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.

    This Act may be cited as the ``Make It In America Manufacturing 
Communities Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Manufacturing community support program.--The term 
        ``Manufacturing Community Support Program'' means the program 
        established under section 3(a).
            (2) Participating agency.--The term ``participating 
        agency'' means a Federal agency that elects to participate in 
        the Manufacturing Community Support Program.
            (3) Participating program.--The term ``participating 
        program'' means a program identified by a participating agency 
        under section 3(c)(1)(C).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 3. PROGRAM TO DESIGNATE AND SUPPORT MANUFACTURING COMMUNITIES.

    (a) Program Authorized.--The Secretary shall establish a program to 
improve the competitiveness of United States manufacturing--
            (1) by designating consortiums as manufacturing communities 
        under subsection (b); and
            (2) by supporting manufacturing communities, as so 
        designated, under subsection (c).
    (b) Designation of Manufacturing Communities.--
            (1) In general.--Except as provided in paragraph (7), for 
        purposes of the Manufacturing Community Support Program, the 
        Secretary shall designate eligible consortiums as manufacturing 
        communities through a competitive process.
            (2) Eligible consortiums.--
                    (A) In general.--An eligible consortium is a 
                consortium that--
                            (i) represents a region defined by the 
                        consortium in accordance with subparagraph (B);
                            (ii) includes at least one--
                                    (I) institution of higher 
                                education;
                                    (II) a private sector entity; and
                                    (III) a government entity;
                            (iii) may include one or more--
                                    (I) private sector partners;
                                    (II) institutions of higher 
                                education;
                                    (III) government entities;
                                    (IV) economic development and other 
                                community and labor groups;
                                    (V) financial institutions; or
                                    (VI) utilities;
                            (iv) has, as a lead applicant--
                                    (I) a district organization (as 
                                defined in section 300.3 of title 13, 
                                Code of Federal Regulations, or 
                                successor regulation);
                                    (II) an Indian tribe (as defined in 
                                section 4 of the Indian Self-
                                Determination and Education Assistance 
                                Act (25 U.S.C. 450b)) or a consortium 
                                of Indian tribes;
                                    (III) a State or a political 
                                subdivision of a State, including a 
                                special purpose unit of a State or 
                                local government engaged in economic or 
                                infrastructure development activities, 
                                or a consortium of political 
                                subdivisions;
                                    (IV) an institution of higher 
                                education or a consortium of 
                                institutions of higher education; or
                                    (V) a public or private nonprofit 
                                organization or association that has an 
                                application that is supported by a 
                                State, a political subdivision of a 
                                State, or a native community.
                    (B) Regions.--Subject to approval by the Secretary, 
                a consortium may define the region that it represents 
                if the region--
                            (i) is large enough to contain critical 
                        elements of the key technologies or supply 
                        chain prioritized by the consortium; and
                            (ii) is small enough to enable close 
                        collaboration among members of the consortium.
            (3) Duration.--Each designation under paragraph (1) shall 
        be for a period of two years.
            (4) Renewal.--
                    (A) In general.--Upon receipt of an application 
                submitted under subparagraph (B), the Secretary may 
                renew a designation made under paragraph (1) for up to 
                two additional two-year periods. Any designation as a 
                manufacturing community or renewal of such designation 
                that is in effect before the date of the enactment of 
                this Act shall count toward the limit set forth in this 
                subparagraph.
                    (B) Application for renewal.--An eligible 
                consortium seeking a renewal under subparagraph (A) 
                shall submit an application to the Secretary at such 
                time, in such manner, and containing such information 
                as the Secretary may require.
                    (C) Modifications authorized.--The Secretary may 
                renew a designation under subparagraph (A) for an 
                eligible consortium that--
                            (i) has changed its composition, either by 
                        adding or removing members; or
                            (ii) as part of its application under 
                        subparagraph (B), submits a revision to the 
                        plan submitted under paragraph (5)(B)(iv) or 
                        the strategy submitted under paragraph 
                        (5)(B)(v).
                    (D) Evaluation for renewal.--In determining whether 
                to renew a designation of an eligible consortium under 
                paragraph (1), the Secretary shall assess the eligible 
                consortium based upon--
                            (i) the performance of the consortium 
                        against the terms of the consortium's most 
                        recent designation under paragraph (1) and any 
                        post-designation awards the consortium may have 
                        received;
                            (ii) the progress the consortium has made 
                        with respect to project-specific metrics the 
                        consortium proposed in the consortium's 
                        application for the most recent designation 
                        under paragraph (1), particularly with respect 
                        to those metrics that were designed to help 
                        communities track their own progress;
                            (iii) whether any changes to the 
                        composition of the eligible consortium or 
                        revisions to the plan or strategy described in 
                        subparagraph (C)(ii) would improve the 
                        competitiveness of United States manufacturing; 
                        and
                            (iv) such other criteria as the Secretary 
                        considers appropriate.
            (5) Application for designation.--
                    (A) In general.--An eligible consortium seeking a 
                designation under paragraph (1) shall submit an 
                application to the Secretary at such time and in such 
                manner as the Secretary may require.
                    (B) Contents.--Each application submitted to the 
                Secretary under subparagraph (A) include--
                            (i) a description of the regional 
                        boundaries of the consortium;
                            (ii) a description of the manufacturing 
                        concentration of the consortium, including an 
                        assessment of how the manufacturing 
                        concentration of the consortium competitively 
                        ranks nationally according to measures relating 
                        to employment, sales, location quotients for an 
                        industry's level of concentration, or such 
                        other measures as the Secretary considers 
                        appropriate;
                            (iii) an integrated assessment of the local 
                        industrial ecosystem of the region of the 
                        consortium, which may include assessment of 
                        workforce and training, such as that involving 
                        women and underrepresented minorities, supplier 
                        network, research and innovation, 
                        infrastructure or site development, trade and 
                        international investment, operational 
                        improvements, and capital access components 
                        needed for manufacturing activities in such 
                        region;
                            (iv) an evidence-based plan for developing 
                        components of such ecosystem (selected by the 
                        consortium)--
                                    (I) by making specific investments 
                                to address gaps in such ecosystem; and
                                    (II) by making the manufacturing of 
                                the region of the consortium uniquely 
                                competitive;
