305 
use or to shared use after January 1, 2003, 
that is assigned by competitive bidding pursu-
ant to section 309(j) of the Communications 
Act of 1934 (47 U.S.C. 309(j)).’’; 
(D) by amending paragraph (3) to read as 
follows: 
‘‘(3) RELOCATION
OR
SHARING
COSTS
DE-
FINED.— 
‘‘(A) IN GENERAL.—For purposes of this 
section and section 118, the term ‘relocation or 
sharing costs’ means the costs incurred by a 
Federal entity in connection with the auction of 
spectrum frequencies previously assigned to 
such entity or the sharing of spectrum fre-
quencies assigned to such entity (including the 
auction or a planned auction of the rights to 
use spectrum frequencies on a shared basis with 
such entity) in order to achieve comparable ca-
pability of systems as before the relocation or 
sharing arrangement. Such term includes, with 
respect to relocation or sharing, as the case 
may be— 
‘‘(i) the costs of any modification or 
replacement of equipment, spares, associ-
ated ancillary equipment, software, facili-
306 
ties, operating manuals, training, or com-
pliance with regulations that are attrib-
utable to relocation or sharing; 
‘‘(ii) the costs of all engineering, 
equipment, software, site acquisition, and 
construction, as well as any legitimate and 
prudent transaction expense, including 
term-limited Federal civil servant and con-
tractor staff necessary to carry out the re-
location or sharing activities of a Federal 
entity, and reasonable additional costs in-
curred by the Federal entity that are at-
tributable to relocation or sharing, includ-
ing increased recurring costs associated 
with the replacement of facilities; 
‘‘(iii) the costs of research, engineer-
ing studies, economic analyses, or other ex-
penses reasonably incurred in connection 
with— 
‘‘(I) calculating the estimated re-
location or sharing costs that are pro-
vided to the Commission pursuant to 
paragraph (4)(A); 
‘‘(II) determining the technical or 
operational feasibility of relocation to
307 
1 or more potential relocation bands; 
or 
‘‘(III) planning for or managing 
a relocation or sharing arrangement 
(including spectrum coordination with 
auction winners); 
‘‘(iv) the one-time costs of any modi-
fication of equipment reasonably nec-
essary— 
‘‘(I) to accommodate non-Federal 
use of shared frequencies; or 
‘‘(II) in the case of eligible fre-
quencies reallocated for exclusive non- 
Federal use and assigned through a 
system of competitive bidding under 
section 309(j) of the Communications 
Act of 1934 (47 U.S.C. 309(j)) but 
with respect to which a Federal entity 
retains primary allocation or protected 
status for a period of time after the 
completion of the competitive bidding 
process, to accommodate shared Fed-
eral and non-Federal use of such fre-
quencies for such period; and
308 
‘‘(v) the costs associated with the ac-
celerated replacement of systems and 
equipment if the acceleration is necessary 
to ensure the timely relocation of systems 
to a new frequency assignment or the time-
ly accommodation of sharing of Federal 
frequencies. 
‘‘(B) COMPARABLE
CAPABILITY
OF
SYS-
TEMS.—For purposes of subparagraph (A), 
comparable capability of systems— 
‘‘(i) may be achieved by relocating a 
Federal Government station to a new fre-
quency assignment, by relocating a Federal 
Government station to a different geo-
graphic location, by modifying Federal 
Government equipment to mitigate inter-
ference or use less spectrum, in terms of 
bandwidth, geography, or time, and there-
by permitting spectrum sharing (including 
sharing among relocated Federal entities 
and incumbents to make spectrum avail-
able for non-Federal use) or relocation, or 
by utilizing an alternative technology; and 
‘‘(ii) includes the acquisition of state- 
of-the-art replacement systems intended to
309 
meet comparable operational scope, which 
may 
include 
incidental 
increases 
in 
functionality.’’; 
(E) in paragraph (4)— 
(i) in the heading, by striking ‘‘RELO-
CATIONS COSTS’’ and inserting ‘‘RELOCA-
TION OR SHARING COSTS’’; 
(ii) by striking ‘‘relocation costs’’ each 
place it appears and inserting ‘‘relocation 
or sharing costs’’; and 
(iii) in subparagraph (A), by inserting 
‘‘or sharing’’ after ‘‘such relocation’’; 
(F) in paragraph (5)— 
(i) by striking ‘‘relocation costs’’ and 
inserting ‘‘relocation or sharing costs’’; and 
(ii) by inserting ‘‘or sharing’’ after 
‘‘for relocation’’; and 
(G) by amending paragraph (6) to read as 
follows: 
‘‘(6) IMPLEMENTATION OF PROCEDURES.—The 
NTIA shall take such actions as necessary to ensure 
the timely relocation of Federal entities’ spectrum- 
related operations from frequencies described in 
paragraph (2) to frequencies or facilities of com-
parable capability and to ensure the timely imple-
310 
mentation of arrangements for the sharing of fre-
quencies described in such paragraph. Upon a find-
ing by the NTIA that a Federal entity has achieved 
comparable capability of systems, the NTIA shall 
terminate or limit the entity’s authorization and no-
tify the Commission that the entity’s relocation has 
been completed or sharing arrangement has been im-
plemented. The NTIA shall also terminate such enti-
ty’s authorization if the NTIA determines that the 
entity has unreasonably failed to comply with the 
timeline for relocation or sharing submitted by the 
Director of the Office of Management and Budget 
under section 118(d)(2)(C).’’; 
(2) by redesignating subsections (h) and (i) as 
subsections (k) and (l), respectively; and 
(3) by inserting after subsection (g) the fol-
lowing: 
‘‘(h) DEVELOPMENT AND PUBLICATION OF RELOCA-
TION OR SHARING TRANSITION PLANS.— 
‘‘(1) DEVELOPMENT OF TRANSITION PLAN BY 
FEDERAL ENTITY.—Not later than 240 days before 
the commencement of any auction of eligible fre-
quencies described in subsection (g)(2), a Federal 
entity authorized to use any such frequency shall 
submit to the NTIA and to the Technical Panel es-
311 
tablished by paragraph (3) a transition plan for the 
implementation by such entity of the relocation or 
sharing arrangement. The NTIA shall specify, after 
public input, a common format for all Federal enti-
ties to follow in preparing transition plans under 
this paragraph. 
‘‘(2) CONTENTS
OF
TRANSITION
PLAN.—The 
transition plan required by paragraph (1) shall in-
clude the following information: 
‘‘(A) The use by the Federal entity of the 
eligible frequencies to be auctioned, current as 
of the date of the submission of the plan. 
‘‘(B) The geographic location of the facili-
ties or systems of the Federal entity that use 
such frequencies. 
‘‘(C) The frequency bands used by such fa-
cilities or systems, described by geographic loca-
tion. 
‘‘(D) The steps to be taken by the Federal 
entity to relocate its spectrum use from such 
frequencies or to share such frequencies, includ-
ing timelines for specific geographic locations in 
sufficient detail to indicate when use of such 
frequencies at such locations will be discon-
312 
tinued by the Federal entity or shared between 
the Federal entity and non-Federal users. 
‘‘(E) The specific interactions between the 
eligible Federal entity and the NTIA needed to 
implement the transition plan. 
‘‘(F) The name of the officer or employee 
of the Federal entity who is responsible for the 
relocation or sharing efforts of the entity and 
who is authorized to meet and negotiate with 
non-Federal users regarding the transition. 
‘‘(G) The plans and timelines of the Fed-
eral entity for— 
‘‘(i) using funds received from the 
Spectrum Relocation Fund established by 
section 118; 
‘‘(ii) procuring new equipment and 
additional personnel needed for relocation 
or sharing; 
‘‘(iii) field-testing and deploying new 
equipment needed for relocation or shar-
ing; and 
‘‘(iv) hiring and relying on contract 
personnel, if any, needed for relocation or 
sharing.
313 
‘‘(H) Factors that could hinder fulfillment 
of the transition plan by the Federal entity. 
‘‘(3) TECHNICAL PANEL.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished within the NTIA a panel to be known as 
the Technical Panel. 
