instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shareholder Empowerment Act of 
2009''.

SEC. 2. MAJORITY VOTING FOR DIRECTORS.

    The Securities Exchange Act of 1934 is amended by adding after 
section 16 the following new section:

``SEC. 16A. ELECTION OF DIRECTORS.

    ``(a) Standards Relating to Election of Directors.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Standards for election of directors.--
                    ``(A) Majority voting.--Each issuer shall, to the 
                extent permitted under State law, provide in its 
                governing documents that--
                            ``(i) directors in uncontested elections 
                        shall be elected by a majority of the votes 
                        cast as to each nominee; and
                            ``(ii) in contested elections where the 
                        number of nominees exceeds the number of 
                        directors to be elected, directors shall be 
                        elected by the vote of a plurality of the 
                        shares represented at any meeting and entitled 
                        to vote on the election of directors.
                    ``(B) Resignation policy.--Each issuer shall also, 
                to the extent permitted under State law, adopt 
                procedures under which any director who is not elected 
                to a new term shall offer to tender his or her 
                resignation to the board of directors. The board of 
                directors, with the advice of a committee of the board 
                if such a committee has been established for that 
                purpose, shall determine what action should be taken as 
                to that resignation and shall publicly disclose its 
                decision and the rationale for that decision within a 
                reasonable period after certification of the election 
                results.
    ``(b) Shareholder Access to the Proxy in Director Elections.--
            ``(1) Rule.--Not later than 270 days after the date of 
        enactment of this section, the Commission shall, by rule, 
        require that in proxy statements and proxies, authorizations or 
        consents prepared by an issuer pursuant to section 14, the 
        issuer shall identify and provide security holders with an 
        opportunity to vote on candidates for the board of directors 
        who have been nominated by holders in the aggregate at least 1 
        percent of the issuer's voting securities for at least 2 years 
        prior to a record date established by the issuer for a meeting 
        of security holders.
            ``(2) Application.--This rule shall specify the information 
        to be provided to an issuer by security holders who nominate 
        candidates for inclusion in an issuer's proxy materials under 
        this section and shall require the issuer to disclose 
        information about such candidates in the issuer's proxy 
        materials to the same extent that information must be disclosed 
        about candidates nominated by the issuer. This rule shall apply 
        only when eligible security holders have nominated fewer than a 
        majority of the number of directors then authorized to serve on 
        the board of directors, and the rule shall specify procedures 
        to be followed if different security holders nominate 
        candidates sufficient to constitute a majority of the board of 
        directors.
            ``(3) Effective date.--The rule shall apply to proxy voting 
        for meetings of security holders held on or after January 1, 
        2010, except to the extent that a meeting was originally 
        scheduled to be held in 2009, but was adjourned to 2010.
    ``(c) Broker Discretionary Voting in Uncontested Director 
Elections.--Not later than 270 days after the date of enactment of this 
section, the Commission shall by, rule, require that a broker shall not 
be allowed to vote securities on an uncontested election to the board 
of directors of an issuer to the extent that the beneficial owner of 
those securities has not provided specific instructions to the broker. 
The rule shall apply to proxy voting for meetings of security holders 
held on or after January 1, 2010, except to the extent that a meeting 
was originally scheduled to be held in 2009, but was adjourned to 2010.
    ``(d) Independent Chairman of the Board of Directors.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Independent chairman of the board of directors.--Each 
        issuer shall provide in its governing documents or a public 
        statement of corporate policy that, to the extent possible and 
        consistent with the issuer's status as a publicly traded 
        company, the chairman of the board of directors shall be an 
        independent director who has not previously served as an 
        executive officer of the issuer. Such rule shall be implemented 
        with due regard for contracts in existence on the date of 
        enactment of this section. For purposes of this subsection, an 
        `independent director' shall be one who during the preceding 5 
        years has not been--
                    ``(A) employed by the issuer in an executive 
                capacity;
                    ``(B) an employee, director or owner greater than 
                20 percent of the beneficial shares of a firm that is a 
                paid adviser or consultant to the issuer;
                    ``(C) employed by a significant customer or 
                supplier of the issuer;
                    ``(D) a party to a personal services contract with 
                the issuer, as well as with the issuer's Chair, chief 
                executive officer, or other senior executive officer;
                    ``(E) an employee, officer or director of a 
                foundation, university or other non-profit organization 
                that receives the greater of $100,000 or 1 percent of 
                total annual donations from the issuer;
                    ``(F) a relative of an executive of the issuer;
                    ``(G) part of an interlocking directorate in which 
                the issuer's chief executive officer or another 
                executive serves on the board of another issuer 
                employing that director; and
                    ``(H) engaged in any other relationship with the 
                issuer or senior executives that the Commission 
                determines would not render that director an 
                independent director.''.

