In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[EX Q]: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Dr. Chris 
Kirkpatrick Whistleblower Protection Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                      TITLE I--EMPLOYEES GENERALLY

Sec. 101. Definitions.
Sec. 102. Stays; probationary employees.
Sec. 103. Prohibited personnel practices.
Sec. 104. Discipline of supervisors based on retaliation against 
          whistleblowers.
Sec. 105. Suicide by employees.
Sec. 106. Training for supervisors.
Sec. 107. Information on whistleblower protections.

           TITLE II--DEPARTMENT OF VETERANS AFFAIRS EMPLOYEES

Sec. 201. Prevention of unauthorized access to medical records of 
          employees of the Department of Veterans Affairs.
Sec. 202. Outreach on availability of mental health services available 
          to employees of the Department of Veterans Affairs.
Sec. 203. Protocols to address threats against employees of the 
          Department of Veterans Affairs.
Sec. 204. Comptroller General of the United States study on 
          accountability of chiefs of police of Department of Veterans 
          Affairs medical centers.

                      TITLE I--EMPLOYEES GENERALLY

    SEC. 101. DEFINITIONS.
    In this title--
        (1) the term ``agency''--
            (A) except as provided in subparagraph (B), means an entity 
        that is an agency, as defined under section 2302 of title 5, 
        United States Code, without regard to whether one or more 
        portions of title 5 of the United States Code are inapplicable 
        to the entity; and
            (B) does not include any entity that is an element of the 
        intelligence community, as defined in section 3(4) of the 
        National Security Act of 1947 (50 U.S.C. 3003(4));
        (2) the term ``employee'' means an employee (as defined in 
    section 2105 of title 5, United States Code) of an agency; and
        (3) the term ``personnel action'' has the meaning given that 
    term under section 2302 of title 5, United States Code.
    SEC. 102. STAYS; PROBATIONARY EMPLOYEES.
    (a) Request by Special Counsel.--Section 1214(b)(1) of title 5, 
United States Code, is amended by adding at the end the following:
    ``(E) If the Merit Systems Protection Board grants a stay under 
this subsection, the head of the agency employing the employee shall 
give priority to a request for a transfer submitted by the employee.''.
    (b) Probationary Employees.--Section 1221 of title 5, United States 
Code, is amended by adding at the end the following:
    ``(k) If the Merit Systems Protection Board grants a stay to an 
employee in probationary status under subsection (c), the head of the 
agency employing the employee shall give priority to a request for a 
transfer submitted by the employee.''.
    (c) Study Regarding Retaliation Against Probationary Employees.--
The Comptroller General of the United States shall submit to the 
Committee on Homeland Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government Reform of the House of 
Representatives a report discussing retaliation against employees in 
probationary status.
    SEC. 103. PROHIBITED PERSONNEL PRACTICES.
    Section 2302(b) of title 5, United States Code, is amended--
        (1) in paragraph (12), by striking ``or'' at the end;
        (2) in paragraph (13), by striking the period at the end and 
    inserting ``; or''; and
        (3) by inserting after paragraph (13) the following:
        ``(14) access the medical record of another employee or an 
    applicant for employment as a part of, or otherwise in furtherance 
    of, any conduct described in paragraphs (1) through (13).''.
    SEC. 104. DISCIPLINE OF SUPERVISORS BASED ON RETALIATION AGAINST 
      WHISTLEBLOWERS.
    (a) In General.--Subchapter II of chapter 75 of title 5, United 
States Code, is amended by adding at the end the following:
``Sec. 7515. Discipline of supervisors based on retaliation against 
    whistleblowers
    ``(a) Definitions.--In this section--
        ``(1) the term `agency'--
            ``(A) except as provided in subparagraph (B), means an 
        entity that is an agency, as defined under section 2302, 
        without regard to whether any other provision of this chapter 
        is applicable to the entity; and
            ``(B) does not include any entity that is an element of the 
        intelligence community, as defined in section 3(4) of the 
        National Security Act of 1947 (50 U.S.C. 3003(4));
        ``(2) the term `prohibited personnel action' means taking or 
    failing to take an action in violation of paragraph (8), (9), or 
    (14) of section 2302(b) against an employee of an agency; and
        ``(3) the term `supervisor' means an employee who would be a 
    supervisor, as defined under section 7103(a), if the entity 
    employing the employee was an agency.
    ``(b) Proposed Disciplinary Actions.--
        ``(1) In general.--If the head of the agency employing a 
    supervisor, an administrative law judge, the Merit Systems 
    Protection Board, the Special Counsel, a judge of the United 
    States, or the Inspector General of the agency employing a 
    supervisor determines that the supervisor has committed a 
    prohibited personnel action, the head of the agency employing the 
    supervisor, in accordance with the procedures required under 
    paragraph (2)--
            ``(A) for the first prohibited personnel action committed 
        by a supervisor--
                ``(i) shall propose suspending the supervisor for a 
            period of not less than 3 days; and
                ``(ii) may, in addition to a suspension described in 
            clause (i), propose any other action, including a reduction 
            in grade or pay, that the head of the agency determines 
            appropriate; and
            ``(B) for the second prohibited personnel action committed 
        by a supervisor, shall propose removing the supervisor.
        ``(2) Procedures.--
            ``(A) Notice.--A supervisor against whom an action is 
        proposed to be taken under paragraph (1) is entitled to written 
        notice--
                ``(i) stating the specific reasons for the proposed 
            action; and
                ``(ii) informing the supervisor of the right of the 
            supervisor to review the material which is relied on to 
            support the reasons for the proposed action.
            ``(B) Answer and evidence.--
                ``(i) In general.--A supervisor who is notified under 
            subparagraph (A) that the supervisor is the subject of a 
            proposed action under paragraph (1) is entitled to 14 days 
            following such notification to answer and furnish evidence 
            in support of the answer.
                ``(ii) No evidence furnished; insufficient evidence.--
            After the end of the 14-day period described in clause (i), 
            if a supervisor does not furnish evidence as described in 
            clause (i) or if the head of the agency determines that 
            such evidence is not sufficient to reverse the proposed 
            action, the head of the agency shall carry out the action.
            ``(C) Scope of procedures.--An action carried out under 
        this section--
                ``(i) except as provided in clause (ii), shall be 
            subject to the same requirements and procedures (including 
            regarding appeals) as an action under section 7503, 7513, 
            or 7543; and
                ``(ii) shall not be subject to--