                            (v) a description of the investments the 
                        consortium proposes and the implementation 
                        strategy the consortium intends to use to 
                        address gaps in such ecosystem;
                            (vi) a description of the outcome-based 
                        metrics, benchmarks, and milestones that the 
                        consortium will track and the evaluation 
                        methods the consortium will use while 
                        designated as a manufacturing community to 
                        gauge performance of the strategy of the 
                        consortium to improve the manufacturing in the 
                        region of the consortium; and
                            (vii) such other matters as the Secretary 
                        considers appropriate.
            (6) Evaluation of applications.--The Secretary shall 
        evaluate each application received under paragraph (5) to 
        determine--
                    (A) whether the applicant demonstrates a 
                significant level of regional cooperation in their 
                proposal; and
                    (B) how the manufacturing concentration of the 
                applicant competitively ranks nationally according to 
                measures described in paragraph (5)(B)(ii).
            (7) Certain communities previously recognized.--Each 
        consortium that was designated as a manufacturing community by 
        the Secretary in carrying out the Investing in Manufacturing 
        Communities Partnership initiative of the Department of 
        Commerce before the date of the enactment of this Act shall be 
        deemed a manufacturing community designated under this 
        subsection if such consortium is still designated as a 
        manufacturing community by the Secretary as part of such 
        initiative.
    (c) Support for Designated Manufacturing Communities.--
            (1) Preferential consideration.--
                    (A) In general.--Except as provided in subparagraph 
                (D), if a member of a consortium designated as a 
                manufacturing community under subsection (b) seeks 
                financial or technical assistance under a participating 
                program of a participating agency, the head of such 
                agency may give preferential consideration to such 
                member with respect to the awarding of such financial 
                or technical assistance if--
                            (i) such head considers the award of the 
                        financial or technical assistance consistent 
                        with the economic development strategy of the 
                        consortium; and
                            (ii) the member otherwise meets all 
                        applicable requirements for the financial or 
                        technical assistance.
                    (B) Participating agencies.--The Secretary shall 
                invite other Federal agencies to become participating 
                agencies of the Manufacturing Community Support 
                Program.
                    (C) Participating programs.--The head of each 
                participating agency shall identify all programs 
                administered by such participating agency that are 
                applicable to the Manufacturing Community Support 
                Program.
                    (D) Multiple members of the same consortium seeking 
                the same financial or technical assistance.--
                            (i) In general.--If a participating agency 
                        receives applications for the same financial or 
                        technical assistance from more than one member 
                        of the same consortium designated as a 
                        manufacturing community under subsection (b), 
                        the head of such agency may determine how 
                        preference will be given under subparagraph 
                        (A), including by requiring the consortium to 
                        select which of the members should be given 
                        preference.
                            (ii) Coordination.--If the head of a 
                        participating agency determines that more than 
                        one member of a consortium should be given 
                        preference for financial or technical 
                        assistance under subparagraph (A), he or she 
                        may require such members to demonstrate 
                        coordination with each other in developing 
                        their applications for the financial or 
                        technical assistance.
                    (E) Report.--Not later than 90 days after the date 
                of the enactment of this Act, the head of each 
                participating agency shall submit a report to the 
                Secretary that specifies how the head will give 
                preferential consideration under subparagraph (A).
            (2) Technical assistance.--The Secretary may make a Federal 
        point of contact available to each consortium designated as a 
        manufacturing community under subsection (b) to help the 
        members of the consortium access Federal funds and technical 
        assistance.
            (3) Financial and technical assistance.--
                    (A) In general.--Under the Manufacturing Community 
                Support Program, the head of a participating agency may 
                award financial or technical assistance to a member of 
                a consortium designated as a manufacturing community 
                under subsection (b) as he or she considers appropriate 
                for purposes of such program and consistent with the 
                economic development strategy of the consortium.
                    (B) Use of funds.--
                            (i) In general.--A recipient of financial 
                        or technical assistance under subparagraph (A) 
                        may use such financial or technical assistance 
                        to support an investment in an ecosystem that 
                        will improve the competitiveness of United 
                        States manufacturing.
                            (ii) Investments supported.--Investments 
                        supported under this subparagraph may include--
                                    (I) infrastructure;
                                    (II) access to capital;
                                    (III) promotion of exports and 
                                foreign direct investment;
                                    (IV) equipment or facility 
                                upgrades;
                                    (V) workforce training, retraining, 
                                or recruitment and retention, including 
                                that of women and underrepresented 
                                minorities;
                                    (VI) energy or process efficiency;
                                    (VII) business incubators;
                                    (VIII) site preparation;
                                    (IX) advanced research;
                                    (X) supply chain development; and
                                    (XI) small business assistance.
            (4) Coordination.--
                    (A) Coordination by secretary of commerce.--The 
                Secretary shall coordinate with the heads of the 
                participating agencies to identify programs under 
                paragraph (1)(C).
                    (B) Inter-agency coordination.--The heads of the 
                participating agencies shall coordinate with each 
                other--
                            (i) to leverage complementary activities, 
                        including from non-Federal sources, such as 
                        philanthropies; and
                            (ii) to avoid duplication of efforts.
    (d) Receipt of Transferred Funds.--The Secretary may accept amounts 
transferred to the Secretary from the head of another participating 
agency to carry out this section.
[EX A]: Make It In America Manufacturing Communities Act This bill requires the Department of Commerce to establish a Manufacturing Community Support Program to improve the competitiveness of U.S. manufacturing by: (1) designating consortiums as manufacturing communities, and (2) authorizing federal agencies electing to participate in the program to provide such communities preferential consideration in awarding financial and technical assistance. A consortium, to be eligible for such designation and assistance, must:    represent a region that is large enough to contain critical elements of the key technologies or supply chain prioritized by the consortium and small enough to enable close collaboration among the consortium's members;   include at least one institution of higher education, a private sector entity, and a government entity; and   have a lead applicant that is a district organization, an Indian tribe, a state or political subdivision of a state, an institution of higher education, a nonprofit organization or association with an application supported by a state, a political subdivision of a state, or a native community.   Commerce shall make such designations for a two-year period, and may renew a designation for additional two-year periods, based on specified criteria.  Recipients may use such financial or technical assistance to support investments in ecosystems that will improve the competitiveness of U.S. manufacturing, including infrastructure, access to capital, promotion of exports and foreign direct investment, equipment upgrades, workforce training and recruitment, energy or process efficiency, business incubators, site preparation, advanced research, supply chain development, and small business assistance. 