SEC. 3. EXECUTIVE COMPENSATION REQUIREMENTS.

    The Securities Exchange Act of 1934 is further amended by adding 
after the section 16A, as added by section 2, the following new section

``SEC. 16B. EXECUTIVE COMPENSATION REQUIREMENTS.

    ``(a) Shareholder Approval of Executive Compensation.--
            ``(1) Annual shareholder vote on executive compensation.--
        Any proxy or consent or authorization for an annual or other 
        meeting of an issuer shall permit a separate vote by 
        shareholders to approve the compensation of senior executive 
        officers, as disclosed pursuant to the compensation disclosure 
        rules of the Commission (which disclosure shall include the 
        compensation discussion and analysis, the compensation tables, 
        and any related material).
            ``(2) Non-binding nature of vote.--A shareholder vote 
        described in paragraph (1) shall not be binding on the board of 
        directors of an issuer and may not be construed as overruling a 
        decision by such board, nor to create or imply any additional 
        fiduciary duty by such board, nor shall such vote be construed 
        to restrict or limit the ability of security holders to make 
        proposals for inclusion in proxy materials related to executive 
        compensation.
            ``(3) Deadline for rules.--Not later than 1 year after the 
        date of enactment of this section, the Commission shall issue 
        any final rules and regulations required by this section.
            ``(4) Exception.--This provision shall not apply to any 
        issuer who is subject to a similar recoupment requirement under 
        another provision of Federal law.
    ``(b) Independent Compensation Advisers.--
            ``(1) Requirement.--Not later than 1 year after the date of 
        enactment of this section, the Commission shall, by rule, 
        require that if an issuer's board of directors or a committee 
        thereof retains an individual adviser or advisory firm in 
        conjunction with negotiating employment contracts or 
        compensation agreements with the issuer's executives, the 
        individual adviser and his or her firm shall be independent of 
        the issuer, its executives and directors, and shall report 
        solely to the board of directors or the committee thereof 
        responsible for executive compensation. The rule shall further 
        require that issuers shall not agree to indemnify or limit the 
        liability of compensation advisers or advisory firms.
            ``(2) Determination.--In determining the extent to which an 
        adviser or advisory firm is independent of an issuer within the 
        meaning of this section, the Commission shall consider such 
        matters as--
                    ``(A) the extent (as measured by annual fees and 
                other relevant metrics) to which an individual adviser 
                or advisory firm provides services in conjunction with 
                negotiating employment contracts or compensation 
                agreements with the issuer's executives, as compared to 
                other services that the adviser or advisory firm 
                provides to the issuer or executives;
                    ``(B) whether individual advisers are permitted to 
                hold equity and do hold equity in the issuer; and
                    ``(C) whether an advisory firm's incentive 
                compensation plan links the compensation of individual 
                advisers to the advisory firm's provision of other 
                services to the issuer.
    ``(c) Clawbacks of Unearned Performance-Based Pay.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Recoupment of unearned compensation.--An issuer's 
        board of directors or a committee thereof shall develop and 
        disclose a policy for reviewing unearned bonus payments, 
        incentive payments, or equity payments that were awarded to 
        executive officers owing to fraud, financial results that 
        require restatement, or some other cause. The policy should 
        require recovery or cancellation of any unearned payments to 
        the extent that it is feasible and practical to do so.
            ``(3) Exception.--This provision shall not apply to any 
        issuer who is subject to a similar recoupment requirement under 
        another provision of Federal law.
    ``(d) Severance Agreements Tied to Performance.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Severance agreements tied to performance.--An 
        issuer's board of directors or a committee thereof shall not 
        enter into agreements providing for severance payments to a 
        senior executive officer who is terminated because of poor 
        performance as an executive, as determined by the board of 
        directors. To the extent that an issuer is able to terminate a 
        senior executive officer for cause, poor performance by the 
        executive, as determined by the board of directors, shall be 
        considered as one such cause. The rule shall be implemented 
        with due regard for contracts in existence on the date of 
        enactment of this section.
    ``(e) Improved Disclosure of Compensation Targets.--Not later than 
1 year after the date of enactment of this section, the Commission 
shall, by rule, require additional disclosure of specific performance 
targets that are used by issuers to determine a senior executive 
officer's eligibility for bonuses, equity and incentive compensation. 
The Commission shall consider methods to improve disclosure in 
situations when it is claimed that disclosure would result in 
competitive harm to the issuer, including, requirements that the issuer 
describe its past experience with similar target levels, disclose any 
inconsistencies between compensation targets and targets set in other 
contexts, submit a request for confidential treatment of the 
performance targets under Commission rules, or disclose the data after 
disclosure would no longer be considered competitively harmful.''.
answer:
Shareholder Empowerment Act of 2009 - Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC) to prohibit national securities exchanges and associations from listing the securities of any issuer unless, to the extent permitted by state law, such issuer requires: (1) the election of directors who receive the majority of votes in uncontested elections or a plurality of votes in contested elections; and (2) directors who are not reelected to offer to tender their resignations.