                    ``(I) paragraphs (1) and (2) of section 7503(b);
                    ``(II) paragraphs (1) and (2) of subsection (b) and 
                subsection (c) of section 7513; or
                    ``(III) paragraphs (1) and (2) of subsection (b) 
                and subsection (c) of section 7543.

        ``(3) Delegation.--
            ``(A) In general.--Except as provided in paragraph (B), the 
        head of an agency may delegate any authority or responsibility 
        under this subsection.
            ``(B) Nondelegability of determination regarding prohibited 
        personnel action.--If the head of an agency is responsible for 
        determining whether a supervisor has committed a prohibited 
        personnel action for purposes of paragraph (1), the head of the 
        agency may not delegate that responsibility.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
subchapter II of chapter 75 of title 5, United States Code, is amended 
by adding at the end the following:

``7515. Discipline of supervisors based on retaliation against 
          whistleblowers.''.
    SEC. 105. SUICIDE BY EMPLOYEES.
    (a) Referral.--The head of an agency shall refer to the Special 
Counsel, along with any information known to the agency regarding the 
circumstances described in paragraphs (2) and (3), any instance in 
which the head of the agency has information indicating--
        (1) an employee of the agency committed suicide;
        (2) prior to the death of the employee, the employee made any 
    disclosure of information which reasonably evidences--
            (A) any violation of any law, rule, or regulation; or
            (B) gross mismanagement, a gross waste of funds, an abuse 
        of authority, or a substantial and specific danger to public 
        health or safety; and
        (3) after a disclosure described in paragraph (2), a personnel 
    action was taken against the employee.
    (b) Office of Special Counsel Review.--For any referral to the 
Special Counsel under subsection (a), the Special Counsel shall--
        (1) examine whether any personnel action was taken because of 
    any disclosure of information described in subsection (a)(2); and
        (2) take any action the Special Counsel determines appropriate 
    under subchapter II of chapter 12 of title 5, United States Code.
    SEC. 106. TRAINING FOR SUPERVISORS.
    In consultation with the Special Counsel and the Inspector General 
of the agency (or senior ethics official of the agency for an agency 
without an Inspector General), the head of each agency shall provide 
training regarding how to respond to complaints alleging a violation of 
whistleblower protections (as defined in section 2307 of title 5, 
United States Code, as added by section 107) available to employees of 
the agency--
        (1) to employees appointed to supervisory positions in the 
    agency who have not previously served as a supervisor; and
        (2) on an annual basis, to all employees of the agency serving 
    in a supervisory position.
    SEC. 107. INFORMATION ON WHISTLEBLOWER PROTECTIONS.
    (a) Existing Provision.--
        (1) In general.--Section 2302 of title 5, United States Code, 
    is amended--
            (A) by striking subsection (c); and
            (B) by redesignating subsections (d), (e), and (f) as 
        subsections (c), (d), and (e), respectively.
        (2) Technical and conforming amendments.--
            (A) Section 4505a(b)(2) of title 5, United States Code, is 
        amended by striking ``section 2302(d)'' and inserting ``section 
        2302(c)''.
            (B) Section 5755(b)(2) of title 5, United States Code, is 
        amended by striking ``section 2302(d)'' and inserting ``section 
        2302(c)''.
            (C) Section 110(b)(2) of the Whistleblower Protection 
