TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. TEACHER RECRUITMENT, RETENTION, AND TRAINING.

    (a) In General.--Title II of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6601 et seq.) is amended--
            (1) by redesignating part E as part F;
            (2) by redesignating sections 2401 and 2402 as sections 
        2501 and 2502, respectively; and
            (3) by inserting after part D the following:

         ``PART E--TEACHER RECRUITMENT, RETENTION, AND TRAINING

``SEC. 2401. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to make grants to 
local educational agencies to permit such agencies to recruit, retain, 
and train high-quality teachers by carrying out one or more of the 
activities described in subsection (b).
    ``(b) Uses of Funds.--
            ``(1) Recruitment, retention, and training activities.--A 
        local educational agency that receives a grant under this part 
        may use the grant funds for any of the following recruitment, 
        retention, and training activities:
                    ``(A) Providing signing bonuses for teachers.
                    ``(B) Carrying out merit pay programs.
                    ``(C) Providing performance bonuses to teachers.
                    ``(D) Providing scholarships to teachers to pursue 
                advanced course work.
                    ``(E) Providing mentoring programs for teachers.
                    ``(F) Coordinating with institutions of higher 
                education to provide professional development for 
                teachers.
                    ``(G) Any other activity that the local educational 
                agency believes to be effective in recruiting, 
                retaining, or training high-quality teachers.

``SEC. 2402. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this part such 
sums as may be necessary for each of fiscal years 2002 through 2004.''.
    (b) Conforming Amendments.--Section 2003 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6603) is amended--
            (1) in subsection (a), by striking ``part C)'' and 
        inserting ``parts C and E)''; and
            (2) in subsection (b), by inserting ``(other than parts C 
        and E)'' after ``title''.

SEC. 2. LOAN FORGIVENESS FOR TEACHERS.

    (a) Elimination of New Borrower Restrictions.--
            (1) FFEL program.--Section 428J(b) of the Higher Education 
        Act of 1965 (20 U.S.C. 1078-10(b)) is amended by striking ``for 
        any new borrower on or after October 1, 1998, who'' and 
        inserting ``for any borrower who''.
            (2) Federal direct loan program.--Section 460(b)(1) of such 
        Act (20 U.S.C. 1087j(b)(1)) is amended by striking ``for any 
        new borrower on or after October 1, 1998, who'' and inserting 
        ``for any borrower who''.
    (b) Expansion of Eligible Teaching Locations and Subjects; 
Eliminating Delay in Service Benefit.--
            (1) FFEL program.--Section 428J(b)(1) of such Act is 
        amended by striking everything preceding subparagraph (B) and 
        inserting the following:
            ``(1) has been employed as a full-time teacher--
                    ``(A)(i) in a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such schools;
                    ``(ii) as a full-time special education teacher, as 
                described in section 465(a)(2)(C); or
                    ``(iii) as a full-time teacher in any field of 
                expertise where the State educational agency determines 
                there is a shortage of qualified teachers;''.
            (2) Federal direct loan program.--Section 460(b)(1)(A) of 
        such Act (20 U.S.C. 1087j(b)(1)(A)) is amended by striking 
        everything preceding clause (ii) and inserting the following:
                    ``(A) has been employed as a full-time teacher--
                            ``(i)(I) in a school that qualifies under 
                        section 465(a)(2)(A) for loan cancellation for 
                        Perkins loan recipients who teach in such 
                        schools;
                            ``(II) as a full-time special education 
                        teacher, as described in section 465(a)(2)(C); 
                        or
                            ``(III) as a full-time teacher in any field 
                        of expertise where the State educational agency 
                        determines there is a shortage of qualified 
                        teachers;''.
    (c) Amounts Subject to Forgiveness.--
            (1) FFEL program.--Section 428J(c) of the Higher Education 
        Act of 1965 (20 U.S.C. 1078-10(c)) is amended by striking 
        paragraph (1) and inserting the following:
            ``(1) Amount and rate of repayment.--The Secretary shall 
        repay an amount that is not more than $20,000 in the aggregate 
        of the loan obligation on a loan made under section 428 or 428H 
        that is outstanding after the completion of the first complete 
        school year of teaching described in subsection (b)(1) for 
        which the borrower seeks repayment under this section. Such 
        amount shall be repaid at the rate of 15 percent for the first 
        or second year of such service, 20 percent for the third or 
        fourth year of such service, and 30 percent for the fifth year 
        of such service. No borrower may receive a reduction of loan 
        obligations under both this section and section 460.''.
            (2) Federal direct loan program.--Section 460(c) of such 
        Act (20 U.S.C. 1087j(c)) is amended by striking paragraph (1) 
        and inserting the following:
            ``(1) Amount and rate of repayment.--The Secretary shall 
        cancel an amount that is not more than $20,000 in the aggregate 
        of the loan obligation on a loan made under section 428 or 428H 
        that is outstanding after the completion of the first complete 
        school year of teaching described in subsection (b)(1)(A). Such 
        amount shall be canceled at the rate of 15 percent for the 
        first or second year of such service, 20 percent for the third 
        or fourth year of such service, and 30 percent for the fifth 
        year of such service.''.