Directs the SEC to: (1) require issuers to identify and provide security holders with an opportunity to vote on director candidates who have been nominated by holders of at least 1% of the issuer's voting securities for at least two years, provided security holders have nominated fewer than a majority of the directors then authorized to serve; (2) prohibit brokers from voting securities on an uncontested election to the board of directors without having received specific instructions from the securities' beneficial owners; and (3) requires listed issuers, to the extent possible, to have an independent chairman of their board of directors who has not served as an executive of the issuer.

Requires any proxy or consent or authorization for an annual or other meeting of a securities issuer to permit a separate shareholder vote on executive compensation, though such vote shall not be binding on its board of directors.

Directs the SEC to direct the national securities exchanges and national securities associations to prohibit: (1) issuers from retaining advisors in negotiating executive employment or compensation agreements that are not independent or are protected from liability by such issuers; (2) the listing of issuers that do not have a (clawback) policy of recovering executive payments that were unearned due to fraud, faulty financial statements, or some other cause; and (3) the listing of issuers that provide severance payments to senior executives who are terminated for poor performance.

Directs the SEC to require additional disclosure of specific performance targets issuers use in determining a senior executive's eligibility for bonuses, equity, and incentive compensation.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Advanced Technologies for 
Efficient Resource Use Act of 2009''.

SEC. 2. WATERSENSE.

    (a) In General.--There is established within the Environmental 
Protection Agency a WaterSense program to identify and promote water 
efficient products, buildings and landscapes, and services in order--
            (1) to reduce water use;
            (2) to reduce the strain on water, wastewater, and 
        stormwater infrastructure;
            (3) to conserve energy used to pump, heat, transport, and 
        treat water; and
            (4) to preserve water resources for future generations,
through voluntary labeling of, or other forms of communications about, 
products, buildings and landscapes, and services that meet the highest 
water efficiency and performance standards.
    (b) Duties.--The Administrator of the Environmental Protection 
Agency shall--
            (1) promote WaterSense labeled products, buildings and 
        landscapes, and services in the market place as the preferred 
        technologies and services for--
                    (A) reducing water use; and
                    (B) ensuring product and service performance;
            (2) work to enhance public awareness of the WaterSense 
        label through public outreach, education, and other means;
            (3) establish and maintain performance standards so that 
        products, buildings and landscapes, and services labeled with 
        the WaterSense label perform as well or better than their less 
        efficient counterparts;
            (4) publicize the importance of proper installation of 
        WaterSense plumbing products by a WaterSense-certified or, if 
        WaterSense certification guidelines do not exist, licensed 
        plumber or mechanical contractor, and the installation, 
        maintenance, and audit of WaterSense irrigation systems by a 
        WaterSense-certified irrigation professional to ensure optimal 
        performance;
            (5) preserve the integrity of the WaterSense label;
            (6) regularly review and, when appropriate, update 
        WaterSense criteria for categories of products, buildings and 
        landscapes, and services, at least once every four years;
            (7) regularly collect and make available to the public 
        summary data on the production and relative market shares of 
        WaterSense labeled products, buildings and landscapes, and 
        services, at least annually;
            (8) regularly estimate and make available to the public the 
        water and energy savings attributable to the use of WaterSense 
        labeled products, buildings and landscapes, and services, at 
        least annually;
            (9) solicit comments from interested parties and the public 
        prior to establishing or revising a WaterSense category, 
        specification, installation criterion, or other criterion (or 
        prior to effective dates for any such category, specification, 
        installation criterion, or other criterion);
            (10) provide reasonable notice to interested parties and 
        the public of any changes (including effective dates), on the 
        adoption of a new or revised category, specification, 
        installation criterion, or other criterion, along with--
                    (A) an explanation of changes; and
                    (B) as appropriate, responses to comments submitted 
                by interested parties;
            (11) provide appropriate lead time (as determined by the 
        Administrator) prior to the applicable effective date for a new 
        or significant revision to a category, specification, 
        installation criterion, or other criterion, taking into account 
        the timing requirements of the manufacturing, marketing, 
        training, and distribution process for the specific product, 
        building and landscape, or service category addressed; and
            (12) identify and, where appropriate, implement other 
        voluntary approaches, such as labeling waterless devices that 
        perform the same function as a water consuming product or 
        encouraging reuse, reclamation, and recycling technologies, in 
        commercial, institutional, residential, municipal, and 
        industrial sectors to improve water efficiency or lower water 
        use while meeting the performance standards established under 
        paragraph (3).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated $7,500,000 for fiscal year 2010, $10,000,000 for fiscal 
year 2011, $20,000,000 for fiscal year 2012, and $50,000,000 for fiscal 
year 2013 and each year thereafter, adjusted for inflation, to carry 
out this section.

