GET THE LEAD OUT Act of 2021
Bill: H.R.1376 | Sponsor: Rep. Ryan, Tim (D-OH)
Policy area: Housing and Community Development

Summary:
Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2021 or GET THE LEAD OUT Act of 2021
This bill addresses lead-based hazards in housing. It also modifies the tax treatment of carried interest, which is compensation that is typically received by a partner of a private equity or hedge fund and is based on a share of the fund's profits, and the estate tax.
The bill modifies the tax treatment of carried interest by requiring it to be included in gross income and taxed as ordinary income, with certain exceptions. Under current law, carried interest is taxed as investment income. In addition, the bill reduces the estate tax exemption amount from $10 million to $5 million.
With respect to lead-based hazards, the bill allows the Department of Housing and Urban Development (HUD) to provide grants to state and local governments to reduce lead-based pipe hazards in housing. Additionally, HUD must require risk assessments, inspections, interim controls, and abatement of these hazards in federally assisted housing.
HUD and the Environmental Protection Agency (EPA) must require the disclosure of such hazards in housing that is for sale or lease. Persons that fail to disclose such hazards are subject to civil penalties from HUD and may be liable to purchasers or lessees for damages.
Additionally, the EPA must ensure that individuals who work with lead-based pipes have proper training and certification. States may enforce and administer such training and certification programs upon receiving EPA approval.
Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2021 or GET THE LEAD OUT Act of 2021
This bill addresses lead-based hazards in housing. It also modifies the tax treatment of carried interest, which is compensation that is typically received by a partner of a private equity or hedge fund and is based on a share of the fund's profits, and the estate tax.
The bill modifies the tax treatment of carried interest by requiring it to be included in gross income and taxed as ordinary income, with certain exceptions. Under current law, carried interest is taxed as investment income. In addition, the bill reduces the estate tax exemption amount from $10 million to $5 million.
With respect to lead-based hazards, the bill allows the Department of Housing and Urban Development (HUD) to provide grants to state and local governments to reduce lead-based pipe hazards in housing. Additionally, HUD must require risk assessments, inspections, interim controls, and abatement of these hazards in federally assisted housing.
HUD and the Environmental Protection Agency (EPA) must require the disclosure of such hazards in housing that is for sale or lease. Persons that fail to disclose such hazards are subject to civil penalties from HUD and may be liable to purchasers or lessees for damages.
Additionally, the EPA must ensure that individuals who work with lead-based pipes have proper training and certification. States may enforce and administer such training and certification programs upon receiving EPA approval.

To eliminate lead-based pipe and tap hazards in housing, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Grants for 
Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 
2021'' or the ``GET THE LEAD OUT Act of 2021''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
               TITLE I--LEAD-BASED PIPE HAZARD REDUCTION

Sec. 101. Grants for lead-based pipe hazard reduction in housing.
Sec. 102. Evaluation and reduction of lead-based pipe hazards in 
                            federally assisted housing.
Sec. 103. Comprehensive housing affordability strategies.
Sec. 104. Task force on lead-based pipe hazard reduction and financing.
Sec. 105. National consultation on lead-based pipe hazard reduction.
Sec. 106. Guidelines for lead-based pipe hazard evaluation and 
                            reduction activities.
Sec. 107. Disclosure of information concerning lead upon transfer of 
                            residential property.
                   TITLE II--LEAD EXPOSURE REDUCTION

Sec. 201. Lead-based pipe activities training and certification.
Sec. 202. Identification of dangerous levels of lead.
Sec. 203. Authorized State programs.
Sec. 204. Lead abatement and measurement.
Sec. 205. Lead hazard information pamphlet.
Sec. 206. Regulations.
Sec. 207. Control of lead-based pipe hazards at Federal facilities.
Sec. 208. Prohibited Acts.
Sec. 209. Relationship to other Federal law.
Sec. 210. General provisions relating to administrative proceedings.
  TITLE III--AUTHORIZATION OF APPROPRIATIONS FOR LEAD HAZARD REDUCTION

Sec. 301. HUD grants for lead hazards reduction in housing.
Sec. 302. EPA funding for lead exposure reduction.
                      TITLE IV--REVENUE PROVISIONS

Sec. 401. Partnership interests transferred in connection with 
                            performance of services.
Sec. 402. Special rules for partners providing investment management 
                            services to partnerships.
Sec. 403. Return to pre-2018 estate and gift tax basic exclusion 
                            amount.

SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) to develop a national strategy to build the 
        infrastructure necessary to eliminate lead-based pipe and tap 
        hazards in housing;
            (2) to reorient the national approach to the presence of 
        lead-based pipe and taps in public and private homes to 
        implement, on a priority basis, a program to evaluate and 
        reduce lead-based pipe hazards in the Nation's building stock;
            (3) to encourage effective action to prevent childhood lead 
        poisoning by establishing a workable framework for lead-based 
        pipe and tap hazard evaluation and reduction and by ending the 
        current confusion over reasonable standards of care;
            (4) to ensure and implement the definitions of lead hazards 
        in section 1417 of the Safe Drinking Water Act (42 U.S.C. 300g-
        6) and ensure that the existence of lead-based pipe and taps 
        hazards is taken into account in the development of Federal 
        Government housing policies and in the sale, rental and 
        renovation of homes, and apartments;
            (5) to mobilize national resources expeditiously, through a 
        partnership among all levels of government and the private 
        sector, to develop the most promising, cost-effective methods 
        for evaluating and reducing lead-based pipe and tap hazards;
            (6) to reduce the threat of childhood lead poisoning in 
        housing owned, assisted, or transferred by the Federal 
        Government; and
            (7) to educate the public concerning the hazards and 
        sources of lead-based pipes and taps poisoning and steps to 
        reduce and eliminate such hazards.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Abatement.--The term ``abatement'' means any set of 
        measures designed to permanently eliminate lead-based pipe 
        hazards in accordance with standards established by appropriate 
        Federal agencies. Such term includes--
                    (A) the removal of lead-based pipes and taps;
                    (B) all preparation, cleanup, disposal, and post-
                abatement clearance testing activities associated with 
                such measures; and
                    (C) all repair to damages post-abatement.
            (2) Certified contractor.--The term ``certified 
        contractor'' means--
                    (A) a contractor, inspector, or supervisor who has 
                completed a training program certified by the 
                appropriate Federal agency and has met any other 
                requirements for certification or licensure established 
                by such agency or who has been certified by any State 
                through a program which has been found by such Federal 
                agency to be at least as rigorous as the Federal 
                certification program; and
                    (B) workers or designers who have fully met 
                training requirements established by the appropriate 
                Federal agency.
            (3) Contract for the purchase and sale of residential real 
        property.--The term ``contract for the purchase and sale of 
        residential real property'' means any contract or agreement in 
        which one party agrees to purchase an interest in real property 
        on which there is situated or more residential dwellings used 
        or occupied, or intended to be used or occupied, in whole or in 
        part, as the home or residence of one or more persons.
            (4) Evaluation.--The term ``evaluation'' means risk 
        assessment, inspection, or risk assessment and inspection.
            (5) Federally assisted housing.--The term ``federally 
        assisted housing'' means residential dwellings receiving 
        project-based assistance under programs including--
                    (A) section 221(d)(3) or 236 of the National 
                Housing Act (12 U.S.C. 1715l(d)(3); 1715z-1);
                    (B) section 101 of the Housing and Urban 
                Development Act of 1965 (12 U.S.C. 1701s);
                    (C) section 8 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f); and
                    (D) sections 502(a), 504, 514, 515, 516, and 533 of 
                the Housing Act of 1949 (42 U.S.C. 1472(a); 1474; 1484; 
                1485; 1486; 1490m).
            (6) Federally owned housing.--The term ``federally owned 
        housing'' means residential dwellings owned or managed by a 
        Federal agency, or for which a Federal agency is a trustee or 
        conservator. For the purpose of this paragraph, the term 
        ``Federal agency'' includes the Department of Housing and Urban 
        Development, the Rural Housing Service of the Department of 
        Agriculture, the Federal Deposit Insurance Corporation, the 
        General Services Administration, the Department of Defense, the 
        Department of Veterans Affairs, the Department of the Interior, 
        the Department of Transportation, and any other Federal agency.
            (7) Federally supported work.--The term ``federally 
        supported work'' means any lead hazard evaluation or reduction 
        activities conducted in federally owned or assisted housing or 
        funded in whole or in part through any financial assistance 
        program of the Department of Housing and Urban Development, the 
        Rural Housing Service of the Department of Agriculture, or the 
        Department of Veterans Affairs.
            (8) Inspection.--The term ``inspection'' means an 
        investigation to determine the presence of lead-based pipe or 
        taps as provided in section 141.86 of the regulations of the 
        Environmental Protection Agency (40 C.F.R. 181.46; relating to 
        monitoring requirements for lead and copper in tap water) and 
        the provision of a report explaining the results of the 
        investigation.
            (9) Interim controls.--The term ``interim controls'' means 
        a set of measures designed to reduce temporarily human exposure 
        or likely exposure to lead-based pipe hazards, including 
        specialized cleaning, repairs, maintenance, ongoing monitoring 
        of lead-based pipe or potential hazards, and the establishment 
        and operation of management and resident education programs.
            (10) Lead-based pipe.--The term ``lead-based pipe'' means 
        any pipe, including fittings, taps, fixtures, solder, and flux 
        that does not satisfy the definition of ``lead-free'' 
        established under section 1417 of the Safe Drinking Water Act.
            (11) Lead-based pipe hazards.--The term ``lead-based pipe 
        hazards'' means any condition that causes exposure to lead from 
        lead-based pipe that would result in adverse human health 
        effects, as established by the Environmental Protection Agency.
            (12) Mortgage loan.--The term ``mortgage loan'' includes 
        any loan (other than temporary financing such as a construction 
        loan) that--
                    (A) is secured by a first lien on any interest in 
                residential real property; and
                    (B) either--
                            (i) is insured, guaranteed, made, or 
                        assisted by the Department of Housing and Urban 
                        Development, the Department of Veterans 
                        Affairs, or the Rural Housing Service of the 
                        Department of Agriculture, or by any other 
                        agency of the Federal Government; or
                            (ii) is intended to be sold by each 
                        originating mortgage institution to any 
                        federally chartered secondary mortgage market 
                        institution.
            (13) Originating mortgage institution.--The term 
        ``originating mortgage institution'' means a lender that 
        provides mortgage loans.
            (14) Priority housing.--The term ``priority housing'' means 
        housing that qualifies as affordable housing under section 215 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12745), including housing that receives assistance under 
        subsection (b) or (o) of section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f).
            (15) Public housing.--The term ``public housing'' has the 
        meaning given such term in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (16) Reduction.--The term ``reduction'' means measures 
        designed to reduce or eliminate human exposure to lead-based 
        pipe hazards through methods including interim controls and 
        abatement.
            (17) Residential dwelling.--The term ``residential 
        dwelling'' means--
                    (A) a single-family dwelling, including attached 
                structures such as porches and stoops; or
                    (B) a single-family dwelling unit in a structure 
                that contains more than 1 separate residential dwelling 
                unit, in which each such unit is used or occupied, or 
                intended to be used or occupied, in whole or in part, 
                as the home or residence of one or more persons.
            (18) Residential real property.--The term ``residential 
        real property'' means real property on which there is situated 
        one or more residential dwellings used or occupied, or intended 
        to be used or occupied, in whole or in part, as the home or 
        residence of one or more persons.
            (19) Risk assessment.--The term ``risk assessment'' means 
        an on-site investigation to determine and report the existence, 
        nature, severity, and location of lead-based pipe hazards in 
        residential dwellings, including--
                    (A) information gathering regarding the age and 
                history of the housing and occupancy by children under 
                age 6;
                    (B) visual inspection;
                    (C) other activities as may be appropriate; and
                    (D) provision of a report explaining the results of 
                the investigation.
            (20) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

               TITLE I--LEAD-BASED PIPE HAZARD REDUCTION

SEC. 101. GRANTS FOR LEAD-BASED PIPE HAZARD REDUCTION IN HOUSING.