SOLUTION: Amends the Elementary and Secondary Education Act of 1965 to establish a new program for teacher recruitment, retention, and training. Authorizes the Secretary of Education to award grants to local educational agencies to recruit, retain, and train high-quality teachers through one or more specified types of activities.Amends the Higher Education Act of 1965 to revise student loan forgiveness for teachers under the Federal Family Education Loan and Federal Direct Loan programs. Expands forgiveness eligibility by: (1) eliminating requirements allowing only certain new borrowers to participate; and (2) increasing the types of eligible teaching locations and subjects. Eliminates a service requirement that an individual teach at least five consecutive complete school years before being eligible for program benefits. Increases to $20,000 the aggregate amount of an individual teacher's student loan obligation which may be forgiven, and revises the rate of repayment.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Urban Medicare-Dependent Hospitals 
Preservation Act of 2011''.

SEC. 2. CRITERIA AND PAYMENT FOR CERTAIN URBAN MEDICARE-DEPENDENT 
              HOSPITALS.

    (a) In General.--Section 1886(d)(5) of the Social Security Act (42 
U.S.C. 1395ww(d)(5)) is amended by adding at the end the following new 
subparagraph:
                    ``(M)(i) For cost reporting periods beginning on or 
                after October 1, 2011, and before October 1, 2014, in 
                the case of a subsection (d) hospital which is an urban 
                Medicare-dependent hospital, payment under paragraph 
                (1)(A) shall be equal to the sum of the amount 
                determined under clause (ii) and the amount determined 
                under paragraph (1)(A)(iii).
                    ``(ii) The amount determined under this clause is, 
                for discharges occurring during a cost reporting period 
                that begins on or after October 1, 2011, and before 
                October 1, 2014, 50 percent of the amount by which the 
                hospital's target amount for the cost reporting period 
                (as defined in subsection (b)(3)(L)) exceeds the amount 
                determined under paragraph (1)(A)(iii).
                    ``(iii) For purposes of this subparagraph, the term 
                `urban Medicare-dependent hospital' means, with respect 
                to any cost reporting period to which clause (i) 
                applies, any hospital--
                            ``(I) located in an urban area or 
                        reclassified to an urban area for wage index 
                        purposes;
                            ``(II) that does not receive payment--
                                    ``(aa) under subparagraph (C) as a 
                                rural referral center;
                                    ``(bb) under subparagraph (D) as a 
                                sole community hospital;
                                    ``(cc) under subparagraph (B) or 
                                under subsection (h); or
                                    ``(dd) under subparagraph (F);
                            ``(III) that is not a physician-owned 
                        hospital, as defined in section 489.3 of title 
                        42, Code of Federal Regulations (as in effect 
                        as of the date of the enactment of this 
                        subparagraph); and
                            ``(IV) for which not less than 60 percent 
                        of its inpatient days or discharges during the 
                        cost reporting period beginning in fiscal year 
                        2006, or two of the three most recently audited 
                        cost reporting periods for which the Secretary 
                        has a settled cost report, were attributable to 
                        inpatients entitled to benefits under part A 
                        and not enrolled in a Medicare Advantage plan 
                        under part C.''.
    (b) Target Payment Amount.--Section 1886(b)(3) of the Social 
Security Act (42 U.S.C. 1395ww(b)(3)) is amended--
            (1) in subparagraph (B)(iv), by striking ``and (D)'' and 
        inserting ``, (D), and (M)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(M) For cost reporting periods occurring on or 
                after October 1, 2011, and before October 1, 2014, in 
                the case of a hospital that is an urban Medicare-
                dependent hospital (as defined in subsection 
                (d)(5)(M)), the term `target amount' means--
                            ``(i) with respect to the first 12-month 
                        cost reporting period in which this 
                        subparagraph is applied to the hospital, the 
                        allowable operating costs of inpatient hospital 
                        services (as defined in subsection (a)(4)) 
                        recognized under this title for the hospital 
                        for the 12-month cost reporting period 
                        beginning during fiscal year 2002 or 2006 
                        (whichever results in a higher target amount), 
                        increased by the applicable percentage increase 
                        under subparagraph (B)(iv) for each of fiscal 
                        years 2003 through 2011 or 2007 through 2011, 
                        respectively; and
                            ``(ii) with respect to discharges occurring 
                        after the first 12-month cost reporting period 
                        in which this subparagraph is applied to the 
                        hospital, the target amount for the preceding 
                        year increased by the applicable percentage 
                        increase under subparagraph (B)(iv).''.

