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 ``Healthy Local Policies for Schools 
Act of 2010'' or the ``HELP Schools Act of 2010''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) childhood obesity increased threefold among children 
        and adolescents in the 30 years preceding the date of enactment 
        of this Act;
            (2) about 12,000,000 children and adolescents ages 2 to 19 
        are considered obese;
            (3) obesity-related diseases cost the United States economy 
        more than $147,000,000,000 every year;
            (4) both low levels of physical activity and an increase in 
        caloric intake have contributed to the unprecedented epidemic 
        of childhood obesity;
            (5) overweight adolescents have a 70 to 80 percent chance 
        of becoming overweight adults, increasing the risk for chronic 
        disease, disability, and death;
            (6) children and adolescents are--
                    (A) not meeting dietary recommendations;
                    (B) underconsuming important food groups and 
                nutrients needed for growth and development; and
                    (C) overconsuming saturated fat, trans fat, sodium, 
                and added sugars;
            (7) nutrition education and promotion helps foster a school 
        environment that--
                    (A) supports healthy eating;
                    (B) helps initiate and sustain healthy eating 
                behaviors;
                    (C) increases acceptance and consumption of healthy 
                school meals;
                    (D) increases participation in school meal 
                programs;
                    (E) enhances school meal quality; and
                    (F) supports development and implementation of 
                local wellness policies;
            (8) nutrition education and promotion is a critical 
        component of most major health promotion and disease prevention 
        programs;
            (9) research shows that school-based nutrition programs and 
        services both improve health and contribute to the academic 
        achievement of school children;
            (10) research shows that fit children achieve more 
        academically and have better school attendance and fewer 
        disciplinary problems;
            (11) a comprehensive study of local wellness policies 
        across the United States found that--
                    (A) many policies were underdeveloped and 
                fragmented; and
                    (B) the vast majority of students were enrolled in 
                a school district that did not--
                            (i) require evaluation of the 
                        implementation or effectiveness of the wellness 
                        policy of the district; or
                            (ii) include any provisions for reviewing 
                        and revising the wellness policy;
            (12) the same study reported that between 5 and 6 percent 
        of students were enrolled in a school district that had 
        identified a potential source of funding to support 
        implementation of the wellness policy of the district;
            (13) the nutrition education and promotion initiatives for 
        school children in effect as of the date of enactment of this 
        Act lack coordination, funding, and sustainability;
            (14) the Physical Activity Guidelines for Americans of the 
        Department of Health and Human Services recommend that children 
        engage in at least 60 minutes of physical activity on most, and 
        preferably all, days of the week;
            (15) children spend many waking hours at school and 
        therefore need to be active during the school day to meet the 
        recommendations of the Physical Activity Guidelines for 
        Americans; and
            (16) as of the date of enactment of this Act--
                    (A) only 3.8 percent of elementary schools, 7.9 
                percent of middle schools, and 2.1 percent of high 
                schools provide daily physical education or the 
                equivalent for the entire school year; and
                    (B) 22 percent of schools do not require students 
                to take any physical education at all.

SEC. 3. LOCAL WELLNESS POLICIES.

    Section 5 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1754) is amended to read as follows:

``SEC. 5. LOCAL WELLNESS POLICIES.