‘‘(B) MEMBERSHIP.— 
‘‘(i) NUMBER
AND
APPOINTMENT.— 
The Technical Panel shall be composed of 
3 members, to be appointed as follows: 
‘‘(I) One member to be appointed 
by the Director of the Office of Man-
agement and Budget (in this sub-
section referred to as ‘OMB’). 
‘‘(II) One member to be ap-
pointed by the Assistant Secretary. 
‘‘(III) One member to be ap-
pointed by the Chairman of the Com-
mission. 
‘‘(ii) QUALIFICATIONS.—Each mem-
ber of the Technical Panel shall be a radio 
engineer or a technical expert. 
‘‘(iii) INITIAL
APPOINTMENT.—The 
initial members of the Technical Panel 
shall be appointed not later than 180 days
314 
after the date of the enactment of the 
Jumpstarting Opportunity with Broadband 
Spectrum Act of 2011. 
‘‘(iv) TERMS.—The term of a member 
of the Technical Panel shall be 18 months, 
and no individual may serve more than 1 
consecutive term. 
‘‘(v) VACANCIES.—Any member ap-
pointed to fill a vacancy occurring before 
the expiration of the term for which the 
member’s predecessor was appointed shall 
be appointed only for the remainder of that 
term. A member may serve after the expi-
ration of that member’s term until a suc-
cessor has taken office. A vacancy shall be 
filled in the manner in which the original 
appointment was made. 
‘‘(vi) NO COMPENSATION.—The mem-
bers of the Technical Panel shall not re-
ceive any compensation for service on the 
Technical Panel. If any such member is an 
employee of the agency of the official that 
appointed such member to the Technical 
Panel, compensation in the member’s ca-
315 
pacity as such an employee shall not be 
considered compensation under this clause. 
‘‘(C) 
ADMINISTRATIVE
SUPPORT.—The 
NTIA shall provide the Technical Panel with 
the administrative support services necessary to 
carry out its duties under this subsection and 
subsection (i). 
‘‘(D) REGULATIONS.—Not later than 180 
days after the date of the enactment of the 
Jumpstarting Opportunity with Broadband 
Spectrum Act of 2011, the NTIA shall, after 
public notice and comment and subject to ap-
proval by the Director of OMB, adopt regula-
tions to govern the workings of the Technical 
Panel. 
‘‘(E) CERTAIN
REQUIREMENTS
INAPPLI-
CABLE.—The Federal Advisory Committee Act 
(5 U.S.C. App.) and sections 552 and 552b of 
title 5, United States Code, shall not apply to 
the Technical Panel. 
‘‘(4) 
REVIEW
OF
PLAN
BY
TECHNICAL 
PANEL.— 
‘‘(A) IN
GENERAL.—Not later than 30 
days after the submission of the plan under 
paragraph (1), the Technical Panel shall submit
316 
to the NTIA and to the Federal entity a report 
on the sufficiency of the plan, including whether 
the plan includes the information required by 
paragraph (2) and an assessment of the reason-
ableness of the proposed timelines and esti-
mated relocation or sharing costs, including the 
costs of any proposed expansion of the capabili-
ties of a Federal system in connection with relo-
cation or sharing. 
‘‘(B) INSUFFICIENCY
OF
PLAN.—If the 
Technical Panel finds the plan insufficient, the 
Federal entity shall, not later than 90 days 
after the submission of the report by the Tech-
nical panel under subparagraph (A), submit to 
the Technical Panel a revised plan. Such re-
vised plan shall be treated as a plan submitted 
under paragraph (1). 
‘‘(5) PUBLICATION OF TRANSITION PLAN.—Not 
later than 120 days before the commencement of the 
auction described in paragraph (1), the NTIA shall 
make the transition plan publicly available on its 
website. 
‘‘(6) UPDATES OF TRANSITION PLAN.—As the 
Federal entity implements the transition plan, it 
shall periodically update the plan to reflect any
317 
changed circumstances, including changes in esti-
mated relocation or sharing costs or the timeline for 
relocation or sharing. The NTIA shall make the up-
dates available on its website. 
‘‘(7) CLASSIFIED
AND
OTHER
SENSITIVE
IN-
FORMATION.— 
‘‘(A) CLASSIFIED
INFORMATION.—If any 
of the information required to be included in 
the transition plan of a Federal entity is classi-
fied information (as defined in section 798(b) of 
title 18, United States Code), the entity shall— 
‘‘(i) include in the plan— 
‘‘(I) an explanation of the exclu-
sion of any such information, which 
shall be as specific as possible; and 
‘‘(II) all relevant non-classified 
information that is available; and 
‘‘(ii) discuss as a factor under para-
graph (2)(H) the extent of the classified 
information and the effect of such informa-
tion on the implementation of the reloca-
tion or sharing arrangement. 
‘‘(B) REGULATIONS.—Not later than 180 
days after the date of the enactment of the 
Jumpstarting Opportunity with Broadband
318 
Spectrum Act of 2011, the NTIA, in consulta-
tion with the Director of OMB and the Sec-
retary of Defense, shall adopt regulations to en-
sure that the information publicly released 
under paragraph (5) or (6) does not contain 
classified information or other sensitive infor-
mation. 
‘‘(i) DISPUTE RESOLUTION PROCESS.— 
‘‘(1) IN GENERAL.—If a dispute arises between 
a Federal entity and a non-Federal user regarding 
the execution, timing, or cost of the transition plan 
submitted by the Federal entity under subsection 
(h)(1), the Federal entity or the non-Federal user 
may request that the NTIA establish a dispute reso-
lution board to resolve the dispute. 
‘‘(2) ESTABLISHMENT OF BOARD.— 
‘‘(A) IN GENERAL.—If the NTIA receives 
a request under paragraph (1), it shall establish 
a dispute resolution board. 
‘‘(B) MEMBERSHIP AND APPOINTMENT.— 
The dispute resolution board shall be composed 
of 3 members, as follows: 
‘‘(i) A representative of the Office of 
Management and Budget (in this sub-
319 
section referred to as ‘OMB’), to be ap-
pointed by the Director of OMB. 
‘‘(ii) A representative of the NTIA, to 
be appointed by the Assistant Secretary. 
‘‘(iii) A representative of the Commis-
sion, to be appointed by the Chairman of 
the Commission. 
‘‘(C) CHAIR.—The representative of OMB 
shall be the Chair of the dispute resolution 
board. 
‘‘(D) VACANCIES.—Any vacancy in the dis-
pute resolution board shall be filled in the man-
ner in which the original appointment was 
made. 
‘‘(E) NO COMPENSATION.—The members 
of the dispute resolution board shall not receive 
any compensation for service on the board. If 
any such member is an employee of the agency 
of the official that appointed such member to 
the board, compensation in the member’s capac-
ity as such an employee shall not be considered 
compensation under this subparagraph. 
‘‘(F) TERMINATION OF BOARD.—The dis-
pute resolution board shall be terminated after 
it rules on the dispute that it was established
320 
to resolve and the time for appeal of its decision 
under paragraph (7) has expired, unless an ap-
peal has been taken under such paragraph. If 
such an appeal has been taken, the board shall 
continue to exist until the appeal process has 
been exhausted and the board has completed 
any action required by a court hearing the ap-
peal. 
‘‘(3) PROCEDURES.—The dispute resolution 
board shall meet simultaneously with representatives 
of the Federal entity and the non-Federal user to 
discuss the dispute. The dispute resolution board 
may require the parties to make written submissions 
to it. 
‘‘(4) DEADLINE FOR DECISION.—The dispute 
resolution board shall rule on the dispute not later 
than 30 days after the request was made to the 
NTIA under paragraph (1). 
‘‘(5) ASSISTANCE FROM TECHNICAL PANEL.— 
The Technical Panel established under subsection 
(h)(3) shall provide the dispute resolution board 
with such technical assistance as the board requests. 
‘‘(6) ADMINISTRATIVE
SUPPORT.—The NTIA 
shall provide the dispute resolution board with the
321 
administrative support services necessary to carry 
out its duties under this subsection. 