SOLUTION: Urban Medicare-Dependent Hospitals Preservation Act of 2011 - Amends title XVIII (Medicare) of the Social Security Act, with respect to cost reporting periods beginning on or after October 1, 2011, and before October 1, 2014, to revise the criteria and payment formula for "subsection (d) hospitals" which are urban Medicare-dependent hospitals.

(Generally a subsection (d) hospital is an acute care hospital particularly one that receives payments under Medicare's inpatient prospective payment system when providing covered inpatient services to eligible beneficiaries.)

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``529 and ABLE Account Improvement Act 
of 2016''.

SEC. 2. EMPLOYER CONTRIBUTIONS TO QUALIFIED TUITION PROGRAMS AND 
              QUALIFIED ABLE PROGRAMS.

    (a) In General.--Subsection (a) of section 132 of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
paragraph (7), by striking the period at the end of paragraph (8) and 
inserting ``, or'', and by adding at the end the following new 
paragraph:
            ``(9) qualified tuition program and qualified ABLE program 
        contributions.''.
    (b) Qualified Tuition Program and Qualified ABLE Program 
Contributions Defined.--Section 132 of such Code is amended by 
redesignating subsection (o) as subsection (p) and inserting after 
subsection (n) the following new subsection:
    ``(o) Qualified Tuition Program and Qualified ABLE Program 
Contributions Defined.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified tuition and qualified ABLE program contributions' 
        means contributions (including matching contributions) made by 
        an employer directly to a qualified tuition program (as 
        described in section 529) or qualified ABLE program (as 
        described in section 529A) designated by an employee if--
                    ``(A) such contribution is made to an account under 
                such program for which the designated beneficiary is 
                the employee or a member of the family of the employee 
                (within the meaning of section 529(e)(2)), and
                    ``(B) such contribution is made in connection with 
                a qualified payroll deduction contribution program 
                established by the employer.
            ``(2) Qualified payroll deduction contribution program.--
        For purposes of this subsection, the term `qualified payroll 
        deduction contribution program' means a program established by 
        an employer--
                    ``(A) under which employees may elect to make 
                contributions to accounts described in paragraph (1)(A) 
                which reduce the amount of wages received directly by 
                such employee by the amount of such contribution, and
                    ``(B) which is made available on substantially the 
                same terms to each member of a group of employees which 
                is defined under a reasonable classification set up by 
                the employer which does not discriminate in favor of 
                highly compensated employees (as defined in section 
                414(q)).
            ``(3) Limitation on exclusion.--The amount of qualified 
        tuition and qualified ABLE program contributions which may be 
        excluded from gross income under subsection (a)(9) with respect 
        to any employee shall not exceed $100 in any calendar year.
            ``(4) Nondiscrimination rule for employer contributions.--
        Subsection (a)(9) shall only apply to contributions provided 
        with respect to a highly compensated employee if such 
        contributions meet the requirements of paragraph (2)(B).
            ``(5) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2016, the $100 
                amount contained in paragraph (3) shall be increased by 
                an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2015' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $25.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2016.

SEC. 3. TAX CREDIT FOR SMALL EMPLOYER COSTS OF ESTABLISHING DIRECT 
              PAYROLL DEDUCTION INTO QUALIFIED TUITION PROGRAMS AND 
              QUALIFIED ABLE PROGRAMS.

    (a) In General.--Section 45E of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Application to Programs for Payroll Deduction Contributions 
to Qualified Tuition Programs and Qualified ABLE Programs.--In the case 
of a qualified payroll deduction contribution program (as defined in 
section 132(o)(2)) established by an employer--
            ``(1) such program shall be treated as an eligible employer 
        plan for purposes of this section,
            ``(2) this section (including the limitation of subsection 
        (b)) shall be applied separately with respect to such programs 
        and any other eligible employer plans of the employer, and
            ``(3) subsection (d)(1)(A)(ii) shall be applied by 
        substituting `education' for `retirement-related education'.''.
    (b) Clerical Amendments.--
            (1) The heading for section 45E of such Code is amended by 
        striking ``pension''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the item relating to section 45E and inserting the following 
        new item:

``Sec. 45E. Small employer plan startup costs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to costs paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 4. EXEMPTIONS FROM ADDITIONAL TAX FOR CERTAIN DISTRIBUTIONS FROM 
              QUALIFIED TUITION PROGRAMS.