    ``(a) Definitions.--In this section:
            ``(1) Extended school day.--The term `extended school day' 
        means--
                    ``(A) the official school day; and
                    ``(B) the time before and after the official school 
                day during which events or activities are primarily 
                under the control of the school or a third party on 
                behalf of the school.
            ``(2) Local wellness policy.--The term `local wellness 
        policy' means a nutrition and physical activity wellness policy 
        of a local educational agency established under section 204 of 
        the Child Nutrition and WIC Reauthorization Act of 2004 (42 
        U.S.C. 1751 note; Public Law 108-265).
    ``(b) Requirements.--Not later than the first day of the school 
year beginning 1 year after the date of enactment of the HELP Schools 
Act of 2010, each local educational agency participating in a program 
authorized by this Act or the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) shall strengthen the local school wellness policy of the 
local educational agency by ensuring, at a minimum, that the policy--
            ``(1) includes goals for nutrition promotion and education, 
        physical education, physical activity, food marketing and 
        advertising on the school campus, and other school-based 
        activities designed to promote participation in child nutrition 
        programs and student wellness through the extended school day, 
        in a manner that the local educational agency determines to be 
        appropriate;
            ``(2) includes an implementation plan to achieve the goals 
        of the local wellness policy;
            ``(3) ensures that guidelines for reimbursable school meals 
        are not less restrictive than regulations and guidance issued 
        by the Secretary pursuant to subsections (a) and (b) of section 
        10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779) and 
        sections 9(f)(1) and 17(a) of this Act, as those regulations 
        and guidance apply to schools;
            ``(4) ensures that nutritional guidelines for foods and 
        beverages sold in schools that are not part of reimbursable 
        school meals are in compliance with the standards established 
        by the Secretary; and
            ``(5) includes a plan for measuring implementation of the 
        local wellness policy, including the designation of a local 
        wellness policy committee under subsection (d).
    ``(c) Transparency.--
            ``(1) In general.--In carrying out this section, each local 
        educational agency shall make readily available and widely 
        disseminate to relevant stakeholders--
                    ``(A) the local wellness policy of the local 
                education agency, including the implementation plan 
                described in subsection (b)(5);
                    ``(B) any assessments of the implementation of the 
                local wellness policy;
                    ``(C) any updates to the local wellness policy; and
                    ``(D) appropriate local and State contact 
                information.
            ``(2) Availability requirement.--Not later than the first 
        day of the school year following the date of enactment of the 
        HELP Schools Act of 2010, each local educational agency shall 
        make readily available the policy and plan described in 
        paragraph (1)(A).
            ``(3) Assessment of implementation.--
                    ``(A) Assessment of implementation.--Not later than 
                2 years after the date of enactment of the HELP Schools 
                Act of 2010, and every 3 years thereafter, each local 
                educational agency shall complete and make readily 
                available the results of an assessment of the 
                implementation of the local wellness policy of the 
                local educational agency that includes--
                            ``(i) the extent to which schools under the 
                        jurisdiction of the local educational agency 
                        are in compliance with the local wellness 
                        policy of the agency;
                            ``(ii) the extent to which the local 
                        wellness policy of the local educational agency 
                        compares with model local wellness policies 
                        recommended under subsection (e)(2)(A)(ii); and
                            ``(iii)(I) a description of the progress 
                        made in attaining the goals of the local 
                        wellness policy described in subsection (b); 
                        and
                            ``(II) any revisions to the local wellness 
                        policy to more effectively address those goals.
    ``(d) Local Wellness Policy Committee.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the HELP Schools Act of 2010, each local 
        educational agency shall designate a standing Local Wellness 
        Policy Committee (referred to in this subsection as the 
        `Committee').
            ``(2) Representation.--
                    ``(A) Required representatives.--The Committee of 
                each local educational agency shall be comprised of at 
                least 1 representative from the local educational 
                agency from each of the following categories of 
                stakeholders:
                            ``(i) Principals.
                            ``(ii) Teachers.
                            ``(iii) Parents of students.
                            ``(iv) Students.
                            ``(v) The school food authority.
                            ``(vi) The school board of the local 
                        educational agency.
                            ``(vii) The physical education program.
                            ``(viii) School health professionals, such 
                        as school nurses, school counselors, social 
                        workers, or health education teachers.
                    ``(B) Authorized representatives.--A Committee may 
                also include a registered dietitian, pediatrician, 
                dentist, a representative of the local health 
                department, or other representatives of the local 
                community.
            ``(3) Terms and conditions.--Each local educational agency 
        shall determine the terms and conditions under which each 
        member of the Committee of the local educational agency serves.
            ``(4) Duties.--Duties and responsibilities of each 
        Committee shall include--
                    ``(A) ensuring that the local educational agency 
                served by the Committee meets the requirements 
                described in this section;
                    ``(B) fostering integration of the local wellness 
                policy of the local educational agency with existing 
                coordinated school health programs, and other health-
                related activities in the schools and community served 
                by the local educational agency; and
                    ``(C) making Committee proceedings and other 
                pertinent information relating to the activities of the 
                Committee readily available.
    ``(e) Technical Assistance and Outreach.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Education and the Secretary of Health and Human 
        Services, acting through the Centers for Disease Control and 
        Prevention, shall assist in the adoption of effective local 
        wellness policies by local educational agencies in accordance 
        with this section.
            ``(2) Outreach.--In carrying out paragraph (1), the 
        Secretary shall perform outreach to key State and local 
        stakeholders to promote effective local wellness policies and 
        provide technical assistance that--
                    ``(A) includes--
                            ``(i) a hotline, online resources, and 
                        trainings on designing, implementing, 
                        promoting, disseminating, and evaluating local 
                        wellness policies and overcoming barriers to 
                        the adoption of local wellness policies; and
                            ``(ii) model local wellness policies and 
                        best practices recommended by Federal agencies, 
                        State agencies, and nongovernmental 
                        organizations; and
                    ``(B) is for guidance purposes only and not binding 
                or otherwise designed to be mandate to schools, local 
                educational agencies, school food authorities, or State 
                child nutrition programs.
            ``(3) Funding.--
                    ``(A) In general.--On October 1, 2010, and on each 
                October 1 thereafter through October 1, 2014, out of 
                any funds in the Treasury not otherwise appropriated, 
                the Secretary of the Treasury shall transfer to the 
                Secretary to carry out this paragraph $1,000,000, to 
                remain available until expended.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this paragraph the funds transferred under 
                subparagraph (A), without further appropriation. 
    ``(f) Study and Report.--
            ``(1) In general.--The Secretary, in conjunction with the 
        Director of the Centers for Disease Control and Prevention, 
        shall prepare a report on the implementation, strength, and 
        effectiveness of the local wellness policies carried out in 
        accordance with this section.
            ``(2) Study of local wellness policies.--The study 
        described in paragraph (1) shall include--
                    ``(A) an analysis of the strengths and weaknesses 
                of local wellness policies and how the policies compare 
                with model local wellness policies recommended under 
                subsection (e)(2)(A)(ii); and
                    ``(B) an assessment of the impact of the local 
                wellness policies in addressing the requirements of 
                subsection (b).
            ``(3) Report.--Not later than January 1, 2014, the 
        Secretary shall submit to the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate and the Committee on 
        Education and Labor of the House of Representatives a report 
        that describes the findings of the study.''.