SEC. 3. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 7902(a) of title 5, United States Code.
            (2) Watersense product or service.--The term ``WaterSense 
        product or service'' means a product or service that is rated 
        for water efficiency under the WaterSense program.
            (3) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 2 of this Act.
            (4) FEMP designated product.--The term ``FEMP designated 
        product'' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for 
        efficiency.
            (5) Product and service.--The terms ``product'' and 
        ``service'' do not include any water consuming product or 
        service designed or procured for combat or combat-related 
        missions. The terms also exclude products or services already 
        covered by the Federal procurement regulations established 
        under section 553 of the National Energy Conservation Policy 
        Act (42 U.S.C. 8259b).
    (b) Procurement of Water Efficient Products.--
            (1) Requirement.--To meet the requirements of an agency for 
        a water consuming product or service, the head of the agency 
        shall, except as provided in paragraph (2), procure--
                    (A) a WaterSense product or service; or
                    (B) a FEMP designated product.
        A WaterSense plumbing product should preferably, when possible, 
        be installed by a WaterSense-certified or, if WaterSense 
        certification guidelines do not exist, licensed plumber or 
        mechanical contractor, and a WaterSense irrigation system 
        should preferably, when possible, be installed, maintained, and 
        audited by a WaterSense-certified irrigation professional to 
        ensure optimal performance.
            (2) Exceptions.--The head of an agency is not required to 
        procure a WaterSense product or service or FEMP designated 
        product under paragraph (1) if the head of the agency finds in 
        writing that--
                    (A) a WaterSense product or service or FEMP 
                designated product is not cost-effective over the life 
                of the product, taking current and future energy, 
                water, and wastewater cost savings into account; or
                    (B) no WaterSense product or service or FEMP 
                designated product is reasonably available that meets 
                the functional requirements of the agency.
            (3) Procurement planning.--The head of an agency shall 
        incorporate into the specifications for all procurements 
        involving water consuming products and systems, including guide 
        specifications, project specifications, and construction, 
        renovation, and services contracts that include provision of 
        water consuming products and systems, and into the factors for 
        the evaluation of offers received for the procurement, criteria 
        used for rating WaterSense products and services and FEMP 
        designated products. The head of an agency shall consider, to 
        the maximum extent practicable, additional measures for 
        reducing agency water consumption, including water reuse, 
        reclamation, and recycling technologies, leak detection and 
        repair, and use of waterless products that perform similar 
        functions to existing water-consuming products.
    (c) Listing of Water Efficient Products in Federal Catalogs.--
WaterSense products and services and FEMP designated products shall be 
clearly identified and prominently displayed in any inventory or 
listing of products by the General Services Administration or the 
Defense Logistics Agency. The General Services Administration and the 
Defense Logistics Agency shall supply only WaterSense products or FEMP 
designated products for all product categories covered by the 
WaterSense program or the Federal Energy Management Program, except in 
cases where the agency ordering a product specifies in writing that no 
WaterSense product or FEMP designated product is available to meet the 
buyer's functional requirements, or that no WaterSense product or FEMP 
designated product is cost-effective for the intended application over 
the life of the product, taking energy, water, and wastewater cost 
savings into account.
    (d) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall issue regulations to carry out this section.