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reporting on Influence and 
Subversion by the Kremlin Act'' or ``RISK Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 1986, an interagency working group issued a report 
        assessing ``active measures'' by the former Soviet Union 
        against the United States.
            (2) The working group concluded that ``there is a massive 
        and highly organized effort by the Soviet Union and its proxies 
        to influence world opinion''.
            (3) The working group further observed that ``this effort 
        includes public diplomacy to enhance the Soviet image abroad 
        and . . . also includes a persistent, widespread program of 
        disinformation and deception designed to discredit the U.S. 
        image abroad and disrupt U.S. policy objectives.''.
            (4) Active measures by the Russian Federation have shown no 
        diminution since the last report issued by the working group in 
        1987, including--
                    (A) to influence world opinion;
                    (B) to undercut democratic processes and 
                institutions in the United States and partner nations;
                    (C) to challenge the international liberal order; 
                and
                    (D) to establish an unfettered sphere of influence.
            (5) The Director of National Intelligence concluded in 
        light of the Russian Federation's hacking of the 2016 
        presidential election that ``Russian efforts to influence the 
        2016 U.S. presidential election represent the most recent 
        expression of Moscow's longstanding desire to undermine the 
        U.S.-led liberal democratic order.''.
            (6) The Russian Federation is deploying an array of 
        military, cyber, intelligence, and economic tactics to weaken 
        United States democratic institutions, divide Europe from the 
        United States, divide Europe from within, undermine 
        organizations such as the North Atlantic Treaty Organization 
        and the European Union, and coerce partners to cooperate with 
        Russia.
            (7) Militarily, Russian President Vladimir Putin ordered 
        the forcible and illegal occupation of Crimea in March 2014 and 
        the invasion of Georgia in 2008.
            (8) The Russian military, in which President Putin has 
        invested heavily, continues to engage in acts of aggression and 
        intimidation against United States allies across Europe.
            (9) The Russian Federation's subversive activities 
        undermine trust in democratic systems, giving rise to political 
        instability.