‘‘(7) APPEALS.—A decision of the dispute reso-
lution board may be appealed to the United States 
Court of Appeals for the District of Columbia Cir-
cuit by filing a notice of appeal with that court not 
later than 30 days after the date of such decision. 
Each party shall bear its own costs and expenses, in-
cluding attorneys’ fees, for any appeal under this 
paragraph. 
‘‘(8) REGULATIONS.—Not later than 180 days 
after the date of the enactment of the Jumpstarting 
Opportunity with Broadband Spectrum Act of 2011, 
the NTIA shall, after public notice and comment 
and subject to approval by OMB, adopt regulations 
to govern the working of any dispute resolution 
boards established under paragraph (2)(A) and the 
role of the Technical Panel in assisting any such 
board. 
‘‘(9) 
CERTAIN
REQUIREMENTS
INAPPLI-
CABLE.—The Federal Advisory Committee Act (5 
U.S.C. App.) and sections 552 and 552b of title 5, 
United States Code, shall not apply to a dispute res-
olution board established under paragraph (2)(A). 
‘‘(j) RELOCATION PRIORITIZED OVER SHARING.—
322 
‘‘(1) IN
GENERAL.—In evaluating a band of 
frequencies for possible reallocation for exclusive 
non-Federal use or shared use, the NTIA shall give 
priority to options involving reallocation of the band 
for exclusive non-Federal use and shall choose op-
tions involving shared use only when it determines, 
in consultation with the Director of the Office of 
Management and Budget, that relocation of a Fed-
eral entity from the band is not feasible because of 
technical or cost constraints. 
‘‘(2) NOTIFICATION OF CONGRESS WHEN SHAR-
ING CHOSEN.—If the NTIA determines under para-
graph (1) that relocation of a Federal entity from 
the band is not feasible, the NTIA shall notify the 
Committee on Commerce, Science, and Transpor-
tation of the Senate and the Committee on Energy 
and Commerce of the House of Representatives of 
the determination, including the specific technical or 
cost constraints on which the determination is 
based.’’. 
(b) CONFORMING AMENDMENT.—Section 309(j) of 
the Communications Act of 1934, as amended by section 
4105, is further amended by striking ‘‘relocation costs’’ 
each place it appears and inserting ‘‘relocation or sharing 
costs’’.
323 
SEC. 4302. SPECTRUM RELOCATION FUND. 
Section 118 of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 
928) is amended— 
(1) by striking ‘‘relocation costs’’ each place it 
appears and inserting ‘‘relocation or sharing costs’’; 
(2) by amending subsection (c) to read as fol-
lows: 
‘‘(c) USE OF FUNDS.—The amounts in the Fund 
from auctions of eligible frequencies are authorized to be 
used to pay relocation or sharing costs of an eligible Fed-
eral entity incurring such costs with respect to relocation 
from or sharing of those frequencies.’’; 
(3) in subsection (d)— 
(A) in paragraph (2)— 
(i) in subparagraph (A), by inserting 
‘‘or sharing’’ before the semicolon; 
(ii) in subparagraph (B), by inserting 
‘‘or sharing’’ before the period at the end; 
(iii) by redesignating subparagraphs 
(A) and (B) as subparagraphs (B) and 
(C), respectively; and 
(iv) by inserting before subparagraph 
(B), as so redesignated, the following: 
‘‘(A) unless the eligible Federal entity has 
submitted a transition plan to the NTIA as re-
324 
quired by paragraph (1) of section 113(h), the 
Technical Panel has found such plan sufficient 
under paragraph (4) of such section, and the 
NTIA has made available such plan on its 
website as required by paragraph (5) of such 
section;’’; 
(B) by striking paragraph (3); and 
(C) by adding at the end the following: 
‘‘(3) TRANSFERS FOR PRE-AUCTION COSTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Director of OMB may transfer 
to an eligible Federal entity, at any time (in-
cluding prior to a scheduled auction), such 
sums as may be available in the Fund to pay 
relocation or sharing costs related to pre-auc-
tion estimates or research, as such costs are de-
scribed in section 113(g)(3)(A)(iii). 
‘‘(B) NOTIFICATION.—No funds may be 
transferred pursuant to subparagraph (A) un-
less— 
‘‘(i) the notification provided under 
paragraph (2)(C) includes a certification 
from the Director of OMB that— 
‘‘(I) funds transferred before an 
auction will likely allow for timely im-
325 
plementation of relocation or sharing, 
thereby increasing net expected auc-
tion proceeds by an amount not less 
than the time value of the amount of 
funds transferred; and 
‘‘(II) the auction is intended to 
occur not later than 5 years after 
transfer of funds; and 
‘‘(ii) the transition plan submitted by 
the eligible Federal entity under section 
113(h)(1) provides— 
‘‘(I) to the fullest extent possible, 
for sharing and coordination of eligi-
ble 
frequencies 
with 
non-Federal 
users, including reasonable accommo-
dation by the eligible Federal entity 
for the use of eligible frequencies by 
non-Federal users during the period 
that the entity is relocating its spec-
trum uses (in this clause referred to 
as the ‘transition period’); 
‘‘(II) for non-Federal users to be 
able to use eligible frequencies during 
the transition period in geographic
326 
areas where the eligible Federal entity 
does not use such frequencies; 
‘‘(III) that the eligible Federal 
entity will, during the transition pe-
riod, make itself available for negotia-
tion and discussion with non-Federal 
users not later than 30 days after a 
written request therefor; and 
‘‘(IV) that the eligible Federal 
entity will, during the transition pe-
riod, make available to a non-Federal 
user with appropriate security clear-
ances any classified information (as 
defined in section 798(b) of title 18, 
United States Code) regarding the re-
location process, on a need-to-know 
basis, to assist the non-Federal user 
in the relocation process with such eli-
gible Federal entity or other eligible 
Federal entities. 
‘‘(C) APPLICABILITY TO CERTAIN COSTS.— 
‘‘(i) IN
GENERAL.—The Director of 
OMB may transfer under subparagraph 
(A) not more than $10,000,000 for costs 
incurred after June 28, 2010, but before
328 
(A) in paragraph (1)(B)— 
(i) in clause (i), by striking ‘‘sub-
section (d)(2)(A)’’ and inserting ‘‘sub-
section (d)(2)(B)’’; and 
(ii) in clause (ii), by striking ‘‘sub-
section (d)(2)(B)’’ and inserting ‘‘sub-
section (d)(2)(C)’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘entity’s relocation’’ 
and inserting ‘‘relocation of the entity or 
implementation of the sharing arrange-
ment by the entity’’; 
(ii) by inserting ‘‘or the implementa-
tion of such arrangement’’ after ‘‘such re-
location’’; and 
(iii) 
by 
striking 
‘‘subsection 
(d)(2)(A)’’ 
and 
inserting 
‘‘subsection 
(d)(2)(B)’’; and 
(5) by adding at the end the following: 
‘‘(f) ADDITIONAL PAYMENTS FROM FUND.— 
‘‘(1) AMOUNTS
AVAILABLE.—Notwithstanding 
subsections (c) through (e), after the date of the en-
actment of the Jumpstarting Opportunity with 
Broadband Spectrum Act of 2011, there are appro-
priated from the Fund and available to the Director
329 
of OMB for use in accordance with paragraph (2) 
not more than 10 percent of the amounts deposited 
in the Fund from auctions occurring after such date 
of enactment of licenses for the use of spectrum va-
cated by eligible Federal entities. 
‘‘(2) USE OF AMOUNTS.— 
‘‘(A) IN GENERAL.—The Director of OMB, 
in consultation with the NTIA, may use 
amounts made available under paragraph (1) to 
make payments to eligible Federal entities that 
are implementing a transition plan submitted 
under section 113(h)(1) in order to encourage 
such entities to complete the implementation 
more quickly, thereby encouraging timely access 
to the eligible frequencies that are being reallo-
cated for exclusive non-Federal use or shared 
use. 
