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 ''DNA Sexual Assault Justice Act of
2002''.

SEC. 2. ASSESSMENT ON BACKLOG IN DNA ANALYSIS OF SAMPLES.

(a) Assessment.--
(1) In general.--The Attorney General shall survey each law
enforcement jurisdiction to assess the backlog of DNA testing
of rape kit samples and other sexual assault evidence.
(2) Determinations.--The Attorney General, acting through
the Director of the National Institute of Justice, shall carry
out an assessment of Federal, State, local, and tribal
territories law enforcement jurisdictions to determine the
amount of--
(A) evidence contained in rape kits that has not
been subjected to DNA testing and analysis; and
(B) evidence from sexual assault crimes that has
not been subjected to DNA testing and analysis.
(b) Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Attorney General shall submit to
Congress a report on the assessment carried out under
subsection (a).
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) the results of the assessment carried out under
subsection (a);
(B) the number of rape kit samples and other
evidence from sexual assault crimes that have not been
subjected to DNA testing and analysis; and
(C) a plan for carrying out additional assessments
and reports to continue until all law enforcement
jurisdictions report no backlog in crime scene DNA
testing and analysis.
(c) Authorization of Appropriations.--There is authorized to be
appropriated such sums as may be necessary to carry out this section.

SEC. 3. GRANTS FOR ANALYSIS OF DNA SAMPLES FROM RAPE KITS.

Section 2(a) of the DNA Analysis Backlog Elimination Act of 2000
(42 U.S.C. 14135(a)) is amended--
(1) in paragraph (2), by inserting ''including samples from
rape kits and nonsuspect cases'' after ''crime scenes''; and
(2) by adding at the end the following:
''(4) To ensure that DNA testing and analysis of samples
from rape kits and nonsuspect cases are carried out in a timely
manner.''.

SEC. 4. INCREASED GRANTS FOR DNA ANALYSIS.

Section 2(j) of the DNA Analysis Backlog Elimination Act of 2000
(42 U.S.C. 14135(j)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ''and'' at the
end; and
(B) by striking subparagraph (C) and inserting the
following:
''(C) $25,000,000 for fiscal year 2003;
''(D) $25,000,000 for fiscal year 2004;
''(E) $25,000,000 for fiscal year 2005; and
''(F) $25,000,000 for fiscal year 2006.''; and
(2) in paragraph (2), by striking subparagraphs (C) and (D)
and inserting the following:
''(C) $100,000,000 for fiscal year 2003;
''(D) $100,000,000 for fiscal year 2004;
''(E) $50,000,000 for fiscal year 2005; and
''(F) $50,000,000 for fiscal year 2006.''.

SEC. 5. AUTHORITY OF LOCAL GOVERNMENTS TO APPLY FOR AND RECEIVE DNA
BACKLOG ELIMINATION GRANTS.

Section 2 of the DNA Analysis Backlog Elimination Act of 2000 (42
U.S.C. 14135) is amended--
(1) in subsection (a), by inserting ''or eligible units of
local government'' after ''eligible States'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
inserting ''or unit of local government'' after
''State'' each place that term appears;
(B) in paragraph (1), by inserting ''or unit of
local government'' after ''State'';
(C) in paragraph (3), by inserting ''or unit of
local government'' after ''State'' the first time that
term appears;
(D) in paragraph (4)--
(i) by inserting ''or unit of local
government'' after ''State''; and
(ii) by striking ''and'' after the
semicolon;
(E) in paragraph (5)--
(i) by inserting ''or unit of local
government'' after ''State''; and
(ii) by striking the final period and
inserting ''; and''; and
(F) by adding at the end the following:
''(6) if the applicant is a unit of local government,
certify that the applicant participates in a State laboratory
system.'';
(3) in subsection (c), by inserting ''or unit of local
government'' after ''State'';
(4) in subsection (d)(2)(A), by inserting ''or units of
local government'' after ''States'';
(5) in subsection (e)--
(A) in paragraph (1), by inserting ''or local
government'' after ''State'' each place that term
appears; and
(B) in paragraph (2), by inserting ''or unit of
local government'' after ''State'';
(6) in subsection (f), by inserting ''or unit of local
government'' after ''State'';
(7) in subsection (g)--
(A) in paragraph (1), by inserting ''or unit of
local government'' after ''State''; and
(B) in paragraph (2), by inserting ''or units of
local government'' after ''States''; and
(8) in subsection (h), by inserting ''or unit of local
government'' after ''State'' each place that term appears.