SEC. 3. ASSESSMENT OF SUBVERSIVE ACTIVITIES BY THE RUSSIAN FEDERATION.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State shall submit to Congress 
a report setting forth an assessment, obtained by the Secretary for 
purposes of the report, of subversive activities by the Russian 
Federation.
    (b) Independent Assessment.--
            (1) In general.--The assessment obtained for purposes of 
        subsection (a) shall be conducted by a federally funded 
        research and development center (FFRDC), or another appropriate 
        independent entity with expertise in diplomatic and military 
        developments in Europe and the Russian Federation, selected by 
        the Secretary for purposes of the assessment.
            (2) Use of previous studies.--The entity conducting the 
        assessment may use and incorporate information from previous 
        studies on matters appropriate to the assessment.
    (c) Elements.--The assessment obtained for purposes of subsection 
(a) shall include the following:
            (1) An assessment of disinformation and propaganda 
        activities of the Russian Federation, including an assessment 
        of--
                    (A) support for disinformation and propaganda 
                activities with respect to the United States and 
                foreign countries;
                    (B) the overall structure of the Russian 
                Government's disinformation and influence apparatus, 
                including its intelligence agencies and propaganda 
                outlets such as Russia Today; and
                    (C) propaganda techniques, including forgery, use 
                of media representatives and proxies, use of front 
                organizations, and efforts to influence international 
                organizations.
            (2) An assessment of support by the Russian Federation for 
        separatist activities and other aggressive actions aimed at 
        undermining the sovereignty of foreign countries, particularly 
        in Ukraine and the Baltic countries.
            (3) An assessment of cyber intrusions by the Russian 
        Federation to influence the infrastructure and democratic 
        processes in the United States and other countries.
            (4) An assessment of--
                    (A) the use of energy exports by the Russian 
                Federation for purposes of political or economic 
                coercion; and
                    (B) significant investment in energy 
                infrastructure, including pipelines, by the Government 
                of Russia or Russian-controlled entities.
            (5) An assessment of the deterioration of democratic 
        conditions in the Russian Federation, including--
                    (A) suppression of freedom of the press;
                    (B) detention, beating, and murder of political 
                activists and opposition leaders;
                    (C) suppression of minority rights;
                    (D) suppression of human rights; and
                    (E) efforts to undermine the Russian 
                nongovernmental organizations and Russian civil 
                society.
    (d) Form.--The report required under subsection (a) shall be 
submitted in unclassified form, but may include a classified annex.

