule or guidance that may— 
(A) have an annual effect on the economy 
of $100,000,000 or more or adversely affect in 
a material way the economy, a sector of the 
economy, productivity, competition, jobs, the 
environment, public health or safety, small enti-
ties, or State, local, or tribal governments or 
communities; 
(B) create a serious inconsistency or other-
wise interfere with an action taken or planned 
by another agency; 
(C) materially alter the budgetary impact 
of entitlements, grants, user fees, or loan pro-
grams or the rights and obligations of recipi-
ents thereof; or 
(D) raise novel legal or policy issues; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(4) the term ‘‘small entities’’ has the meaning 
given under section 601(6) of title 5, United States 
Code. 
SEC. 202. SIGNIFICANT REGULATORY ACTIONS. 
(a) IN GENERAL.—No agency may take any signifi-
cant regulatory action, until the Bureau of Labor Statis-
tics average of monthly unemployment rates for any quar-
ter beginning after the date of enactment of this Act is 
equal to or less than 7.7 percent. 
(b) DETERMINATION.—The Secretary of Labor shall 
submit a report to the Director of the Office of Manage-
ment and Budget whenever the Secretary determines that 
the Bureau of Labor Statistics average of monthly unem-
ployment rates for any quarter beginning after the date 
of enactment of this Act is equal to or less than 7.7 per-
cent. 
SEC. 203. WAIVERS. 
(a) NATIONAL
SECURITY
OR
NATIONAL
EMER-
GENCY.—The President may waive the application of sec-
tion 202 to any significant regulatory action, if the Presi-
dent— 
(1) determines that the waiver is necessary on 
the basis of national security or a national emer-
gency; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(2) submits notification to Congress of that 
waiver and the reasons for that waiver. 
(b) ADDITIONAL WAIVERS.— 
(1) SUBMISSION.—The President may submit a 
request to Congress for a waiver of the application 
of section 202 to any significant regulatory action. 
(2) CONTENTS.—A submission under this sub-
section shall include— 
(A) an identification of the significant reg-
ulatory action; and 
(B) the reasons which necessitate a waiver 
for that significant regulatory action. 
(3) CONGRESSIONAL
ACTION.—Congress shall 
give expeditious consideration and take appropriate 
legislative action with respect to any waiver request 
submitted under this subsection. 
SEC. 204. JUDICIAL REVIEW. 
(a) DEFINITION.—In this section, the term ‘‘small 
business’’ means any business, including an unincor-
porated business or a sole proprietorship, that employs not 
more than 500 employees or that has a net worth of less 
than $7,000,000 on the date a civil action arising under 
this subtitle is filed. 
(b) REVIEW.—Any person that is adversely affected 
or aggrieved by any significant regulatory action in viola-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
tion of this subtitle is entitled to judicial review in accord-
ance with chapter 7 of title 5, United States Code. 
(c) JURISDICTION.—Each court having jurisdiction 
to review any significant regulatory action for compliance 
with any other provision of law shall have jurisdiction to 
review all claims under this subtitle. 
(d) RELIEF.—In granting any relief in any civil ac-
tion under this section, the court shall order the agency 
to take corrective action consistent with this subtitle and 
chapter 7 of title 5, United States Code, including re-
manding the significant regulatory action to the agency 
and enjoining the application or enforcement of that sig-
nificant regulatory action, unless the court finds by a pre-
ponderance of the evidence that application or enforce-
ment is required to protect against an imminent and seri-
ous threat to the national security from persons or states 
engaged in hostile or military activities against the United 
States. 
(e) REASONABLE ATTORNEY FEES FOR SMALL BUSI-
NESSES.—The court shall award reasonable attorney fees 
and costs to a substantially prevailing small business in 
any civil action arising under this subtitle. A party quali-
fies as substantially prevailing even without obtaining a 
final judgment in its favor if the agency changes its posi-
tion as a result of the civil action. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(f) LIMITATION ON COMMENCING CIVIL ACTION.— 
A person may seek and obtain judicial review during the 
1-year period beginning on the date of the challenged 
agency action or within 90 days after an enforcement ac-
tion or notice thereof, except that where another provision 
of law requires that a civil action be commenced before 
the expiration of that 1-year period, such lesser period 
shall apply. 
Subtitle B—Increase of Size of 
Small Businesses Exempt From 
Federal Laws and Regulations 
SEC. 211. INCREASE OF SIZE OF SMALL BUSINESSES EX-
EMPT FROM FEDERAL LAWS AND REGULA-
TIONS. 
Notwithstanding any other provision of law, every ex-
emption from, or special benefit under, any Federal law 
or regulation which is available to any business with 200 
or fewer employees shall be available to every comparable 
business with 200 or fewer employees. The preceding sen-
tence shall not apply in any context in which its applica-
tion would result in increased eligibility for tax deductions 
or credits, or an increase in Federal expenditures. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
Subtitle C—The REINS Act 
SEC. 221. PURPOSE. 
The purpose of this subtitle is to increase account-
ability for and transparency in the federal regulatory proc-
ess. Section 1 of article I of the United States Constitution 
grants all legislative powers to Congress. Over time, Con-
gress has excessively delegated its constitutional charge 
while failing to conduct appropriate oversight and retain 
accountability for the content of the laws it passes. By 
requiring a vote in Congress, this subtitle will result in 
more carefully drafted and detailed legislation, an im-
proved regulatory process, and a legislative branch that 
is truly accountable to the American people for the laws 
imposed upon them. 
SEC. 222. CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING. 
Chapter 8 of title 5, United States Code, is amended 
to read as follows: 
‘‘CHAPTER 8—CONGRESSIONAL REVIEW 
OF AGENCY RULEMAKING 
‘‘Sec. 
‘‘801. Congressional review. 
‘‘802. Congressional approval procedure for major rules. 
‘‘803. Congressional disapproval procedure for nonmajor rules. 
‘‘804. Definitions. 
‘‘805. Judicial review. 
‘‘806. Exemption for monetary policy. 
‘‘807. Effective date of certain rules. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6211
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘§ 801. Congressional review 
‘‘(a)(1)(A) Before a rule may take effect, the Federal 
agency promulgating such rule shall submit to each House 
of the Congress and to the Comptroller General a report 
containing— 
‘‘(i) a copy of the rule; 
‘‘(ii) a concise general statement relating to the 
rule; 
‘‘(iii) a classification of the rule as a major or 
nonmajor rule, including an explanation of the clas-
sification specifically addressing each criteria for a 
major rule contained within sections 804(2)(A), 
804(2)(B), and 804(2)(C); 
‘‘(iv) a list of any other related regulatory ac-
tions intended to implement the same statutory pro-
vision or regulatory objective as well as the indi-
vidual and aggregate economic effects of those ac-
tions; and 
‘‘(v) the proposed effective date of the rule. 
‘‘(B) On the date of the submission of the report 
under subparagraph (A), the Federal agency promulgating 
the rule shall submit to the Comptroller General and make 
available to each House of Congress— 
‘‘(i) a complete copy of the cost-benefit analysis 
of the rule, if any; 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(ii) the agency’s actions pursuant to title 5 of 
the United States Code, sections 603, 604, 605, 
607, and 609; 
‘‘(iii) the agency’s actions pursuant to title 2 of 
the United States Code, sections 1532, 1533, 1534, 
and 1535; and 
‘‘(iv) any other relevant information or require-
ments under any other Act and any relevant Execu-
tive orders. 
‘‘(C) Upon receipt of a report submitted under sub-
paragraph (A), each House shall provide copies of the re-
port to the chairman and ranking member of each stand-
ing committee with jurisdiction under the rules of the 
House of Representatives or the Senate to report a bill 
to amend the provision of law under which the rule is 
issued. 
‘‘(2)(A) The Comptroller General shall provide a re-
port on each major rule to the committees of jurisdiction 
by the end of 15 calendar days after the submission or 
publication date as provided in section 802(b)(2). The re-
port of the Comptroller General shall include an assess-
ment of the agency’s compliance with procedural steps re-
quired by paragraph (1)(B). 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) Federal agencies shall cooperate with the Comp-
troller General by providing information relevant to the 
Comptroller General’s report under subparagraph (A). 
‘‘(3) A major rule relating to a report submitted 
under paragraph (1) shall take effect upon enactment of 
a joint resolution of approval described in section 802 or 
as provided for in the rule following enactment of a joint 
resolution of approval described in section 802, whichever 
is later. 
‘‘(4) A nonmajor rule shall take effect as provided 
by section 803 after submission to Congress under para-
graph (1). 
‘‘(5) If a joint resolution of approval relating to a 
major rule is not enacted within the period provided in 
subsection (b)(2), then a joint resolution of approval relat-
ing to the same rule may not be considered under this 
chapter in the same Congress by either the House of Rep-
resentatives or the Senate. 
‘‘(b)(1) A major rule shall not take effect unless the 
Congress enacts a joint resolution of approval described 
under section 802. 
‘‘(2) If a joint resolution described in subsection (a) 
is not enacted into law by the end of 70 session days or 
legislative days, as applicable, beginning on the date on 
which the report referred to in section 801(a)(1)(A) is re-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
ceived by Congress (excluding days either House of Con-
gress is adjourned for more than 3 days during a session 
of Congress), then the rule described in that resolution 
shall be deemed not to be approved and such rule shall 
not take effect. 
‘‘(c)(1) Notwithstanding any other provision of this 
section (except subject to paragraph (3)), a major rule 
may take effect for one 90-calendar-day period if the 
President makes a determination under paragraph (2) and 
submits written notice of such determination to the Con-
gress. 