        Enhancement Act of 2012 (5 U.S.C. 2302 note) is amended by 
        striking ``section 2302(f)(1) or (2)'' and inserting ``section 
        2302(e)(1) or (2)''.
            (D) Section 1217(d)(3) of the Panama Canal Act of 1979 (22 
        U.S.C. 3657(d)(3)) is amended by striking ``section 2302(d)'' 
        and inserting ``section 2302(c)''.
            (E) Section 1233(b) of the Panama Canal Act of 1979 (22 
        U.S.C. 3673(b)) is amended by striking ``section 2302(d)'' and 
        inserting ``section 2302(c)''.
    (b) Provision of Information.--Chapter 23 of title 5, United States 
Code, is amended by adding at the end the following:
``Sec. 2307. Information on whistleblower protections
    ``(a) Definitions.--In this section--
        ``(1) the term `agency'--
            ``(A) except as provided in subparagraph (B), has the 
        meaning given that term in section 2302; and
            ``(B) does not include any entity that is an element of the 
        intelligence community, as defined in section 3(4) of the 
        National Security Act of 1947 (50 U.S.C. 3003(4));
        ``(2) the term `new employee' means an individual--
            ``(A) appointed to a position as an employee of an agency 
        on or after the date of enactment of the Dr. Chris Kirkpatrick 
        Whistleblower Protection Act of 2017; and
            ``(B) who has not previously served as an employee; and
        ``(3) the term `whistleblower protections' means the 
    protections against and remedies for a prohibited personnel 
    practice described in paragraph (8), subparagraph (A)(i), (B), (C), 
    or (D) of paragraph (9), or paragraph (14) of section 2302(b).
    ``(b) Responsibilities of Head of Agency.--The head of each agency 
shall be responsible for the prevention of prohibited personnel 
practices, for the compliance with and enforcement of applicable civil 
service laws, rules, and regulations, and other aspects of personnel 
management, and for ensuring (in consultation with the Special Counsel 
and the Inspector General of the agency) that employees of the agency 
are informed of the rights and remedies available to them under this 
chapter and chapter 12, including--
        ``(1) information regarding whistleblower protections available 
    to new employees during the probationary period;
        ``(2) the role of the Office of Special Counsel and the Merit 
    Systems Protection Board with regard to whistleblower protections; 
    and
        ``(3) how to make a lawful disclosure of information that is 
    specifically required by law or Executive order to be kept 
    classified in the interest of national defense or the conduct of 
    foreign affairs to the Special Counsel, the Inspector General of an 
    agency, Congress, or other agency employee designated to receive 
    such disclosures.
    ``(c) Timing.--The head of each agency shall ensure that the 
information required to be provided under subsection (b) is provided to 
each new employee of the agency not later than 6 months after the date 
the new employee begins performing service as an employee.
    ``(d) Information Online.--The head of each agency shall make 
available information regarding whistleblower protections applicable to 
employees of the agency on the public website of the agency, and on any 
online portal that is made available only to employees of the agency if 
one exists.
    ``(e) Delegees.--Any employee to whom the head of an agency 
delegates authority for personnel management, or for any aspect 
thereof, shall, within the limits of the scope of the delegation, be 
responsible for the activities described in subsection (b).''.
    (c) Technical and Conforming Amendment.--The table of sections for 
chapter 23 of title 5, United States Code, is amended by adding at the 
end the following:

``2307. Information on whistleblower protections.''.