SEC. 4. COUNTERING RUSSIAN INFLUENCE FUND.

    (a) Establishment.--The President is authorized to establish in the 
Department of the Treasury a fund to be known as the Countering Russian 
Influence Fund (in this section referred to as the ``Fund'').
    (b) Amounts in Fund.--The Fund shall consist of the following:
            (1) Amounts appropriated to carry out section 7070(d) of 
        division C of the Consolidated Appropriations Act, 2017 (Public 
        Law 115-31).
            (2) Amounts otherwise available to the Secretary of State 
        to carry out this section.
    (c) Purposes of Fund.--Amounts in the Fund for any fiscal year are 
authorized to be made available to the Secretary of State for bilateral 
assistance for countries in Europe, Eurasia, and Central Asia, to 
counter the following activities in such countries carried out by the 
Russian Federation:
            (1) Support for disinformation and propaganda.
            (2) Interference in foreign elections.
            (3) Efforts to undermine financial transparency and 
        governance.
    (d) Civil Society and Other Organizations.--Amounts in the Fund for 
any fiscal year may be made available to carry out the purposes of the 
Fund under subsection (c) through civil society and other organizations 
that seek to mitigate the expansion of Russian influence and 
aggression, including through public awareness campaigns and exchange 
activities.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the President not less than $100,000,000 to carry out this 
        section.
            (2) Relation to certain other amounts.--Such funds are in 
        addition to any other amounts made available for bilateral 
        assistance for countries in Europe, Eurasia, and Central Asia.
            (3) Rule of construction.--This section shall be considered 
        to be an authorization of appropriations for purposes of 
        section 7070(d) of division C of the Consolidated 
        Appropriations Act, 2017 (Public Law 115-31).
    (f) Report.--The Secretary of State shall submit to Congress a 
report for each fiscal year for which activities are undertaken 
pursuant to this section.
[EX A]: Reporting on Influence and Subversion by the Kremlin Act or the RISK Act This bill directs the Department of State to submit to Congress an assessment of subversive activities by the Russian Federation. The assessment shall be conducted by a federally funded research and development center or another appropriate independent entity with expertise in diplomatic and military developments in Europe and the Russian Federation.  Such entity may use and incorporate information from previous studies and shall include assessments of:  disinformation and propaganda activities of the Russian Federation; support by the Russian Federation for separatist activities and other aggressive actions aimed at undermining the sovereignty of foreign countries, particularly in Ukraine and the Baltic countries;  cyber intrusions by the Russian Federation to influence the infrastructure and democratic processes in the United States and other countries;  the use of energy exports by the Russian Federation for purposes of political or economic coercion and significant investment in energy infrastructure by the Russian government or Russian-controlled entities; and  the deterioration of democratic conditions in the Russian Federation.   The President is authorized to establish in the Department of the Treasury the Countering Russian Influence Fund to be used by the State Department for bilateral assistance to counter activities carried out in countries in Europe, Eurasia, and Central Asia by the Russian Federation to support disinformation and propaganda, interfere in foreign elections, and undermine financial transparency and governance. Amounts in the fund may be made available to carry out its purposes through civil society and other organizations that seek to mitigate the expansion of Russian influence and aggression, including through public awareness campaigns and exchange activities. 