‘‘(2) Paragraph (1) applies to a determination made 
by the President by Executive order that the major rule 
should take effect because such rule is— 
‘‘(A) necessary because of an imminent threat 
to health or safety or other emergency; 
‘‘(B) necessary for the enforcement of criminal 
laws; 
‘‘(C) necessary for national security; or 
‘‘(D) issued pursuant to any statute imple-
menting an international trade agreement. 
‘‘(3) An exercise by the President of the authority 
under this subsection shall have no effect on the proce-
dures under section 802. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(d)(1) In addition to the opportunity for review oth-
erwise provided under this chapter, in the case of any rule 
for which a report was submitted in accordance with sub-
section (a)(1)(A) during the period beginning on the date 
occurring— 
‘‘(A) in the case of the Senate, 60 session days, 
or 
‘‘(B) in the case of the House of Representa-
tives, 60 legislative days, 
before the date the Congress is scheduled to adjourn a 
session of Congress through the date on which the same 
or succeeding Congress first convenes its next session, sec-
tions 802 and 803 shall apply to such rule in the suc-
ceeding session of Congress. 
‘‘(2)(A) In applying sections 802 and 803 for pur-
poses of such additional review, a rule described under 
paragraph (1) shall be treated as though— 
‘‘(i) such rule were published in the Federal 
Register on— 
‘‘(I) in the case of the Senate, the 15th 
session day, or 
‘‘(II) in the case of the House of Rep-
resentatives, the 15th legislative day, 
after the succeeding session of Congress first con-
venes; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(ii) a report on such rule were submitted to 
Congress under subsection (a)(1) on such date. 
‘‘(B) Nothing in this paragraph shall be construed 
to affect the requirement under subsection (a)(1) that a 
report shall be submitted to Congress before a rule can 
take effect. 
‘‘(3) A rule described under paragraph (1) shall take 
effect as otherwise provided by law (including other sub-
sections of this section). 
‘‘§ 802. Congressional approval procedure for major 
rules 
‘‘(a) For purposes of this section, the term ‘joint res-
olution’ means only a joint resolution introduced on or 
after the date on which the report referred to in section 
801(a)(1)(A) is received by Congress (excluding days ei-
ther House of Congress is adjourned for more than 3 days 
during a session of Congress), the matter after the resolv-
ing clause of which is as follows: ‘That Congress approves 
the rule submitted by the l l relating to l l.’ (The 
blank spaces being appropriately filled in). 
‘‘(1) In the House, the majority leader of the 
House of Representatives (or his designee) and the 
minority leader of the House of Representatives (or 
his designee) shall introduce such joint resolution 
described in subsection (a) (by request), within 3 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
legislative days after Congress receives the report re-
ferred to in section 801(a)(1)(A). 
‘‘(2) In the Senate, the majority leader of the 
Senate (or his designee) and the minority leader of 
the Senate (or his designee) shall introduce such 
joint resolution described in subsection (a) (by re-
quest), within 3 session days after Congress receives 
the report referred to in section 801(a)(1)(A). 
‘‘(b)(1) A joint resolution described in subsection (a) 
shall be referred to the committees in each House of Con-
gress with jurisdiction under the rules of the House of 
Representatives or the Senate to report a bill to amend 
the provision of law under which the rule is issued. 
‘‘(2) For purposes of this section, the term ‘submis-
sion date’ means the date on which the Congress receives 
the report submitted under section 801(a)(1). 
‘‘(c) In the Senate, if the committee or committees 
to which a joint resolution described in subsection (a) has 
been referred have not reported it at the end of 15 session 
days after its introduction, such committee or committees 
shall be automatically discharged from further consider-
ation of the resolution and it shall be placed on the cal-
endar. A vote on final passage of the resolution shall be 
taken on or before the close of the 15th session day after 
the resolution is reported by the committee or committees 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
to which it was referred, or after such committee or com-
mittees have been discharged from further consideration 
of the resolution. 
‘‘(d)(1) In the Senate, when the committee or com-
mittees to which a joint resolution is referred have re-
ported, or when a committee or committees are discharged 
(under subsection (c)) from further consideration of a 
joint resolution described in subsection (a), it is at any 
time thereafter in order (even though a previous motion 
to the same effect has been disagreed to) for a motion 
to proceed to the consideration of the joint resolution, and 
all points of order against the joint resolution (and against 
consideration of the joint resolution) are waived. The mo-
tion is not subject to amendment, or to a motion to post-
pone, or to a motion to proceed to the consideration of 
other business. A motion to reconsider the vote by which 
the motion is agreed to or disagreed to shall not be in 
order. If a motion to proceed to the consideration of the 
joint resolution is agreed to, the joint resolution shall re-
main the unfinished business of the Senate until disposed 
of. 
‘‘(2) In the Senate, debate on the joint resolution, 
and on all debatable motions and appeals in connection 
therewith, shall be limited to not more than 2 hours, which 
shall be divided equally between those favoring and those 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
opposing the joint resolution. A motion to further limit 
debate is in order and not debatable. An amendment to, 
or a motion to postpone, or a motion to proceed to the 
consideration of other business, or a motion to recommit 
the joint resolution is not in order. 
‘‘(3) In the Senate, immediately following the conclu-
sion of the debate on a joint resolution described in sub-
section (a), and a single quorum call at the conclusion of 
the debate if requested in accordance with the rules of the 
Senate, the vote on final passage of the joint resolution 
shall occur. 
‘‘(4) Appeals from the decisions of the Chair relating 
to the application of the rules of the Senate to the proce-
dure relating to a joint resolution described in subsection 
(a) shall be decided without debate. 
‘‘(e)(1) In the House of Representatives, if the com-
mittee or committees to which a joint resolution described 
in subsection (a) has been referred have not reported it 
at the end of 15 legislative days after its introduction, 
such committee or committees shall be automatically dis-
charged from further consideration of the resolution and 
it shall be placed on the appropriate calendar. A vote on 
final passage of the resolution shall be taken on or before 
the close of the 15th legislative day after the resolution 
is reported by the committee or committees to which it 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
was referred, or after such committee or committees have 
been discharged from further consideration of the resolu-
tion. 
‘‘(2)(A) A motion in the House of Representatives to 
proceed to the consideration of a resolution shall be privi-
leged and not debatable. An amendment to the motion 
shall not be in order, nor shall it be in order to move to 
reconsider the vote by which the motion is agreed to or 
disagreed to. 
‘‘(B) Debate in the House of Representatives on a 
resolution shall be limited to not more than two hours, 
which shall be divided equally between those favoring and 
those opposing the resolution. A motion to further limit 
debate shall not be debatable. No amendment to, or mo-
tion to recommit, the resolution shall be in order. It shall 
not be in order to reconsider the vote by which a resolution 
is agreed to or disagreed to. 
‘‘(C) Motions to postpone, made in the House of Rep-
resentatives with respect to the consideration of a resolu-
tion, and motions to proceed to the consideration of other 
business, shall be decided without debate. 
‘‘(D) All appeals from the decisions of the Chair re-
lating to the application of the Rules of the House of Rep-
resentatives to the procedure relating to a resolution shall 
be decided without debate. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(f) If, before the passage by one House of a joint 
resolution of that House described in subsection (a), that 
House receives from the other House a joint resolution 
described in subsection (a), then the following procedures 
shall apply with respect to a joint resolution described in 
subsection (a) of the House receiving the joint resolu-
tion— 
‘‘(1) the procedure in that House shall be the 
same as if no joint resolution had been received from 
the other House; but 
‘‘(2) the vote on final passage shall be on the 
joint resolution of the other House. 
‘‘(g) The enactment of a resolution of approval does 
not serve as a grant or modification of statutory authority 
by Congress for the promulgation of a rule, does not extin-
guish or affect any claim, whether substantive or proce-
dural, against any alleged defect in a rule, and shall not 
form part of the record before the court in any judicial 
proceeding concerning a rule. 
‘‘(h) This section and section 803 are enacted by 
Congress— 
‘‘(1) as an exercise of the rulemaking power of 
the Senate and House of Representatives, respec-
tively, and as such it is deemed a part of the rules 
of each House, respectively, but applicable only with 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
respect to the procedure to be followed in that 
House in the case of a joint resolution described in 
subsection (a), and it supersedes other rules only to 
the extent that it is inconsistent with such rules; and 
‘‘(2) with full recognition of the constitutional 
right of either House to change the rules (so far as 
relating to the procedure of that House) at any time, 
in the same manner, and to the same extent as in 
the case of any other rule of that House. 
‘‘§ 803. 
Congressional 
disapproval 
procedure 
for 
nonmajor rules 
‘‘(a) For purposes of this section, the term ‘joint res-
olution’ means only a joint resolution introduced in the 
period beginning on the date on which the report referred 
to in section 801(a)(1)(A) is received by Congress and 
ending 60 days thereafter (excluding days either House 
of Congress is adjourned for more than 3 days during a 
session of Congress), the matter after the resolving clause 
of which is as follows: ‘That Congress disapproves the 
nonmajor rule submitted by the l l relating to l l, 
and such rule shall have no force or effect.’ (The blank 
spaces being appropriately filled in). 
‘‘(b)(1) A joint resolution described in subsection (a) 
shall be referred to the committees in each House of Con-
gress with jurisdiction. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(2) For purposes of this section, the term submis-
sion or publication date means the later of the date on 
which— 
‘‘(A) the Congress receives the report submitted 
under section 801(a)(1); or 
‘‘(B) the nonmajor rule is published in the Fed-
eral Register, if so published. 