SEC. 4. REPEAL.

    Section 204 of the Child Nutrition and WIC Reauthorization Act of 
2004 (42 U.S.C. 1751 note; Public Law 108-265) is repealed.

SEC. 5. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
[EX A]: Healthy Local Policies for Schools Act of 2010 or HELP Schools Act of 2010 - Amends the Richard B. Russell National School Lunch Act to replace the nutrition promotion program with a program that requires local educational agencies (LEAs) to ensure that their local wellness policies: (1) include goals for nutrition and physical education, physical activity, on-campus food marketing and advertising, and other school-based activities that promote nutrition and wellness throughout the extended school day; (2) include plans for implementing, and measuring the implementation of, such policies; (3) require reimbursable school meals to meet certain nutritional guidelines; and (4) require the nutritional guidelines for nonreimbursable foods and beverages sold in schools to be in compliance with standards established by the Secretary of Agriculture.

Requires each LEA, within two years of this Act's enactment and every three years thereafter, to complete and disseminate an assessment of their local wellness policy.

Directs each LEA to designate a standing Local Wellness Policy Committee made up of education, health, and nutrition stakeholders to foster the integration of a local wellness policy that meets this Act's requirements with other health-related activities in the LEA's schools and community.

Requires the Secretary to: (1) provide technical assistance and outreach to key state and local stakeholders to promote effective local wellness policies; and (2) prepare a report, in conjunction with the Director of the Centers for Disease Control and Prevention (CDC), on the implementation, strength, and effectiveness of local wellness policies.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mandatory Foreclosure Mediation 
Act''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Alternative to foreclosure.--The term ``alternative to 
        foreclosure''--
                    (A) means a course of action with respect to a 
                mortgage offered by a servicer to a borrower as an 
                alternative to a covered foreclosure action; and
                    (B) includes a short sale and a deed in lieu of 
                foreclosure.
            (2) Borrower.--The term ``borrower'' means a mortgagor 
        under a mortgage who is in default or at risk of imminent 
        default, as determined by the Secretary through regulations.
            (3) Foreclosure action.--The term ``foreclosure action'' 
        means a judicial or nonjudicial foreclosure.
            (4) Loan modification program.--The term ``loan 
        modification program'' means a program or procedure designed to 
        change the terms of a mortgage in the case of the default, 
        delinquency, or imminent default or delinquency of a mortgagor, 
        including a loan modification program established by a servicer 
        that reduces the principal owed by the mortgagor on the 
        mortgage.
            (5) Mortgage.--The term ``mortgage'' means a federally 
        related mortgage loan, as defined in section 3(1) of the Real 
        Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)), 
        that is secured by a first or subordinate lien on residential 
        real property.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (7) Servicer.--The term ``servicer''--
                    (A) has the same meaning as in section 6(i) of the 
                Real Estate Settlement Procedures Act of 1974 (12 
                U.S.C. 2605(i)); and
                    (B) includes a person responsible for servicing a 
                pool of mortgages.