SEC. 6. IMPROVING ELIGIBILITY CRITERIA FOR BACKLOG GRANTS.

Section 2 of the DNA Analysis Backlog Elimination Act of 2000 (42
U.S.C. 14135) is amended--
(1) in subsection (b)--
(A) in paragraph (5) (as amended by section 5), by
striking ''and'' at the end;
(B) in paragraph (6) (as added by section 5), by
striking the period at the end and inserting: '';
and''; and
(C) by adding at the end the following:
''(7) ensure that each laboratory performing DNA testing or
analysis satisfies the quality assurance protocols and
practices described in subsection (d)(2).''; and
(2) by adding at the end the following:
''(k) Priority.--In awarding grants under this section, the
Attorney General shall give priority to a State or unit of local
government that has a significant rape kit or nonsuspect case backlog
as compared to other applicants.''.

SEC. 7. AUTHORIZATION FOR GRANTS FOR IMPROVED RESPONSES TO AND
INVESTIGATION OF SEXUAL ASSAULT CASES.

(a) Authorization of Grants.--The Attorney General shall make
grants to eligible entities to--
(1) carry out sexual assault examiner training and
certification;
(2) develop sexual assault examiner programs;
(3) acquire or improve forensic equipment;
(4) train law enforcement personnel in the handling of
sexual assault cases and the collection and use of DNA samples
for use as forensic evidence; and
(5) train law enforcement personnel to recognize, detect,
report, and respond to drug-facilitated sexual assaults.
(b) Eligible Entity.--For purposes of this section, the term
''eligible entity'' means--
(1) a State;
(2) a unit of local government;
(3) a college, university, or other institute of higher
learning;
(4) sexual assault examination programs, including sexual
assault forensic examiner (SAFE) programs, sexual assault nurse
examiner (SANE) programs, and sexual assault response team
(SART) programs; and
(5) a State sexual assault coalition.
(c) Application.--To receive a grant under this section--
(1) the chief executive officer of a State, unit of local
government, or university that desires a grant under this
section shall submit to the Attorney General--
(A) an application in such form and containing such
information as the Attorney General may require;
(B) certification that the testing will be done in
a laboratory that complies with the quality assurance
and proficiency testing standards for collecting and
processing DNA samples issued by the Director of the
Federal Bureau of Investigation under section 210303 of
the DNA Identification Act of 1994 (42 U.S.C. 14131);
(C) notice that the applicant is aware of, and
utilizing, uniform protocols and standards issued by
the Department of Justice on the collection and
processing of DNA evidence at crime scenes; and
(D) if the applicant is a unit of local government,
certification that the applicant participates in a
State laboratory system; and
(2) an existing or proposed sexual assault examination
program shall submit to the Attorney General--
(A) an application in such form and containing such
information as the Attorney General may require;
(B) certification that the program complies with
the standards and recommended protocol developed by the
Attorney General pursuant to section 1405 of the
Victims of Trafficking and Violence Protection Act of
2000 (42 U.S.C. 3796gg note); and
(C) notice that the applicant is aware of, and
utilizing, uniform protocols and standards issued by
the Department of Justice on the collection and
processing of DNA evidence at crime scenes.
(d) Priority.--In awarding grants under this section, the Attorney
General shall give priority to proposed or existing sexual assault
examination programs that are serving, or will serve, populations
currently underserved by existing sexual assault examination programs.
(e) Restrictions on Use of Funds.--
(1) Supplemental funds.--Funds made available under this
section shall not be used to supplant State funds, but shall be
used to increase the amount of funds that would, in the absence
of Federal funds, be made available from State sources for the
purposes of this section.
(2) Administrative costs.--An eligible entity may not use
more than 3 percent of the funds it receives under this section
for administrative expenses.
(3) Nonexclusivity.--Nothing in this section shall be
construed to limit or restrict the ability of proposed or
existing sexual assault examination programs to apply for and
obtain Federal funding from any other agency or department or
any other Federal Grant program.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Department of Justice $15,000,000 for each of
fiscal years 2003 through 2006 to carry out this section.

SEC. 8. AUTHORIZING JOHN DOE DNA INDICTMENTS.