‘‘(c) In the Senate, if the committee to which is re-
ferred a joint resolution described in subsection (a) has 
not reported such joint resolution (or an identical joint 
resolution) at the end of 15 session days after the date 
of introduction of the joint resolution, such committee may 
be discharged from further consideration of such joint res-
olution upon a petition supported in writing by 30 Mem-
bers of the Senate, and such joint resolution shall be 
placed on the calendar. 
‘‘(d)(1) In the Senate, when the committee to which 
a joint resolution is referred has reported, or when a com-
mittee is discharged (under subsection (c)) from further 
consideration of a joint resolution described in subsection 
(a), it is at any time thereafter in order (even though a 
previous motion to the same effect has been disagreed to) 
for a motion to proceed to the consideration of the joint 
resolution, and all points of order against the joint resolu-
tion (and against consideration of the joint resolution) are 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
waived. The motion is not subject to amendment, or to 
a motion to postpone, or to a motion to proceed to the 
consideration of other business. A motion to reconsider the 
vote by which the motion is agreed to or disagreed to shall 
not be in order. If a motion to proceed to the consideration 
of the joint resolution is agreed to, the joint resolution 
shall remain the unfinished business of the Senate until 
disposed of. 
‘‘(2) In the Senate, debate on the joint resolution, 
and on all debatable motions and appeals in connection 
therewith, shall be limited to not more than 10 hours, 
which shall be divided equally between those favoring and 
those opposing the joint resolution. A motion to further 
limit debate is in order and not debatable. An amendment 
to, or a motion to postpone, or a motion to proceed to 
the consideration of other business, or a motion to recom-
mit the joint resolution is not in order. 
‘‘(3) In the Senate, immediately following the conclu-
sion of the debate on a joint resolution described in sub-
section (a), and a single quorum call at the conclusion of 
the debate if requested in accordance with the rules of the 
Senate, the vote on final passage of the joint resolution 
shall occur. 
‘‘(4) Appeals from the decisions of the Chair relating 
to the application of the rules of the Senate to the proce-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
dure relating to a joint resolution described in subsection 
(a) shall be decided without debate. 
‘‘(e) In the Senate the procedure specified in sub-
section (c) or (d) shall not apply to the consideration of 
a joint resolution respecting a nonmajor rule— 
‘‘(1) after the expiration of the 60 session days 
beginning with the applicable submission or publica-
tion date, or 
‘‘(2) if the report under section 801(a)(1)(A) 
was submitted during the period referred to in sec-
tion 801(d)(1), after the expiration of the 60 session 
days beginning on the 15th session day after the 
succeeding session of Congress first convenes. 
‘‘(f) If, before the passage by one House of a joint 
resolution of that House described in subsection (a), that 
House receives from the other House a joint resolution 
described in subsection (a), then the following procedures 
shall apply: 
‘‘(1) The joint resolution of the other House 
shall not be referred to a committee. 
‘‘(2) With respect to a joint resolution described 
in subsection (a) of the House receiving the joint 
resolution— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(A) the procedure in that House shall be 
the same as if no joint resolution had been re-
ceived from the other House; but 
‘‘(B) the vote on final passage shall be on 
the joint resolution of the other House. 
‘‘§ 804. Definitions 
‘‘For purposes of this chapter— 
‘‘(1) The term ‘Federal agency’ means any 
agency as that term is defined in section 551(1). 
‘‘(2) The term ‘major rule’ means any rule, in-
cluding an interim final rule, that the Administrator 
of the Office of Information and Regulatory Affairs 
of the Office of Management and Budget finds has 
resulted in or is likely to result in— 
‘‘(A) an annual effect on the economy of 
$100,000,000 or more; 
‘‘(B) a major increase in costs or prices for 
consumers, 
individual 
industries, 
Federal, 
State, or local government agencies, or geo-
graphic regions; or 
‘‘(C) significant adverse effects on competi-
tion, employment, investment, productivity, in-
novation, or on the ability of United States- 
based enterprises to compete with foreign-based 
enterprises in domestic and export markets. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(3) The term ‘nonmajor rule’ means any rule 
that is not a major rule. 
‘‘(4) The term ‘rule’ has the meaning given 
such term in section 551, except that such term does 
not include— 
‘‘(A) any rule of particular applicability, 
including a rule that approves or prescribes for 
the future rates, wages, prices, services, or al-
lowances therefore, corporate or financial struc-
tures, reorganizations, mergers, or acquisitions 
thereof, or accounting practices or disclosures 
bearing on any of the foregoing; 
‘‘(B) any rule relating to agency manage-
ment or personnel; or 
‘‘(C) any rule of agency organization, pro-
cedure, or practice that does not substantially 
affect the rights or obligations of non-agency 
parties. 
‘‘§ 805. Judicial review 
‘‘(a) No determination, finding, action, or omission 
under this chapter shall be subject to judicial review. 
‘‘(b) Notwithstanding subsection (a), a court may de-
termine whether a Federal agency has completed the nec-
essary requirements under this chapter for a rule to take 
effect. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘§ 806. Exemption for monetary policy 
‘‘Nothing in this chapter shall apply to rules that con-
cern monetary policy proposed or implemented by the 
Board of Governors of the Federal Reserve System or the 
Federal Open Market Committee. 
‘‘§ 807. Effective date of certain rules 
‘‘Notwithstanding section 801— 
‘‘(1) any rule that establishes, modifies, opens, 
closes, or conducts a regulatory program for a com-
mercial, recreational, or subsistence activity related 
to hunting, fishing, or camping; or 
‘‘(2) any rule other than a major rule which an 
agency for good cause finds (and incorporates the 
finding and a brief statement of reasons therefore in 
the rule issued) that notice and public procedure 
thereon are impracticable, unnecessary, or contrary 
to the public interest, 
shall take effect at such time as the Federal agency pro-
mulgating the rule determines.’’. 
Subtitle D—Small Business 
Regulatory Freedom 
SEC. 231. FINDINGS. 
Congress finds the following: 
(1) A vibrant and growing small business sector 
is critical to the recovery of the economy of the 
United States. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(2) Regulations designed for application to 
large-scale entities have been applied uniformly to 
small businesses and other small entities, sometimes 
inhibiting the ability of small entities to create new 
jobs. 
(3) Uniform Federal regulatory and reporting 
requirements in many instances have imposed on 
small businesses and other small entities unneces-
sary and disproportionately burdensome demands, 
including legal, accounting, and consulting costs, 
thereby threatening the viability of small entities 
and the ability of small entities to compete and cre-
ate new jobs in a global marketplace. 
(4) Since 1980, Federal agencies have been re-
quired to recognize and take account of the dif-
ferences in the scale and resources of regulated enti-
ties, but in many instances have failed to do so. 
(5) In 2009, there were nearly 70,000 pages in 
the Federal Register, and, according to research by 
the Office of Advocacy of the Small Business Admin-
istration, the annual cost of Federal regulations to-
tals $1,750,000,000,000. Small firms bear a dis-
proportionate burden, paying approximately 36 per-
cent more per employee than larger firms in annual 
regulatory compliance costs. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(6) All agencies in the Federal Government 
should fully consider the costs, including indirect 
economic impacts and the potential for job creation 
and job loss, of proposed rules, periodically review 
existing regulations to determine their impact on 
small entities, and repeal regulations that are unnec-
essarily duplicative or have outlived their stated pur-
pose. 
(7) It is the intention of Congress to amend 
chapter 6 of title 5, United States Code, to ensure 
that all impacts, including foreseeable indirect ef-
fects, of proposed and final rules are considered by 
agencies during the rulemaking process and that the 
agencies assess a full range of alternatives that will 
limit adverse economic consequences, enhance eco-
nomic benefits, and fully address potential job cre-
ation or job loss. 
SEC. 232. INCLUDING INDIRECT ECONOMIC IMPACT IN 
SMALL ENTITY ANALYSES. 
Section 601 of title 5, United States Code, is amend-
ed by adding at the end the following: 
‘‘(9) the term ‘economic impact’ means, with 
respect to a proposed or final rule— 
‘‘(A) any direct economic effect of the rule 
on small entities; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) any indirect economic effect on small 
entities, including potential job creation or job 
loss, that is reasonably foreseeable and that re-
sults from the rule, without regard to whether 
small entities are directly regulated by the 
rule.’’. 
SEC. 233. JUDICIAL REVIEW TO ALLOW SMALL ENTITIES TO 
CHALLENGE PROPOSED REGULATIONS. 
Section 611(a) of title 5, United States Code, is 
amended— 
(1) in paragraph (1), by inserting ‘‘603,’’ after 
‘‘601,’’; 
(2) in paragraph (2), by inserting ‘‘603,’’ after 
‘‘601,’’; 
(3) by striking paragraph (3) and inserting the 
following: 
‘‘(3) A small entity may seek such review during the 
1-year period beginning on the date of final agency action, 
except that— 
‘‘(A) if a provision of law requires that an ac-
tion challenging a final agency action be commenced 
before the expiration of 1 year, the lesser period 
shall apply to an action for judicial review under this 
section; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) in the case of noncompliance with section 
603 or 605(b), a small entity may seek judicial re-
view of agency compliance with such section before 
the close of the public comment period.’’; and 
(4) in paragraph (4)— 
(A) in subparagraph (A), by striking ‘‘, 
and’’ and inserting a semicolon; 
(B) in subparagraph (B), by striking the 
period and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(C) issuing an injunction prohibiting an agen-
cy from taking any agency action with respect to a 
rulemaking until that agency is in compliance with 
the requirements of section 603 or 605.’’. 