‘‘(B) CONDITIONS.—In the case of any 
payment by the Director of OMB under sub-
paragraph (A)— 
‘‘(i) such payment shall be based on 
the market value of the eligible fre-
quencies, the timeliness with which the eli-
gible Federal entity clears its use of such 
frequencies, and the need for such fre-
330 
quencies in order for the entity to conduct 
its essential missions; 
‘‘(ii) the eligible Federal entity shall 
use such payment for the purposes speci-
fied in clauses (i) through (v) of section 
113(g)(3)(A) to achieve comparable capa-
bility of systems affected by the realloca-
tion of eligible frequencies from Federal 
use to exclusive non-Federal use or to 
shared use; 
‘‘(iii) such payment may not be made 
if the amount remaining in the Fund after 
such payment will be less than 10 percent 
of the winning bids in the auction of the 
spectrum with respect to which the Federal 
entity is incurring relocation or sharing 
costs; and 
‘‘(iv) such payment may not be made 
until 30 days after the Director of OMB 
has notified the congressional committees 
described in subsection (d)(2)(C).’’. 
SEC. 4303. NATIONAL SECURITY AND OTHER SENSITIVE IN-
FORMATION. 
Part B of title I of the National Telecommunications 
and Information Administration Organization Act (47
331 
U.S.C. 921 et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 119. NATIONAL SECURITY AND OTHER SENSITIVE IN-
FORMATION. 
‘‘(a) DETERMINATION.—If the head of an Executive 
agency (as defined in section 105 of title 5, United States 
Code) determines that public disclosure of any information 
contained in a notification or report required by section 
113 or 118 would reveal classified national security infor-
mation, or other information for which there is a legal 
basis for nondisclosure and the public disclosure of which 
would be detrimental to national security, homeland secu-
rity, or public safety or would jeopardize a law enforce-
ment investigation, the head of the Executive agency shall 
notify the Assistant Secretary of that determination prior 
to the release of such information. 
‘‘(b) INCLUSION IN ANNEX.—The head of the Execu-
tive agency shall place the information with respect to 
which a determination was made under subsection (a) in 
a separate annex to the notification or report required by 
section 113 or 118. The annex shall be provided to the 
subcommittee of primary jurisdiction of the congressional 
committee of primary jurisdiction in accordance with ap-
propriate national security stipulations but shall not be
332 
disclosed to the public or provided to any unauthorized 
person through any means.’’. 
Subtitle D—Telecommunications 
Development Fund 
SEC. 4401. NO ADDITIONAL FEDERAL FUNDS. 
Section 309(j)(8)(C)(iii) of the Communications Act 
of 1934 (47 U.S.C. 309(j)(8)(C)(iii)) is amended to read 
as follows: 
‘‘(iii) the interest accrued to the ac-
count shall be deposited in the general 
fund of the Treasury, where such amount 
shall be dedicated for the sole purpose of 
deficit reduction.’’. 
SEC. 4402. INDEPENDENCE OF THE FUND. 
Section 714 of the Communications Act of 1934 (47 
U.S.C. 614) is amended— 
(1) by striking subsection (c) and inserting the 
following: 
‘‘(c) INDEPENDENT BOARD
OF DIRECTORS.—The 
Fund shall have a Board of Directors consisting of 5 peo-
ple with experience in areas including finance, investment 
banking, government banking, communications law and 
administrative practice, and public policy. The Board of 
Directors shall select annually a Chair from among the 
directors. A nominating committee, comprised of the Chair
333 
and 2 other directors selected by the Chair, shall appoint 
additional directors. The Fund’s bylaws shall regulate the 
other aspects of the Board of Directors, including provi-
sions relating to meetings, quorums, committees, and 
other matters, all as typically contained in the bylaws of 
a similar private investment fund.’’; 
(2) in subsection (d)— 
(A) by striking ‘‘(after consultation with 
the Commission and the Secretary of the Treas-
ury)’’; 
(B) by striking paragraph (1); and 
(C) 
by 
redesignating 
paragraphs 
(2) 
through (4) as paragraphs (1) through (3), re-
spectively; and 
(3) in subsection (g), by striking ‘‘subsection 
(d)(2)’’ and inserting ‘‘subsection (d)(1)’’. 
TITLE V—OFFSETS 
Subtitle A—Guarantee Fees 
SEC. 5001. GUARANTEE FEES. 
Subpart A of part 2 of subtitle A of title XIII of the 
Housing and Community Development Act of 1992 is 
amended by adding after section 1326 (12 U.S.C. 4546) 
the following new section:
334 
‘‘SEC. 1327. ENTERPRISE GUARANTEE FEES. 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) GUARANTEE FEE.—The term ‘guarantee 
fee’— 
‘‘(A) means a fee described in subsection 
(b); and 
‘‘(B) includes— 
‘‘(i) the guaranty fee charged by the 
Federal National Mortgage Association 
with respect to mortgage-backed securities; 
and 
‘‘(ii) the management and guarantee 
fee charged by the Federal Home Loan 
Mortgage Corporation with respect to par-
ticipation certificates. 
‘‘(2) AVERAGE FEES.—The term ‘average fees’ 
means the average contractual fee rate of single- 
family guaranty arrangements by an enterprise en-
tered into during 2011, plus the recognition of any 
up-front cash payments over an estimated average 
life, expressed in terms of basis points. Such defini-
tion shall be interpreted in a manner consistent with 
the annual report on guarantee fees by the Federal 
Housing Finance Agency. 
‘‘(b) INCREASE.—
335 
‘‘(1) IN GENERAL.— 
‘‘(A) PHASED INCREASE REQUIRED.—Sub-
ject to subsection (c), the Director shall require 
each enterprise to charge a guarantee fee in 
connection with any guarantee of the timely 
payment of principal and interest on securities, 
notes, and other obligations based on or backed 
by mortgages on residential real properties de-
signed principally for occupancy of from 1 to 4 
families, consummated after the date of enact-
ment of this section. 
‘‘(B) AMOUNT.—The amount of the in-
crease required under this section shall be de-
termined by the Director to appropriately re-
flect the risk of loss, as well the cost of capital 
allocated to similar assets held by other fully 
private regulated financial institutions, but such 
amount shall be not less than an average in-
crease of 10 basis points for each origination 
year or book year above the average fees im-
posed in 2011 for such guarantees. The Direc-
tor shall prohibit an enterprise from offsetting 
the cost of the fee to mortgage originators, bor-
rowers, and investors by decreasing other
336 
charges, fees, or premiums, or in any other 
manner. 
‘‘(2) AUTHORITY TO LIMIT OFFER OF GUAR-
ANTEE.—The Director shall prohibit an enterprise 
from consummating any offer for a guarantee to a 
lender for mortgage-backed securities, if— 
‘‘(A) the guarantee is inconsistent with the 
requirements of this section; or 
‘‘(B) the risk of loss is allowed to increase, 
through lowering of the underwriting standards 
or other means, for the primary purpose of 
meeting the requirements of this section. 
‘‘(3) DEPOSIT
IN
TREASURY.—To the extent 
that amounts are received from fee increases im-
posed under this section that are necessary to com-
ply with the minimum increase required by this sub-
section, such amounts shall be deposited directly into 
the United States Treasury, and shall be available 
only to the extent provided in subsequent appropria-
tions Acts. Such fees shall not be considered a reim-
bursement to the Federal Government for the costs 
or subsidy provided to an enterprise. 
‘‘(c) PHASE-IN.— 
‘‘(1) IN GENERAL.—The Director may provide 
for compliance with subsection (b) by allowing each
337 
enterprise to increase the guarantee fee charged by 
the enterprise gradually over the 2-year period be-
ginning on the date of enactment of this section, in 
a manner sufficient to comply with this section. In 
determining a schedule for such increases, the Direc-
tor shall— 
‘‘(A) provide for uniform pricing among 
lenders; 
‘‘(B) provide for adjustments in pricing 
based on risk levels; and 
‘‘(C) take into consideration conditions in 
financial markets. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be interpreted to undermine the 
minimum increase required by subsection (b). 