SEC. 4. EARLY ADOPTER WATER EFFICIENT PRODUCTS INCENTIVE PROGRAMS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        State government, local or county government, tribal 
        government, wastewater or sewage utility, municipal water 
        authority, energy utility, water utility, or nonprofit 
        organization that meets the requirements of subsection (b).
            (3) Incentive program.--The term ``incentive program'' 
        means a program for administering financial incentives for 
        consumer purchase and installation of residential water 
        efficient products and services as described in subsection 
        (b)(1).
            (4) Residential water efficient product or service.--The 
        term ``residential water efficient product or service'' means a 
        product or service for a single-family or multifamily residence 
        or its landscape that is rated for water efficiency and 
        performance--
                    (A) by the WaterSense program; or
                    (B) by an incentive program and approved by the 
                Administrator.
        Categories of water efficient products and services may include 
        faucets, irrigation technologies and services, point-of-use 
        water treatment devices, reuse, reclamation, and recycling 
        technologies, toilets, and showerheads.
            (5) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 2 of this Act.
    (b) Eligible Entities.--An entity shall be eligible to receive an 
allocation under subsection (c) if the entity--
            (1) establishes (or has established) an incentive program 
        to provide rebates, vouchers, other financial incentives, or 
        direct installs to consumers for the purchase and installation 
        of residential water efficient products or services;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the 
        Administrator may require; and
            (3) provides assurances satisfactory to the Administrator 
        that the entity will use the allocation to supplement, but not 
        supplant, funds made available to carry out the incentive 
        program.
    (c) Amount of Allocations.--
            (1) In general.--Subject to paragraph (2), for each fiscal 
        year, the Administrator shall determine the amount to allocate 
        to each eligible entity to carry out subsection (d) taking into 
        consideration--
                    (A) the population served by the eligible entity in 
                the most recent calendar year for which data are 
                available;
                    (B) the targeted population of the eligible 
                entity's incentive program, such as general households, 
                low-income households, or first-time homeowners, and 
                the probable effectiveness of the incentive program for 
                that population;
                    (C) for existing programs, the effectiveness of the 
                incentive program in encouraging the adoption of water 
                efficient products and services; and
                    (D) any prior year's allocation to the eligible 
                entity that remains unused.
    (d) Use of Allocated Funds.--Funds allocated to an entity under 
subsection (c) may be used to pay up to 50 percent of the cost of 
establishing and carrying out an incentive program.
    (e) Fixture Recycling.--Entities are encouraged to promote or 
implement fixture recycling programs to manage the disposal of older 
fixtures replaced due to the incentive program under this section.
    (f) Issuance of Rebates.--Financial incentives may be provided to 
consumers that meet the requirements of the incentive program. The 
entity may issue all financial incentives directly to consumers or, 
with approval of the Administrator, delegate some or all financial 
incentive administration to other organizations including, but not 
limited to, local governments, municipal water authorities, and water 
utilities. The amount of a financial incentive shall be determined by 
the entity, taking into consideration--
            (1) the amount of the allocation to the entity under 
        subsection (c);
            (2) the amount of any Federal, State, or other 
        organization's tax or financial incentive available for the 
        purchase of the residential water efficient product or service;
            (3) the amount necessary to change consumer behavior to 
        purchase water efficient products and services; and
            (4) the consumer expenditures for onsite preparation, 
        assembly, and original installation of the product.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section $50,000,000 
for fiscal year 2010, $100,000,000 for fiscal year 2011, $150,000,000 
for fiscal year 2012, $100,000,000 for fiscal year 2013, and 
$50,000,000 for fiscal year 2014.
answer:
Water Advanced Technologies for Efficient Resource Use Act of 2009 - Establishes within the Environmental Protection Agency (EPA) a WaterSense program to identify and promote water efficient products, buildings and landscapes, and services to reduce water use, conserve energy, and preserve water resources. Sets forth the duties of the EPA Administrator for promoting, publicizing, and administering the WaterSense program.

Requires federal agencies to purchase WaterSense products or services or a Federal Energy Management Program designated product through their procurement process.