SEC. 234. PERIODIC REVIEW AND SUNSET OF EXISTING 
RULES. 
Section 610 of title 5, United States Code, is amend-
ed to read as follows: 
‘‘§ 610. Periodic review of rules 
‘‘(a)(1) Not later than 180 days after the date of en-
actment of the Jobs Through Growth Act, each agency 
shall establish a plan for the periodic review of— 
‘‘(A) each rule issued by the agency that the 
head of the agency determines has a significant eco-
nomic impact on a substantial number of small enti-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
ties, without regard to whether the agency per-
formed an analysis under section 604 with respect to 
the rule; and 
‘‘(B) any small entity compliance guide required 
to be published by the agency under section 212 of 
the Small Business Regulatory Enforcement Fair-
ness Act of 1996 (5 U.S.C. 601 note). 
‘‘(2) In reviewing rules and small entity compliance 
guides under paragraph (1), the agency shall determine 
whether the rules and guides should— 
‘‘(A) be amended or rescinded, consistent with 
the stated objectives of applicable statutes, to mini-
mize any significant adverse economic impacts on a 
substantial number of small entities (including an 
estimate of any adverse impacts on job creation and 
employment by small entities); or 
‘‘(B) continue in effect without change. 
‘‘(3) Each agency shall publish the plan established 
under paragraph (1) in the Federal Register and on the 
Web site of the agency. 
‘‘(4) An agency may amend the plan established 
under paragraph (1) at any time by publishing the amend-
ment in the Federal Register and on the Web site of the 
agency. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(b)(1) Each plan established under subsection (a) 
shall provide for— 
‘‘(A) the review of each rule and small entity 
compliance guide described in subsection (a)(1) in 
effect on the date of enactment of the Jobs Through 
Growth Act— 
‘‘(i) not later than 8 years after the date 
of publication of the plan in the Federal Reg-
ister; and 
‘‘(ii) every 8 years thereafter; and 
‘‘(B) the review of each rule adopted and small 
entity compliance guide described in subsection 
(a)(1) that is published after the date of enactment 
of the Jobs Through Growth Act— 
‘‘(i) not later than 8 years after the publi-
cation of the final rule in the Federal Register; 
and 
‘‘(ii) every 8 years thereafter. 
‘‘(2)(A) If an agency determines that the review of 
the rules and guides described in paragraph (1)(A) cannot 
be completed before the date described in paragraph 
(1)(A)(i), the agency— 
‘‘(i) shall publish a statement in the Federal 
Register certifying that the review cannot be com-
pleted; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(ii) may extend the period for the review of 
the rules and guides described in paragraph (1)(A) 
for a period of not more than 2 years, if the agency 
publishes notice of the extension in the Federal Reg-
ister. 
‘‘(B) An agency shall transmit to the Chief Counsel 
for Advocacy of the Small Business Administration and 
Congress notice of any statement or notice described in 
subparagraph (A). 
‘‘(c) In reviewing rules under the plan required under 
subsection (a), the agency shall consider— 
‘‘(1) the continued need for the rule; 
‘‘(2) the nature of complaints received by the 
agency from small entities concerning the rule; 
‘‘(3) comments by the Regulatory Enforcement 
Ombudsman and the Chief Counsel for Advocacy of 
the Small Business Administration; 
‘‘(4) the complexity of the rule; 
‘‘(5) the extent to which the rule overlaps, du-
plicates, or conflicts with other Federal rules and, 
unless the head of the agency determines it to be in-
feasible, State and local rules; 
‘‘(6) the contribution of the rule to the cumu-
lative economic impact of all Federal rules on the 
class of small entities affected by the rule, unless the 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
head of the agency determines that such a calcula-
tion cannot be made; 
‘‘(7) the length of time since the rule has been 
evaluated, or the degree to which technology, eco-
nomic conditions, or other factors have changed in 
the area affected by the rule; and 
‘‘(8) the impact of the rule, including— 
‘‘(A) the estimated number of small enti-
ties to which the rule will apply; 
‘‘(B) the estimated number of small entity 
jobs that will be lost or created due to the rule; 
and 
‘‘(C) the projected reporting, record-
keeping, and other compliance requirements of 
the proposed rule, including— 
‘‘(i) an estimate of the classes of small 
entities that will be subject to the require-
ment; and 
‘‘(ii) the type of professional skills 
necessary for preparation of the report or 
record. 
‘‘(d)(1) Each agency shall submit an annual report 
regarding the results of the review required under sub-
section (a) to— 
‘‘(A) Congress; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) in the case of an agency that is not an 
independent regulatory agency (as defined in section 
3502(5) of title 44), the Administrator of the Office 
of Information and Regulatory Affairs of the Office 
of Management and Budget. 
‘‘(2) Each report required under paragraph (1) shall 
include a description of any rule or guide with respect to 
which the agency made a determination of infeasibility 
under paragraph (5) or (6) of subsection (c), together with 
a detailed explanation of the reasons for the determina-
tion. 
‘‘(e) Each agency shall publish in the Federal Reg-
ister and on the Web site of the agency a list of the rules 
and small entity compliance guides to be reviewed under 
the plan required under subsection (a) that includes— 
‘‘(1) a brief description of each rule or guide; 
‘‘(2) for each rule, the reason why the head of 
the agency determined that the rule has a significant 
economic impact on a substantial number of small 
entities (without regard to whether the agency had 
prepared a final regulatory flexibility analysis for the 
rule); and 
‘‘(3) a request for comments from the public, 
the Chief Counsel for Advocacy of the Small Busi-
ness Administration, and the Regulatory Enforce-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
ment Ombudsman concerning the enforcement of the 
rules or publication of the guides. 
‘‘(f)(1) With respect to each agency, not later than 
6 months after each date described in subsection (b)(1), 
the Chief Counsel for Advocacy of the Small Business Ad-
ministration shall determine whether the agency has com-
pleted the review required under subsection (b). 
‘‘(2) If, after a review under paragraph (1), the Chief 
Counsel for Advocacy of the Small Business Administra-
tion determines that an agency has failed to complete the 
review required under subsection (b), each rule issued by 
the agency that the head of the agency determined under 
subsection (a) has a significant economic impact on a sub-
stantial number of small entities shall immediately cease 
to have effect.’’. 
SEC. 235. REQUIRING SMALL BUSINESS REVIEW PANELS 
FOR ALL AGENCIES. 
(a) AGENCIES.—Section 609 of title 5, United States 
Code, is amended— 
(1) in subsection (b), by striking ‘‘a covered 
agency’’ each place it appears and inserting ‘‘an 
agency’’; and 
(2) in subsection (e)(1), by striking ‘‘the cov-
ered agency’’ and inserting ‘‘the agency’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(1) SECTION 609.—Section 609 of title 5, 
United States Code, is amended— 
(A) by striking subsection (d), as amended 
by section 1100G(a) of Public Law 111–203 
(124 Stat. 2112); and 
(B) by redesignating subsection (e) as sub-
section (d). 
(2) SECTION 603.—Section 603(d) of title 5, 
United States Code, as added by section 1100G(b) 
of Public Law 111–203 (124 Stat. 2112), is amend-
ed— 
(A) in paragraph (1), by striking ‘‘a cov-
ered agency, as defined in section 609(d)(2)’’ 
and inserting ‘‘the Bureau of Consumer Finan-
cial Protection’’; and 
(B) in paragraph (2), by striking ‘‘A cov-
ered agency, as defined in section 609(d)(2),’’ 
and inserting ‘‘The Bureau of Consumer Finan-
cial Protection’’. 
(3) SECTION 604.—Section 604(a) of title 5, 
United States Code, is amended— 
(A) by redesignating the second paragraph 
designated as paragraph (6) (relating to cov-
ered agencies), as added by section 1100G(c)(3) 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
of Public Law 111–203 (124 Stat. 2113), as 
paragraph (7); and 
(B) in paragraph (7), as so redesignated— 
(i) by striking ‘‘a covered agency, as 
defined in section 609(d)(2)’’ and inserting 
‘‘the Bureau of Consumer Financial Pro-
tection’’; and 
(ii) by striking ‘‘the agency’’ and in-
serting ‘‘the Bureau’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of en-
actment of this Act and apply on and after the des-
ignated transfer date established under section 1062 
of Public Law 111–203 (12 U.S.C. 5582). 
SEC. 236. EXPANDING THE REGULATORY FLEXIBILITY ACT 
TO AGENCY GUIDANCE DOCUMENTS. 
Section 601(2) of title 5, United States Code, is 
amended by inserting after ‘‘public comment’’ the fol-
lowing: ‘‘and any significant guidance document, as de-
fined in the Office of Management and Budget Final Bul-
letin for Agency Good Guidance Procedures (72 Fed. Reg. 
3432; January 25, 2007)’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 237. REQUIRING THE INTERNAL REVENUE SERVICE 
TO CONSIDER SMALL ENTITY IMPACT. 
(a) IN GENERAL.—Section 603(a) of title 5, United 
States Code, is amended, in the fifth sentence, by striking 
‘‘but only’’ and all that follows through the period at the 
end and inserting ‘‘but only to the extent that such inter-
pretative rules, or the statutes upon which such rules are 
based, impose on small entities a collection of information 
requirement or a recordkeeping requirement.’’. 