‘‘(d) INFORMATION
COLLECTION
AND
ANNUAL 
ANALYSIS.—The Director shall require each enterprise to 
provide to the Director, as part of its annual report sub-
mitted to Congress— 
‘‘(1) a description of— 
‘‘(A) changes made to up-front fees and 
annual fees as part of the guarantee fees nego-
tiated with lenders; and
338 
‘‘(B) changes to the riskiness of the new 
borrowers compared to previous origination 
years or book years; and 
‘‘(2) an assessment of how the changes in the 
guarantee fees described in paragraph (1) met the 
requirements of subsection (b). 
‘‘(e) ENFORCEMENT.— 
‘‘(1) REQUIRED ADJUSTMENTS.—Based on the 
information from subsection (d) and any other infor-
mation the Director deems necessary, the Director 
shall require an enterprise to make adjustments in 
its guarantee fee in order to be in compliance with 
subsection (b). 
‘‘(2) NONCOMPLIANCE
PENALTY.—An enter-
prise that has been found to be out of compliance 
with subsection (b) for any 2 consecutive years shall 
be precluded from providing any guarantee for a pe-
riod, determined by rule of the Director, but in no 
case less than 1 year. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be interpreted as preventing the 
Director from initiating and implementing an en-
forcement action against an enterprise, at a time the 
Director deems necessary, under other existing en-
forcement authority.
339 
‘‘(f) AUTHORITY FOR OTHER INCREASES.—Nothing 
in this section may be construed to prohibiting, restricting, 
or limiting increases, other than pursuant to this section, 
in the guarantee fees charged by an enterprise. 
‘‘(g) EXPIRATION.—The provisions of this section 
shall expire on October 1, 2021.’’. 
Subtitle B—Social Security 
Provisions 
SEC. 5101. INFORMATION FOR ADMINISTRATION OF SOCIAL 
SECURITY PROVISIONS RELATED TO NON-
COVERED EMPLOYMENT. 
(a) COLLECTION.—Subsection (d) of section 6047 of 
the Internal Revenue Code of 1986 is amended by redesig-
nating paragraph (2) as paragraph (3) and by inserting 
after paragraph (1) the following new paragraph: 
‘‘(2) DEFERRED COMPENSATION PLANS OF A 
STATE.— 
‘‘(A) IN GENERAL.—In the case of any em-
ployer deferred compensation plan (as defined 
in section 3405(e)(5)) of a State, a political 
subdivision thereof, or any agency or instru-
mentality of any of the foregoing, the Secretary 
shall in such forms or regulations require, to 
the extent such information is known or should 
be known, the identification of any designated
340 
distribution (as defined in section 3405(e)(1)) if 
paid to any participant or beneficiary of such 
plan based in whole or in part upon an individ-
ual’s earnings for service in the employ of any 
such governmental entity. 
‘‘(B) STATE.—For purposes of subpara-
graph (A), the term ‘State’ includes the District 
of Columbia, the Commonwealth or Puerto 
Rico, the Virgin Island, Guam, and American 
Samoa.’’. 
(b) DISCLOSURE.—Paragraph (1) of section 6103(l) 
of such Code is amended by striking ‘‘and’’ at the end 
of subparagraph (B), by striking the period at the end 
of subparagraph (C) and inserting ‘‘; and’’, and by adding 
at the end the following: 
‘‘(D) any designated distribution described 
in section 6047(d)(2) to the Social Security Ad-
ministration for purposes of its administration 
of the Social Security Act.’’. 
(c) EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendments made 
by subsection (a) shall apply to distributions made 
after December 31, 2012.
341 
(2) SUBSECTION (b).—The amendment made 
by subsection (b) shall apply to disclosures made 
after December 31, 2012. 
Subtitle C—Child Tax Credit 
SEC. 5201. SOCIAL SECURITY NUMBER REQUIRED TO 
CLAIM THE REFUNDABLE PORTION OF THE 
CHILD TAX CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 24 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(5) IDENTIFICATION REQUIREMENT WITH RE-
SPECT TO TAXPAYER.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any taxpayer for any taxable year 
unless the taxpayer includes the taxpayer’s So-
cial Security number on the return of tax for 
such taxable year. 
‘‘(B) JOINT RETURNS.—In the case of a 
joint return, the requirement of subparagraph 
(A) shall be treated as met if the Social Secu-
rity number of either spouse is included on such 
return.’’. 
(b) OMISSION TREATED
AS MATHEMATICAL
OR 
CLERICAL
ERROR.—Subparagraph 
(I) 
of 
section 
6213(g)(2) of such Code is amended to read as follows:
342 
‘‘(I) an omission of a correct Social Secu-
rity number required under section 24(d)(5) 
(relating to refundable portion of child tax cred-
it), or a correct TIN under section 24(e) (relat-
ing to child tax credit), to be included on a re-
turn,’’. 
(c) CONFORMING AMENDMENT.—Subsection (e) of 
section 24 of such Code is amended by inserting ‘‘WITH 
RESPECT
TO QUALIFYING CHILDREN’’ after ‘‘IDENTI-
FICATION REQUIREMENT’’ in the heading thereof. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Subtitle D—Eliminating Taxpayer 
Benefits for Millionaires 
SEC. 5301. ENDING UNEMPLOYMENT AND SUPPLEMENTAL 
NUTRITION ASSISTANCE PROGRAM BENEFITS 
FOR MILLIONAIRES. 
(a) ENDING UNEMPLOYMENT BENEFITS FOR MIL-
LIONAIRES.— 
(1) IN GENERAL.—Subtitle E of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new chapter:
343 
‘‘CHAPTER 56—EXCESS UNEMPLOYMENT 
COMPENSATION 
‘‘Sec. 5895. Excess unemployment compensation. 
‘‘SEC. 5895. EXCESS UNEMPLOYMENT COMPENSATION. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
a tax equal to 100 percent of the excess unemployment 
compensation received by a taxpayer in any taxable year. 
‘‘(b) EXCESS UNEMPLOYMENT COMPENSATION.— 
For purposes of this section, the term ‘excess unemploy-
ment compensation’ means, with respect to any State, the 
amount which bears the same ratio (not to exceed 1) to 
the amount of unemployment compensation received by 
the taxpayer from such State in the taxable year as— 
‘‘(1) the excess of— 
‘‘(A) the taxpayer’s adjusted gross income 
for such taxable year, over 
‘‘(B) $750,000 ($1,500,000 in the case of 
a joint return), bears to 
‘‘(2) $250,000 ($500,000 in the case of a joint 
return). 
‘‘(c) ADDITIONAL DEFINITIONS.—For purposes of 
this section— 
‘‘(1) ADJUSTED GROSS INCOME.—The term ‘ad-
justed gross income’ has the meaning given such 
term by section 62.
344 
‘‘(2) UNEMPLOYMENT
COMPENSATION.—The 
term ‘unemployment compensation’ has the meaning 
given such term by section 85(b). 
‘‘(d) ADMINISTRATIVE PROVISIONS.—For purposes 
of the deficiency procedures of subtitle F, any tax imposed 
by this section shall be treated as a tax imposed by subtitle 
A. 
‘‘(e) TRANSFER OF TAX RECEIPTS.—With respect to 
excess unemployment compensation received by any tax-
payer from a State, there is hereby appropriated to the 
unemployment fund (as defined in section 3306(f)) of such 
State, an amount equal to the amount of the tax imposed 
under subsection (a) on such excess unemployment com-
pensation received in the Treasury.’’. 
(2) TAX NOT DEDUCTIBLE.—Section 275(a) of 
the Internal Revenue Code of 1986 is amended by 
inserting after paragraph (6) the following new 
paragraph: 
‘‘(7) Tax imposed by section 5895.’’. 
(3) CLERICAL
AMENDMENT.—The table of 
chapters for subtitle E of the Internal Revenue Code 
of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘CHAPTER 56—EXCESS UNEMPLOYMENT COMPENSATION’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to unemployment com-
345 
pensation received in taxable years beginning after 
December 31, 2011. 