    (a) General Authority.--The Secretary of Housing and Urban 
Development is authorized to provide grants to eligible applicants to 
evaluate and reduce lead-based pipes hazards in priority housing that 
is not federally assisted housing, federally owned housing, or public 
housing, in accordance with the provisions of this section.
    (b) Eligible Applicants.--A State or unit of local government that 
has an approved comprehensive housing affordability strategy under 
section 105 of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12705) is eligible to apply for a grant under this section.
    (c) Form of Application.--To receive a grant under this section, a 
State or unit of local government shall submit an application in such 
form and in such manner as the Secretary shall prescribe. An 
application shall contain--
            (1) a copy of that portion of an applicant's comprehensive 
        housing affordability strategy required by section 105(b)(16) 
        of the Cranston-Gonzalez National Affordable Housing Act;
            (2) a statement of the amount of assistance the applicant 
        seeks under this section;
            (3) a description of the planned activities to be 
        undertaken with grants under this section, including an 
        estimate of the amount to be allocated for each activity;
            (4) a description of the forms of financial assistance to 
        owners and occupants of priority housing that will be provided 
        through grants under this section; and
            (5) such assurances as the Secretary may require regarding 
        the applicant's capacity to carry out the activities.
    (d) Selection Criteria.--The Secretary shall award grants under 
this section on the basis of the merit of the activities proposed to be 
carried out and on the basis of selection criteria, which shall 
include--
            (1) the extent to which the proposed activities will reduce 
        the risk of lead-based water poisoning to children under the 
        age of 6 who reside in priority housing;
            (2) the degree of severity and extent of lead-based pipe 
        hazards in the jurisdiction to be served;
            (3) the ability of the applicant to leverage State, local, 
        and private funds to supplement the grant under this section;
            (4) the ability of the applicant to carry out the proposed 
        activities; and
            (5) such other factors as the Secretary determines 
        appropriate to ensure that grants made available under this 
        section are used effectively and to promote the purposes of 
        this Act.
    (e) Eligible Activities.--A grant under this section may be used 
to--
            (1) perform risk assessments and inspections in priority 
        housing;
            (2) provide for the interim control of lead-based pipe 
        hazards in priority housing;
            (3) provide for the abatement of lead-based pipe hazards in 
        priority housing;
            (4) provide for the additional cost of reducing lead-based 
        pipe hazards in units undergoing renovation funded by other 
        sources;
            (5) ensure that risk assessments, inspections, and 
        abatements are carried out by certified contractors monitor the 
        blood-lead levels of workers involved in lead hazard reduction 
        activities funded under this section;
            (6) assist in the temporary relocation of families forced 
        to vacate priority housing while lead-based pipe hazard 
        reduction measures are being conducted;
            (7) educate the public on the nature and causes of lead 
        poisoning and measures to reduce exposure to lead, including 
        exposure due to residential lead-based pipe hazards;
            (8) test the blood-lead levels of children under the age of 
        6 residing in priority housing after lead-based pipe hazard 
        reduction activity has been conducted, to assure that such 
        activity does not cause excessive exposures to lead; and
            (9) carry out such other activities that the Secretary 
        determines appropriate to promote the purposes of this Act.
    (f) Forms of Assistance.--A recipient of a grant under this section 
may provide the services described in this section through a variety of 
programs, including grants, loans, equity investments, revolving loan 
funds, loan funds, loan guarantees, interest write-downs, and other 
forms of assistance approved by the Secretary.
    (g) Technical Assistance and Capacity Buildings.--
            (1) In general.--The Secretary shall develop the capacity 
        of eligible applicants to carry out the requirements of section 
        105(b)(18) of the Cranston-Gonzalez National Affordable Housing 
        Act and to carry out activities under this section. In fiscal 
        years 2022 and 2023, the Secretary may make grants of up to 
        $200,000 for the purpose of establishing State training, 
        certification, or accreditation programs that meet the 
        requirements of section 201 of this Act (relating to lead-based 
        pipe activities training and certification).
            (2) Set-aside.--Of the total amount approved in 
        appropriation Acts under section 301, there shall be set aside 
        to carry out this subsection $3,000,000 for each of fiscal 
        years 2022 through 2031.
    (h) Matching Requirement.--The recipient of a grant under this 
section shall make contributions toward the cost of activities that 
receive assistance under this section in an amount not less than 10 
percent of the total grant amount under this section.
    (i) Prohibition of Substitution of Funds.--Grants under this 
section may not be used to replace other amounts made available or 
designated by State or local governments for use for the purposes under 
this title.
    (j) Limitation on Use.--A recipient of a grant under this section 
shall ensure that not more than 10 percent of the grant will be used 
for administrative expenses associated with the activities funded by 
the grant.
    (k) Financial Records.--A recipient of a grant under this section 
shall maintain and provide the Secretary with financial records 
sufficient, in the determination of the Secretary, to ensure proper 
accounting and disbursing of amounts received from a grant under this 
section.
    (l) Report.--A recipient of a grant under this section shall submit 
to the Secretary, for any fiscal year in which the recipient expends 
grant funds under this section, a report that--
            (1) describes the use of the amounts received;
            (2) states the number of risk assessments and the number of 
        inspections conducted in residential dwellings;
            (3) states the number of residential dwellings in which 
        lead-based pipe hazards have been reduced through interim 
        controls;
            (4) states the number of residential dwellings in which 
        lead-based pipe hazards have been abated; and
            (5) provides any other information that the Secretary 
        determines to be appropriate.
    (m) Notice of Funding Availability.--The Secretary shall publish a 
Notice of Funding Availability not later than 120 days after funds are 
appropriated to carry out this section.

SEC. 102. EVALUATION AND REDUCTION OF LEAD-BASED PIPE HAZARDS IN 
              FEDERALLY ASSISTED HOUSING.

    (a) Requirements for Federally Assisted Housing.--The Secretary 
shall provide for appropriate measures and procedures to conduct risk 
assessments, inspections, interim controls, and abatement of lead-based 
pipe hazards in federally assisted housing. At a minimum, such 
procedures shall require--
            (1) the provision of lead hazard information pamphlets, 
        developed pursuant to section 205 of this Act for purchasers 
        and tenants of such housing;
            (2) periodic risk assessments and interim controls for such 
        housing in accordance with a schedule determined by the 
        Secretary, which shall provide for the initial risk assessment 
        to be performed--
                    (A) in not less than 50 percent of the dwelling 
                units of such housing within 5 years after the date of 
                the enactment of this Act; and
                    (B) in the remainder of the dwelling units of such 
                housing within 10 years after such date of enactment;
            (3) inspection for the presence of lead-based pipe in such 
        housing prior to federally funded renovation or rehabilitation;
            (4) reduction of lead-based pipe hazards in such housing in 
        the course of rehabilitation projects receiving less than 
        $25,000 per unit in Federal funds;
            (5) abatement of lead-based pipe hazards in such housing in 
        the course of substantial rehabilitation projects receiving 
        more than $25,000 per unit in Federal funds;
            (6) where risk assessment, inspection, or reduction 
        activities have been undertaken in such housing, the provision 
        of notice to occupants describing the nature and scope of such 
        activities and the actual risk assessment or inspection reports 
        (including available information on the location of any 
        remaining lead-based pipe and lead-based pipe hazards); and
            (7) such other measures for such housing as the Secretary 
        deems appropriate.
    (b) Public Housing.--Section 9(d)(1) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(d)(1)) is amended--
            (1) in subparagraph (K), by striking ``and'' at the end;
            (2) in subparagraph (L), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(M) lead-based pipe hazard evaluation and 
                reduction, as defined in section 3 of the Grants for 
                Eliminating the Toxic Hazard of Environmental Lead in 
                Our Towns Act of 2021.''.
    (c)  HOME Investment Partnerships.--Section 212(a) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) is 
amended--
            (1) by redesignating paragraph (5) (relating to lead-based 
        paint hazards) as paragraph (4); and
            (2) by adding at the end the following new paragraph:
            ``(5) Lead-based pipe hazards.--A participating 
        jurisdiction may use funds provided under this subtitle for the 
        evaluation and reduction of lead-based pipe hazards.''.
    (d) Community Development Block Grants.--Section 105(a) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) is 
amended--
            (1) in paragraph (24)(D), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(26) lead-based pipe hazard evaluation and reduction, as 
        defined in section 3 of the Grants for Eliminating the Toxic 
        Hazard of Environmental Lead in Our Towns Act of 2021.''.
    (e) Section 8 Rental Assistance.--Section 8(c)(2)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(B)) is amended by 
adding at the end the following: ``The Secretary may (at the discretion 
of the Secretary and subject to the availability of appropriations for 
contract amendments), on a project-by-project basis for projects 
receiving project-based assistance, provide adjustments to the maximum 
monthly rents to cover the costs of evaluating and reducing lead-based 
pipe hazards, as defined in section 3 of the Grants for Eliminating the 
Toxic Hazard of Environmental Lead in Our Towns Act of 2021.''.
    (f) Hope for Public and Indian Housing Homeownership.--Title III of 
the United States Housing Act of 1937 is amended--
            (1) in section 302(b) (42 U.S.C. 1437aaa-1(b))--
                    (A) by redesignating paragraphs (5) through (9) as 
                paragraphs (6) through (10), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) inspection for lead-based pipe hazards, as required 
        by section 102(a) of the Grants for Eliminating the Toxic 
        Hazard of Environmental Lead in Our Towns Act of 2021;''; and
            (2) in section 303(b) (42 U.S.C. 1437aaa-2(b))--
                    (A) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) Abatement of lead-based pipe hazards, as required by 
        section 102(a) of the Grants for Eliminating the Toxic Hazard 
        of Environmental Lead in Our Towns Act of 2021.''.
    (g) Hope for Homeownership of Multifamily Units.--Title IV of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in section 422(b) (42 U.S.C. 12872(b))--
                    (A) by redesignating paragraphs (5) through (9) as 
                paragraphs (6) through (10), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) inspection for lead-based pipe hazards, as required 
        by section 102(a) of the Grants for Eliminating the Toxic 
        Hazard of Environmental Lead in Our Towns Act of 2021;''; and
            (2) in section 423(b) (42 U.S.C. 12873(b))--
                    (A) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) Abatement of lead-based pipe hazards, as required by 
        section 102(a) of the Grants for Eliminating the Toxic Hazard 
        of Environmental Lead in Our Towns Act of 2021.''.
    (h) Hope for Homeownership of Single Family Homes.--Title IV of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in section 442(b) (42 U.S.C. 12892(b))--
                    (A) by redesignating paragraphs (5) through (9) as 
                paragraphs (6) through (10), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) inspection for lead-based pipe hazards, as required 
        by section 102(a) of the Grants for Eliminating the Toxic 
        Hazard of Environmental Lead in Our Towns Act of 2021;''; and
            (2) in section 443(b) (42 U.S.C. 12893(b))--
                    (A) by redesignating paragraphs (5) through (11) as 
                paragraphs (6) through (12), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) Abatement of lead-based pipe hazards, as required by 
        section 102(a) of the Grants for Eliminating the Toxic Hazard 
        of Environmental Lead in Our Towns Act of 2021.''.
    (i) FHA Insurance for Mortgages for Single Family Homes.--
            (1) Home improvement.--The fourth undesignated paragraph of 
        section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is 
        amended--
                    (A) by inserting after the period at the end of the 
                first sentence the following: ``Alterations, repairs, 
                and improvements upon or in connection with existing 
                structures may also include the evaluation and 
                reduction of lead-based pipes hazards.''; and
                    (B) in the last sentence--
                            (i) in paragraph (2), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (3), by striking the 
                        period at the end and inserting ``and'';
                            (iii) in paragraph (4)--
                                    (I) by inserting ``, when used with 
                                respect to lead-based paint hazards,'' 
                                before ``have''; and
                                    (II) by striking the period at the 
                                end and inserting ``and''; and
                            (iv) by adding at the end the following:
            ``(5) the terms `evaluation', `reduction', and `lead-based 
        pipe hazard', when used with respect to lead-based pipe 
        hazards, have the meaning given such term in section 3 of the 
        Grants for Eliminating the Toxic Hazard of Environmental Lead 
        in Our Towns Act of 2021.''.
            (2) Rehabilitation loans.--The last sentence of section 
        203(k)(2)(B) of the National Housing Act (12 U.S.C. 
        1709(k)(2)(B)) is amended by inserting before the period at the 
        end the following: ``, and measures to evaluate and reduce 
        lead-based pipe hazards, as such terms are defined in section 3 
        of the Grants for Eliminating the Toxic Hazard of Environmental 
        Lead in Our Towns Act of 2021''.
    (j) FHA Insurance for Mortgages for Multifamily Housing.--Section 
221(d)(4)(iv) of the National Housing Act (12 U.S.C. 17151(d)(4)(iv)) 
is amended by inserting before the closing parentheses the following: 
``, and the cost of evaluating and reducing lead-based pipe hazards, as 
such terms are defined in section 3 of the Grants for Eliminating the 
Toxic Hazard of Environmental Lead in Our Towns Act of 2021''.
    (k) Rural Housing.--Section 501(a)(5) of the Housing Act of 1949 
(42 U.S.C. 1471) is amended by inserting before the period at the end 
the following: ``, and measures to evaluate and reduce lead-based pipe 
hazards, as such terms are defined in section 3 of the Grants for 
Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 
2021''.