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Business Activity Tax Simplification 
Act of 2011''.

SEC. 2. MODERNIZATION OF PUBLIC LAW 86-272.

    (a) Solicitations With Respect to Sales and Transactions of Other 
Than Tangible Personal Property.--Section 101 of the Act entitled ``An 
Act relating to the power of the States to impose net income taxes on 
income derived from interstate commerce, and authorizing studies by 
congressional committees of matters pertaining thereto'', approved 
September 14, 1959 (15 U.S.C. 381 et seq.), is amended--
            (1) in section (a), by striking ``either, or both,'' and 
        inserting ``any one or more'';
            (2) in subsection (a)(1), by striking ``by such person'' 
        and all that follows and inserting ``(which are sent outside 
        the State for approval or rejection) or customers by such 
        person, or his representative, in such State for sales or 
        transactions, which are--
                    ``(A) in the case of tangible personal property, 
                filled by shipment or delivery from a point outside the 
                State; and
                    ``(B) in the case of all other forms of property, 
                services, and other transactions, fulfilled or 
                distributed from a point outside the State;'';
            (3) in subsection (a)(2), by striking the period at the end 
        and inserting a semicolon;
            (4) in subsection (a), by adding at the end the following 
        new paragraphs:
            ``(3) the furnishing of information to customers or 
        affiliates in such State, or the coverage of events or other 
        gathering of information in such State by such person, or his 
        representative, which information is used or disseminated from 
        a point outside the State; and
            ``(4) those business activities directly related to such 
        person's potential or actual purchase of goods or services 
        within the State if the final decision to purchase is made 
        outside the State.'';
            (5) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) For purposes of subsection (a) of this section, a person 
shall not be considered to have engaged in business activities within a 
State during any taxable year merely--
            ``(1) by reason of sales or transactions in such State, the 
        solicitation of orders for sales or transactions in such State, 
        the furnishing of information to customers or affiliates in 
        such State, or the coverage of events or other gathering of 
        information in such State, on behalf of such person by one or 
        more independent contractors;
            ``(2) by reason of the maintenance of an office in such 
        State by one or more independent contractors whose activities 
        on behalf of such person in such State are limited to making 
        sales or fulfilling transactions, soliciting order for sales or 
        transactions, the furnishing of information to customers or 
        affiliates, and/or the coverage of events or other gathering of 
        information; or
            ``(3) by reason of the furnishing of information to an 
        independent contractor by such person ancillary to the 
        solicitation of orders or transactions by the independent 
        contractor on behalf of such person.''; and
            (6) in subsection (d)(1)--
                    (A) by inserting ``or fulfilling transactions'' 
                after ``selling''; and
                    (B) by striking ``the sale of, tangible personal 
                property'' and inserting ``a sale or transaction, 
                furnishing information, or covering events, or 
                otherwise gathering information''.
    (b) Application of Prohibitions to Other Business Activity Taxes.--
Title I of the Act entitled ``An Act relating to the power of the 
States to impose net income taxes on income derived from interstate 
commerce, and authorizing studies by congressional committees of 
matters pertaining thereto'', approved September 14, 1959 (15 U.S.C. 
381 et seq.), is amended by adding at the end the following:
    ``Sec. 105.  For taxable periods beginning on or after January 1, 
2012, the prohibitions of section 101 that apply with respect to net 
income taxes shall also apply with respect to each other business 
activity tax, as defined in section 5(a)(2) of the Business Activity 
Tax Simplification Act of 2011. A State or political subdivision 
thereof may not assess or collect any tax which by reason of this 
section the State or political subdivision may not impose.''.