(b) DEFINITIONS.—Section 601 of title 5, United 
States Code, as amended by section 332 of this title, is 
amended— 
(1) in paragraph (6), by striking ‘‘and’’ at the 
end; and 
(2) by striking paragraphs (7) and (8) and in-
serting the following: 
‘‘(7) the term ‘collection of information’ has the 
meaning given that term in section 3502(3) of title 
44; 
‘‘(8) the term ‘recordkeeping requirement’ has 
the meaning given that term in section 3502(13) of 
title 44; and’’. 
SEC. 238. MITIGATING PENALTIES ON SMALL ENTITIES. 
Section 223 of the Small Business Regulatory En-
forcement Fairness Act of 1996 (Public Law 104–121; 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
110 Stat. 862) is amended by adding at the end the fol-
lowing: 
‘‘(d) REVIEW OF POLICIES AND PROGRAMS.— 
‘‘(1) REVIEW
REQUIRED.—Not later than 6 
months after the date of enactment of this sub-
section, and every 2 years thereafter, each agency 
regulating the activities of small entities shall review 
the policy or program established by the agency 
under subsection (a) and make any modifications to 
the policy or program necessary to comply with the 
requirements under this section. 
‘‘(2) REPORT.—Not later than 6 months after 
the date of enactment of this subsection, and every 
2 years thereafter, each agency described in para-
graph (1) shall submit a report on the review and 
modifications required under paragraph (1) to— 
‘‘(A) the Committee on Small Business 
and Entrepreneurship and the Committee on 
Homeland Security and Governmental Affairs 
of the Senate; and 
‘‘(B) the Committee on Small Business 
and the Committee on the Judiciary of the 
House of Representatives.’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 239. REQUIRING MORE DETAILED SMALL ENTITY 
ANALYSES. 
(a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 
Section 603 of title 5, United States Code, as amended 
by section 1100G(b) of Public Law 111–203 (124 Stat. 
2112), is amended— 
(1) by striking subsection (b) and inserting the 
following: 
‘‘(b) Each initial regulatory flexibility analysis re-
quired under this section shall contain a detailed state-
ment— 
‘‘(1) describing the reasons why action by the 
agency is being considered; 
‘‘(2) describing the objectives of, and legal basis 
for, the proposed rule; 
‘‘(3) estimating the number and type of small 
entities to which the proposed rule will apply; 
‘‘(4) describing the projected reporting, record-
keeping, and other compliance requirements of the 
proposed rule, including an estimate of the classes of 
small entities which will be subject to the require-
ment and the type of professional skills necessary 
for preparation of the report and record; 
‘‘(5) describing all relevant Federal rules which 
may duplicate, overlap, or conflict with the proposed 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
rule, or the reasons why such a description could not 
be provided; and 
‘‘(6) estimating the additional cumulative eco-
nomic impact of the proposed rule on small entities, 
including job creation and employment by small enti-
ties, beyond that already imposed on the class of 
small entities by the agency, or the reasons why 
such an estimate is not available.’’; and 
(2) by adding at the end the following: 
‘‘(e) An agency shall notify the Chief Counsel for Ad-
vocacy of the Small Business Administration of any draft 
rules that may have a significant economic impact on a 
substantial number of small entities— 
‘‘(1) when the agency submits a draft rule to 
the Office of Information and Regulatory Affairs of 
the Office of Management and Budget under Execu-
tive Order 12866, if that order requires the submis-
sion; or 
‘‘(2) if no submission to the Office of Informa-
tion and Regulatory Affairs is required— 
‘‘(A) a reasonable period before publication 
of the rule by the agency; and 
‘‘(B) in any event, not later than 3 months 
before the date on which the agency publishes 
the rule.’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 
(1) IN GENERAL.—Section 604(a) of title 5, 
United States Code, is amended— 
(A) by inserting ‘‘detailed’’ before ‘‘de-
scription’’ each place it appears; 
(B) in paragraph (2)— 
(i) by inserting ‘‘detailed’’ before 
‘‘statement’’ each place it appears; and 
(ii) by inserting ‘‘(or certification of 
the proposed rule under section 605(b))’’ 
after ‘‘initial regulatory flexibility anal-
ysis’’; 
(C) in paragraph (4), by striking ‘‘an ex-
planation’’ and inserting ‘‘a detailed expla-
nation’’; and 
(D) in paragraph (6) (relating to a de-
scription of steps taken to minimize significant 
economic impact), as added by section 1601 of 
the Small Business Jobs Act of 2010 (Public 
Law 111–240; 124 Stat. 2251), by inserting 
‘‘detailed’’ before ‘‘statement’’. 
(2) PUBLICATION OF ANALYSIS ON WEB SITE, 
ETC.—Section 604(b) of title 5, United States Code, 
is amended to read as follows: 
‘‘(b) The agency shall— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(1) make copies of the final regulatory flexi-
bility analysis available to the public, including by 
publishing the entire final regulatory flexibility anal-
ysis on the Web site of the agency; and 
‘‘(2) publish in the Federal Register the final 
regulatory flexibility analysis, or a summary of the 
analysis that includes the telephone number, mailing 
address, and address of the Web site where the com-
plete final regulatory flexibility analysis may be ob-
tained.’’. 
(c) CROSS-REFERENCES
TO OTHER ANALYSES.— 
Section 605(a) of title 5, United States Code, is amended 
to read as follows: 
‘‘(a) A Federal agency shall be deemed to have satis-
fied a requirement regarding the content of a regulatory 
flexibility agenda or regulatory flexibility analysis under 
section 602, 603, or 604, if the Federal agency provides 
in the agenda or regulatory flexibility analysis a cross-ref-
erence to the specific portion of an agenda or analysis that 
is required by another law and that satisfies the require-
ment under section 602, 603, or 604.’’. 
(d) CERTIFICATIONS.—Section 605(b) of title 5, 
United States Code, is amended, in the second sentence, 
by striking ‘‘statement providing the factual’’ and insert-
ing ‘‘detailed statement providing the factual and legal’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(e) QUANTIFICATION REQUIREMENTS.—Section 607 
of title 5, United States Code, is amended to read as fol-
lows: 
‘‘§ 607. Quantification requirements 
‘‘In complying with sections 603 and 604, an agency 
shall provide— 
‘‘(1) a quantifiable or numerical description of 
the effects of the proposed or final rule, including an 
estimate of the potential for job creation or job loss, 
and alternatives to the proposed or final rule; or 
‘‘(2) a more general descriptive statement re-
garding the potential for job creation or job loss and 
a detailed statement explaining why quantification 
under paragraph (1) is not practicable or reliable.’’. 
SEC. 240. ENSURING THAT AGENCIES CONSIDER SMALL EN-
TITY IMPACT DURING THE RULEMAKING 
PROCESS. 
Section 605(b) of title 5, United States Code, is 
amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 
(2) by adding at the end the following: 
‘‘(2) If, after publication of the certification required 
under paragraph (1), the head of the agency determines 
that there will be a significant economic impact on a sub-
stantial number of small entities, the agency shall comply 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
with the requirements of section 603 before the publica-
tion of the final rule, by— 
‘‘(A) publishing an initial regulatory flexibility 
analysis for public comment; or 
‘‘(B) re-proposing the rule with an initial regu-
latory flexibility analysis. 
‘‘(3) The head of an agency may not make a certifi-
cation relating to a rule under this subsection, unless the 
head of the agency has determined— 
‘‘(A) the average cost of the rule for small enti-
ties affected or reasonably presumed to be affected 
by the rule; 
‘‘(B) the number of small entities affected or 
reasonably presumed to be affected by the rule; and 
‘‘(C) the number of affected small entities for 
which that cost will be significant. 
‘‘(4) Before publishing a certification and a state-
ment providing the factual basis for the certification under 
paragraph (1), the head of an agency shall— 
‘‘(A) transmit a copy of the certification and 
statement to the Chief Counsel for Advocacy of the 
Small Business Administration; and 
‘‘(B) consult with the Chief Counsel for Advo-
cacy of the Small Business Administration on the 
accuracy of the certification and statement.’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 241. QUALIFICATIONS OF THE CHIEF COUNSEL FOR 
ADVOCACY AND AUTHORITY FOR THE OFFICE 
OF ADVOCACY. 
(a) QUALIFICATIONS OF CHIEF COUNSEL FOR ADVO-
CACY.—Section 201 of Public Law 94–305 (15 U.S.C. 
634a) is amended by adding at the end the following: 
‘‘The Chief Counsel for Advocacy shall be an attorney with 
business experience and expertise in or knowledge of the 
regulatory process.’’. 
(b) ADDITIONAL POWERS
OF OFFICE
OF ADVO-
CACY.—Section 203 of Public Law 94–305 (15 U.S.C. 
634c) is amended— 
(1) in paragraph (5), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (6), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) at the discretion of the Chief Counsel for 
Advocacy, comment on regulatory action by an agen-
cy that affects small businesses, without regard to 
whether the agency is required to file a notice of 
proposed rulemaking under section 553 of title 5, 
United States Code, with respect to the action.’’. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
SEC. 242. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) HEADING.—Section 605 of title 5, United States 
Code, is amended in the section heading by striking 
‘‘Avoidance’’ and all that follows and inserting the fol-
lowing: ‘‘Incorporations by reference and cer-
tification.’’. 
(b) TABLE OF SECTIONS.—The table of sections for 
chapter 6 of title 5, United States Code, is amended— 
(1) by striking the item relating to section 605 
and inserting the following: 
‘‘605. Incorporations by reference and certifications.’’; 
and 
(2) by striking the item relating to section 607 
inserting the following: 
‘‘607. Quantification requirements.’’. 