SEC. 103. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGIES.

    Section 105 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705) is amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraphs (18), (19), and 
                (20) as paragraphs (19), (20), and (21), respectively; 
                and
                    (B) by inserting after paragraph (17) the following 
                new paragraph:
            ``(18) estimate the number of housing units within the 
        jurisdiction that are occupied by low-income families or very 
        low-income families and that contain lead-based pipe hazards, 
        as defined in section 3 of the Grants for Eliminating the Toxic 
        Hazard of Environmental Lead in Our Towns Act of 2021, outline 
        the actions proposed or being taken to evaluate and reduce 
        lead-based pipe hazards, and describe how lead-based pipe 
        hazard reduction will be integrated into housing policies and 
        programs;''; and
            (2) in subsection (e)--
                    (A) in paragraph (2), by striking ``paragraph 
                (16)'' and inserting ``paragraph (17)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Lead-based pipe hazards.--When preparing the portion 
        of a housing strategy required by subsection (b)(18), a 
        jurisdiction shall consult with State or local health and child 
        welfare agencies and examine existing data related to lead-
        based pipe hazards and poisonings, including health department 
        data on the addresses of housing units in which children have 
        been identified as lead poisoned.''.

SEC. 104. TASK FORCE ON LEAD-BASED PIPE HAZARD REDUCTION AND FINANCING.

    (a) In General.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency shall establish a 
task force to make recommendations on expanding resources and efforts 
to evaluate and reduce lead-based pipe hazards in private housing.
    (b) Membership.--The task force shall include individuals 
representing the Department of Housing and Urban Development, the Rural 
Housing Service of the Department of Agriculture, the Department of 
Veterans Affairs, the Federal Home Loan Mortgage Corporation, the 
Federal National Mortgage Association, the Environmental Protection 
Agency, employee or organizations in the building and construction 
trades industry, landlords, tenants, primary lending institutions, 
private mortgage insurers, single family and multifamily real estate 
interests, nonprofit housing developers, property liability insurers, 
public housing agencies, low-income housing advocacy organizations, 
national, State and local lead-poisoning prevention advocates and 
experts, and community-based organizations located in areas with 
substantial rental housing.
    (c) Responsibilities.--The task force shall make recommendations to 
the Secretary and the Administrator of the Environmental Protection 
Agency concerning--
            (1) incorporating the need to finance lead-based pipe 
        hazard reduction into underwriting standards;
            (2) developing new loan products and procedures for 
        financing lead-based pipe hazard evaluation and reduction 
        activities;
            (3) adjusting appraisal guidelines to address lead safety;
            (4) incorporating risk assessments or inspections for lead-
        based pipe as a routine procedure in the origination of new 
        residential mortgages;
            (5) revising guidelines, regulations, and educational 
        pamphlets issued by the Department of Housing and Urban 
        Development and other Federal agencies relating to lead-based 
        pipe poisoning prevention;
            (6) reducing the current uncertainties of liability related 
        to lead-based pipe in rental housing; clarifying standards of 
        care for landlords and lenders, and exploring the ``safe 
        harbor'' concept;
            (7) increasing the availability of liability insurance for 
        owners of rental housing and certified contractors and 
        establishing alternative systems to compensate victims of lead-
        based pipe poisoning; and
            (8) evaluating the utility and appropriateness of requiring 
        risk assessments or inspections and notification to prospective 
        leases of rental housing.
    (d) Compensation.--The members of the task force shall not receive 
Federal compensation for their participation.

SEC. 105. NATIONAL CONSULTATION ON LEAD-BASED PIPE HAZARD REDUCTION.

    In carrying out this Act, the Secretary shall consult on an ongoing 
basis with the Administrator of the Environmental Protection Agency, 
the Director of the Centers for Disease Control, other Federal agencies 
concerned with lead poisoning prevention, and the task force 
established pursuant to section 104.

SEC. 106. GUIDELINES FOR LEAD-BASED PIPE HAZARD EVALUATION AND 
              REDUCTION ACTIVITIES.

    Not later than 12 months after the date of the enactment of this 
Act, the Secretary, in consultation with the Administrator of the 
Environmental Protection Agency, the Secretary of Labor, and the 
Secretary of Health and Human Services (acting through the Director of 
the Centers for Disease Control), shall issue guidelines for the 
conduct of federally supported work involving risk assessments, 
regulations, inspections, interim controls, and abatement of lead-based 
pipe hazards. Such guidelines shall be based upon criteria that measure 
the condition of the housing (and the presence of children under age 6 
for the purposes of risk assessments) and shall not be based upon 
criteria that measure the health of the residents of the housing.

SEC. 107. DISCLOSURE OF INFORMATION CONCERNING LEAD UPON TRANSFER OF 
              RESIDENTIAL PROPERTY.

    (a) Disclosure in Purchase and Sale or Lease of Housing.--
            (1) Lead-based pipe hazards.--Not later than 2 years after 
        the date of the enactment of this Act, the Secretary and the 
        Administrator of the Environmental Protection Agency shall 
        promulgate regulations under this section for the disclosure of 
        lead-based pipe hazards in housing that is offered for sale or 
        lease. The regulations shall require that, before the purchaser 
        or lessee is obligated under any contract to purchase or lease 
        the housing, the seller or lessor shall--
                    (A) provide the purchaser or lessee with a lead 
                hazard information pamphlet, as prescribed by the 
                Administrator of the Environmental Protection Agency 
                under section 406 of the Toxic Substances Control Act;
                    (B) disclose to the purchaser or lessee the 
                presence of any known lead-based pipe, or any known 
                lead-based pipe hazards, in such housing and provide to 
                the purchaser or lessee a lead hazard evaluation report 
                available to the seller or lessor; and
                    (C) permit the purchaser a 10-day period (unless 
                the parties mutually agree upon a different rid of 
                time) to conduct a risk assessment or inspection or the 
                presence of lead-based pipe hazards.
            (2) Contract for purchase and sale.--The regulations 
        promulgated under this section shall provide that every 
        contract for the purchase and sale of any interest in housing 
        shall contain a Lead Warning Statement and a statement signed 
        by the purchaser that the purchaser has--
                    (A) read the Lead Warning Statement and understands 
                its contents;
                    (B) received a lead hazard information pamphlet; 
                and
                    (C) had a 10-day opportunity (unless the parties 
                mutually agreed upon a different period of time) before 
                becoming obligated under the contract to purchase the 
                housing to conduct a risk assessment or inspection for 
                the presence of lead-based pipe hazards.
            (3) Contents of lead warning statement.--The Lead Warning 
        Statement referred to in paragraph (2) shall contain the 
        following text printed in large type on a separate sheet of 
        paper attached to the contract: ``Every purchaser of any 
        interest in residential real property on which a residential 
        dwelling was built prior to 1986 is notified that such property 
        may present exposure to lead from lead-based pipes that may 
        place young children at risk of developing lead poisoning. Lead 
        poisoning in young children may produce permanent neurological 
        damage, including learning disabilities, reduced intelligence 
        quotient, behavioral problems, and impaired memory. Lead 
        poisoning also poses a particular risk to pregnant women. The 
        seller interest in residential real property is required to 
        provide the buyer with any information on lead-based pipe 
        hazards from risk assessment or inspections in the seller's 
        possession and notify the buyer of any known lead-based pipe 
        hazards. A risk assessment or inspection for possible lead-
        based pipe hazards is recommended prior to purchase.''.
            (4) Compliance assurance.--Whenever a seller or lessor has 
        entered into a contract with an agent for the purpose of 
        selling or leasing a unit of housing, the regulations 
        promulgated under this section shall require the agent, on 
        behalf of the seller or lessor, to ensure compliance with the 
        requirements of this section.
    (b) Promulgation.--A suit may be brought against the Secretary of 
Housing and Urban Development and the Administrator of the 
Environmental Protection Agency under section 20 of the Toxic 
Substances Control Act to compel promulgation of the regulations 
required under this section and the Federal district court shall have 
jurisdiction to order such promulgation.
    (c) Penalties for Violations.--
            (1) Monetary penalty.--Any person who knowingly violates 
        any provision of this section shall be subject to civil money 
        penalties in accordance with the provisions of section 102 of 
        the Department of Housing and Urban Development Reform Act of 
        1989 (42 U.S.C. 3545).
            (2) Action by secretary.--The Secretary is authorized to 
        take such lawful action as may be necessary to enjoin any 
        violation of this section.
            (3) Civil liability.--Any person who knowingly violates the 
        provisions of this section shall be jointly and severally 
        liable to the purchaser or lessee in an amount equal to 3 times 
        the amount of damages incurred by such individual.
            (4) Costs.--In any civil action brought for damages, the 
        appropriate court may award court costs to the party commencing 
        such action, together with reasonable attorney fees and any 
        expert witness fees, if that party prevails.
            (5) Prohibited act.--It shall be a prohibited act under 
        section 409 of the Toxic Substances Control Act for any person 
        to fail or refuse to comply with a provision of this section or 
        with any rule or order issued under this section. For purposes 
        of enforcing this section under the Toxic Substances Control 
        Act, the penalty for each violation applicable under section 16 
        of that Act shall not be more than $10,000.
    (d) Validity of Contracts and Liens.--Nothing in this section shall 
affect the validity or enforceability of any sale or contract for the 
purchase and sale or lease of any interest in residential real property 
or any loan, loan agreement, mortgage, or lien made or arising in 
connection with a mortgage loan, nor shall anything in this section 
create a defect in title.
    (e) Effective Date.--The regulations under this section shall take 
effect 3 years after the date of the enactment of this Act.

                   TITLE II--LEAD EXPOSURE REDUCTION

SEC. 201. LEAD-BASED PIPE ACTIVITIES TRAINING AND CERTIFICATION.