(b) ENDING SUPPLEMENTAL NUTRITION ASSIST-
ANCE PROGRAM BENEFITS FOR MILLIONAIRES.— 
(1) IN GENERAL.—Section 6 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015) is amended 
by adding at the end the following: 
‘‘(r) DISQUALIFICATION FOR RECEIPT OF ASSETS OF 
AT LEAST $1,000,000.—Any household in which a mem-
ber receives income or assets with a fair market value of 
at least $1,000,000 shall, immediately on the receipt of 
the assets, become ineligible for further participation in 
the program until the date on which the household meets 
the income eligibility and allowable financial resources 
standards under section 5.’’. 
(2) CONFORMING AMENDMENTS.—Section 5(a) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(a)) is amended in the second sentence by strik-
ing ‘‘sections 6(b), 6(d)(2), and 6(g)’’ and inserting 
‘‘subsections (b), (d)(2), (g), and (r) of section 6’’.
346 
Subtitle E—Federal Civilian 
Employees 
PART 1—RETIREMENT ANNUITIES 
SEC. 5401. SHORT TITLE. 
This part may be cited as the ‘‘Securing Annuities 
for Federal Employees Act of 2011’’. 
SEC. 5402. RETIREMENT CONTRIBUTIONS. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.— 
(1) 
INDIVIDUAL
CONTRIBUTIONS.—Section 
8334(a)(1)(A) of title 5, United States Code, is 
amended— 
(A) by striking ‘‘(a)(1)(A) The’’ and in-
serting ‘‘(a)(1)(A)(i) Except as provided in 
clause (ii), the’’; and 
(B) by adding at the end the following: 
‘‘(ii) The percentage of basic pay to be deducted and 
withheld under clause (i) shall— 
‘‘(I) for each of calendar years 2013, 2014, and 
2015, be equal to the percentage that applied in the 
preceding calendar year (as increased under this 
subclause, if applicable), plus an additional 0.5 per-
centage point; and 
‘‘(II) for each calendar year after 2015, be 
equal to the applicable percentage for calendar year 
2015 (as determined under subclause (I)).’’.
347 
(2) GOVERNMENT
CONTRIBUTIONS.—Section 
8334(a)(1)(B) of title 5, United States Code, is 
amended— 
(A) in clause (i), by striking ‘‘Except as 
provided in clause (ii),’’ and inserting ‘‘Except 
as provided in clause (ii) or (iii),’’; and 
(B) by adding at the end the following: 
‘‘(iii) The amount to be contributed under clause (i) 
shall, with respect to a period in any calendar year speci-
fied in subparagraph (A)(ii), be equal to— 
‘‘(I) the amount that would otherwise apply 
under clause (i), reduced by 
‘‘(II) the amount by which the withholding 
under subparagraph (A) exceeds the amount which 
would (but for clause (ii) of such subparagraph) oth-
erwise have been withheld under such subparagraph 
from the basic pay of the employee or elected official 
involved with respect to such period.’’. 
(3) OFFSET RULE.—Section 8334(k) of title 5, 
United States Code, is amended by adding at the 
end the following: 
‘‘(5) This subsection shall be applied in a manner 
consistent with subsections (a)(1)(A)(ii) and (a)(1)(B)(iii) 
of section 8334.’’.
348 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 
Section 8422(a) of title 5, United States Code, is amend-
ed— 
(1) in paragraph (1), by striking ‘‘paragraph 
(2).’’ and inserting ‘‘this subsection.’’; and 
(2) by adding at the end the following: 
‘‘(4) Notwithstanding any other provision of this sub-
section, the percentage to be deducted and withheld under 
this subsection shall— 
‘‘(A) for each of calendar years 2013, 2014, 
and 2015, be equal to the percentage that applied in 
the preceding calendar year under this subsection 
(including this subparagraph, if applicable), plus an 
additional 0.5 percentage point; and 
‘‘(B) for each calendar year after 2015, be 
equal to the applicable percentage for calendar year 
2015 (as determined under subparagraph (A)).’’. 
(c) FOREIGN SERVICE.—For provisions of law requir-
ing maintenance of existing conformity— 
(1) between the Civil Service Retirement Sys-
tem and the Foreign Service Retirement System, 
and 
(2) between the Federal Employees’ Retirement 
System and the Foreign Service Pension System,
349 
see section 827 of the Foreign Service Act of 1980 (22 
U.S.C. 4067). 
(d) CIARDS.— 
(1) COMPATIBILITY WITH CSRS.—In order to 
carry out the purposes of this section with respect 
to the Central Intelligence Agency Retirement and 
Disability System, the authority under section 292 
of the Central Intelligence Agency Retirement Act 
(50 U.S.C. 2141) shall be applied. 
(2) APPLICABILITY OF FERS.—For provisions 
of law providing for the application of the Federal 
Employees’ Retirement System with respect to em-
ployees of the Central Intelligence Agency, see title 
III of the Central Intelligence Agency Retirement 
Act (50 U.S.C. 2151 and following). 
(e) TVA.—Section 3 of the Tennessee Valley Author-
ity Act of 1933 (16 U.S.C. 831b) is amended by adding 
at the end the following: 
‘‘(c) The chief executive officer shall prescribe any 
regulations which may be necessary in order to carry out 
the purposes of the Securing Annuities for Federal Em-
ployees Act of 2011 with respect to any defined benefit 
plan covering employees of the Tennessee Valley Author-
ity.’’.
350 
SEC. 5403. AMENDMENTS RELATING TO SECURE ANNUITY 
EMPLOYEES. 
(a) DEFINITION OF SECURE ANNUITY EMPLOYEE.— 
Section 8401 of title 5, United States Code, is amended— 
(1) in paragraph (35), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (36), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(37) the term ‘secure annuity employee’ means 
an employee or Member who— 
‘‘(A) first becomes subject to this chapter 
after December 31, 2012; and 
‘‘(B) at the time of first becoming subject 
to this chapter, does not have at least 5 years 
of civilian service creditable under the Civil 
Service Retirement System or any other retire-
ment system for Government employees.’’. 
(b) INDIVIDUAL CONTRIBUTIONS.—Section 8422(a) 
of title 5, United States Code (as amended by section 
2(b)) is further amended— 
(1) in paragraph (4) (as added by section 2(b)), 
in the matter before subparagraph (A), by inserting 
‘‘and except in the case of a secure annuity em-
ployee,’’ after ‘‘this subsection’’; and
351 
(2) by adding after paragraph (4) (as so added) 
the following: 
‘‘(5) Notwithstanding any other provision of this sub-
section, in the case of a secure annuity employee, the per-
centage to be deducted and withheld shall be computed 
under paragraphs (1) through (3), except that the applica-
ble percentage under paragraph (3) for civilian service 
shall— 
‘‘(A) in the case of a secure annuity employee 
who is an employee, be equal to 10.2 percent; and 
‘‘(B) in the case of a secure annuity employee 
who is not subject to subparagraph (A), 10.7 per-
cent.’’. 
(c) AVERAGE PAY.—Section 8401(3) of title 5, 
United States Code, is amended— 
(1) by striking ‘‘(3)’’ and inserting ‘‘(3)(A)’’; 
and 
(2) by adding ‘‘except that’’ after the semicolon; 
and 
(3) by adding at the end the following: 
‘‘(B) in the case of a secure annuity employee, 
the term ‘average pay’ has the meaning determined 
applying subparagraph (A)— 
‘‘(i) by substituting ‘5 consecutive years’ 
for ‘3 consecutive years’; and
353 
‘‘(1) except as provided under paragraph (2), 
by multiplying 1.7 percent of the individual’s aver-
age pay by the years of such service; or 
‘‘(2) in the case of an individual who is a secure 
annuity employee, by multiplying 1.4 percent of the 
individual’s average pay by the years of such service. 