Establishes a program to provide financial incentives for consumer purchase and installation of residential water efficient products and services.


question:
SECTION 1. PENALTY-FREE DISTRIBUTIONS FROM CERTAIN RETIREMENT PLANS TO 
              REPAIR OR REPLACE CERTAIN PROPERTY DAMAGED IN 
              PRESIDENTIALLY-DECLARED DISASTERS.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to exceptions to 10-percent additional 
tax on early distributions from qualified retirement plans) is amended 
by adding at the end thereof the following new subparagraph:
                    ``(D) Distributions from certain retirement plans 
                for disaster-related expenses.--Distributions from an 
                individual retirement plan, or from amounts 
                attributable to employer contributions made pursuant to 
                elective deferrals described in subparagraph (A) or (C) 
                of section 402(g)(3) or section 501(c)(18)(D)(iii), 
                which are qualified disaster-related distributions (as 
                defined in paragraph (6)).''
    (b) Definitions.--Section 72(t) of such Code is amended by adding 
at the end thereof the following new paragraph:
            ``(6) Qualified disaster-related distributions.--
                    ``(A) In general.--For purposes of paragraph 
                (2)(D), the term `qualified disaster-related 
                distribution' means any distribution received by an 
                individual to the extent such distribution is used by 
                such individual before the close of the 60th day after 
                the day on which such distribution is received to pay 
                for the repair or replacement of qualified disaster-
                damaged property which is--
                            ``(i) personal property of such individual, 
                        or
                            ``(ii) a residence of such individual.
                    ``(B) Limitations.--
                            ``(i) Only distributions within first 1 
                        year to qualify.--Paragraph (2)(D) shall not 
                        apply to any distribution made more than 1 year 
                        after the date of the determination referred to 
                        in subparagraph (C)(ii).
                            ``(ii) Withdrawals limited to uninsured 
                        losses.--Paragraph (2)(D) shall apply to 
                        distributions to repair or replace any 
                        property--
                                    ``(I) only to the extent of the 
                                loss sustained with respect to such 
                                property which is not compensated for 
                                by insurance or otherwise, and
                                    ``(II) in the case of property 
                                covered by insurance, only if a timely 
                                claim is filed for compensation by such 
                                insurance on the loss sustained with 
                                respect to such property.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Disaster-damaged property.--The term 
                        `qualified disaster-damaged property' means 
                        property--
                                    ``(I) which was located in a 
                                disaster area on the date of the 
                                determination referred to in clause 
                                (ii),
                                    ``(II) which was damaged or 
                                destroyed as a result of the disaster 
                                occurring in such area, and
                                    ``(III) which is not connected with 
                                a trade or business or a transaction 
                                entered into for profit.
                            ``(ii) Disaster area.--The term `disaster 
                        area' means an area determined by the President 
                        to warrant assistance under the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act.
                    ``(D) Special rules relating to replacement of 
                residence.--For purposes of this paragraph--
                            ``(i) Certain costs included.--The cost of 
                        replacing a residence includes any usual or 
                        reasonable settlement, financing, or other 
                        closing costs.
                            ``(ii) Special rule where delay in 
                        acquisition.--If any distribution fails to meet 
                        the requirements of subparagraph (A) solely by 
                        reason of a delay or cancellation of the 
                        purchase or construction of a residence, the 
                        amount of the distribution may be contributed 
                        to an individual retirement plan as provided in 
                        section 408(d)(3)(A)(i) (determined by 
                        substituting `120 days' for `60 days' in such 
                        section), except that--
                                    ``(I) section 408(d)(3)(B) shall 
                                not be applied to such contribution, 
                                and
                                    ``(II) such amount shall not be 
                                taken into account in determining 
                                whether section 408(d)(3)(A)(i) applies 
                                to any other amount.''
    (c) Conforming Amendments.--
            (1) Section 401(k)(2)(B)(i) of such Code is amended by 
        striking ``or'' at the end of subclause (III), by striking 
        ``and'' at the end of subclause (IV) and inserting ``or'', and 
        by inserting after subclause (IV) the following new subclause:
                                    ``(V) the date on which qualified 
                                disaster-related distributions (as 
                                defined in section 72(t)(6)) are made, 
                                and''.
            (2) Section 403(b)(11) of such Code is amended by striking 
        ``or'' at the end of subparagraph (A), by striking the period 
        at the end of subparagraph (B) and inserting ``, or'', and by 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) for qualified disaster-related distributions 
                (as defined in section 72(t)(6)).''
    (d) Effective Date.--The amendments made by this section shall 
apply to distributions after December 31, 1993, with respect to areas 
determined after such date to warrant assistance under the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act.
answer:

Amends the Internal Revenue Code to allow penalty-free distributions from certain retirement plans to pay for the repair or replacement of qualified disaster-damaged property.