    (a) Regulations.--
            (1) In general.--Not later than 18 months after the date of 
        the enactment of this Act, the Administrator of the 
        Environmental Protection Agency (in this title referred to as 
        the ``Administrator'') shall, in consultation with the 
        Secretary of Labor, the Secretary of Housing and Urban 
        Development, and the Secretary of Health and Human Services 
        (acting through the Director of the National Institute for 
        Occupational Safety and Health), promulgate final regulations 
        governing lead-based pipe activities to ensure that individuals 
        engaged in such activities are properly trained; that training 
        programs are accredited; and that contractors are engaged in 
        such activities are certified. Such regulations shall contain 
        standards for performing lead-based pipe activities, taking 
        into account reliability, effectiveness, and safety. Such 
        regulations shall require that all risk assessment, inspection, 
        and abatement activities performed in housing shall be 
        performed by certified contractors.
            (2) Accreditation of training programs.--Final regulations 
        shall contain specific requirements for the accreditation of 
        lead-based pipe activities training programs for workers, 
        supervisors, inspectors and planners, and other individuals 
        involved in lead-based pipe activities, including, but not 
        limited to, each of the following:
                    (A) Minimum requirements for the accreditation of 
                training providers.
                    (B) Minimum training curriculum requirements.
                    (C) Minimum training hour requirements.
                    (D) Minimum hands-on training requirements.
                    (E) Minimum trainee competency and proficiency 
                requirements.
                    (F) Minimum requirements for training program 
                quality control.
            (3) Accreditation and certification fees.--The 
        Administrator (or the State in the case of an authorized State 
        program) shall impose a fee on--
                    (A) persons operating training programs accredited 
                under this title; and
                    (B) lead-based pipe activities contractors 
                certified in accordance accreditation with paragraph 
                (1).
        The fees shall be established at such level as is necessary to 
        cover the costs of administering and enforcing the standards 
        and regulations under this section which are applicable to such 
        programs and contractors. The fee shall not be imposed on any 
        State, local government, or nonprofit training program. The 
        Administrator (or the State in the case of an authorized State 
        program) may waive the fee for lead-based pipe activities 
        contractors for the purpose of training their own employees.
    (b)  Lead-Based Pipe Activities.--For purposes of this title, the 
term ``lead-based pipe activities'' means--
            (1) in the case of housing, risk assessment, inspection, 
        and abatement; and
            (2) in the case of any public building constructed before 
        1986, commercial building, or any other structure, evaluation 
        and abatement of lead-based pipes and lead-based pipe hazards.
    (c) Renovation and Remodeling.--
            (1) Guidelines.--In order to reduce the risk of exposure to 
        lead in connection with renovation and remodeling of housing, 
        public buildings, and commercial buildings, the Administrator 
        shall, within 18 months after the enactment of this section, 
        promulgate guidelines for the conduct of such renovation and 
        remodeling activities which may create a risk of exposure to 
        dangerous levels of lead. The Administrator shall disseminate 
        such guidelines to persons engaged in such renovation and 
        remodeling through hardware stores, employee organizations, 
        trade groups, State and local agencies, and through other 
        appropriate means.
            (2) Study of certification.--The Administrator shall 
        conduct a study of the extent to which persons engaged in 
        various types of renovation and remodeling activities in 
        housing, public buildings, and commercial buildings are exposed 
        to lead in the conduct of such activities or disturb lead and 
        create a lead-based pipe hazard on a regular or occasional 
        basis. The Administrator shall complete such study and publish 
        the results thereof within 30 months after the enactment of 
        this section.
            (3) Certification determination.--Within 4 years after the 
        enactment of this section, the Administrator shall revise the 
        regulations to apply the regulations to renovation or 
        remodeling activities in housing and commercial buildings that 
        create lead-based pipe hazards. In determining which 
        contractors are engaged in such activities, the Administrator 
        shall utilize the results of the study and consult with the 
        representatives of labor organizations, lead-based pipe 
        activities contractors, persons engaged in remodeling and 
        renovation, experts in lead health effects, and others. If the 
        Administrator determines that a category of contractors engaged 
        in renovation or remodeling does not require certification, the 
        Administrator shall publish an explanation of the basis for 
        that determination.

SEC. 202. IDENTIFICATION OF DANGEROUS LEVELS OF LEAD.

    Within 18 months after the enactment of this Act, the Administrator 
shall promulgate regulations which shall identify for purposes of this 
title lead-based pipe hazards.

SEC. 203. AUTHORIZED STATE PROGRAMS.

    (a) Approval.--Any State which seeks to administer and enforce the 
standards, regulations, or other requirements established may, after 
notice and opportunity for public hearing, develop and submit to the 
Administrator an application, in such form as the Administrator shall 
require, for authorization of such a State program. Any such State may 
also certify to the Administrator at the time of submitting such 
program that the State program meets the requirements of paragraphs (1) 
and (2) of subsection (b). Upon submission of such certification, the 
State program shall be deemed to be authorized under this section, and 
shall apply in such State in lieu of the corresponding Federal program 
as the case may be, until such time as the Administrator disapproves 
the program or withdraws the authorization.
    (b) Approval or Disapproval.--Within 180 days following submission 
of an application, the Administrator shall approve or disapprove the 
application. The Administrator may approve the application only if 
after notice and after opportunity for public hearing, the 
Administrator finds that--
            (1) the State program is at least as protective of human 
        health and the environment as the Federal program as the case 
        may be; and
            (2) such State program provides adequate enforcement.
Upon authorization of a date program under this section, it shall be 
unlawful for any person to violate or fail or refuse to comply with any 
requirement of such program.
    (c) Withdrawal of Authorization.--If a State is not administering 
and enforcing a program authorized under this section in compliance 
with standards, regulations, and other requirements of this title, the 
Administrator shall so notify the State and, if corrective action is 
not completed within a reasonable time, not to exceed 180 days, the 
Administrator shall withdraw authorization of such program and 
establish a Federal program pursuant to this title.
    (d) Model State Program.--Within 18 months after the enactment of 
this title, the Administrator shall promulgate a model State program 
which may be adopted by any State which seeks to administer and enforce 
a State program under this title. Such model program shall, to the 
extent practicable, encourage States to utilize existing State and 
local certification and accreditation programs and procedures. Such 
program shall encourage reciprocity among the States with respect to 
the certification.
    (e) Other State Requirements.--Nothing in this title shall be 
construed to prohibit any State or political subdivision thereof from 
imposing any requirements which are more stringent than those imposed 
by this title.
    (f) State and Local Certification.--The regulations under this 
title shall, to the extent appropriate, encourage States to seek 
program authorization and to use existing State and local certification 
and accreditation procedures, except that a State or local government 
shall not require more than 1 certification under this section for any 
lead-based pipe activities contractor to carry out lead-based pipe 
activities in the State or political subdivision thereof.
    (g) Grants to States.--The Administrator is authorized to make 
grants to States to develop and carry out authorized State programs 
under this section. The grants shall be subject to such terms and 
conditions as the Administrator may establish to further the purposes 
of this title.
    (h) Enforcement by Administrator.--If a State does not have a State 
program authorized under this section and in effect by the date which 
is 2 years after promulgation of the regulations the Administrator 
shall, by such date, establish a Federal program for such State.

SEC. 204. LEAD ABATEMENT AND MEASUREMENT.

    (a) Program To Promote Lead Exposure Abatement.--The Administrator, 
in cooperation with other appropriate Federal departments and agencies, 
shall conduct a comprehensive program to promote safe, effective, and 
affordable monitoring, detection, and abatement of lead-based pipe and 
other lead exposure hazards.
    (b) Standards for Environmental Sampling Laboratories.--
            (1) Minimum performance standards.--The Administrator shall 
        establish protocols, criteria, and minimum performance 
        standards for laboratory analysis of lead in paint pipes, taps, 
        and water. Within 2 years after the enactment of this Act, the 
        Administrator, in consultation with the Secretary of Health and 
        Human Services, shall establish a program to certify 
        laboratories as qualified to test substances for lead content 
        unless the Administrator determines, by the date specified in 
        this paragraph, that effective voluntary accreditation programs 
        are in place and operating on a nationwide basis at the time of 
        such determination. To be certified under such program, a 
        laboratory shall, at a minimum, demonstrate an ability to test 
        substances accurately for lead content.
            (2) Public information.--Not later than 24 months after the 
        date of the enactment of this section, and annually thereafter, 
        the Administrator shall publish and make available to the 
        public a list of certified or accredited environmental sampling 
        laboratories.
            (3) Certification program.--If the Administrator determines 
        that effective voluntary accreditation programs are in place 
        for environmental sampling laboratories, the Administrator 
        shall review the performance and effectiveness of such programs 
        within 3 years after such determination. If, upon such review, 
        the Administrator determines that the voluntary accreditation 
        programs are not effective in assuring the quality and 
        consistency of laboratory analyses, the Administrator shall, 
        not more than 12 months thereafter, establish a certification 
        program that meets the requirements of paragraph (1).
    (c) Exposure Studies.--
            (1) Children.--The Secretary of Health and Human Services 
        (in this subsection referred to as the ``Secretary''), acting 
        through the Director of the Centers for Disease Control (CDC), 
        and the Director of the National Institute of Environmental 
        Health Sciences, shall jointly conduct a study of the sources 
        of lead exposure in children who have elevated blood lead 
        levels (or other indicators of elevated lead body burden), as 
        defined by the Director of the Centers for Disease Control.
            (2) Water.--The Secretary, in consultation with the 
        Director of the National Institute for Occupational Safety and 
        Health, shall conduct a comprehensive study of means to reduce 
        hazardous occupational lead abatement exposures in water. This 
        study shall include, at a minimum, each of the following:
                    (A) Surveillance and intention capability in the 
                States to identify and prevent hazardous exposures to 
                lead abatement workers.
                    (B) Demonstration of lead abatement control methods 
                and devices and work practices to identify and prevent 
                hazardous lead exposures in the workplace.
                    (C) Evaluation, in consultation with the National 
                Institute of Environmental Health Sciences, of health 
                effects of low and high levels of occupational lead 
                exposures through fluids on reproductive, neurological, 
                renal, and cardiovascular health.
                    (D) Identification of high-risk occupational 
                settings to which prevention activities and resources 
                should be targeted.
                    (E) A study assessing the potential exposures and 
                risks from lead to janitorial and custodial workers.
            (3) Contribution to elevated lead body burden.--The studies 
        described in paragraphs (1) and (2) shall as appropriate, 
        examine the relative contributions to elevated lead body burden 
        from each of the following:
                    (A) Drinking water.
                    (B) Food.
                    (C) Occupational exposures, and other exposures 
                that the Secretary determines to be appropriate.
            (4) Report.--Not later than 30 months after the date of the 
        enactment of this section, the Secretary shall submit a report 
        to the Congress concerning the studies described in paragraphs 
        (1) and (2).
    (d) Public Education.--
            (1) In general.--The Administrator, in conjunction with the 
        Secretary of Health and Human Services, acting through the 
        Director of the Agency for Toxic Substances and Disease 
        Registry, and in conjunction with the Secretary of Housing and 
        Urban Development, shall sponsor public education and outreach 
        activities to increase public awareness of--
                    (A) the scope and severity of lead poisoning from 
                household sources, particularly lead-based pipes;
                    (B) potential exposure to sources of lead in 
                schools and childhood day care centers, particularly 
                lead-based pipes;
                    (C) the implications of exposures for men and 
                women, particularly those of childbearing age;
                    (D) the need for careful, quality, abatement and 
                management actions;
                    (E) the need for universal screening of children;
                    (F) other components of a lead poisoning prevention 
                program;
                    (G) the health consequences of lead exposure 
                resulting from lead-based pipe hazards;
                    (H) risk assessment and inspection methods for 
                lead-based pipe hazards; and
                    (I) measures to reduce the risk of lead exposure 
                from lead-based pipes.
            (2) Targeted audiences.--The activities described in 
        paragraph (1) shall be designed to provide educational services 
        and information to--
                    (A) health professionals;
                    (B) the general public, with emphasis on parents of 
                young children;
                    (C) homeowners, landlords, and tenants;
                    (D) consumers of home improvement products;
                    (E) the residential real estate industry; and
                    (F) the home renovation industry.
    (e) Technical Assistance.--
            (1) Clearinghouse.--Not later than 6 months after the 
        enactment of this Act, the Administrator shall establish, in 
        consultation with the Secretary of Housing and Urban 
        Development and the Director of the Centers for Disease 
        Control, a National Clearinghouse on Childhood Lead Poisoning 
        (in this section referred to as the ``Clearinghouse''). The 
        Clearinghouse shall--
                    (A) collect, evaluate, and disseminate current 
                information on the assessment and reduction of lead-
                based pipe hazards, adverse health effects, sources of 
                exposure, detection and risk assessment methods, 
                environmental hazards abatement, and clean-up 
                standards;
                    (B) maintain a rapid-alert system to inform 
                certified lead-based pipe activities contractors of 
                significant developments in research related to lead-
                based paint hazards; and
                    (C) perform any other duty that the Administration 
                determines necessary to achieve the purposes of this 
                Act.
            (2) Hotline.--Not later than 6 months after the enactment 
        of this subsection, the Administrator, in cooperation with 
        other Federal agencies and with State and local governments, 
        shall establish a single lead-based pipe hazard hotline to 
        provide the public with answers to questions about lead poison 
        in prevention and referrals to the Clearinghouse for technical 
        information.