    (a) In General.--Section 529(c)(6) of the Internal Revenue Code of 
1986 is amended by striking the last sentence and inserting the 
following: ``This paragraph shall not apply to the extent that--
                    ``(A) a payment or distribution is contributed to 
                an individual retirement plan of the account owner or 
                the designated beneficiary with respect to the calendar 
                year in which the payment or distribution is received,
                    ``(B) a payment or distribution is used (within 90 
                days of the payment or distribution) to make a payment 
                of interest or principal on a qualified education loan 
                (as defined in section 222(d)(1)) on behalf of the 
                designated beneficiary or a member of the family of 
                such designated beneficiary within the meaning of 
                section 529(e)(2)), or
                    ``(C) the recipient of a payment or distribution 
                makes (within 90 days of the receipt of the payment or 
                distribution) a contribution to an organization 
                described in section 170(b)(1)(A) (other than any 
                organization described in section 509(a)(3) or any fund 
                or account described in section 4966(d)(2)), but only 
                if--
                            ``(i) a deduction for the entire payment or 
                        distribution is allowable under section 170, 
                        and
                            ``(ii) the total payments and distributions 
                        taken into account under this subparagraph with 
                        respect to such recipient for any taxable year 
                        does not exceed $1,000.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions after the date of the enactment of this Act.

SEC. 5. CLARIFICATION REGARDING INVESTMENT DIRECTION IN QUALIFIED 
              TUITION PROGRAMS AND QUALIFIED ABLE PROGRAMS.

    (a) Investment Direction in Qualified Tuition Programs.--Paragraph 
(4) of section 529(b) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following: ``For purposes of this paragraph, 
rebalancing investments among broad-based investment strategies 
established under the program shall not be treated as investment 
direction by a contributor or designated beneficiary unless the 
specific investments within those broad-based strategies are directed 
by the contributor or designated beneficiary.''.
    (b) Investment Direction in Qualified ABLE Programs.--Paragraph (4) 
of section 529A(b) of such Code is amended by adding at the end the 
following: ``For purposes of this paragraph, rebalancing investments 
among broad-based investment strategies established under the program 
shall not be treated as investment direction by a designated 
beneficiary unless the specific investments within those broad-based 
strategies are directed by the designated beneficiary.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to calendar years beginning after the date of the 
enactment of this Act.

SEC. 6. ROLLOVERS BETWEEN QUALIFIED TUITION PROGRAMS AND QUALIFIED ABLE 
              PROGRAMS.

    (a) Rollovers From Qualified Tuition Programs to Qualified ABLE 
Programs.--Clause (i) of section 529(c)(3)(C) of the Internal Revenue 
Code of 1986 is amended by striking ``or'' at the end of subclause (I), 
by striking the period at the end of subclause (II) and inserting ``, 
or'', and by adding at the end the following new subclause:
                                    ``(III) to an ABLE account (as 
                                defined in section 529A(e)(6)) of the 
                                designated beneficiary or a member of 
                                the family of the designated 
                                beneficiary.
                        Subclause (III) shall not apply to so much of a 
                        distribution which, when added to all other 
                        contributions made to the ABLE account for the 
                        taxable year, exceeds the limitation under 
                        section 529A(b)(2)(B).''.
    (b) Rollovers From Qualified ABLE Programs to Qualified Tuition 
Programs.--Clause (i) of section 529A(c)(1)(C) of such Code is 
amended--
            (1) by striking ``such payment or distribution, into 
        another'' and inserting ``such payment or distribution--
                                    ``(I) into another'';
            (2) by striking the period at the end and inserting ``, 
        or'', and
            (3) by adding at the end the following new subclause:
                                    ``(II) to a qualified tuition 
                                program (as described in section 529) 
                                for the benefit of the same designated 
                                beneficiary or a member of the family 
                                of such designated beneficiary.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions after the date of the enactment of this Act.

SOLUTION:
529 and ABLE Account Improvement Act of 2016  This bill amends the Internal Revenue Code to modify the tax treatment of qualified tuition programs (known as 529 plans) and ABLE accounts. (Tax-favored ABLE [Achieving a Better Life Experience] accounts are designed to enable individuals with disabilities to save for and pay for disability-related expenses.)  The bill excludes from gross income a fringe benefit consisting of up to $100 per year (adjusted for inflation after 2016) of employer contributions to an employee's 529 or ABLE account. The employer contribution must be made: (1) to an account for which the designated beneficiary is the employee or a member of the employee's family, and (2) in connection with a payroll deduction contribution program established by the employer.  The bill also: (1) expands the tax credit for small employer pension plan startup costs to include the costs of establishing a payroll deduction contribution program for 529 plans and ABLE accounts;(2) permits 529 funds to be used for transfers to an Individual Retirement Account (IRA), education loan payments, or charitable contributions without being subject to the additional tax for distributions that are not used for qualified higher education expenses; and (3) permits tax-free rollovers of funds between 529 and ABLE accounts for the benefit of the same beneficiary or a family member of the beneficiary. For the purpose of current law restrictions on the frequency of investment directions that a beneficiary or contributor may provide for a 529 or ABLE account, rebalancing investments among broad-based investment strategies established under the program is not an investment direction unless the beneficiary or contributor directs the specific investments within the strategies.