Subtitle E—Small Business 
Freedom of Commerce Act 
SEC. 251. SMALL BUSINESS EXEMPTIONS. 
(a) ELECTION.—Notwithstanding any other provision 
of law, a small business concern operating in the United 
States may elect to be exempt from any Federal rule or 
regulation issued on or after January 1, 2008. 
(b) PROCESS FOR EXEMPTION.— 
(1) NOTIFICATION OF FEDERAL AGENCY.—To 
be exempt from a rule or regulation under this sec-
tion, the highest ranking official of a small business 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
concern shall provide to the Federal agency that 
issued such rule or regulation written notice that the 
small business concern has elected to be exempt 
from such rule or regulation. 
(2) TIMING.—A small business concern shall be 
exempt from a rule or regulation beginning on the 
date that is 30 days after the date that written no-
tice provided by such concern under paragraph (1), 
with respect to such rule or regulation, is received 
by the applicable Federal agency. 
(3) CONFIRMATION OF WRITTEN NOTICE.—Not 
later than 7 days after receiving a written notice 
under paragraph (1), the head of the Federal agency 
that received such notice shall provide to the appli-
cable small business concern written confirmation 
that such notice has been received. 
(c) NOTIFICATION
OF PUBLIC.—A small business 
concern that is exempt from a Federal rule or regulation 
under this section shall— 
(1) label any product of the concern affected by 
such exemption in a manner that provides notice 
that the product is no longer subject to such rule or 
regulation; and 
(2) include in any communication of the con-
cern relating to a product or activity affected by 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
such exemption notice that the product or activity is 
no longer subject to such rule or regulation. 
(d) PENALTIES.—A small business concern that fails 
to satisfy any requirement under this section shall be sub-
ject to penalties for noncompliance with an applicable Fed-
eral rule or regulation without regard to any election of 
the small business concern to be exempt from such rule 
or regulation. 
(e) LIMITATIONS.—A small business concern may not 
elect to be exempt under this section from a rule or regula-
tion issued by the Department of Defense or the Depart-
ment of Homeland Security, if the Secretary of Defense 
or the Secretary of Homeland Security has determined 
that such rule or regulation is necessary for the security 
of the United States. 
(f) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’ means any department, agency, or inde-
pendent establishment of the Federal Government. 
(2) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term in section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)). 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
TITLE III—AMERICAN ENERGY 
PRODUCTION 
Subtitle A—End of Presidential 
Permatorium 
on 
America’s 
Outer 
Continental 
Shelf 
Re-
sources 
SEC. 301. DEADLINE FOR CERTAIN PERMIT APPLICATIONS 
UNDER EXISTING LEASES. 
(a) IN GENERAL.—A lease under which a covered ap-
plication is submitted to the Secretary of the Interior shall 
be considered to be in directed suspension during the pe-
riod beginning May 27, 2010, and ending on the date the 
Secretary issues a final decision on the application, if the 
Secretary does not issue a final decision on the applica-
tion— 
(1) before the end of the 30-day period begin-
ning on the date of enactment of this Act, in the 
case of a covered application submitted before such 
date of enactment; or 
(2) before the end of the 30-day period begin-
ning on the date the application is received by the 
Secretary, in the case of a covered application sub-
mitted on or after such date of enactment. 
(b) COVERED APPLICATION.—In this section the 
term ‘‘covered application’’ means an application for a 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
permit to drill under an oil and gas lease under the Outer 
Continental Shelf Lands Act in effect on the date of enact-
ment of this Act, that— 
(1) represents a resubmission of an approved 
permit to drill (including an application for a permit 
to sidetrack) that was approved by the Secretary be-
fore May 27, 2010; and 
(2) is received by the Secretary after October 
12, 2010, and before the end of the 30-day period 
beginning on the date of enactment of this Act. 
CHAPTER 1—OUTER CONTINENTAL SHELF 
SEC. 311. END MORATORIUM OF OIL AND GAS LEASING IN 
CERTAIN AREAS OF THE GULF OF MEXICO. 
(a) REPEAL OF MORATORIUM.— 
(1) REPEAL.—Subsection (a) of section 104 of 
the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note; Public Law 109–432) is repealed. 
(2) NATIONAL DEFENSE AREA.—Section 12(d) 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1341(d)) is amended— 
(A) by striking ‘‘(d) The United States’’ 
and inserting the following: 
‘‘(d) RESTRICTION OF AREAS FOR NATIONAL DE-
FENSE.— 
‘‘(1) IN GENERAL.—The United States’’; and 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(B) by adding at the end the following: 
‘‘(2) REVIEW.—Annually, the Secretary of De-
fense shall review the areas of the outer Continental 
Shelf that have been designated as restricted from 
exploration and operation to determine whether the 
areas should remain under restriction.’’. 
(b) LEASING OF MORATORIUM AREAS.— 
(1) IN GENERAL.—As soon as practicable, but 
not later than 1 year, after the date of enactment 
of this Act, the Secretary of the Interior shall offer 
for leasing under the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331 et seq.), any areas made avail-
able for leasing as a result of the enactment of sub-
section (a). 
(2) LEASING PLAN.—Any areas made available 
for leasing under paragraph (1) shall be offered for 
lease under this section notwithstanding the omis-
sion of any of these respective areas from the appli-
cable 5-year plan developed by the Secretary pursu-
ant to section 18 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1344). 
(c) MILITARY MISSION.—Section 104 of the Gulf of 
Mexico Energy Security Act of 2006 (43 U.S.C. 1331 
note; Public Law 109–432) is further amended— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
(1) by striking ‘‘(b) MILITARY
MISSION 
LINE.—Notwithstanding subsection (a), the’’ and in-
serting ‘‘(a) MILITARY MISSION.—The’’; 
(2) by redesignating subsection (c) as sub-
section (b); 
(3) in subsection (b)(1), as so redesignated, by 
striking ‘‘paragraph (2) or (3) of subsection (a)’’ 
and inserting ‘‘paragraph (5)’’; and 
(4) in subsection (b), as so redesignated, by 
adding at the end the following: 
‘‘(5) AREAS DESCRIBED.—The areas referred to 
in paragraph (1) are— 
‘‘(A) any area in the Eastern Planning 
Area that is within 125 miles of the coastline 
of the State of Florida; and 
‘‘(B) any area in the Central Planning 
Area that is— 
‘‘(i) within— 
‘‘(I) the 181 Area; and 
‘‘(II) 100 miles of the coastline 
of the State of Florida; or 
‘‘(ii)(I) outside the 181 Area; 
‘‘(II) east of the western edge of 
the Pensacola Official Protraction 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
Diagram 
(UTM 
X 
coordinate 
1,393,920 (NAD 27 feet)); and 
‘‘(III) within 100 miles of the 
coastline of the State of Florida.’’. 
SEC. 312. OUTER CONTINENTAL SHELF DIRECTED LEASE 
SALES. 
(a) 209 LEASE SALE.—The Secretary of the Interior 
(referred to in this section as the ‘‘Secretary’’) shall offer 
the Beaufort Sea Program Area for oil and gas leasing 
pursuant to the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) in 2011 as established in the 2007– 
2012 Lease Sale Schedule. 
(b) 210 LEASE SALE.—The Secretary shall offer the 
Western Gulf of Mexico Program Area for oil and gas leas-
ing pursuant to the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.) in 2011 as established in the 
2007–2012 Lease Sale Schedule. 
(c) 212 LEASE SALE.—The Secretary shall offer the 
Chukchi Sea Program Area for oil and gas leasing pursu-
ant to the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) in 2011 as established in the 2007–2012 
Lease Sale Schedule. 
(d) 213 LEASE SALE.—The Secretary shall offer the 
Central Gulf of Mexico Program Area for oil and gas leas-
ing pursuant to the Outer Continental Shelf Lands Act 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
issued by the Secretary of the Interior (referred to in this 
section as the ‘‘Secretary’’) under section 18 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1344) is consid-
ered to have been approved by the Secretary as a final 
oil and gas leasing program under that section. 
(b) FINAL ENVIRONMENTAL IMPACT STATEMENT.— 
The Secretary is considered to have issued a final environ-
mental impact statement for the program described in 
subsection (a) in accordance with all of the requirements 
of sections 18, 19, and 20 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1344, 1345, and 1346), in accord-
ance with all requirements under section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)), and in accordance with all requirements of 
the Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.). 
SEC. 314. OUTER CONTINENTAL SHELF LEASE SALES. 
(a) REQUIREMENT TO CONDUCT LEASE SALES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), not later than one year after the date of 
enactment of this Act and annually thereafter, the 
Secretary of the Interior (referred to in this section 
as the ‘‘Secretary’’) shall conduct at a minimum one 
lease sale in an Atlantic Planning Area, one lease 
sale in the Pacific Planning Area, one lease sale in 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
the Alaska Planning Area, and three lease sales in 
a Gulf of Mexico Planning Area for which the Sec-
retary determines that there is a commercial interest 
in purchasing Federal oil and gas leases for produc-
tion on the outer Continental Shelf. 
(2) 
SUBSEQUENT
DETERMINATIONS
AND 
SALES.—If the Secretary determines that there is 
not a commercial interest in purchasing Federal oil 
and gas leases for production on the outer Conti-
nental Shelf in a planning area under this sub-
section, not later than 2 years after the date of en-
actment of the determination and every 2 years 
thereafter, the Secretary shall— 
(A) determine whether there is a commer-
cial interest in purchasing Federal oil and gas 
leases for production on the outer Continental 
Shelf in the planning area; and 
(B) if the Secretary determines that there 
is a commercial interest described in subpara-
graph (A), conduct a lease sale in the planning 
area. 