SEC. 205. LEAD HAZARD INFORMATION PAMPHLET.

    (a) In General.--Not later than 2 years after the enactment of this 
Act, after notice and opportunity for comment, the Administrator of the 
Environmental Protection Agency, in consultation with the Secretary of 
Housing and Urban Development and with the Secretary of Health and 
Human Services, shall publish, and from time to time revise, a lead 
hazard information pamphlet. The pamphlet shall--
            (1) contain information regarding the health risks 
        associated with exposure to lead;
            (2) provide information on the presence of lead-based pipe 
        hazards in federally assisted, federally owned, and other 
        housing;
            (3) describe the risks of lead exposure for children under 
        6 years of age, pregnant women, women of childbearing age, 
        persons involved in home renovation, and others residing in a 
        dwelling with lead-based pipe hazards;
            (4) describe the risks of renovation in a dwelling with 
        lead-based pipe hazards;
            (5) provide information on approved methods for evaluating 
        and reducing lead-based pipe hazards and their effectiveness in 
        identifying, reducing, eliminating, or preventing exposure to 
        lead-based pipe hazards;
            (6) advise persons how to obtain a list of contractors 
        certified pursuant to this title in lead-based pipe hazard 
        evaluation and reduction in the area in which the pamphlet is 
        to be used;
            (7) state that a risk assessment or inspection for lead-
        based pipe is recommended prior to the purchase, lease, or 
        renovation of housing;
            (8) state that certain State and local laws impose 
        additional requirements related to lead-based pipe in housing 
        and provide a listing of Federal, State, and local agencies in 
        each State, including address and telephone number, that can 
        provide information about applicable laws and available govern-
        mental and private assistance and financing; and
            (9) provide such other information about environmental 
        hazards associated with residential real property as the 
        Administrator deems appropriate.
    (b) Renovation of Housing.--Within 2 years after the enactment of 
this section, the Administrator shall promulgate regulations under this 
subsection to require each person who performs for compensation a 
renovation of housing to provide a lead hazard information pamphlet to 
the owner and occupant of such housing prior to commencing the 
renovation.

SEC. 206. REGULATIONS.

    The regulations of the Administrator under this title shall include 
such recordkeeping and reporting requirements as may be necessary to 
insure the effective implementation of this title. The regulations may 
be amended from time to time as necessary.

SEC. 207. CONTROL OF LEAD-BASED PIPE HAZARDS AT FEDERAL FACILITIES.

    Each department, agency, and instrumentality of executive, 
legislative, and judicial branches of the Federal Government (1) having 
jurisdiction over any property or facility, or (2) engaged in any 
activity resulting, or which may result, in a lead-based pipe hazard, 
and each officer, agent, or employee thereof, shall be subject to, and 
comply with, all Federal, State, interstate, and local requirements, 
both substantive and procedural (including any requirement for 
certification, licensing, recordkeeping, or reporting or any provisions 
for injunctive relief and such sanctions as may be imposed by a court 
to enforce such relief respecting lead-based pipe, lead-based pipe 
activities, and lead-based pipe hazards in the same manner, and to the 
same extent as any nongovernmental entity is subject to such 
requirements, including the payment of reasonable service charges). The 
Federal, State, interstate, and local substantive and procedural 
requirements referred to in this subsection include, but are not 
limited to, all administrative orders and all civil and administrative 
penalties and fines regardless of whether such penalties or fines are 
punitive or coercive in nature, or whether imposed for isolated, 
intermittent or continuing violations. The United States hereby 
expressly waives any immunity otherwise applicable to the United States 
with respect to any such substantive or procedural requirement 
(including, but not limited to, any injunctive relief, administrative 
order, or civil or administrative penalty referred to in the preceding 
sentence, or reasonable service charge). The reasonable service charges 
referred to in this section include, but are not limited to, fees or 
charges assessed for certification and licensing, as well as any other 
nondiscriminatory charges that are assessed in connection with a 
Federal, State, interstate, or local lead-based pipe, lead-based pipe 
activities, or lead-based pipe hazard activities program. No agent, 
employee, or officer of the United States shall be personally liable 
for any civil penalty under any Federal, State, interstate, or local 
law relating to lead-based pipe, lead-based pipe activities, or lead-
based pipe hazards with respect to any act or omission within the scope 
of his official duties.

SEC. 208. PROHIBITED ACTS.

    It shall be unlawful for any person to fail or refuse to comply 
with a provision of this title or with any rule or order issued under 
this title.

SEC. 209. RELATIONSHIP TO OTHER FEDERAL LAW.

    Nothing in this title shall affect the authority of other 
appropriate Federal agencies to establish or enforce any requirements 
which are at least as stringent as those established pursuant to this 
title.

SEC. 210. GENERAL PROVISIONS RELATING TO ADMINISTRATIVE PROCEEDINGS.

    (a) Applicability.--This section applies to the promulgation or 
revision of any regulation issued under this title.
    (b) Rulemaking Docket.--Not later than the date of proposal of an 
action to which this section applies, the Administrator shall establish 
a rulemaking docket for such action (in this subsection referred to as 
a ``rule''). Whenever a rule applies only within a particular State, a 
second (identical) docket shall be established in the appropriate 
regional office of the Environmental Protection Agency.
    (c) Inspection and Copying.--
            (1) Public availability.--The rulemaking docket required 
        under subsection (b) shall be open for inspection by the public 
        at reasonable times specified in the notice of proposed 
        rulemaking. Any person may copy documents contained in the 
        docket. The Administrator shall provide copying facilities 
        which may be used at the expense of the person seeking copies, 
        but the Administrator may waive or reduce such expenses in such 
        instances as the public interest requires. Any person may 
        request copies by mail if the person pays the expenses, 
        including personnel costs to do the copying.
            (2) Docket.--
                    (A) Comments and information.--Promptly upon 
                receipt by the agency, all written comments and 
                documentary information on the proposed rule received 
                from any person for inclusion in the docket during the 
                comment period shall be placed in the docket. The 
                transcript of public hearing if any, on the proposed 
                rule shall also be included in the docket promptly upon 
                receipt from the person who transcribed such hearings. 
                All documents which become available after the proposed 
                rule has been published and which the Administrator 
                determines are of central relevance to the rulemaking 
                shall be placed in the docket as soon as possible after 
                their availability.
                    (B) Drafts of rules.--The drafts of proposed rules 
                submitted by the Administrator to the Office of 
                Management and Budget for any interagency review 
                process prior to proposal of any such rule, all 
                documents accompanying such drafts, and all written 
                comments thereon by other agencies and all written 
                responses to such written comments by the Administrator 
                shall be placed in the docket no later than the date of 
                proposal of the rule. The drafts of the final rule 
                submitted for such review process prior to promulgation 
                and all such written comments thereto all documents 
                accompanying such drafts, and written responses thereto 
                shall be placed in the docket no later than the date of 
                promulgation.
    (d) Explanation.--
            (1) Major changes.--The promulgated rule shall be 
        accompanied by an explanation of the reasons for any major 
        changes in the promulgated rule from the proposed rule.
            (2) Responses.--The promulgated rule shall also be 
        accompanied by a response to each of the significant comments, 
        criticisms, and new data submitted in written or oral 
        presentations during the comment period.
            (3) Limitation.--The promulgated rule may not be based (in 
        part or whole) on any information or data which has not been 
        placed in the docket as of the date of such promulgation.
    (e) Effective Date.--The requirements of this section shall take 
effect with respect to any rule the proposal of which occurs after 90 
days after the date of the enactment of this Act.

  TITLE III--AUTHORIZATION OF APPROPRIATIONS FOR LEAD HAZARD REDUCTION

SEC. 301. HUD GRANTS FOR LEAD HAZARDS REDUCTION IN HOUSING.

    There is authorized to be appropriated for grants under section 101 
of this Act and section 1011 of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992 (42 U.S.C. 4852) $9,500,000,000 for each of 
fiscal years 2022 through 2031.

SEC. 302. EPA FUNDING FOR LEAD EXPOSURE REDUCTION.

    There is authorized to be appropriated such sums as may be 
necessary for each of fiscal years 2022 through 2031 to carry out--
            (1) title II of this Act;
            (2) title IV of the Toxic Substances Control Act (15 U.S.C. 
        2681 et seq.); and
            (3) such other lead hazard reduction activities as the 
        Administrator of the Environmental Protection Agency is 
        authorized under law to undertake, including activities under 
        the Safe Drinking Water Act (42 U.S.C. 300f et seq.).

                      TITLE IV--REVENUE PROVISIONS

SEC. 401. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH 
              PERFORMANCE OF SERVICES.

    (a) Modification to Election To Include Partnership Interest in 
Gross Income in Year of Transfer.--Subsection (c) of section 83 of the 
Internal Revenue Code of 1986 is amended by redesignating paragraph (4) 
as paragraph (5) and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) Partnership interests.--Except as provided by the 
        Secretary--
                    ``(A) In general.--In the case of any transfer of 
                an interest in a partnership in connection with the 
                provision of services to (or for the benefit of) such 
                partnership--
                            ``(i) the fair market value of such 
                        interest shall be treated for purposes of this 
                        section as being equal to the amount of the 
                        distribution which the partner would receive if 
                        the partnership sold (at the time of the 
                        transfer) all of its assets at fair market 
                        value and distributed the proceeds of such sale 
                        (reduced by the liabilities of the partnership) 
                        to its partners in liquidation of the 
                        partnership, and
                            ``(ii) the person receiving such interest 
                        shall be treated as having made the election 
                        under subsection (b)(1) unless such person 
                        makes an election under this paragraph to have 
                        such subsection not apply.
                    ``(B) Election.--The election under subparagraph 
                (A)(ii) shall be made under rules similar to the rules 
                of subsection (b)(2).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to interests in partnerships transferred after the date of the 
enactment of this Act.

SEC. 402. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
              SERVICES TO PARTNERSHIPS.