SEC. 3. MEDIATION REQUIRED BEFORE FORECLOSURE.

    (a) Initiation of Foreclosure Actions.--A servicer may not initiate 
a foreclosure action against a borrower unless the servicer has--
            (1) made a reasonable effort to initiate mediation 
        proceedings in accordance with the process established in 
        regulations prescribed pursuant to subsection (c) to determine 
        whether the borrower is eligible for a loan modification or an 
        alternative to foreclosure; and
            (2) offered the borrower a loan modification or an 
        alternative to foreclosure, if the borrower is eligible for the 
        loan modification or alternative to foreclosure.
    (b) Suspension of Foreclosure Actions.--
            (1) In general.--A servicer shall suspend a foreclosure 
        action that was initiated before the date of enactment of this 
        Act until the servicer--
                    (A) completes a mediation proceeding in accordance 
                with the process established in regulations prescribed 
                pursuant to subsection (c) to determine whether the 
                borrower is eligible for a loan modification or an 
                alternative to foreclosure; and
                    (B) offers the borrower a loan modification or an 
                alternative to foreclosure, if the borrower is eligible 
                for a loan modification or an alternative to 
                foreclosure.
            (2) Suspension.--During the period of the suspension under 
        paragraph (1), a servicer may not--
                    (A) send a notice of foreclosure to a borrower;
                    (B) conduct or schedule a sale of the real property 
                securing the mortgage of the borrower; or
                    (C) cause final judgment to be entered against the 
                borrower.
            (3) Reasonable efforts.--A servicer is not required to 
        suspend a foreclosure action under paragraph (1) if the 
        servicer--
                    (A) makes a reasonable effort to schedule a 
                mediation proceeding to determine whether the borrower 
                is eligible for a loan modification or an alternative 
                to foreclosure; and
                    (B) documents that the borrower has not agreed to a 
                mediation proceeding to determine whether the borrower 
                is eligible for a loan modification or an alternative 
                to foreclosure.
            (4) Rule of construction.--Nothing in this section may be 
        construed to require a servicer to delay an unavoidable 
        foreclosure, such as foreclosure that results from a borrower 
        abandoning the residential real property securing a mortgage.
    (c) Establishment of Mediation Process.--The Secretary shall 
establish through regulations a mediation process to determine whether 
the borrower is eligible for a loan modification or an alternative to 
foreclosure under this section.

SEC. 4. BAR TO FORECLOSURE ACTIONS.

    (a) In General.--Subject to subsection (b), a violation of this Act 
shall be a bar to a foreclosure action.
    (b) Effect of Subsequent Compliance.--If a servicer is in 
compliance with this Act, the servicer may bring or proceed with a 
foreclosure action, without regard to a prior violation of this Act by 
the servicer.

SEC. 5. REGULATIONS.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall issue regulations to carry out this Act.

SEC. 6. REPORT.

    Each servicer that initiates mediation proceedings under section 3 
shall submit to the Secretary a quarterly report at such time, in such 
manner, and containing such information, with respect to such 
proceedings, as the Secretary may require.
[EX A]: Mandatory Foreclosure Mediation Act - Prohibits a servicer from initiating a foreclosure action against a borrower unless the servicer has: (1) made a reasonable effort to initiate mediation proceedings to determine if the borrower is eligible for a loan modification or an alternative to foreclosure; and (2) offered the borrower, if eligible, such a modification or alternative.

Requires a servicer to suspend a foreclosure action initiated before the enactment of this Act until the servicer: (1) completes such a mediation proceeding; and (2) offers the borrower, if eligible, a modification or alternative.

Prohibits a servicer, during the suspension period, from: (1) sending the borrower a notice of foreclosure, (2) conducting or scheduling a sale of the real property securing the mortgage, or (3) causing final judgment to be entered against the borrower.

Directs the Secretary of Housing and Urban Development (HUD) to establish such a mediation process.