(b) LEASING PLAN.—Any areas made available for 
leasing under subsection (a) shall be offered for lease 
under this section notwithstanding the omission of any of 
these respective areas from the applicable 5-year plan de-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
veloped by the Secretary pursuant to section 18 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1344). 
SEC. 315. RESTRICTIONS ON LEASING OF THE OUTER CON-
TINENTAL SHELF. 
(a) STATE OPT-OUT.—No lease authorizing a perma-
nent surface energy project for the exploration, develop-
ment, or production of oil or gas may be issued for any 
area of the Outer Continental Shelf located within 10 
miles of the coastline of a State if the State has notified 
the Secretary of the Interior that the State does not want 
to participate in such leasing. 
(b) EXISTING LEASES NOT AFFECTED.—This sec-
tion shall not affect any lease issued before the date of 
enactment of this Act. 
SEC. 316. SHARING OF OCS RECEIPTS WITH STATES AND 
LOCAL GOVERNMENTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended as follows: 
(1) By designating the existing text as sub-
section (a). 
(2) In subsection (a) (as so designated) by in-
serting ‘‘, if not paid as otherwise provided in this 
title’’ after ‘‘receipts’’. 
(3) By adding the following: 
‘‘(b) TREATMENT OF OCS RECEIPTS.— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraph (2). 
‘‘(2) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2012, the Secretary shall share 50 
percent of OCS Receipts derived from all leases, ex-
cept that the Secretary shall only share 25 percent 
of such OCS Receipts derived from all such leases 
within a State’s Adjacent Zone if leasing is not al-
lowed within at least 25 percent of that State’s Ad-
jacent Zone located completely within 75 miles of 
any coastline. 
‘‘(3) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraph (2) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties and net profit shares from a leased 
tract, including interest thereon, shall be allo-
cated at the end of each fiscal year as follows: 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(i) Fifty percent to the Adjacent 
State. 
‘‘(ii) Fifty percent to all States, in-
cluding the Adjacent State, having a coast-
line point within 300 miles of the leased 
tract, divided equally, if such State allows 
leasing within at least 25 percent of its 
Adjacent Zone within 75 miles of the 
coastline. 
‘‘(C) LIMITATION
IF
NOT
ADMITTED
TO 
THE UNION AS A STATE.—Any entity defined as 
a ‘State’ under section 2(r), that has not been 
admitted to the Union as a State shall only be 
entitled to one-half of a State share under this 
paragraph. 
‘‘(c) TRANSMISSION OF ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the end of each fiscal year, the Secretary shall 
transmit— 
‘‘(A) to each State 60 percent of such 
State’s allocations under subsections (b)(2), 
(b)(3)(A), and (b)(3)(B) (i) and (ii) for the im-
mediate prior fiscal year; and 
‘‘(B) to each coastal county-equivalent and 
municipal political subdivisions of such State a 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
total of 40 percent of such State’s allocations 
under 
subsections 
(b)(2), 
(b)(3)(A), 
and 
(b)(3)(B) (i) and (ii), for the immediate prior 
fiscal year, together with all accrued interest 
thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY- 
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows: 
‘‘(A) Twenty-five percent shall be allocated 
to coastal county-equivalent political subdivi-
sions that are completely more than 25 miles 
landward of the coastline and at least a part of 
which lies not more than 75 miles landward 
from the coastline, with the allocation among 
such coastal county-equivalent political subdivi-
sions based on population. 
‘‘(B) Seventy-five percent shall be allocated 
to coastal county-equivalent political subdivi-
sions that are completely or partially less than 
25 miles landward of the coastline, with the al-
location among such coastal county-equivalent 
political subdivisions to be further allocated as 
follows: 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
100 
‘‘(i) Twenty-five percent shall be allo-
cated based on the ratio of such coastal 
county-equivalent 
political 
subdivision’s 
population to the coastal population of all 
coastal county-equivalent political subdivi-
sions in the State. 
‘‘(ii) Twenty-five percent shall be allo-
cated based on the ratio of such coastal 
county-equivalent 
political 
subdivision’s 
coastline miles to the coastline miles of all 
coastal county-equivalent political subdivi-
sions in the State as calculated by the Sec-
retary. In such calculations, coastal coun-
ty-equivalent political subdivisions without 
a coastline shall be considered to have 50 
percent of the average coastline miles of 
the coastal county-equivalent political sub-
divisions that do have coastlines. 
‘‘(iii) Fifty percent shall be allocated 
equally to all coastal county-equivalent po-
litical subdivisions having a coastline point 
within 300 miles of the leased tract for 
which OCS Receipts are being shared. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
SUBDIVISIONS.—The initial allocation to 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
101 
each coastal county-equivalent political subdivision 
under paragraph (2) shall be further allocated to the 
coastal county-equivalent political subdivision and 
any coastal municipal political subdivisions located 
partially or wholly within the boundaries of the 
coastal county-equivalent political subdivision as fol-
lows: 
‘‘(A) One-third shall be allocated to the 
coastal county-equivalent political subdivision. 
‘‘(B) Two-thirds shall be allocated on a per 
capita basis to the municipal political subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(d) INVESTMENT OF DEPOSITS.—Amounts depos-
ited under this section shall be invested by the Secretary 
of the Treasury in securities backed by the full faith and 
credit of the United States having maturities suitable to 
the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury. 
‘‘(e) USE OF FUNDS.—A recipient of funds under 
this section may use the funds for one or more of the fol-
lowing: 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
102 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support 
public education, including career technical edu-
cation. 
‘‘(2) To make transportation infrastructure im-
provements. 
‘‘(3) To reduce taxes. 
‘‘(4) To promote, fund, and provide for— 
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways construction and mainte-
nance; 
‘‘(D) levee construction and maintenance 
and shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To promote, fund, and provide for— 
‘‘(A) infrastructure associated with energy 
production activities conducted on the outer 
Continental Shelf; 
‘‘(B) energy demonstration projects; 
‘‘(C) supporting infrastructure for shore- 
based energy projects; 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
103 
‘‘(D) State geologic programs, including 
geologic mapping and data storage programs, 
and State geophysical data acquisition; 
‘‘(E) State seismic monitoring programs, 
including operation of monitoring stations; 
‘‘(F) development of oil and gas resources 
through enhanced recovery techniques; 
‘‘(G) energy efficiency and conservation 
programs; and 
‘‘(H) front-end engineering and design for 
facilities that produce liquid fuels from hydro-
carbons and other biological matter. 
‘‘(6) To promote, fund, and provide for— 
‘‘(A) historic preservation programs and 
projects; 
‘‘(B) natural disaster planning and re-
sponse; and 
‘‘(C) hurricane and natural disaster insur-
ance programs. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(f) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such 
funds, except as otherwise may be required by law. How-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
104 
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
sions may be used as matching funds for other Federal 
programs. 
‘‘(g) EFFECT OF FUTURE LAWS.—Enactment of any 
future Federal statute that has the effect, as determined 
by the Secretary, of restricting any Federal agency from 
spending appropriated funds, or otherwise preventing it 
from fulfilling its pre-existing responsibilities as of the 
date of enactment of the statute, unless such responsibil-
ities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue 
any permit or other approval impacting on the OCS oil 
and gas leasing program, or any lease issued thereunder, 
or to implement any provision of this Act shall automati-
cally prohibit any sharing of OCS Receipts under this sec-
tion directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Sec-
retary shall make the determination of the existence of 
such restricting effects within 30 days of a petition by any 
outer Continental Shelf lessee or producing State. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
105 
political subdivision’ means a political jurisdiction 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
pendent municipality not part of a county, parish, or 
borough in Alaska, or other equivalent subdivision of 
a coastal State, that lies within the coastal zone. 
‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ means a municipality located within and part 
of a county, parish, borough in Alaska, or other 
equivalent subdivision of a State, all or part of which 
coastal municipal political subdivision lies within the 
coastal zone. 
‘‘(3) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of all coastal coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Census Bureau. 
‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical subdivision at least a part of which lies, within 
75 miles landward from the coastline, or a greater 
distance as determined by State law enacted to im-
plement this section. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
106 
‘‘(5) BONUS
BIDS.—The term ‘bonus bids’ 
means all funds received by the Secretary to issue 
an outer Continental Shelf minerals lease. 
‘‘(6) ROYALTIES.—The term ‘royalties’ means 
all funds received by the Secretary from production 
of oil or natural gas, or the sale of production taken 
in-kind, or from net profit shares, from an outer 
Continental Shelf minerals lease. 
‘‘(7) PRODUCING STATE.—The term ‘producing 
State’ means an Adjacent State having an Adjacent 
Zone containing leased tracts from which OCS Re-
ceipts were derived. 
‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids and royalties, excluding royalties 
from leases amended under the authority of section 
8(s) of this Act.’’. 
CHAPTER 2—ARCTIC COASTAL PLAIN 
SEC. 321. DEFINITIONS. 
In this chapter: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area identified as the ‘‘1002 
Coastal Plain Area’’ on the map. 
(2) FEDERAL AGREEMENT.—The term ‘‘Fed-
eral Agreement’’ means the Federal Agreement and 
Grant Right-of-Way for the Trans-Alaska Pipeline 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
107 
issued on January 23, 1974, in accordance with sec-
tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 
and the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1651 et seq.). 
(3) FINAL
STATEMENT.—The term ‘‘Final 
Statement’’ means the final legislative environmental 
impact statement on the Coastal Plain, dated April 
1987, and prepared pursuant to section 1002 of the 
Alaska National Interest Lands Conservation Act 
(16 U.S.C. 3142) and section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)). 