    (a) In General.--Part I of subchapter K of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

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

    ``(a) Treatment of Distributive Share of Partnership Items.--For 
purposes of this title, in the case of an investment services 
partnership interest--
            ``(1) In general.--Notwithstanding section 702(b)--
                    ``(A) an amount equal to the net capital gain with 
                respect to such interest for any partnership taxable 
                year shall be treated as ordinary income, and
                    ``(B) subject to the limitation of paragraph (2), 
                an amount equal to the net capital loss with respect to 
                such interest for any partnership taxable year shall be 
                treated as an ordinary loss.
            ``(2) Recharacterization of losses limited to 
        recharacterized gains.--The amount treated as ordinary loss 
        under paragraph (1)(B) for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) the aggregate amount treated as ordinary 
                income under paragraph (1)(A) with respect to the 
                investment services partnership interest for all 
                preceding partnership taxable years to which this 
                section applies, over
                    ``(B) the aggregate amount treated as ordinary loss 
                under paragraph (1)(B) with respect to such interest 
                for all preceding partnership taxable years to which 
                this section applies.
            ``(3) Allocation to items of gain and loss.--
                    ``(A) Net capital gain.--The amount treated as 
                ordinary income under paragraph (1)(A) shall be 
                allocated ratably among the items of long-term capital 
                gain taken into account in determining such net capital 
                gain.
                    ``(B) Net capital loss.--The amount treated as 
                ordinary loss under paragraph (1)(B) shall be allocated 
                ratably among the items of long-term capital loss and 
                short-term capital loss taken into account in 
                determining such net capital loss.
            ``(4) Terms relating to capital gains and losses.--For 
        purposes of this section--
                    ``(A) In general.--Net capital gain, long-term 
                capital gain, and long-term capital loss, with respect 
                to any investment services partnership interest for any 
                taxable year, shall be determined under section 1222, 
                except that such section shall be applied--
                            ``(i) without regard to the 
                        recharacterization of any item as ordinary 
                        income or ordinary loss under this section,
                            ``(ii) by only taking into account items of 
                        gain and loss taken into account by the holder 
                        of such interest under section 702 (other than 
                        subsection (a)(9) thereof) with respect to such 
                        interest for such taxable year, and
                            ``(iii) by treating property which is taken 
                        into account in determining gains and losses to 
                        which section 1231 applies as capital assets 
                        held for more than 1 year.
                    ``(B) Net capital loss.--The term `net capital 
                loss' means the excess of the losses from sales or 
                exchanges of capital assets over the gains from such 
                sales or exchanges. Rules similar to the rules of 
                clauses (i) through (iii) of subparagraph (A) shall 
                apply for purposes of the preceding sentence.
            ``(5) Special rule for dividends.--Any dividend allocated 
        with respect to any investment services partnership interest 
        shall not be treated as qualified dividend income for purposes 
        of section 1(h).
            ``(6) Special rule for qualified small business stock.--
        Section 1202 shall not apply to any gain from the sale or 
        exchange of qualified small business stock (as defined in 
        section 1202(c)) allocated with respect to any investment 
        services partnership interest.
    ``(b) Dispositions of Partnership Interests.--
            ``(1) Gain.--
                    ``(A) In general.--Any gain on the disposition of 
                an investment services partnership interest shall be--
                            ``(i) treated as ordinary income, and
                            ``(ii) recognized notwithstanding any other 
                        provision of this subtitle.
                    ``(B) Gift and transfers at death.--In the case of 
                a disposition of an investment services partnership 
                interest by gift or by reason of death of the 
                taxpayer--
                            ``(i) subparagraph (A) shall not apply,
                            ``(ii) such interest shall be treated as an 
                        investment services partnership interest in the 
                        hands of the person acquiring such interest, 
                        and
                            ``(iii) any amount that would have been 
                        treated as ordinary income under this 
                        subsection had the decedent sold such interest 
                        immediately before death shall be treated as an 
                        item of income in respect of a decedent under 
                        section 691.
            ``(2) Loss.--Any loss on the disposition of an investment 
        services partnership interest shall be treated as an ordinary 
        loss to the extent of the excess (if any) of--
                    ``(A) the aggregate amount treated as ordinary 
                income under subsection (a) with respect to such 
                interest for all partnership taxable years to which 
                this section applies, over
                    ``(B) the aggregate amount treated as ordinary loss 
                under subsection (a) with respect to such interest for 
                all partnership taxable years to which this section 
                applies.
            ``(3) Election with respect to certain exchanges.--
        Paragraph (1)(A)(ii) shall not apply to the contribution of an 
        investment services partnership interest to a partnership in 
        exchange for an interest in such partnership if--
                    ``(A) the taxpayer makes an irrevocable election to 
                treat the partnership interest received in the exchange 
                as an investment services partnership interest, and
                    ``(B) the taxpayer agrees to comply with such 
                reporting and recordkeeping requirements as the 
                Secretary may prescribe.
            ``(4) Distributions of partnership property.--
                    ``(A) In general.--In the case of any distribution 
                of property by a partnership with respect to any 
                investment services partnership interest held by a 
                partner, the partner receiving such property shall 
                recognize gain equal to the excess (if any) of--
                            ``(i) the fair market value of such 
                        property at the time of such distribution, over
                            ``(ii) the adjusted basis of such property 
                        in the hands of such partner (determined 
                        without regard to subparagraph (C)).
                    ``(B) Treatment of gain as ordinary income.--Any 
                gain recognized by such partner under subparagraph (A) 
                shall be treated as ordinary income to the same extent 
                and in the same manner as the increase in such 
                partner's distributive share of the taxable income of 
                the partnership would be treated under subsection (a) 
                if, immediately prior to the distribution, the 
                partnership had sold the distributed property at fair 
                market value and all of the gain from such disposition 
                were allocated to such partner. For purposes of 
                applying subsection (a)(2), any gain treated as 
                ordinary income under this subparagraph shall be 
                treated as an amount treated as ordinary income under 
                subsection (a)(1)(A).
                    ``(C) Adjustment of basis.--In the case a 
                distribution to which subparagraph (A) applies, the 
                basis of the distributed property in the hands of the 
                distributee partner shall be the fair market value of 
                such property.
                    ``(D) Special rules with respect to mergers, 
                divisions, and technical terminations.--In the case of 
                a taxpayer which satisfies requirements similar to the 
                requirements of subparagraphs (A) and (B) of paragraph 
                (3), this paragraph and paragraph (1)(A)(ii) shall not 
                apply to the distribution of a partnership interest if 
                such distribution is in connection with a contribution 
                (or deemed contribution) of any property of the 
                partnership to which section 721 applies pursuant to a 
                transaction described in paragraph (1)(B) or (2) of 
                section 708(b).
    ``(c) Investment Services Partnership Interest.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' means any interest in an investment 
        partnership acquired or held by any person in connection with 
        the conduct of a trade or business described in paragraph (2) 
        by such person (or any person related to such person). An 
        interest in an investment partnership held by any person--
                    ``(A) shall not be treated as an investment 
                services partnership interest for any period before the 
                first date on which it is so held in connection with 
                such a trade or business,
                    ``(B) shall not cease to be an investment services 
                partnership interest merely because such person holds 
                such interest other than in connection with such a 
                trade or business, and
                    ``(C) shall be treated as an investment services 
                partnership interest if acquired from a related person 
                in whose hands such interest was an investment services 
                partnership interest.
            ``(2) Businesses to which this section applies.--A trade or 
        business is described in this paragraph if such trade or 
        business primarily involves the performance of any of the 
        following services with respect to assets held (directly or 
        indirectly) by one or more investment partnerships referred to 
        in paragraph (1):
                    ``(A) Advising as to the advisability of investing 
                in, purchasing, or selling any specified asset.
                    ``(B) Managing, acquiring, or disposing of any 
                specified asset.
                    ``(C) Arranging financing with respect to acquiring 
                specified assets.
                    ``(D) Any activity in support of any service 
                described in subparagraphs (A) through (C).
            ``(3) Investment partnership.--
                    ``(A) In general.--The term `investment 
                partnership' means any partnership if, at the end of 
                any two consecutive calendar quarters ending after the 
                date of enactment of this section--
                            ``(i) substantially all of the assets of 
                        the partnership are specified assets 
                        (determined without regard to any section 197 
                        intangible within the meaning of section 
                        197(d)), and
                            ``(ii) less than 75 percent of the capital 
                        of the partnership is attributable to qualified 
                        capital interests which constitute property 
                        held in connection with a trade or business of 
                        the owner of such interest.
                    ``(B) Look-through of certain wholly owned entities 
                for purposes of determining assets of the 
                partnership.--
                            ``(i) In general.--For purposes of 
                        determining the assets of a partnership under 
                        subparagraph (A)(i)--
                                    ``(I) any interest in a specified 
                                entity shall not be treated as an asset 
                                of such partnership, and
                                    ``(II) such partnership shall be 
                                treated as holding its proportionate 
                                share of each of the assets of such 
                                specified entity.
                            ``(ii) Specified entity.--For purposes of 
                        clause (i), the term `specified entity' means, 
                        with respect to any partnership (hereafter 
                        referred to as the upper-tier partnership), any 
                        person which engages in the same trade or 
                        business as the upper-tier partnership and is--
                                    ``(I) a partnership all of the 
                                capital and profits interests of which 
                                are held directly or indirectly by the 
                                upper-tier partnership, or
                                    ``(II) a foreign corporation which 
                                does not engage in a trade or business 
                                in the United States and all of the 
                                stock of which is held directly or 
                                indirectly by the upper-tier 
                                partnership.
                    ``(C) Special rules for determining if property 
                held in connection with trade or business.--
                            ``(i) In general.--Except as otherwise 
                        provided by the Secretary, solely for purposes 
                        of determining whether any interest in a 
                        partnership constitutes property held in 
                        connection with a trade or business under 
                        subparagraph (A)(ii)--
                                    ``(I) a trade or business of any 
                                person closely related to the owner of 
                                such interest shall be treated as a 
                                trade or business of such owner,
                                    ``(II) such interest shall be 
                                treated as held by a person in 
                                connection with a trade or business 
                                during any taxable year if such 
                                interest was so held by such person 
                                during any 3 taxable years preceding 
                                such taxable year, and
                                    ``(III) paragraph (5)(B) shall not 
                                apply.
                            ``(ii) Closely related persons.--For 
                        purposes of clause (i)(I), a person shall be 
                        treated as closely related to another person 
                        if, taking into account the rules of section 
                        267(c), the relationship between such persons 
                        is described in--
                                    ``(I) paragraph (1) or (9) of 
                                section 267(b), or
                                    ``(II) section 267(b)(4), but 
                                solely in the case of a trust with 
                                respect to which each current 
                                beneficiary is the grantor or a person 
                                whose relationship to the grantor is 
                                described in paragraph (1) or (9) of 
                                section 267(b).
                    ``(D) Antiabuse rules.--The Secretary may issue 
                regulations or other guidance which prevent the 
                avoidance of the purposes of subparagraph (A), 
                including regulations or other guidance which treat 
                convertible and contingent debt (and other debt having 
                the attributes of equity) as a capital interest in the 
                partnership.
                    ``(E) Controlled groups of entities.--
                            ``(i) In general.--In the case of a 
                        controlled group of entities, if an interest in 
                        the partnership received in exchange for a 
                        contribution to the capital of the partnership 
                        by any member of such controlled group would 
                        (in the hands of such member) constitute 
                        property held in connection with a trade or 
                        business, then any interest in such partnership 
                        held by any member of such group shall be 
                        treated for purposes of subparagraph (A) as 
                        constituting (in the hands of such member) 
                        property held in connection with a trade or 
                        business.
                            ``(ii) Controlled group of entities.--For 
                        purposes of clause (i), the term `controlled 
                        group of entities' means a controlled group of 
                        corporations as defined in section 1563(a)(1), 
                        applied without regard to subsections (a)(4) 
                        and (b)(2) of section 1563. A partnership or 
                        any other entity (other than a corporation) 
                        shall be treated as a member of a controlled 
                        group of entities if such entity is controlled 
                        (within the meaning of section 954(d)(3)) by 
                        members of such group (including any entity 
                        treated as a member of such group by reason of 
                        this sentence).
                    ``(F) Special rule for corporations.--For purposes 
                of this paragraph, in the case of a corporation, the 
                determination of whether property is held in connection 
                with a trade or business shall be determined as if the 
                taxpayer were an individual.
            ``(4) Specified asset.--The term `specified asset' means 
        securities (as defined in section 475(c)(2) without regard to 
        the last sentence thereof), real estate held for rental or 
        investment, interests in partnerships, commodities (as defined 
        in section 475(e)(2)), cash or cash equivalents, or options or 
        derivative contracts with respect to any of the foregoing.
            ``(5) Related persons.--
                    ``(A) In general.--A person shall be treated as 
                related to another person if the relationship between 
                such persons is described in section 267(b) or 707(b).
                    ``(B) Attribution of partner services.--Any service 
                described in paragraph (2) which is provided by a 
                partner of a partnership shall be treated as also 
                provided by such partnership.
    ``(d) Exception for Certain Capital Interests.--
            ``(1) In general.--In the case of any portion of an 
        investment services partnership interest which is a qualified 
        capital interest, all items of gain and loss (and any 
        dividends) which are allocated to such qualified capital 
        interest shall not be taken into account under subsection (a) 
        if--
                    ``(A) allocations of items are made by the 
                partnership to such qualified capital interest in the 
                same manner as such allocations are made to other 
                qualified capital interests held by partners who do not 
                provide any services described in subsection (c)(2) and 
                who are not related to the partner holding the 
                qualified capital interest, and
                    ``(B) the allocations made to such other interests 
                are significant compared to the allocations made to 
                such qualified capital interest.
            ``(2) Authority to provide exceptions to allocation 
        requirements.--To the extent provided by the Secretary in 
        regulations or other guidance--
                    ``(A) Allocations to portion of qualified capital 
                interest.--Paragraph (1) may be applied separately with 
                respect to a portion of a qualified capital interest.
                    ``(B) No or insignificant allocations to nonservice 
                providers.--In any case in which the requirements of 
                paragraph (1)(B) are not satisfied, items of gain and 
                loss (and any dividends) shall not be taken into 
                account under subsection (a) to the extent that such 
                items are properly allocable under such regulations or 
                other guidance to qualified capital interests.
                    ``(C) Allocations to service providers' qualified 
                capital interests which are less than other 
                allocations.--Allocations shall not be treated as 
                failing to meet the requirement of paragraph (1)(A) 
                merely because the allocations to the qualified capital 
                interest represent a lower return than the allocations 
                made to the other qualified capital interests referred 
                to in such paragraph.
            ``(3) Special rule for changes in services and capital 
        contributions.--In the case of an interest in a partnership 
        which was not an investment services partnership interest and 
        which, by reason of a change in the services with respect to 
        assets held (directly or indirectly) by the partnership or by 
        reason of a change in the capital contributions to such 
        partnership, becomes an investment services partnership 
        interest, the qualified capital interest of the holder of such 
        partnership interest immediately after such change shall not, 
        for purposes of this subsection, be less than the fair market 
        value of such interest (determined immediately before such 
        change).
            ``(4) Special rule for tiered partnerships.--Except as 
        otherwise provided by the Secretary, in the case of tiered 
        partnerships, all items which are allocated in a manner which 
        meets the requirements of paragraph (1) to qualified capital 
        interests in a lower-tier partnership shall retain such 
        character to the extent allocated on the basis of qualified 
        capital interests in any upper-tier partnership.
            ``(5) Exception for no-self-charged carry and management 
        fee provisions.--Except as otherwise provided by the Secretary, 
        an interest shall not fail to be treated as satisfying the 
        requirement of paragraph (1)(A) merely because the allocations 
        made by the partnership to such interest do not reflect the 
        cost of services described in subsection (c)(2) which are 
        provided (directly or indirectly) to the partnership by the 
        holder of such interest (or a related person).
            ``(6) Special rule for dispositions.--In the case of any 
        investment services partnership interest any portion of which 
        is a qualified capital interest, subsection (b) shall not apply 
        to so much of any gain or loss as bears the same proportion to 
        the entire amount of such gain or loss as--
                    ``(A) the distributive share of gain or loss that 
                would have been allocated to the qualified capital 
                interest (consistent with the requirements of paragraph 
                (1)) if the partnership had sold all of its assets at 
                fair market value immediately before the disposition, 
                bears to
                    ``(B) the distributive share of gain or loss that 
                would have been so allocated to the investment services 
                partnership interest of which such qualified capital 
                interest is a part.
            ``(7) Qualified capital interest.--For purposes of this 
        section--
                    ``(A) In general.--The term `qualified capital 
                interest' means so much of a partner's interest in the 
                capital of the partnership as is attributable to--
                            ``(i) the fair market value of any money or 
                        other property contributed to the partnership 
                        in exchange for such interest (determined 
                        without regard to section 752(a)),
                            ``(ii) any amounts which have been included 
                        in gross income under section 83 with respect 
                        to the transfer of such interest, and
                            ``(iii) the excess (if any) of--
                                    ``(I) any items of income and gain 
                                taken into account under section 702 
                                with respect to such interest, over
                                    ``(II) any items of deduction and 
                                loss so taken into account.