Declares that a servicer is not required to suspend a foreclosure action if the servicer makes a reasonable effort to schedule a mediation proceeding and documents that the borrower has not agreed to one.

Makes a violation of this Act a bar to a foreclosure action. Allows a servicer in compliance with this Act, however, to bring or proceed with a foreclosure action, regardless of any prior violation.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cosmetology Tax Fairness and 
Compliance Act of 2001''.

SEC. 2. EXPANSION OF CREDIT FOR PORTION OF SOCIAL SECURITY TAXES PAID 
              WITH RESPECT TO EMPLOYEE TIPS.

    (a) Expansion of Credit to Other Lines of Business.--Paragraph (2) 
of section 45B(b) of the Internal Revenue Code of 1986 is amended to 
read as follows:
            ``(2) Application only to certain lines of business.--In 
        applying paragraph (1), there shall be taken into account only 
        tips received from customers or clients in connection with--
                    ``(A) the providing, delivering, or serving of food 
                or beverages for consumption if the tipping of 
                employees delivering or serving food or beverages by 
                customers is customary, or
                    ``(B) the providing of any cosmetology service for 
                customers or clients at a facility licensed to provide 
                such service if the tipping of employees providing such 
                service is customary.''
    (b) Definition of Cosmetology Service.--Section 45B of such Code is 
amended by redesignating subsections (c) and (d) as subsections (d) and 
(e), respectively, and by inserting after subsection (b) the following 
new subsection:
    ``(c) Cosmetology Service.--For purposes of this section, the term 
`cosmetology service' means--
            ``(1) hairdressing,
            ``(2) haircutting,
            ``(3) manicures and pedicures,
            ``(4) body waxing, facials, mud packs, wraps, and other 
        similar skin treatments, and
            ``(5) any other beauty related service provided at a 
        facility at which a majority of the services provided (as 
        determined on the basis of gross revenue) are described in 
        paragraphs (1) through (4).''
    (c) Effective Date.--The amendments made by this section shall 
apply to tips received for services performed after December 31, 2001.

SEC. 3. INFORMATION REPORTING AND TAXPAYER EDUCATION FOR PROVIDERS OF 
              COSMETOLOGY SERVICES.

    (a) In General.--Subpart B of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by inserting after 
section 6050S the following new section:

``SEC. 6050T. RETURNS RELATING TO COSMETOLOGY SERVICES AND INFORMATION 
              TO BE PROVIDED TO COSMETOLOGISTS.