‘‘(c) The annuity of a Congressional employee, or 
former Congressional employee, retiring under this sub-
chapter is computed under subsection (a), except that if 
the individual has had at least 5 years of service as a Con-
gressional employee or Member, or any combination there-
of, so much of the annuity as is computed with respect 
to either such type of service (or a combination thereof), 
not exceeding a total of 20 years, shall be computed— 
‘‘(1) except as provided under paragraph (2), 
by multiplying 1.7 percent of the individual’s aver-
age pay by the years of such service; or 
‘‘(2) in the case of an individual who is a secure 
annuity employee, by multiplying 1.4 percent of the 
individual’s average pay by the years of such service. 
‘‘(d) The annuity of an employee retiring under sub-
section (d) or (e) of section 8412 or under subsection (a), 
(b), or (c) of section 8425 is— 
‘‘(1) except as provided under paragraph (2)—
354 
‘‘(A) 1.7 percent of that individual’s aver-
age pay multiplied by so much of such individ-
ual’s total service as does not exceed 20 years; 
plus 
‘‘(B) 1 percent of that individual’s average 
pay multiplied by so much of such individual’s 
total service as exceeds 20 years; or 
‘‘(2) in the case of an individual who is a secure 
annuity employee— 
‘‘(A) 1.4 percent of that individual’s aver-
age pay multiplied by so much of such individ-
ual’s total service as does not exceed 20 years; 
plus 
‘‘(B) 0.7 percent of that individual’s aver-
age pay multiplied by so much of such individ-
ual’s total service as exceeds 20 years. 
‘‘(e) The annuity of an air traffic controller or former 
air traffic controller retiring under section 8412(a) is com-
puted under subsection (a), except that if the individual 
has had at least 5 years of service as an air traffic con-
troller as defined by section 2109(1)(A)(i), so much of the 
annuity as is computed with respect to such type of service 
shall be computed—
355 
‘‘(1) except as provided under paragraph (2), 
by multiplying 1.7 percent of the individual’s aver-
age pay by the years of such service; or 
‘‘(2) in the case of an individual who is a secure 
annuity employee, by multiplying 1.4 percent of the 
individual’s average pay by the years of such serv-
ice.’’; and 
(2) in subsection (h)— 
(A) in paragraph (1), by striking ‘‘sub-
section (a)’’ and inserting ‘‘subsection (a)(1)’’; 
and 
(B) in paragraph (2), in the matter fol-
lowing subparagraph (B), by striking ‘‘or cus-
toms and border protection officer’’ and insert-
ing ‘‘customs and border protection officer, or 
secure annuity employee.’’. 
SEC. 5404. ANNUITY SUPPLEMENT. 
Section 8421(a) of title 5, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 
(2) in paragraph (2), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 
(3) by adding at the end the following:
356 
‘‘(4)(A) Except as provided in subparagraph (B), no 
annuity supplement under this section shall be payable in 
the case of an individual whose entitlement to annuity is 
based on such individual’s separation from service after 
December 31, 2012. 
‘‘(B) Nothing in this paragraph applies in the case 
of an individual separating under subsection (d) or (e) of 
section 8412.’’. 
PART 2—FEDERAL WORKFORCE 
SEC. 5421. EXTENSION OF PAY LIMITATION FOR FEDERAL 
EMPLOYEES. 
(a) IN GENERAL.—Section 147 of the Continuing 
Appropriations Act, 2011 (Public Law 111–242), as 
amended by section 1(a) of the Continuing Appropriations 
and Surface Transportation Extensions Act, 2011 (Public 
Law 111–322; 124 Stat. 3518), is further amended— 
(1) in subsection (b)(1), by striking ‘‘December 
31, 2012’’ and inserting ‘‘December 31, 2013’’; and 
(2) in subsection (c), by striking ‘‘December 31, 
2012’’ and inserting ‘‘December 31, 2013’’. 
(b) APPLICATION TO LEGISLATIVE BRANCH.— 
(1) MEMBERS OF CONGRESS.—The extension of 
the pay limit for Federal employees through Decem-
ber 31, 2013, as established pursuant to the amend-
ments made by subsection (a), shall apply to Mem-
357 
bers of Congress in accordance with section 601(a) 
of the Legislative Reorganization Act of 1946 (2 
U.S.C. 31). 
(2) OTHER
LEGISLATIVE
BRANCH
EMPLOY-
EES.— 
(A) LIMIT IN PAY.—Notwithstanding any 
other provision of law, no cost of living adjust-
ment required by statute with respect to a legis-
lative branch employee which (but for this sub-
paragraph) would otherwise take effect during 
the period beginning on the date of enactment 
of this Act and ending on December 31, 2013, 
shall be made. 
(B) DEFINITION.—In this paragraph, the 
term ‘‘legislative branch employee’’ means— 
(i) an employee of the Federal Gov-
ernment whose pay is disbursed by the 
Secretary of the Senate or the Chief Ad-
ministrative Officer of the House of Rep-
resentatives; and 
(ii) an employee of any office of the 
legislative branch who is not described in 
clause (i).
358 
SEC. 5422. REDUCTION OF DISCRETIONARY SPENDING LIM-
ITS TO ACHIEVE SAVINGS FROM FEDERAL 
EMPLOYEE PROVISIONS. 
Section 251(c) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended to read as 
follows: 
‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in 
this part, the term ‘discretionary spending limit’ means— 
‘‘(1) with respect to fiscal year 2013— 
‘‘(A) 
for 
the 
security 
category, 
$685,000,000,000 in new budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$359,000,000,000 in new budget authority; 
‘‘(2) with respect to fiscal year 2014, for the 
discretionary category, $1,063,000,000,000 in new 
budget authority; 
‘‘(3) with respect to fiscal year 2015, for the 
discretionary category, $1,083,000,000,000 in new 
budget authority; 
‘‘(4) with respect to fiscal year 2016, for the 
discretionary category, $1,104,000,000,000 in new 
budget authority; 
‘‘(5) with respect to fiscal year 2017, for the 
discretionary category, $1,128,000,000,000 in new 
budget authority;
359 
‘‘(6) with respect to fiscal year 2018, for the 
discretionary category, $1,153,000,000,000 in new 
budget authority; 
‘‘(7) with respect to fiscal year 2019, for the 
discretionary category, $1,178,000,000,000 in new 
budget authority; 
‘‘(8) with respect to fiscal year 2020, for the 
discretionary category, $1,204,000,000,000 in new 
budget authority; and 
‘‘(9) with respect to fiscal year 2021, for the 
discretionary category, $1,230,000,000,000 in new 
budget authority; 
as adjusted in strict conformance with subsection (b).’’. 
SEC. 
5423. 
REDUCTION 
OF 
REVISED 
DISCRETIONARY 
SPENDING 
LIMITS 
TO 
ACHIEVE 
SAVINGS 
FROM FEDERAL EMPLOYEE PROVISIONS. 
Paragraph (2) of section 251A of the Balanced Budg-
et and Emergency Deficit Control Act of 1985 is amended 
to read as follows: 
‘‘(2) REVISED DISCRETIONARY SPENDING LIM-
ITS.—The discretionary spending limits for fiscal 
years 2013 through 2021 under section 251(c) shall 
be replaced with the following: 
‘‘(A) For fiscal year 2013—
360 
‘‘(i) 
for 
the 
security 
category, 
$546,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$499,000,000,000 in budget authority. 
‘‘(B) For fiscal year 2014— 
‘‘(i) 
for 
the 
security 
category, 
$556,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$507,000,000,000 in budget authority. 
‘‘(C) For fiscal year 2015— 
‘‘(i) 
for 
the 
security 
category, 
$566,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$517,000,000,000 in budget authority. 
‘‘(D) For fiscal year 2016— 
‘‘(i) 
for 
the 
security 
category, 
$577,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$527,000,000,000 in budget authority. 
‘‘(E) For fiscal year 2017— 
‘‘(i) 
for 
the 
security 
category, 
$590,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$538,000,000,000 in budget authority. 
‘‘(F) For fiscal year 2018—
361 
‘‘(i) 
for 
the 
security 
category, 
$603,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$550,000,000,000 in budget authority. 