SEC. 3. MINIMUM JURISDICTIONAL STANDARD FOR STATE AND LOCAL NET INCOME 
              TAXES AND OTHER BUSINESS ACTIVITY TAXES.

    (a) In General.--No taxing authority of a State shall have power to 
impose, assess, or collect a net income tax or other business activity 
tax on any person relating to such person's activities in interstate 
commerce unless such person has a physical presence in the State during 
the taxable period with respect to which the tax is imposed.
    (b) Requirements for Physical Presence.--
            (1) In general.--For purposes of subsection (a), a person 
        has a physical presence in a State only if such person's 
        business activities in the State include any of the following 
        during such person's taxable year:
                    (A) Being an individual physically in the State, or 
                assigning one or more employees to be in the State.
                    (B) Using the services of an agent (excluding an 
                employee) to establish or maintain the market in the 
                State, if such agent does not perform business services 
                in the State for any other person during such taxable 
                year.
                    (C) The leasing or owning of tangible personal 
                property or of real property in the State.
            (2) De minimis physical presence.--For purposes of this 
        section, the term ``physical presence'' shall not include--
                    (A) presence in a State for less than 15 days in a 
                taxable year (or a greater number of days if provided 
                by State law); or
                    (B) presence in a State to conduct limited or 
                transient business activity.
    (c) Taxable Periods Not Consisting of a Year.--If the taxable 
period for which the tax is imposed is not a year, then any 
requirements expressed in days for establishing physical presence under 
this Act shall be adjusted pro rata accordingly.
    (d) Minimum Jurisdictional Standard.--This section provides for 
minimum jurisdictional standards and shall not be construed to modify, 
affect, or supersede the authority of a State or any other provision of 
Federal law allowing persons to conduct greater activities without the 
imposition of tax jurisdiction.
    (e) Exceptions.--
            (1) Domestic business entities and individuals domiciled 
        in, or residents of, the state.--Subsection (a) does not apply 
        with respect to--
                    (A) a person (other than an individual) that is 
                incorporated or formed under the laws of the State (or 
                domiciled in the State) in which the tax is imposed; or
                    (B) an individual who is domiciled in, or a 
                resident of, the State in which the tax is imposed.
            (2) Taxation of partners and similar persons.--This section 
        shall not be construed to modify or affect any State business 
        activity tax liability of an owner or beneficiary of an entity 
        that is a partnership, an S corporation (as defined in section 
        1361 of the Internal Revenue Code of 1986), a limited liability 
        company (classified as a partnership for Federal income tax 
        purposes), a trust, an estate, or any other similar entity, if 
        the entity has a physical presence in the State in which the 
        tax is imposed.
            (3) Preservation of authority.--This section shall not be 
        construed to modify, affect, or supersede the authority of a 
        State to enact a law and bring an enforcement action under such 
        law or existing law against a person or persons or an entity or 
        entities, including but not limited to related persons or 
        entities, that is or are engaged in an illegal activity, a sham 
        transaction, or an actual abuse in its or their business 
        activities in order to ensure a proper reflection of its or 
        their tax liabilities, nor shall it supersede the authority of 
        a State to require combined reporting.