    ``(a) In General.--Every person (referred to in this section as a 
`reporting person') who--
            ``(1) employs 1 or more cosmetologists to provide any 
        cosmetology service,
            ``(2) rents a chair to 1 or more cosmetologists to provide 
        any cosmetology service on at least 5 calendar days during a 
        calendar year, or
            ``(3) in connection with its trade or business or rental 
        activity, otherwise receives compensation from, or pays 
        compensation to, 1 or more cosmetologists for the right to 
        provide cosmetology services to, or for cosmetology services 
        provided to, third-party patrons,
shall comply with the return requirements of subsection (b) and the 
taxpayer education requirements of subsection (c).
    ``(b) Return Requirements.--The return requirements of this 
subsection are met by a reporting person if the requirements of each of 
the following paragraphs applicable to such person are met.
            ``(1) Employees.--In the case of a reporting person who 
        employs 1 or more cosmetologists to provide cosmetology 
        services, the requirements of this paragraph are met if such 
        person meets the requirements of sections 6051 (relating to 
        receipts for employees) and 6053(b) (relating to tip reporting) 
        with respect to each such employee.
            ``(2) Independent contractors.--In the case of a reporting 
        person who pays compensation to 1 or more cosmetologists (other 
        than as employees) for cosmetology services provided to third-
        party patrons, the requirements of this paragraph are met if 
        such person meets the applicable requirements of section 6041 
        (relating to returns filed by persons making payments of $600 
        or more in the course of a trade or business), section 6041A 
        (relating to returns to be filed by service-recipients who pay 
        more than $600 in a calendar year for services from a service 
        provider), and each other provision of this subpart that may be 
        applicable to such compensation.
            ``(3) Chair renters.--
                    ``(A) In general.--In the case of a reporting 
                person who receives rent or other fees or compensation 
                from 1 or more cosmetologists for use of a chair or for 
                rights to provide any cosmetology service at a salon or 
                other similar facility for more than 5 days in a 
                calendar year, the requirements of this paragraph are 
                met if such person--
                            ``(i) makes a return, according to the 
                        forms or regulations prescribed by the 
                        Secretary, setting forth the name, address, and 
                        TIN of each such cosmetologist and the amount 
received from each such cosmetologist, and
                            ``(ii) furnishes to each cosmetologist 
                        whose name is required to be set forth on such 
                        return a written statement showing--
                                    ``(I) the name, address, and phone 
                                number of the information contact of 
                                the reporting person,
                                    ``(II) the amount received from 
                                such cosmetologist, and
                                    ``(III) a statement informing such 
                                cosmetologist that (as required by this 
                                section), the reporting person has 
                                advised the Internal Revenue Service 
                                that the cosmetologist provided 
                                cosmetology services during the 
                                calendar year to which the statement 
                                relates.
                    ``(B) Method and time for providing statement.--The 
                written statement required by clause (ii) of 
                subparagraph (A) shall be furnished (either in person 
                or by first-class mail which includes adequate notice 
                that the statement or information is enclosed) to the 
                person on or before January 31 of the year following 
                the calendar year for which the return under clause (i) 
                of subparagraph (A) is to be made.
    ``(c) Taxpayer Education Requirements.--In the case of a reporting 
person who is required to provide a statement pursuant to subsection 
(b), the requirements of this subsection are met if such person 
provides to each such cosmetologist annually a publication, as 
designated by the Secretary, describing--
            ``(1) in the case of an employee, the tax and tip reporting 
        obligations of employees, and
            ``(2) in the case of a cosmetologist who is not an employee 
        of the reporting person, the tax obligations of independent 
        contractors or proprietorships.
The publications shall be furnished either in person or by first-class 
mail which includes adequate notice that the publication is enclosed.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Cosmetologist.--
                    ``(A) In general.--The term `cosmetologist' means 
                an individual who provides any cosmetology service.
                    ``(B) Anti-avoidance rule.--The Secretary may by 
                regulation or ruling expand the term `cosmetologist' to 
                include any entity or arrangement if the Secretary 
                determines that entities are being formed to circumvent 
                the reporting requirements of this section.
            ``(2) Cosmetology service.--The term `cosmetology service' 
        has the meaning given to such term by section 45B(c).
            ``(3) Chair.--The term `chair' includes a chair, booth, or 
        other furniture or equipment from which an individual provides 
        a cosmetology service (determined without regard to whether the 
        cosmetologist is entitled to use a specific chair, booth, or 
        other similar furniture or equipment or has an exclusive right 
        to use any such chair, booth, or other similar furniture or 
        equipment).
    ``(e) Exceptions for Certain Employees.--Subsection (c) shall not 
apply to a reporting person with respect to an employee who is employed 
in a capacity for which tipping (or sharing tips) is not customary.''
    (b) Conforming Amendments.--
            (1) Section 6724(d)(1)(B) of such Code (relating to the 
        definition of information returns) is amended by redesignating 
        clauses (xi) through (xvii) as clauses (xii) through (xviii), 
        respectively and by inserting after clause (x) the following 
        new clause:
                            ``(xi) section 6050T(a) (relating to 
                        returns by cosmetology service providers).''
            (2) Section 6724(d)(2) of such Code is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (Z) and inserting a comma,
                    (B) by striking the period at the end of 
                subparagraph (AA) and inserting ``, or'', and
                    (C) by inserting after subparagraph (AA) the 
                following new subparagraph:
                    ``(BB) subsections (b)(3)(A)(ii) and (c) of section 
                6050T (relating to cosmetology service providers) even 
                if the recipient is not a payee.''
            (3) The table of sections for subpart B of part III of 
        subchapter A of chapter 61 of the Internal Revenue Code of 1986 
        is amended by adding after section 6050S the following new 
        item:

                              ``Sec. 6050T. Returns relating to 
                                        cosmetology services and 
                                        information to be provided to 
                                        cosmetologists.''
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years after 2001.
[EX A]:
Cosmetology Tax Fairness and Compliance Act of 2001 - Amends the Internal Revenue Code, with respect to the credit for the portion of social security taxes paid with respect to employee tips, to make such credit applicable to employers of cosmetologists.Establishes provisions concerning returns relating to cosmetology services employers and information to be provided to cosmetologists.