           TITLE II--DEPARTMENT OF VETERANS AFFAIRS EMPLOYEES

    SEC. 201. PREVENTION OF UNAUTHORIZED ACCESS TO MEDICAL RECORDS OF 
      EMPLOYEES OF THE DEPARTMENT OF VETERANS AFFAIRS.
    (a) Development of Plan.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Veterans Affairs shall--
            (A) develop a plan to prevent access to the medical records 
        of employees of the Department of Veterans Affairs by employees 
        of the Department who are not authorized to access such 
        records;
            (B) submit to the appropriate committees of Congress the 
        plan developed under subparagraph (A); and
            (C) upon request, provide a briefing to the appropriate 
        committees of Congress with respect to the plan developed under 
        subparagraph (A).
        (2) Elements.--The plan required under paragraph (1) shall 
    include the following:
            (A) A detailed assessment of strategic goals of the 
        Department for the prevention of unauthorized access to the 
        medical records of employees of the Department.
            (B) A list of circumstances in which an employee of the 
        Department who is not a health care provider or an assistant to 
        a health care provider would be authorized to access the 
        medical records of another employee of the Department.
            (C) Steps that the Secretary will take to acquire new or 
        implement existing technology to prevent an employee of the 
        Department from accessing the medical records of another 
        employee of the Department without a specific need to access 
        such records.
            (D) Steps the Secretary will take, including plans to issue 
        new regulations, as necessary, to ensure that an employee of 
        the Department may not access the medical records of another 
        employee of the Department for the purpose of retrieving 
        demographic information if that demographic information is 
        available to the employee in another location or through 
        another format.
            (E) A proposed timetable for the implementation of such 
        plan.
            (F) An estimate of the costs associated with implementing 
        such plan.
    (b) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
        (1) the Committee on Homeland Security and Governmental Affairs 
    and the Committee on Veterans' Affairs of the Senate; and
        (2) the Committee on Oversight and Government Reform and the 
    Committee on Veterans' Affairs of the House of Representatives.
    SEC. 202. OUTREACH ON AVAILABILITY OF MENTAL HEALTH SERVICES 
      AVAILABLE TO EMPLOYEES OF THE DEPARTMENT OF VETERANS AFFAIRS.
    The Secretary of Veterans Affairs shall conduct a program of 
outreach to employees of the Department of Veterans Affairs to inform 
those employees of any mental health services, including telemedicine 
options, that are available to them.
    SEC. 203. PROTOCOLS TO ADDRESS THREATS AGAINST EMPLOYEES OF THE 
      DEPARTMENT OF VETERANS AFFAIRS.
    The Secretary of Veterans Affairs shall ensure protocols are in 
effect to address threats from individuals receiving health care from 
the Department of Veterans Affairs directed towards employees of the 
Department who are providing such health care.
    SEC. 204. COMPTROLLER GENERAL OF THE UNITED STATES STUDY ON 
      ACCOUNTABILITY OF CHIEFS OF POLICE OF DEPARTMENT OF VETERANS 
      AFFAIRS MEDICAL CENTERS.
    The Comptroller General of the United States shall conduct a study 
to assess the reporting, staffing, accountability, and chain of command 
structure of the Department of Veterans Affairs police officers at 
medical centers of the Department.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
[EX A]:  (This measure has not been amended since it was reported to the Senate on May 4, 2017 .  Dr. Chris Kirkpatrick Whistleblower Protection Act of 2017 TITLE I--EMPLOYEES GENERALLY (Sec. 102) This bill directs federal agencies (excluding any entity that is an element of the intelligence community) to give priority to an employee transfer request if the Merit Systems Protections Board (MSPB) grants a stay of a personnel action at the request of: (1) the Office of Special Counsel (OSC) if the OSC determines the personnel action was taken, or is to be taken, as a result of a prohibited personnel practice; or (2) the employee if the individual is in probationary status and seeks corrective action. The Government Accountability Office (GAO) shall report to Congress on retaliation against employees in probationary status. (Sec. 103) The bill: (1) prohibits any employee who has the authority to take a personnel action to access the medical records of another employee or applicant for employment, (2) authorizes disciplinary action against supervisors for retaliation against whistleblowers.  (Sec. 105) Agencies must: (1) refer information about employee suicides to the OSC, (2) train supervisors on responding to complaints alleging whistleblower protections violations, (3) provide information regarding whistleblower protections to new employees during probationary periods, (4) inform employees of the role of the OSC and the MSPB with regard to whistleblower protection, and (5) make information about such protections available on agency websites.  TITLE II--DEPARTMENT OF VETERANS AFFAIRS EMPLOYEES (Sec. 201) The Department of Veterans Affairs (VA) must: (1) submit a plan to prevent unauthorized access to the medical records of VA employees; (2) conduct an outreach program to inform its employees of available mental health services, including telemedicine options; and (3) ensure protocols are in effect to address threats against VA employees providing health care.  (Sec. 204) The GAO shall assess the reporting, staffing, accountability, and chain of command structure of the VA police officers at VA medical centers.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Volcano Early Warning and 
Monitoring System Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (2) System.--The term ``System'' means the National Volcano 
        Early Warning and Monitoring System established under section 
        3(a)(1).