(4) MAP.—The term ‘‘map’’ means the map en-
titled ‘‘Arctic National Wildlife Refuge’’, dated Sep-
tember 2005, and prepared by the United States Ge-
ological Survey. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior (or the designee of the 
Secretary), acting through the Director of the Bu-
reau of Land Management, in consultation with the 
Director of the United States Fish and Wildlife 
Service. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
108 
SEC. 322. LEASING PROGRAM FOR LAND WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall take such ac-
tions as are necessary— 
(1) to establish and implement, in accordance 
with this chapter, a competitive oil and gas leasing 
program that will result in an environmentally sound 
program for the exploration, development, and pro-
duction of the oil and gas resources of the Coastal 
Plain; and 
(2) to administer this chapter through regula-
tions, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that require 
the application of the best commercially available 
technology for oil and gas exploration, development, 
and production to all exploration, development, and 
production operations under this chapter in a man-
ner that ensures the receipt of fair market value by 
the public for the mineral resources to be leased. 
(b) REPEAL.— 
(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act of 1980 (16 
U.S.C. 3143) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
contents contained in section 1 of that Act (16 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
109 
U.S.C. 3101 note) is amended by striking the item 
relating to section 1003. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.— 
(A) IN GENERAL.—Before conducting the 
first lease sale under this chapter, the Secretary 
shall prepare an environmental impact state-
ment in accordance with the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with respect to the actions authorized by 
this chapter that are not referred to in para-
graph (2). 
(B) IDENTIFICATION
AND
ANALYSIS.— 
Notwithstanding any other provision of law, in 
carrying out this paragraph, the Secretary shall 
not be required— 
(i) to identify nonleasing alternative 
courses of action; or 
(ii) to analyze the environmental ef-
fects of those courses of action. 
(C) IDENTIFICATION OF PREFERRED AC-
TION.—Not later than 18 months after the date 
of enactment of this Act, the Secretary shall— 
(i) identify only a preferred action and 
a single leasing alternative for the first 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
110 
lease sale authorized under this chapter; 
and 
(ii) analyze the environmental effects 
and potential mitigation measures for 
those 2 alternatives. 
(D) PUBLIC COMMENTS.—In carrying out 
this paragraph, the Secretary shall consider 
only public comments that are filed not later 
than 20 days after the date of publication of a 
draft environmental impact statement. 
(E) EFFECT
OF
COMPLIANCE.—Notwith-
standing any other provision of law, compliance 
with this paragraph shall be considered to sat-
isfy all requirements for the analysis and con-
sideration of the environmental effects of pro-
posed leasing under this chapter. 
(c) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this chapter expands or limits any State 
or local regulatory authority. 
(d) SPECIAL AREAS.— 
(1) DESIGNATION.— 
(A) IN
GENERAL.—The Secretary, after 
consultation with the State of Alaska, the 
North Slope Borough, Alaska, and the City of 
Kaktovik, Alaska, may designate not more than 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
111 
45,000 acres of the Coastal Plain as a special 
area if the Secretary determines that the special 
area would be of such unique character and in-
terest as to require special management and 
regulatory protection. 
(B) SADLEROCHIT
SPRING
AREA.—The 
Secretary shall designate as a special area in 
accordance 
with 
subparagraph 
(A) 
the 
Sadlerochit Spring area, comprising approxi-
mately 4,000 acres as depicted on the map. 
(2) MANAGEMENT.—The Secretary shall man-
age each special area designated under this sub-
section in a manner that preserves the unique and 
diverse character of the area, including fish, wildlife, 
subsistence resources, and cultural values of the 
area. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.— 
(A) IN GENERAL.—The Secretary may ex-
clude any special area designated under this 
subsection from leasing. 
(B) NO SURFACE OCCUPANCY.—If the Sec-
retary leases all or a portion of a special area 
for the purposes of oil and gas exploration, de-
velopment, production, and related activities, 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
112 
there shall be no surface occupancy of the land 
comprising the special area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
any other provision of this subsection, the Secretary 
may lease all or a portion of a special area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the spe-
cial area. 
(e) LIMITATION ON CLOSED AREAS.—The Secretary 
may not close land within the Coastal Plain to oil and gas 
leasing or to exploration, development, or production ex-
cept in accordance with this chapter. 
(f) REGULATIONS.— 
(1) IN GENERAL.—Not later than 15 months 
after the date of enactment of this Act, the Sec-
retary shall promulgate such regulations as are nec-
essary to carry out this chapter, including rules and 
regulations relating to protection of the fish and 
wildlife, fish and wildlife habitat, subsistence re-
sources, and environment of the Coastal Plain. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, as appropriate, 
revise the rules and regulations issued under para-
graph (1) to reflect any significant biological, envi-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00112
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
113 
ronmental, scientific or engineering data that come 
to the attention of the Secretary. 
SEC. 323. LEASE SALES. 
(a) IN GENERAL.—Land may be leased pursuant to 
this chapter to any person qualified to obtain a lease for 
deposits of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after that nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
(c) LEASE SALE BIDS.—Bidding for leases under 
this chapter shall be by sealed competitive cash bonus 
bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—For the 
first lease sale under this chapter, the Secretary shall offer 
for lease those tracts the Secretary considers to have the 
greatest potential for the discovery of hydrocarbons, tak-
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00113
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
114 
ing into consideration nominations received pursuant to 
subsection (b)(1), but in no case less than 200,000 acres. 
(e) TIMING
OF
LEASE
SALES.—The Secretary 
shall— 
(1) not later than 22 months after the date of 
enactment of this Act, conduct the first lease sale 
under this chapter; 
(2) not later than 90 days after the date of the 
completion of the sale, evaluate the bids in the sale 
and issue leases resulting from the sale; and 
(3) conduct additional sales at appropriate in-
tervals if sufficient interest in exploration or devel-
opment exists to warrant the conduct of the addi-
tional sales. 
SEC. 324. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—On payment by a lessee of such 
bonus as may be accepted by the Secretary, the Secretary 
may grant to the highest responsible qualified bidder in 
a lease sale conducted pursuant to section 323 a lease for 
any land on the Coastal Plain. 
(b) SUBSEQUENT TRANSFERS.— 
(1) IN GENERAL.—No lease issued under this 
chapter may be sold, exchanged, assigned, sublet, or 
otherwise transferred except with the approval of the 
Secretary. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00114
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
115 
(2) CONDITION FOR APPROVAL.—Before grant-
ing any approval described in paragraph (1), the 
Secretary shall consult with and give due consider-
ation to the opinion of the Attorney General. 
SEC. 325. LEASE TERMS AND CONDITIONS. 
An oil or gas lease issued pursuant to this chapter 
shall— 
(1) provide for the payment of a royalty of not 
less than 121⁄2 percent of the amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary in accordance with regula-
tions applicable to other Federal oil and gas leases; 
(2) require that each lessee of land within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of land within the Coastal Plain and 
any other Federal land that is adversely affected in 
connection with exploration, development, produc-
tion, or transportation activities within the Coastal 
Plain conducted by the lessee or by any of the sub-
contractors or agents of the lessee; 
(3) provide that the lessee may not delegate or 
convey, by contract or otherwise, that reclamation 
responsibility and liability to another person without 
the express written approval of the Secretary; 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00115
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
116 
(4) provide that the standard of reclamation for 
land required to be reclaimed under this chapter 
shall be, to the maximum extent practicable— 
(A) a condition capable of supporting the 
uses that the land was capable of supporting 
prior to any exploration, development, or pro-
duction activities; or 
(B) on application by the lessee, to a high-
er or better standard, as approved by the Sec-
retary; 
(5) contain terms and conditions relating to 
protection of fish and wildlife, fish and wildlife habi-
tat, subsistence resources, and the environment as 
required under section 322(a)(2); 
(6) provide that each lessee, and each agent 
and contractor of a lessee, use their best efforts to 
provide a fair share of employment and contracting 
for Alaska Natives and Alaska Native Corporations 
from throughout the State of Alaska, as determined 
by the level of obligation previously agreed to in the 
Federal Agreement; and 
(7) contain such other provisions as the Sec-
retary determines to be necessary to ensure compli-
ance with this chapter and the regulations promul-
gated under this chapter. 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00116
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS
117 
SEC. 326. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINTS.— 
(1) DEADLINE.—A complaint seeking judicial 
review of a provision of this chapter or an action of 
the Secretary under this chapter shall be filed— 
(A) except as provided in subparagraph 
(B), during the 90-day period beginning on the 
date on which the action being challenged was 
carried out; or 
(B) in the case of a complaint based solely 
on grounds arising after the 90-day period de-
scribed in subparagraph (A), by not later than 
90 days after the date on which the complain-
ant knew or reasonably should have known 
about the grounds for the complaint. 
(2) VENUE.—A complaint seeking judicial re-
view of a provision of this chapter or an action of 
the Secretary under this chapter shall be filed in the 
United States District Court for the District of Co-
lumbia. 
(3) SCOPE.— 
(A) IN GENERAL.—Judicial review of a de-
cision of the Secretary relating to a lease sale 
under this chapter (including an environmental 
analysis of such a lease sale) shall be— 
VerDate Mar 15 2010 
21:46 Nov 18, 2011
Jkt 019200
PO 00000
Frm 00117
Fmt 6652
Sfmt 6201
E:\BILLS\H3400.IH
H3400
mstockstill on DSK4VPTVN1PROD with BILLS