(a) Limitations.--Section 3282 of title 18, United States Code, is
amended--
(1) by striking ''Except'' and inserting the following:
''(a) Limitation.--Except''; and
(2) by adding at the end the following:
''(b) DNA Profile Indictment.--
''(1) In general.--In any indictment found for an offense
under chapter 109A, if the identity of the accused is unknown,
it shall be sufficient to describe the accused as an individual
whose name is unknown, but who has a particular DNA profile.
''(2) Exception.--Any indictment described in paragraph
(1), which is found within 5 years after the offense under
chapter 109A shall have been committed, shall not be subject
to--
''(A) the limitations period described in
subsection (a); and
''(B) the provisions of chapter 208 until the
individual is arrested or served with a summons in
connection with the charges contained in the
indictment.
''(3) Definition.--For purposes of this subsection, the
term 'DNA profile' means a set of DNA identification
characteristics.''.
(b) Privacy Protection Standard.--Section 10(a) of the DNA Analysis
Backlog Elimination Act of 2000 (42 U.S.C. 14135e(a)) is amended by
inserting before the period at the end the following: ''or in section
3282(b) of title 18, United States Code.''.
(c) Rules of Criminal Procedure.--Rule 7 of the Federal Rules of
Criminal Procedure is amended in subdivision (c)(1) by adding at the
end the following: ''For purposes of an indictment referred to in
section 3282 of title 18, United States Code, if the identity of the
defendant is unknown, it shall be sufficient to describe the defendant,
in the indictment, as an individual whose name is unknown, but who has
a particular DNA profile, as defined in that section 3282.''.

SEC. 9. INCREASED GRANTS FOR COMBINED DNA INDEX (CODIS) SYSTEM.

Section 210306 of the DNA Identification Act of 1994 (42
U.S.C.14134) is amended--
(1) by striking ''There'' and inserting the following:
''(a) In General.--There''; and
(2) by adding at the end the following:
''(b) Increased Grants for CODIS.--There is authorized to be
appropriated to the Federal Bureau of Investigation to carry out a
redesign of the Combined DNA Index System (CODIS) $9,646,000 for fiscal
year 2003.''.

SEC. 10. INCREASED GRANTS FOR FEDERAL CONVICTED OFFENDER PROGRAM
(FCOP).

Section 3 of the DNA Analysis Backlog Elimination Act of 2000 (42
U.S.C. 14135a) is amended by adding at the end the following:
''(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Federal Bureau of Investigation to carry out this
section $497,000 for fiscal year 2003.''.
[EX A]: DNA Sexual Assault Justice Act of 2002 - Directs the Attorney General to: (1) survey each law enforcement jurisdiction to assess the backlog of DNA testing of rape kit samples and other sexual assault evidence; and (2) make grants to eligible entities to carry out sexual assault examiner training and certification, develop sexual assault examiner programs, acquire or improve forensic equipment, and train law enforcement personnel in the handling of sexual assault cases.Amends the DNA Analysis Backlog Elimination Act of 2000 to: (1) ensure that DNA testing and analysis of samples from rape kits and non-suspect cases are carried out in a timely manner; (2) reauthorize grants; (3) authorize local governments to apply for and receive grants; (4) direct the Attorney General to give priority in awarding grants to a State or local governmental unit that has a significant rape kit or non-suspect case backlog; (5) expand the scope of DNA samples subject to privacy protections; and (6) authorize appropriations to the Federal Bureau of Investigation (FBI) for the collection and use of DNA identification information from certain Federal offenders.Amends: (1) the Federal criminal code and the Federal Rules of Criminal Procedure to authorize "John Doe" DNA indictments for sexual abuse (allows describing a person as an unknown individual who has a particular DNA profile if the identity of the accused or defendant is unknown); and (2) the DNA Identification Act of 1994 to authorize appropriations to the FBI to carry out a redesign of the Combined DNA Index System.

[EX Q]: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Teacher and Nurse Support Act of
2007''.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings.--Congress finds the following:
(1) According to the National Center for Education
Statistics, over the next 10 years, the United States will need
more than 2,000,000 new teachers to replace the teachers who
are retiring or leaving the classroom for other careers.
(2) The Hart-Rudman National Security Report on education
recommended that the President direct the Department of
Education to work with the States to devise a comprehensive
plan to avert a looming shortage of high-quality teachers.
(3) According to the National Center for Education
Statistics, 20 percent of all new teachers leave the teaching
profession within 3 years. Providing loan forgiveness or loan
cancellation is one step that would help retain high-quality
teachers in schools that need teachers.
(4) The American Hospital Association has reported more
than 118,000 unfilled registered nurse positions in hospitals
in the United States. Additionally, the National Commission on
Nursing Workforce for Long-Term Care released a report in May,
2005, stating that there are nearly 100,000 vacant nursing
positions in long-term care facilities on any given day, and
the nurse turnover rate exceeds 50 percent. The shortage is
costing long-term care facilities an estimated $4 billion a
year in recruitment and training expenses.
(5) College loans are more of a burden than ever for
students and families. According to a recent United States
Public Interest Research Group report, average student loan
debt almost doubled from $9,200 in 1992-1993 to $16,928 in
1999-2000.
(b) Purpose.--The purpose of this Act is to improve access to, and
the delivery of, high-quality educational and health services
throughout the United States by reducing the shortage of qualified
teachers and nurses.