‘‘(G) For fiscal year 2019— 
‘‘(i) 
for 
the 
security 
category, 
$616,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$562,000,000,000 in budget authority. 
‘‘(H) For fiscal year 2020— 
‘‘(i) 
for 
the 
security 
category, 
$630,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$574,000,000,000 in budget authority. 
‘‘(I) For fiscal year 2021— 
‘‘(i) 
for 
the 
security 
category, 
$644,000,000,000 in budget authority; and 
‘‘(ii) for the nonsecurity category, 
$586,000,000,000 in budget authority.’’.
362 
Subtitle F—Health Care Provisions 
SEC. 5501. INCREASE IN APPLICABLE PERCENTAGE USED 
TO CALCULATE MEDICARE PART B AND PART 
D 
PREMIUMS 
FOR 
HIGH-INCOME 
BENE-
FICIARIES. 
(a) IN GENERAL.—Section 1839(i)(3)(C)(i) of the 
Social Security Act (42 U.S.C. 1395r(i)(3)(C)(i)) is 
amended— 
(1) by striking ‘‘IN GENERAL.—’’ and inserting 
‘‘IN
GENERAL.—(I) For calendar years prior to 
2017:’’; and 
(2) by adding at the end the following new sub-
clause: 
‘‘(II) For calendar year 2017 and 
each subsequent calendar year: 
‘‘If the modified adjusted gross is: 
The applicable percentage 
is: 
More than $80,000 but not more than 
$100,000.
40.25 percent 
More than $100,000 but not more than 
$150,000.
57.5 percent 
More than $150,000 but not more than 
$200,000.
74.75 percent 
More than $200,000 ...................................
90 percent.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
1839(i)(3)(A)(i) of the Social Security Act (42 U.S.C. 
1395r(i)(3)(A)(i)) is amended, by inserting ‘‘and year’’ 
after ‘‘individual’’.
363 
SEC. 5502. TEMPORARY ADJUSTMENT TO THE CALCULA-
TION OF MEDICARE PART B AND PART D PRE-
MIUMS. 
(a) IN GENERAL.—Section 1839(i)(6) of the Social 
Security Act (42 U.S.C. 1395r(i)(6)) is amended in the 
matter preceding subparagraph (A) by striking ‘‘Decem-
ber 31, 2019’’ and inserting ‘‘December 31 of the first 
year after the year in which at least 25 percent of individ-
uals enrolled under this part are subject to a reduction 
under this subsection to the monthly amount of the pre-
mium subsidy applicable to the premium under this sec-
tion.’’. 
(b) APPLICATION
OF INFLATION ADJUSTMENT.— 
Section 1839(i)(5) of the Social Security Act (42 U.S.C. 
1395r(i)(5)) is amended— 
(1) in subparagraph (A), by striking ‘‘In the 
case’’ and inserting ‘‘Subject to subparagraph (C), 
in the case’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) TREATMENT OF YEARS AFTER TEM-
PORARY
ADJUSTMENT
PERIOD.—In applying 
subparagraph (A) for the first year beginning 
after the period described in paragraph (6) and 
for each subsequent year, the 12-month period 
ending with August 2006 described in clause
365 
SEC. 6002. REPEAL OF REQUIREMENT RELATING TO TIME 
FOR 
REMITTING 
CERTAIN 
MERCHANDISE 
PROCESSING FEES. 
(a) REPEAL.—The Trade Adjustment Assistance Ex-
tension Act of 2011 (title II of Public Law 112–40; 125 
Stat. 402) is amended by striking section 263. 
(b) CLERICAL AMENDMENT.—The table of contents 
for such Act is amended by striking the item relating to 
section 263. 
SEC. 6003. POINTS OF ORDER IN THE SENATE. 
(a) POINT OF ORDER TO PROTECT THE SOCIAL SE-
CURITY TRUST FUND.— 
(1) Notwithstanding any other provision of law, 
it shall not be in order in the Senate to consider any 
measure that extends the dates referenced in section 
601(c) of the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010 (26 
U.S.C. 1401 note). 
(2) The provisions of this subsection may be 
waived in the Senate only by the affirmative vote of 
two-thirds of the Members, duly chosen and sworn. 
(b) POINT OF ORDER AGAINST AN EMERGENCY DES-
IGNATION.—Section 314 of the Congressional Budget Act 
of 1974 is amended by— 
(1) redesignating subsection (e) as subsection 
(f); and
366 
(2) inserting after subsection (d) the following: 
‘‘(e) SENATE POINT OF ORDER AGAINST AN EMER-
GENCY DESIGNATION.— 
‘‘(1) IN GENERAL.—When the Senate is consid-
ering a bill, resolution, amendment, motion, amend-
ment between the Houses, or conference report, if a 
point of order is made by a Senator against an 
emergency designation in that measure, that provi-
sion making such a designation shall be stricken 
from the measure and may not be offered as an 
amendment from the floor. 
‘‘(2) SUPERMAJORITY WAIVER AND APPEALS.— 
‘‘(A) WAIVER.—Paragraph (1) may be 
waived or suspended in the Senate only by an 
affirmative vote of three-fifths of the Members, 
duly chosen and sworn. 
‘‘(B) APPEALS.—Appeals in the Senate 
from the decisions of the Chair relating to any 
provision of this subsection shall be limited to 
1 hour, to be equally divided between, and con-
trolled by, the appellant and the manager of the 
bill or joint resolution, as the case may be. An 
affirmative vote of three-fifths of the Members 
of the Senate, duly chosen and sworn, shall be 
required to sustain an appeal of the ruling of
367 
the Chair on a point of order raised under this 
subsection. 
‘‘(3) DEFINITION OF AN EMERGENCY DESIGNA-
TION.—For purposes of paragraph (1), a provision 
shall be considered an emergency designation if it 
designates 
any 
item 
pursuant 
to 
section 
251(b)(2)(A)(i) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985. 
‘‘(4) FORM OF THE POINT OF ORDER.—A point 
of order under paragraph (1) may be raised by a 
Senator as provided in section 313(e) of the Con-
gressional Budget Act of 1974. 
‘‘(5) CONFERENCE REPORTS.—When the Sen-
ate is considering a conference report on, or an 
amendment between the Houses in relation to, a bill, 
upon a point of order being made by any Senator 
pursuant to this section, and such point of order 
being sustained, such material contained in such 
conference report shall be deemed stricken, and the 
Senate shall proceed to consider the question of 
whether the Senate shall recede from its amendment 
and concur with a further amendment, or concur in 
the House amendment with a further amendment, 
as the case may be, which further amendment shall 
consist of only that portion of the conference report
368 
or House amendment, as the case may be, not so 
stricken. Any such motion in the Senate shall be de-
batable. In any case in which such point of order is 
sustained against a conference report (or Senate 
amendment derived from such conference report by 
operation of this subsection), no further amendment 
shall be in order.’’. 
SEC. 6004. PAYGO SCORECARD ESTIMATES. 
(a) BUDGETARY EFFECTS.—Neither scorecard main-
tained by the Office of Management and Budget pursuant 
to section 4(d) of the Statutory Pay-As-You-Go Act of 
2010 (2 U.S.C. 933) shall include the budgetary effects 
of this Act if such budgetary effects do not increase the 
deficit for the period of fiscal years 2012 through 2021 
as determined by the estimate submitted for printing in 
the Congressional Record pursuant to section 4(d) of such 
Act. 
(b) DEFICIT.—The increase or decrease in the deficit 
in the estimate submitted for printing referred to in sub-
section (a) shall be determined on the basis of— 
(1) the change in total outlays and total rev-
enue of the Federal Government, including off-budg-
et effects, that would result from this Act; 
(2) the estimate of the effects of the changes to 
the discretionary spending limits set forth in section
369 
251 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 in this Act; and 
(3) the estimate of the change in net income to 
the National Flood Insurance Program by this Act. 
Passed the House of Representatives December 13, 
2011. 
Attest: 
Clerk.
112TH CONGRESS 
1ST SESSION 
H. R. 3630 
AN ACT 
To provide incentives for the creation of jobs, and 
for other purposes.