SEC. 3. NATIONAL VOLCANO EARLY WARNING AND MONITORING SYSTEM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish within the 
        United States Geological Survey a system, to be known as the 
        ``National Volcano Early Warning and Monitoring System'', to 
        monitor, warn, and protect citizens of the United States from 
        undue and avoidable harm from volcanic activity.
            (2) Purposes.--The purposes of the System are--
                    (A) to organize, modernize, standardize, and 
                stabilize the monitoring systems of the volcano 
                observatories in the United States, which include the 
                Alaska Volcano Observatory, California Volcano 
                Observatory, Cascades Volcano Observatory, Hawaiian 
                Volcano Observatory, Yellowstone Volcano Observatory, 
                and other volcano observatories established under 
                subsection (d); and
                    (B) to unify the monitoring systems of volcano 
                observatories in the United States into a single 
                interoperative system.
            (3) Objective.--The objective of the System is to monitor 
        all the volcanoes in the United States at a level commensurate 
        with the threat posed by the volcanoes by--
                    (A) upgrading existing networks on monitored 
                volcanoes;
                    (B) installing new networks on unmonitored 
                volcanoes; and
                    (C) employing geodetic and other components when 
                applicable.
    (b) System Components.--
            (1) In general.--The System shall include--
                    (A) a national volcano watch office that is 
                operational 24 hours a day and 7 days a week;
                    (B) a national volcano data center; and
                    (C) an external grants program to support research 
                in volcano monitoring science and technology.
            (2) Modernization activities.--Modernization activities 
        under the System shall include the comprehensive application of 
        emerging technologies, including digital broadband 
        seismometers, real-time continuous Global Positioning System 
        receivers, satellite and airborne radar interferometry, 
        acoustic pressure sensors, and spectrometry to measure gas 
        emissions.
    (c) Management.--
            (1) Management plan.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary shall 
                submit to Congress a 5-year management plan for 
                establishing and operating the System.
                    (B) Inclusions.--The management plan submitted 
                under subparagraph (A) shall include--
                            (i) annual cost estimates for modernization 
                        activities and operation of the System;
                            (ii) annual milestones, standards, and 
                        performance goals; and
                            (iii) recommendations for, and progress 
                        towards, establishing new, or enhancing 
                        existing, partnerships to leverage resources.
            (2) Advisory committee.--The Secretary shall establish an 
        advisory committee to assist the Secretary in implementing the 
        System, to be comprised of representatives of relevant agencies 
        and members of the scientific community, to be appointed by the 
        Secretary.
            (3) Partnerships.--The Secretary may enter into cooperative 
        agreements with institutions of higher education and State or 
        territorial agencies designating the institutions of higher 
        education and State or territorial agencies as volcano 
        observatory partners for the System.
            (4) Coordination.--The Secretary shall coordinate the 
        activities under this Act with the heads of relevant Federal 
        agencies, including--
                    (A) the Secretary of Transportation;
                    (B) the Administrator of the Federal Aviation 
                Administration;
                    (C) the Administrator of the National Oceanic and 
                Atmospheric Administration; and
                    (D) the Director of the Federal Emergency 
                Management Administration.
    (d) Volcano Observatory in Pacific U.S. Territories.--
            (1) Feasibility study.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall conduct a 
        study to assess the feasibility of establishing volcano 
        observatories in Guam, the Northern Mariana Islands, and 
        American Samoa to monitor volcanic activity across the western 
        and southern Pacific Ocean along the Ring of Fire, including 
        underwater volcanic activity in such region.
            (2) Consultation.--The Secretary shall consult with 
        appropriate territorial and local entities in conducting the 
        study.
            (3) Cooperative agreement.--If the study required by 
        paragraph (1) determines that such observatories are feasible, 
        then the Secretary, subject to the availability of 
        appropriations, may enter into cooperative agreements under 
        subsection (c)(3) with institutions of higher education or 
        territorial agencies to establish such volcano observatories as 
        part of the National Volcano Early Warning and Monitoring 
        System.
    (e) Annual Report.--In each of fiscal years 2018 through 2024, the 
Secretary shall submit to Congress a report that describes the 
activities carried out under this Act.

SEC. 4. FUNDING.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this Act $15,000,000 for 
each of fiscal years 2018 through 2024.
    (b) Effect on Other Sources of Federal Funding.--Amounts made 
available under this section shall supplement, and not supplant, 
Federal funds made available for other United States Geological Survey 
hazards activities and programs.
[EX A]: National Volcano Early Warning and Monitoring System Act (Sec. 3) This bill directs the United States Geological Survey (USGS) to establish the National Volcano Early Warning and Monitoring System to monitor, issue warnings of, and protect U.S. citizens from undue and avoidable harm from, volcanic activity.  The purposes of the system are to: (1) organize, modernize, standardize, and stabilize the monitoring systems of U.S. volcano observatories; and (2) unify such systems into a single interoperative system. The objective of the system is to monitor all U.S. volcanoes at a level commensurate with the threat posed by the volcanoes by: (1) upgrading existing networks on monitored volcanoes, (2) installing new networks on unmonitored volcanoes, and (3) employing geodetic and other components when applicable. The system shall include: (1) a national volcano watch office that is operational 24 hours a day and 7 days a week, (2) a national volcano data center, (3) an external grants program to support research in volcano monitoring science and technology, and (4) modernization activities including the comprehensive application of emerging technologies. The USGS must: (1) submit to Congress a five-year management plan for establishing and operating the system, and (2) establish an advisory committee to assist in implementing the system.  The USGS may enter into cooperative agreements designating institutions of higher education and state or territorial agencies as volcano observatory partners for the system. The USGS must conduct a study to assess the feasibility of establishing volcano observatories in Guam, the Northern Mariana Islands, and American Samoa to monitor volcanic activity across the western and southern Pacific Ocean along the Ring of Fire. If determined to be feasible, the USGS may enter into cooperative agreements with institutions of higher education or territorial agencies to establish such observatories as part of the National Volcano Early Warning and Monitoring System.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Tax Cut Act''.