SEC. 3. LOAN FORGIVENESS.

(a) Loan Forgiveness.--Section 428J of the Higher Education Act of
1965 (20 U.S.C. 1078-10) is amended to read as follows:

''SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND NURSES.

''(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching and nursing
professions.
''(b) Program Authorized.--
''(1) In general.--The Secretary shall carry out a program
to forgive, in accordance with this section, the student loan
debt of any borrower who has one or more loans described under
paragraph (2) made on or after October 1, 1998, and who--
''(A) has been employed--
''(i) as a full-time teacher--
''(I) in a school that qualifies
under section 465(a)(2)(A) for loan
cancellation for Perkins loan
recipients who teach in those schools;
''(II) if employed as a secondary
school teacher, is teaching a subject
area that is relevant to the borrower's
academic major as certified by the
chief administrative officer of the
public or nonprofit private secondary
school in which the borrower is
employed; and
''(III) if employed as an
elementary school teacher, has
demonstrated, as certified by the chief
administrative officer of the public or
nonprofit private elementary school in
which the borrower is employed,
knowledge and teaching skills in
reading, writing, mathematics, and
other areas of the elementary school
curriculum; or
''(ii) as a full-time eligible nurse--
''(I) in a clinical setting; or
''(II) as a member of the nursing
faculty at an accredited school of
nursing (as those terms are defined in
section 801 of the Public Health
Service Act (42 U.S.C. 296)); and
''(B) is not in default on a loan for which the
borrower seeks forgiveness.
''(2) Method of loan forgiveness.--To provide the loan
forgiveness authorized in paragraph (1), the Secretary shall,
subject to paragraph (3), carry out a program--
''(A) through the holder of the loan, to assume the
obligation to repay a qualified loan amount (as
determined under subsection (c)) for a loan made under
section 428 or 428H of this part; and
''(B) to cancel a qualified loan amount (as so
determined) for a Federal Direct Stafford Loan or a
Federal Direct Unsubsidized Stafford Loan made under
part D of this title;
''(3) Treatment of consolidation loans.--A loan amount for
a loan made under section 428C or section 455(g) may be a
qualified loan amount for the purposes of paragraph (2) only to
the extent that such loan amount was used to repay a loan made
under section 428 or 428H, a Federal Direct Stafford Loan, or a
Federal Direct Unsubsidized Stafford Loan for a borrower who
meets the requirements of paragraph (1), as determined in
accordance with regulations prescribed by the Secretary.
''(c) Qualified Loan Amount.--
''(1) In general.--
''(A) Aggregate amount.--The Secretary shall, in
installments in accordance with subparagraph (B),
forgive under this section not more than $17,500 in the
aggregate of the student loan obligation of a borrower.
''(B) Annual installments.--The Secretary shall
forgive the student loan obligation of a borrower in
annual installments after each of 5 years of service
described in clause (i) or (ii) of subsection
(b)(1)(A)(i) in an amount not to exceed the lesser of
the remaining outstanding obligation of the borrower
or--
''(i) $2,000 at the completion of the first
year of such service;
''(ii) $2,500 at the completion of the
second year of such service;
''(iii) $3,500 at the completion of the
third year of such service;
''(iv) $4,500 at the completion of the
fourth year of such service; and
''(v) $5,000 at the completion of the fifth
year of such service.
''(2) Forbearance on qualified loan amount.--A holder of a
loan on which a borrower is seeking forgiveness under this
section--
''(A) shall grant forbearance, at the request of
the borrower, in annual increments for each of the
years of qualifying service if the holder believes, at
the time of the borrower's annual request, that the
amount expected to be forgiven under this section at
the completion of the period of qualifying service will
satisfy the anticipated remaining outstanding balance
on the loan; and
''(B) may offer other forbearance options to the
borrower.
''(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
''(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
''(f) List of Schools.--If the list of schools in which a teacher
may perform service pursuant to subsection (b)(1)(A)(i) is not
available before May 1 of any year, the Secretary may use the list for
the year preceding the year for which the determination is made to make
the service determination.
''(g) Additional Eligibility Provisions.--
''(1) Continued eligibility for teachers.--Any teacher who
performs service in a school that--
''(A) meets the requirements of subsection
(b)(1)(A)(i)(I) in any year during such service; and
''(B) in a subsequent year fails to meet the
requirements of that subsection,
may continue to teach in the school and shall be eligible for
loan forgiveness pursuant to subsection (b).
''(2) Prevention of double benefits.--No borrower may, for
the same service, receive a benefit under both this subsection
and--
''(A) subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et
seq.); or
''(B) section 846 of the Public Health Service Act
(42 U.S.C. 297n).
''(h) Definitions.--In this section:
''(1) Eligible nurse.--The term 'eligible nurse' means a
nurse who meets all of the following:
''(A) The nurse graduated from--
''(i) an accredited school of nursing (as
those terms are defined in section 801 of the
Public Health Service Act (42 U.S.C. 296));
''(ii) a nursing center; or
''(iii) an academic health center that
provides nurse training.
''(B) The nurse holds a valid and unrestricted
license to practice nursing in the State in which the
nurse practices in a clinical setting.
''(C) The nurse holds 1 or more of the following:
''(i) A graduate degree in nursing or
equivalent degree.
''(ii) A nursing degree from a collegiate
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
''(iii) A nursing degree from an associate
degree school of nursing (as defined in section
801 of the Public Health Service Act (42 U.S.C.
296)).
''(iv) A nursing degree from a diploma
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
''(2) Year.--The term 'year', where applied to service as a
teacher (or service as a member of the nursing faculty at an
accredited school of nursing (as those terms are defined in
section 801 of the Public Health Service Act (42 U.S.C. 296))),
means an academic year as defined by the Secretary.''.
(b) Repeal of Loan Cancellation Provision.--Section 460 of the
Higher Education Act of 1965 (20 U.S.C. 1087j) is repealed.