                    ``(B) Adjustment to qualified capital interest.--
                            ``(i) Distributions and losses.--The 
                        qualified capital interest shall be reduced by 
                        distributions from the partnership with respect 
                        to such interest and by the excess (if any) of 
                        the amount described in subparagraph 
                        (A)(iii)(II) over the amount described in 
                        subparagraph (A)(iii)(I).
                            ``(ii) Special rule for contributions of 
                        property.--In the case of any contribution of 
                        property described in subparagraph (A)(i) with 
                        respect to which the fair market value of such 
                        property is not equal to the adjusted basis of 
                        such property immediately before such 
                        contribution, proper adjustments shall be made 
                        to the qualified capital interest to take into 
                        account such difference consistent with such 
                        regulations or other guidance as the Secretary 
                        may provide.
                    ``(C) Technical terminations, etc., disregarded.--
                No increase or decrease in the qualified capital 
                interest of any partner shall result from a 
                termination, merger, consolidation, or division 
                described in section 708, or any similar transaction.
            ``(8) Treatment of certain loans.--
                    ``(A) Proceeds of partnership loans not treated as 
                qualified capital interest of service providing 
                partners.--For purposes of this subsection, an 
                investment services partnership interest shall not be 
                treated as a qualified capital interest to the extent 
                that such interest is acquired in connection with the 
                proceeds of any loan or other advance made or 
                guaranteed, directly or indirectly, by any other 
                partner or the partnership (or any person related to 
                any such other partner or the partnership). The 
                preceding sentence shall not apply to the extent the 
                loan or other advance is repaid before the date of the 
                enactment of this section unless such repayment is made 
                with the proceeds of a loan or other advance described 
                in the preceding sentence.
                    ``(B) Reduction in allocations to qualified capital 
                interests for loans from nonservice-providing partners 
                to the partnership.--For purposes of this subsection, 
                any loan or other advance to the partnership made or 
                guaranteed, directly or indirectly, by a partner not 
                providing services described in subsection (c)(2) to 
                the partnership (or any person related to such partner) 
                shall be taken into account in determining the 
                qualified capital interests of the partners in the 
                partnership.
            ``(9) Special rule for qualified family partnerships.--
                    ``(A) In general.--In the case of any specified 
                family partnership interest, paragraph (1)(A) shall be 
                applied without regard to the phrase `and who are not 
                related to the partner holding the qualified capital 
                interest'.
                    ``(B) Specified family partnership interest.--For 
                purposes of this paragraph, the term `specified family 
                partnership interest' means any investment services 
                partnership interest if--
                            ``(i) such interest is an interest in a 
                        qualified family partnership,
                            ``(ii) such interest is held by a natural 
                        person or by a trust with respect to which each 
                        beneficiary is a grantor or a person whose 
                        relationship to the grantor is described in 
                        section 267(b)(1), and
                            ``(iii) all other interests in such 
                        qualified family partnership with respect to 
                        which significant allocations are made (within 
                        the meaning of paragraph (1)(B) and in 
                        comparison to the allocations made to the 
                        interest described in clause (ii)) are held by 
                        persons who--
                                    ``(I) are related to the natural 
                                person or trust referred to in clause 
                                (ii), or
                                    ``(II) provide services described 
                                in subsection (c)(2).
                    ``(C) Qualified family partnership.--For purposes 
                of this paragraph, the term `qualified family 
                partnership' means any partnership if--
                            ``(i) all of the capital and profits 
                        interests of such partnership are held by--
                                    ``(I) specified family members,
                                    ``(II) any person closely related 
                                (within the meaning of subsection 
                                (c)(3)(C)(ii)) to a specified family 
                                member, or
                                    ``(III) any other person (not 
                                described in subclause (I) or (II)) if 
                                such interest is an investment services 
                                partnership interest with respect to 
                                such person, and
                            ``(ii) such partnership does not hold 
                        itself out to the public as an investment 
                        advisor.
                    ``(D) Specified family members.--For purposes of 
                subparagraph (C), individuals shall be treated as 
                specified family members if such individuals would be 
                treated as one person under the rules of section 
                1361(c)(1) if the applicable date (within the meaning 
                of subparagraph (B)(iii) thereof) were the latest of--
                            ``(i) the date of the establishment of the 
                        partnership,
                            ``(ii) the earliest date that the common 
                        ancestor holds a capital or profits interest in 
                        the partnership, or
                            ``(iii) the date of the enactment of this 
                        section.
    ``(e) Other Income and Gain in Connection With Investment 
Management Services.--
            ``(1) In general.--If--
                    ``(A) a person performs (directly or indirectly) 
                investment management services for any investment 
                entity,
                    ``(B) such person holds (directly or indirectly) a 
                disqualified interest with respect to such entity, and
                    ``(C) the value of such interest (or payments 
                thereunder) is substantially related to the amount of 
                income or gain (whether or not realized) from the 
                assets with respect to which the investment management 
                services are performed,
        any income or gain with respect to such interest shall be 
        treated as ordinary income. Rules similar to the rules of 
        subsections (a)(5) and (d) shall apply for purposes of this 
        subsection.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Disqualified interest.--
                            ``(i) In general.--The term `disqualified 
                        interest' means, with respect to any investment 
                        entity--
                                    ``(I) any interest in such entity 
                                other than indebtedness,
                                    ``(II) convertible or contingent 
                                debt of such entity,
                                    ``(III) any option or other right 
                                to acquire property described in 
                                subclause (I) or (II), and
                                    ``(IV) any derivative instrument 
                                entered into (directly or indirectly) 
                                with such entity or any investor in 
                                such entity.
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) a partnership interest,
                                    ``(II) except as provided by the 
                                Secretary, any interest in a taxable 
                                corporation, and
                                    ``(III) except as provided by the 
                                Secretary, stock in an S corporation.
                    ``(B) Taxable corporation.--The term `taxable 
                corporation' means--
                            ``(i) a domestic C corporation, or
                            ``(ii) a foreign corporation substantially 
                        all of the income of which is--
                                    ``(I) effectively connected with 
                                the conduct of a trade or business in 
                                the United States, or
                                    ``(II) subject to a comprehensive 
                                foreign income tax (as defined in 
                                section 457A(d)(2)).
                    ``(C) Investment management services.--The term 
                `investment management services' means a substantial 
                quantity of any of the services described in subsection 
                (c)(2).
                    ``(D) Investment entity.--The term `investment 
                entity' means any entity which, if it were a 
                partnership, would be an investment partnership.
    ``(f) Exception for Domestic C Corporations.--Except as otherwise 
provided by the Secretary, in the case of a domestic C corporation--
            ``(1) subsections (a) and (b) shall not apply to any item 
        allocated to such corporation with respect to any investment 
        services partnership interest (or to any gain or loss with 
        respect to the disposition of such an interest), and
            ``(2) subsection (e) shall not apply.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as is necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance to--
            ``(1) require such reporting and recordkeeping by any 
        person in such manner and at such time as the Secretary may 
        prescribe for purposes of enabling the partnership to meet the 
        requirements of section 6031 with respect to any item described 
        in section 702(a)(9),
            ``(2) provide modifications to the application of this 
        section (including treating related persons as not related to 
        one another) to the extent such modification is consistent with 
        the purposes of this section,
            ``(3) prevent the avoidance of the purposes of this section 
        (including through the use of qualified family partnerships), 
        and
            ``(4) coordinate this section with the other provisions of 
        this title.
    ``(h) Cross Reference.--For 40-percent penalty on certain 
underpayments due to the avoidance of this section, see section 
6662.''.
    (b) Application of Section 751 to Indirect Dispositions of 
Investment Services Partnership Interests.--
            (1) In general.--Subsection (a) of section 751 is amended 
        by striking ``or'' at the end of paragraph (1), by inserting 
        ``or'' at the end of paragraph (2), and by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) investment services partnership interests held by the 
        partnership,''.
            (2) Certain distributions treated as sales or exchanges.--
        Subparagraph (A) of section 751(b)(1) is amended by striking 
        ``or'' at the end of clause (i), by inserting ``or'' at the end 
        of clause (ii), and by inserting after clause (ii) the 
        following new clause:
                            ``(iii) investment services partnership 
                        interests held by the partnership,''.
            (3) Application of special rules in the case of tiered 
        partnerships.--Subsection (f) of section 751 is amended--
                    (A) by striking ``or'' at the end of paragraph (1), 
                by inserting ``or'' at the end of paragraph (2), and by 
                inserting after paragraph (2) the following new 
                paragraph:
            ``(3) an investment services partnership interest held by 
        the partnership,'', and
                    (B) by striking ``partner.'' and inserting 
                ``partner (other than a partnership in which it holds 
                an investment services partnership interest).''.
            (4) Investment services partnership interests; qualified 
        capital interests.--Section 751 is amended by adding at the end 
        the following new subsection:
    ``(g) Investment Services Partnership Interests.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' has the meaning given such term by 
        section 710(c).
            ``(2) Adjustments for qualified capital interests.--The 
        amount to which subsection (a) applies by reason of paragraph 
        (3) thereof shall not include so much of such amount as is 
        attributable to any portion of the investment services 
        partnership interest which is a qualified capital interest 
        (determined under rules similar to the rules of section 
        710(d)).
            ``(3) Exception for publicly traded partnerships.--Except 
        as otherwise provided by the Secretary, in the case of an 
        exchange of an interest in a publicly traded partnership (as 
        defined in section 7704) to which subsection (a) applies--
                    ``(A) this section shall be applied without regard 
                to subsections (a)(3), (b)(1)(A)(iii), and (f)(3), and
                    ``(B) such partnership shall be treated as owning 
                its proportionate share of the property of any other 
                partnership in which it is a partner.
            ``(4) Recognition of gains.--Any gain with respect to which 
        subsection (a) applies by reason of paragraph (3) thereof shall 
        be recognized notwithstanding any other provision of this 
        title.
            ``(5) Coordination with inventory items.--An investment 
        services partnership interest held by the partnership shall not 
        be treated as an inventory item of the partnership.
            ``(6) Prevention of double counting.--Under regulations or 
        other guidance prescribed by the Secretary, subsection (a)(3) 
        shall not apply with respect to any amount to which section 710 
        applies.
            ``(7) Valuation methods.--The Secretary shall prescribe 
        regulations or other guidance which provide the acceptable 
        methods for valuing investment services partnership interests 
        for purposes of this section.''.
    (c) Treatment for Purposes of Section 7704.--Subsection (d) of 
section 7704 of such Code is amended by adding at the end the following 
new paragraph:
            ``(6) Income from certain carried interests not 
        qualified.--
                    ``(A) In general.--Specified carried interest 
                income shall not be treated as qualifying income.
                    ``(B) Specified carried interest income.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `specified 
                        carried interest income' means--
                                    ``(I) any item of income or gain 
                                allocated to an investment services 
                                partnership interest (as defined in 
                                section 710(c)) held by the 
                                partnership,
                                    ``(II) any gain on the disposition 
                                of an investment services partnership 
                                interest (as so defined) or a 
                                partnership interest to which (in the 
                                hands of the partnership) section 751 
                                applies, and
                                    ``(III) any income or gain taken 
                                into account by the partnership under 
                                subsection (b)(4) or (e) of section 
                                710.
                            ``(ii) Exception for qualified capital 
                        interests.--A rule similar to the rule of 
                        section 710(d) shall apply for purposes of 
                        clause (i).
                    ``(C) Coordination with other provisions.--
                Subparagraph (A) shall not apply to any item described 
                in paragraph (1)(E) (or so much of paragraph (1)(F) as 
                relates to paragraph (1)(E)).
                    ``(D) Special rules for certain partnerships.--
                            ``(i) Certain partnerships owned by real 
                        estate investment trusts.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) Such partnership is treated 
                                as publicly traded under this section 
                                solely by reason of interests in such 
                                partnership being convertible into 
                                interests in a real estate investment 
                                trust which is publicly traded.
                                    ``(II) Fifty percent or more of the 
                                capital and profits interests of such 
                                partnership are owned, directly or 
                                indirectly, at all times during the 
                                taxable year by such real estate 
                                investment trust (determined with the 
                                application of section 267(c)).
                                    ``(III) Such partnership meets the 
                                requirements of paragraphs (2), (3), 
                                and (4) of section 856(c).
                            ``(ii) Certain partnerships owning other 
                        publicly traded partnerships.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) Substantially all of the 
                                assets of such partnership consist of 
                                interests in one or more publicly 
                                traded partnerships (determined without 
                                regard to subsection (b)(2)).
                                    ``(II) Substantially all of the 
                                income of such partnership is ordinary 
                                income or section 1231 gain (as defined 
                                in section 1231(a)(3)).
                    ``(E) Transitional rule.--Subparagraph (A) shall 
                not apply to any taxable year of the partnership 
                beginning before the date which is 10 years after the 
                date of the enactment of this paragraph.''.
    (d) Imposition of Penalty on Underpayments.--
            (1) In general.--Subsection (b) of section 6662 of such 
        Code is amended by inserting after paragraph (7) the following 
        new paragraph:
            ``(8) The application of section 710(e) or the regulations 
        or other guidance prescribed under section 710(g) to prevent 
        the avoidance of the purposes of section 710.''.
            (2) Amount of penalty.--
                    (A) In general.--Section 6662 of such Code is 
                amended by adding at the end the following new 
                subsection:
    ``(k) Increase in Penalty in Case of Property Transferred for 
Investment Management Services.--In the case of any portion of an 
underpayment to which this section applies by reason of subsection 
(b)(8), subsection (a) shall be applied with respect to such portion by 
substituting `40 percent' for `20 percent'.''.
                    (B) Conforming amendment.--Subparagraph (B) of 
                section 6662A(e)(2) of such Code is amended by striking 
                ``or (i)'' and inserting ``, (i), or (k)''.
            (3) Special rules for application of reasonable cause 
        exception.--Subsection (c) of section 6664 is amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively;
                    (B) by striking ``paragraph (3)'' in paragraph 
                (5)(A), as so redesignated, and inserting ``paragraph 
                (4)''; and
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Special rule for underpayments attributable to 
        investment management services.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any portion of an underpayment to which section 6662 
                applies by reason of subsection (b)(8) unless--
                            ``(i) the relevant facts affecting the tax 
                        treatment of the item are adequately disclosed,
                            ``(ii) there is or was substantial 
                        authority for such treatment, and
                            ``(iii) the taxpayer reasonably believed 
                        that such treatment was more likely than not 
                        the proper treatment.
                    ``(B) Rules relating to reasonable belief.--Rules 
                similar to the rules of subsection (d)(3) shall apply 
                for purposes of subparagraph (A)(iii).''.
    (e) Income and Loss From Investment Services Partnership Interests 
Taken Into Account in Determining Net Earnings From Self-Employment.--
            (1) Internal revenue code.--
                    (A) In general.--Section 1402(a) of such Code is 
                amended by striking ``and'' at the end of paragraph 
                (16), by striking the period at the end of paragraph 
                (17) and inserting ``; and'', and by inserting after 
                paragraph (17) the following new paragraph:
            ``(18) notwithstanding the preceding provisions of this 
        subsection, in the case of any individual engaged in the trade 
        or business of providing services described in section 
        710(c)(2) with respect to any entity, investment services 
        partnership income or loss (as defined in subsection (m)) of 
        such individual with respect to such entity shall be taken into 
        account in determining the net earnings from self-employment of 
        such individual.''.
                    (B) Investment services partnership income or 
                loss.--Section 1402 of such Code is amended by adding 
                at the end the following new subsection:
    ``(m) Investment Services Partnership Income or Loss.--For purposes 
of subsection (a)--
            ``(1) In general.--The term `investment services 
        partnership income or loss' means, with respect to any 
        investment services partnership interest (as defined in section 
        710(c)) or disqualified interest (as defined in section 
        710(e)), the net of--
                    ``(A) the amounts treated as ordinary income or 
                ordinary loss under subsections (b) and (e) of section 
                710 with respect to such interest,
                    ``(B) all items of income, gain, loss, and 
                deduction allocated to such interest, and
                    ``(C) the amounts treated as realized from the sale 
                or exchange of property other than a capital asset 
                under section 751 with respect to such interest.
            ``(2) Exception for qualified capital interests.--A rule 
        similar to the rule of section 710(d) shall apply for purposes 
        of applying paragraph (1)(B).''.
            (2) Social security act.--Section 211(a) of the Social 
        Security Act is amended by striking ``and'' at the end of 
        paragraph (15), by striking the period at the end of paragraph 
        (16) and inserting ``; and'', and by inserting after paragraph 
        (16) the following new paragraph:
            ``(17) Notwithstanding the preceding provisions of this 
        subsection, in the case of any individual engaged in the trade 
        or business of providing services described in section 
        710(c)(2) of the Internal Revenue Code of 1986 with respect to 
        any entity, investment services partnership income or loss (as 
        defined in section 1402(m) of such Code) shall be taken into 
        account in determining the net earnings from self-employment of 
        such individual.''.
    (f) Separate Accounting by Partner.--Section 702(a) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
paragraph (7), by striking the period at the end of paragraph (8) and 
inserting ``, and'', and by inserting after paragraph (8) the 
following:
            ``(9) any amount treated as ordinary income or loss under 
        subsection (a), (b), or (e) of section 710.''.
    (g) Conforming Amendments.--
            (1) Subsection (d) of section 731 of such Code is amended 
        by inserting ``section 710(b)(4) (relating to distributions of 
        partnership property),'' after ``to the extent otherwise 
        provided by''.
            (2) Section 741 of such Code is amended by inserting ``or 
        section 710 (relating to special rules for partners providing 
        investment management services to partnerships)'' before the 
        period at the end.
            (3) The table of sections for part I of subchapter K of 
        chapter 1 of such Code is amended by adding at the end the 
        following new item:

``Sec. 710. Special rules for partners providing investment management 
                            services to partnerships.''.
            (4) Part IV of subchapter O of chapter 1 of such Code is 
        amended by striking section 1061, and the table of sections for 
        such part is amended by striking the item relating to section 
        1061.
    (h) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending after the date of the enactment of this 
        Act.
            (2) Partnership taxable years which include effective 
        date.--In applying section 710(a) of the Internal Revenue Code 
        of 1986 (as added by this section) in the case of any 
        partnership taxable year which includes the date of the 
        enactment of this Act, the amount of the net capital gain 
        referred to in such section shall be treated as being the 
        lesser of the net capital gain for the entire partnership 
        taxable year or the net capital gain determined by only taking 
        into account items attributable to the portion of the 
        partnership taxable year which is after such date.
            (3) Dispositions of partnership interests.--
                    (A) In general.--Section 710(b) of such Code (as 
                added by this section) shall apply to dispositions and 
                distributions after the date of the enactment of this 
                Act.
                    (B) Indirect dispositions.--The amendments made by 
                subsection (b) shall apply to transactions after the 
                date of the enactment of this Act.
            (4) Other income and gain in connection with investment 
        management services.--Section 710(e) of such Code (as added by 
        this section) shall take effect on the date of the enactment of 
        this Act.

SEC. 403. RETURN TO PRE-2018 ESTATE AND GIFT TAX BASIC EXCLUSION 
              AMOUNT.

    (a) In General.--Section 2010(c)(3) of the Internal Revenue Code of 
1986 is amended by striking subparagraph (C).
    (b) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying and gifts made after the date of 
the enactment of this Act.
                                 <all>