SEC. 2. DEDUCTION FOR DOMESTIC BUSINESS INCOME OF QUALIFIED SMALL 
              BUSINESSES.

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

``SEC. 200. DOMESTIC BUSINESS INCOME OF QUALIFIED SMALL BUSINESSES.

    ``(a) Allowance of Deduction.--In the case of a qualified small 
business, there shall be allowed as a deduction an amount equal to 20 
percent of the lesser of--
            ``(1) the qualified domestic business income of the 
        taxpayer for the taxable year, or
            ``(2) taxable income (determined without regard to this 
        section) for the taxable year.
    ``(b) Deduction Limited Based on Wages Paid.--
            ``(1) In general.--The amount of the deduction allowable 
        under subsection (a) for any taxable year shall not exceed 50 
        percent of the greater of--
                    ``(A) the W-2 wages of the taxpayer paid to non-
                owners, or
                    ``(B) the sum of--
                            ``(i) the W-2 wages of the taxpayer paid to 
                        individuals who are non-owner family members of 
                        direct owners, plus
                            ``(ii) any W-2 wages of the taxpayer paid 
                        to 10-percent-or-less direct owners.
            ``(2) Definitions related to ownership.--For purposes of 
        this section--
                    ``(A) Non-owner.--The term `non-owner' means, with 
                respect to any qualified small business, any person who 
                does not own (and is not considered as owning within 
                the meaning of subsection (c) or (e)(3) of section 267, 
                as the case may be) any stock of such business (or, if 
                such business is other than a corporation, any capital 
                or profits interest of such business).
                    ``(B) Non-owner family members.--An individual is a 
                non-owner family member of a direct owner if--
                            ``(i) such individual is family (within the 
                        meaning of section 267(c)(4)) of a direct 
                        owner, and
                            ``(ii) such individual would be a non-owner 
                        if subsections (c) and (e)(3) of section 267 
                        were applied without regard to section 
                        267(c)(2).
                    ``(C) Direct owner.--The term `direct owner' means, 
                with respect to any qualified small business, any 
                person who owns (or is considered as owning under the 
                applicable non-family attribution rules) any stock of 
                such business (or, if such business is other than a 
                corporation, any capital or profits interest of such 
                business).
                    ``(D) 10-percent-or-less direct owners.--The term 
                `10-percent-or-less direct owner' means, with respect 
                to any qualified small business, any direct owner of 
                such business who owns (or is considered as owning 
                under the applicable non-family attribution rules)--
                            ``(i) in the case of a qualified small 
                        business which is a corporation, not more than 
                        10 percent of the outstanding stock of the 
                        corporation or stock possessing more than 10 
                        percent of the total combined voting power of 
                        all stock of the corporation, or
                            ``(ii) in the case of a qualified small 
                        business which is not a corporation, not more 
                        than 10 percent of the capital or profits 
                        interest of such business.
                    ``(E) Applicable non-family attribution rules.--The 
                term `applicable non-family attribution rules' means 
                the attribution rules of subsection (c) or (e)(3) of 
                section 267, as the case may be, but in each case 
                applied without regard to section 267(c)(2).
            ``(3) W-2 wages.--For purposes of this section--
                    ``(A) In general.--The term `W-2 wages' means, with 
                respect to any person for any taxable year of such 
                person, the sum of the amounts described in paragraphs 
                (3) and (8) of section 6051(a) paid by such person with 
                respect to employment of employees by such person 
                during the calendar year ending during such taxable 
                year.
                    ``(B) Limitation to wages attributable to qualified 
                domestic business income.--Such term shall not include 
                any amount which is not properly allocable to domestic 
                business gross receipts for purposes of subsection 
                (c)(1).
                    ``(C) Other requirements.--Except in the case of 
                amounts treated as W-2 wages under paragraph (4)--
                            ``(i) such term shall not include any 
                        amount which is not allowed as a deduction 
                        under section 162 for the taxable year, and
                            ``(ii) such term shall not include any 
                        amount which is not properly included in a 
                        return filed with the Social Security 
                        Administration on or before the 60th day after 
                        the due date (including extensions) for such 
                        return.
            ``(4) Certain partnership distributions treated as w-2 
        wages.--
                    ``(A) In general.--In the case of a qualified small 
                business which is a partnership and elects the 
                application of this paragraph for the taxable year--
                            ``(i) the qualified domestic business 
                        taxable income of such partnership for such 
                        taxable year (determined after the application 
                        of clause (ii)) which is allocable under rules 
                        similar to the rules of section 