SEC. 4. GROUP RETURNS.

    If, in computing the net income tax or other business activity tax 
liability of a person for a taxable year, the net income or other 
economic results of affiliated persons is taken into account, the 
portion of such combined or consolidated net income or other economic 
results that may be subject to tax by the State shall be computed using 
the methodology that is generally applicable to businesses conducting 
similar business activities and, if that generally applicable 
methodology employs an apportionment formula, the denominator or 
denominators of that formula shall include the aggregate factors of all 
persons whose net income or other economic results are included in such 
combined or consolidated net income or other economic results and the 
numerator or numerators shall include the factors attributable to the 
state of only those persons that are themselves subject to taxation by 
the State pursuant to the provisions of this Act and subject to all 
other legal constraints on State taxation of interstate or foreign 
commerce.

SEC. 5. DEFINITIONS AND EFFECTIVE DATE.

    (a) Definitions.--For purposes of this Act:
            (1) Net income tax.--The term ``net income tax'' has the 
        meaning given that term for the purposes of the Act entitled 
        ``An Act relating to the power of the States to impose net 
        income taxes on income derived from interstate commerce, and 
        authorizing studies by congressional committees of matters 
        pertaining thereto'', approved September 14, 1959 (15 U.S.C. 
        381 et seq.).
            (2) Other business activity tax.--
                    (A) In general.--The term ``other business activity 
                tax'' means any tax in the nature of a net income tax 
                or tax measured by the amount of, or economic results 
                of, business or related activity conducted in the 
                State.
                    (B) Exclusion.--The term ``other business activity 
                tax'' does not include a sales tax, a use tax, or a 
                similar transaction tax, imposed on the sale or 
                acquisition of goods or services, whether or not 
                denominated a tax imposed on the privilege of doing 
                business.
            (3) Person.--The term ``person'' has the meaning given such 
        term by section 1 of title 1 of the United States Code. Each 
        corporation that is a member of a group of affiliated 
        corporations, whether unitary or not, is itself a separate 
        ``person.''
            (4) State.--The term ``State'' means any of the several 
        States, the District of Columbia, or any territory or 
        possession of the United States, or any political subdivision 
        of any of the foregoing.
            (5) Tangible personal property.--For purposes of section 
        3(b)(1)(C), the leasing or owning of tangible personal property 
        does not include the leasing or licensing of computer software.
    (b) Effective Date.--This Act shall apply with respect to taxable 
periods beginning on or after January 1, 2012.
[EX A]:
Business Activity Tax Simplification Act of 2011 - Expands the prohibition against state taxation of interstate commerce to include: (1) taxation of out-of-state sales transactions involving all forms of property, including intangible personal property and services (currently, only sales of tangible personal property are protected); and (2) all other business activity taxes in addition to net income taxes. Exempts from state taxation persons who enter a state merely to furnish information to customers and affiliates, to cover news or other events, or to gather information in the state.

Sets forth jurisdictional standards for states in imposing, assessing, or collecting a net income tax or other business activity tax on interstate activities.  Defines "physical presence in a state" as: (1) being an individual physically in a state or assigning one or more employees to be in a state, (2) using the services of an agent to establish or maintain the market in a state, and (3) leasing or owning tangible personal or real property in a state (excluding the leasing or licensing of computer software).  Excludes from the definition of "physical presence" presence in a state for less than 15 days in a taxable year or presence in a state to conduct limited or transient business activity.

Provides that this Act shall not be construed to modify or affect any state business activity tax on a partnership, an S corporation or limited liability company, or a trust or estate that has a physical presence in the state or to supersede the authority of a state to enact a law or bring a law enforcement action against persons or entities engaged in illegal activity or sham transactions.

Sets forth a rule for computing the net income tax or other business activity tax liability of an affiliated group.

Makes this Act applicable to taxable periods beginning on or after January 1, 2012.