                        199(d)(1)(A)(ii) to each qualified service-
                        providing partner shall be treated for purposes 
                        of this section as W-2 wages paid during such 
                        taxable year to such partner as an employee, 
                        and
                            ``(ii) the domestic business gross receipts 
                        of such partnership for such taxable year shall 
                        be reduced by the amount so treated.
                    ``(B) Qualified service-providing partner.--For 
                purposes of this paragraph, the term `qualified 
                service-providing partner' means, with respect to any 
                qualified domestic business taxable income, any partner 
                who is a 10-percent-or-less direct owner and who 
                materially participates in the trade or business to 
                which such income relates.
            ``(5) Acquisitions and dispositions.--The Secretary shall 
        provide for the application of this subsection in cases where 
        the taxpayer acquires, or disposes of, the major portion of a 
        trade or business or the major portion of a separate unit of a 
        trade or business during the taxable year.
    ``(c) Qualified Domestic Business Income.--For purposes of this 
section--
            ``(1) In general.--The term `qualified domestic business 
        income' for any taxable year means an amount equal to the 
        excess (if any) of--
                    ``(A) the taxpayer's domestic business gross 
                receipts for such taxable year, over
                    ``(B) the sum of--
                            ``(i) the cost of goods sold that are 
                        allocable to such receipts, and
                            ``(ii) other expenses, losses, or 
                        deductions (other than the deduction allowed 
                        under this section), which are properly 
                        allocable to such receipts.
            ``(2) Domestic business gross receipts.--
                    ``(A) In general.--The term `domestic business 
                gross receipts' means the gross receipts of the 
                taxpayer which are effectively connected with the 
                conduct of a trade or business within the United States 
                within the meaning of section 864(c) but determined--
                            ``(i) without regard to paragraphs (3), 
                        (4), and (5) thereof, and
                            ``(ii) by substituting `qualified small 
                        business (within the meaning of section 200)' 
                        for `nonresident alien individual or a foreign 
                        corporation' each place it appears therein.
                    ``(B) Exceptions.--For purposes of paragraph (1), 
                domestic business gross receipts shall not include any 
                of the following:
                            ``(i) Gross receipts derived from the sale 
                        or exchange of--
                                    ``(I) a capital asset, or
                                    ``(II) property used in the trade 
                                or business (as defined in section 
                                1231(b)).
                            ``(ii) Royalties, rents, dividends, 
                        interest, or annuities.
                            ``(iii) Any amount which constitutes wages 
                        (as defined in section 3401).
            ``(3) Application of certain rules.--Rules similar to the 
        rules of paragraphs (2) and (3) of section 199(c) shall apply 
        for purposes of this section (applied with respect to qualified 
        domestic business income in lieu of qualified production 
        activities income and with respect to domestic business gross 
        receipts in lieu of domestic production gross receipts).
    ``(d) Qualified Small Business.--For purposes of this section--
            ``(1) In general.--The term `qualified small business' 
        means any employer engaged in a trade or business if such 
        employer had fewer than 500 full-time equivalent employees for 
        either calendar year 2010 or 2011.
            ``(2) Full-time equivalent employees.--The term `full-time 
        equivalent employees' has the meaning given such term by 
        subsection (d)(2) of section 45R applied--
                    ``(A) without regard to subsection (d)(5) of such 
                section,
                    ``(B) with regard to subsection (e)(1) of such 
                section, and
                    ``(C) by substituting `calendar year' for `taxable 
                year' each place it appears therein.
            ``(3) Employers not in existence prior to 2012.--In the 
        case of an employer which was not in existence on January 1, 
        2012, the determination under paragraph (1) shall be made with 
        respect to calendar year 2012.
            ``(4) Application to calendar years in which employer in 
        existence for portion of calendar year.--In the case of any 
        calendar year during which the employer comes into existence, 
        the number of full-time equivalent employees determined under 
        paragraph (2) with respect to such calendar year shall be 
        increased by multiplying the number so determined (without 
        regard to this paragraph) by the quotient obtained by 
        dividing--
                    ``(A) the number of days in such calendar year, by
                    ``(B) the number of days during such calendar year 
                which such employer is in existence.
            ``(5) Special rules.--
                    ``(A) Aggregation rule.--For purposes of paragraph 
                (1), any person treated as a single employer under 
                subsection (a) or (b) of section 52 (applied without 
                regard to section 1563(b)) or subsection (m) or (o) of 
                section 414 shall be treated as a single employer for 
                purposes of this subsection.
                    ``(B) Predecessors.--Any reference in this 
                subsection to an employer shall include a reference to 
                any predecessor of such employer.
    ``(e) Special Rules.--
            ``(1) Elective application of deduction.--Except as 
        otherwise provided by the Secretary, the taxpayer may elect not 
        to take any item of income into account as domestic business 
        gross receipts for purposes of this section.
            ``(2) Coordination with section 199.--If a deduction is 
        allowed under this section with respect to any taxpayer for any 
        taxable year--
                    ``(A) any gross receipts of the taxpayer which are 
                taken into account under this section for such taxable 
                year shall not be taken into account under section 199 
                for such taxable year, and
                    ``(B) the W-2 wages of the taxpayer which are taken 
                into account under this section shall not be taken into 
                account under section 199 for such taxable year.
            ``(3) Application of certain rules.--Rules similar to the 
        rules of paragraphs (1), (2), (3), (4), (6), and (7) of section 
        199(d) shall apply for purposes of this section (applied with 
        respect to qualified domestic business income in lieu of 
        qualified production activities income).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out the purposes of this section, including 
regulations which prevent a taxpayer which reorganizes from being 
treated as a qualified small business if such taxpayer would not have 
been treated as a qualified small business prior to such 
reorganization.
    ``(g) Application.--Subsection (a) shall apply only with respect to 
the first taxable year of the taxpayer beginning after December 31, 
2011.''.
    (b) Conforming Amendments.--
            (1) Section 56(d)(1)(A) of such Code is amended by striking 
        ``deduction under section 199'' both places it appears and 
        inserting ``deductions under sections 199 and 200''.
            (2) Section 56(g)(4)(C) of such Code is amended by adding 
        at the end the following new clause:
                            ``(vii) Deduction for domestic business 
                        income of qualified small businesses.--Clause 
                        (i) shall not apply to any amount allowable as 
                        a deduction under section 200.''.
            (3) The following provisions of such Code are each amended 
        by inserting ``200,'' after ``199,''.
                    (A) Section 86(b)(2)(A).
                    (B) Section 135(c)(4)(A).
                    (C) Section 137(b)(3)(A).
                    (D) Section 219(g)(3)(A)(ii).
                    (E) Section 221(b)(2)(C)(i).
                    (F) Section 222(b)(2)(C)(i).
                    (G) Section 246(b)(1).
                    (H) Section 469(i)(3)(F)(iii).
            (4) Section 163(j)(6)(A)(i) of such Code is amended by 
        striking ``and'' at the end of subclause (III) and by inserting 
        after subclause (IV) the following new subclause:
                                    ``(V) any deduction allowable under 
                                section 200, and''.
            (5) Section 170(b)(2)(C) of such Code is amended by 
        striking ``and'' at the end of clause (iv), by striking the 
        period at the end of clause (v) and inserting ``, and'', and by 
        inserting after clause (v) the following new clause:
                            ``(vi) section 200.''.
            (6) Section 172(d) of such Code is amended by adding at the 
        end the following new paragraph:
            ``(8) Domestic business income of qualified small 
        businesses.--The deduction under section 200 shall not be 
        allowed.''.
            (7) Section 613(a) of such Code is amended by striking 
        ``deduction under section 199'' and inserting ``deductions 
        under sections 199 and 200''.
            (8) Section 613A(d)(1) of such Code is amended by 
        redesignating subparagraphs (C), (D), and (E) as subparagraphs 
        (D), (E), and (F), respectively, and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) any deduction allowable under section 200,''.
            (9) Section 1402(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (16), by redesignating 
        paragraph (17) as paragraph (18), and by inserting after 
        paragraph (16) the following new paragraph:
            ``(17) the deduction provided by section 200 shall not be 
        allowed; and''.
    (c) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 200. Domestic business income of qualified small businesses.''.

            Passed the House of Representatives April 19, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
[EX A]:
Small Business Tax Cut Act - Amends the Internal Revenue Code to allow a qualified small business a tax deduction equal to 20% of the lesser of qualified domestic business income or taxable income. Defines: (1) "qualified small business" as any employer engaged in a trade or business if such employer had fewer than 500 full-time employees in either 2010 or 2011; and (2) "qualified domestic business income" as an amount equal to the excess (if any) of the taxpayer's domestic business gross receipts (i.e., gross receipts effectively connected with a trade or business within the United States) for a taxable year over the sum of the cost of goods sold allocable to such receipts and other expenses, losses, or deductions properly allocable to such receipts.

Limits the amount of such deduction to 50% of the greater of: (1) the taxpayer's W-2 wages (payroll) paid to non-owners of the taxpayer's business; or (2) the sum of the W-2 wages paid to individuals who are non-owner family members of direct owners (i.e., stockholders of the business), plus any W-2 wages paid to direct owners who have an ownership interest in the business of 10% or less.

Directs the Secretary of the Treasury to prescribe regulations to carry out this Act, including regulations to prevent a taxpayer that reorganizes from being treated as a qualified small business if such taxpayer would not have been treated as a qualified small business prior to such reorganization.