SEC. 4. PHASE OUT OF CURRENT PROGRAM.

An individual who began the required period of teaching described
in section 428J(b)(1) or 460(b)(1)(A) of the Higher Education Act of
1965 (20 U.S.C. 1078-10 and 1087j) as such sections were in effect on
the day before the date of enactment of this Act, shall--
(1) be eligible to receive loan forgiveness or loan
cancellation in the amount described in, and in accordance with
the requirements of, such sections as in effect on the day
before the date of enactment of this Act; and
(2) not be eligible to receive loan forgiveness under
section 428J of the Higher Education Act of 1965 as in effect
on the date of enactment of this Act.
[EX A]: Teacher and Nurse Support Act of 2007 - Amends the Higher Education Act of 1965 to increase to a maximum of $17,500 the aggregate student loan obligation eligible for forgiveness or cancellation under the Federal Family Education Loan or Direct Loan programs for teachers who serve full-time in certain elementary or secondary schools that enroll a high proportion of disadvantaged students.

Includes, under these student loan forgiveness and cancellation programs, nurses who serve in a clinical setting or as a member of the nursing faculty at an accredited school of nursing. Directs the Secretary of Education to repay such loan obligation in annual installments up to specified maximum amounts after each of five years of such service.

[EX Q]: SECTION 1. SHORT TITLE.

This Act may be cited as ''State Business Law Conformity Act of
2004''.

SEC. 2. REFERENCES TO GENERAL PARTNERS.

(a) Exclusion of Certain Active Businesses From at Risk Rules.--
Subclause (I) of section 465(c)(7)(D)(ii) of the Internal Revenue Code
of 1986 (defining qualified corporate partner) is amended to read as
follows:
''(I) such corporation is not
prohibited or limited under State law
from participation in the management or
business of the partnership.''.
(b) Payments to Retiring Partners.--Subparagraph (B) of section
736(b)(3) of such Code (relating to limitation on application of
paragraph (2)) is amended to read as follows:
''(B) any portion of the retiring or deceased
partner's distributive share of partnership income was
subject to tax under section 1401.''.
(c) Foreign Currency Transactions.--Subclause (I) of section
988(c)(1)(E)(v) of such Code is amended to read as follows:
''(I) Certain general partners.--
The interest of a partner in the
partnership shall not be treated as
failing to meet the 20-percent
ownership requirements of clause
(iii)(I) for any taxable year of the
partnership if for the taxable year of
the partner in which such partnership
taxable year ends--
''(aa) the partner is not
limited as to participation in
the management or activity of
the qualified fund, and
''(bb) such partner (and
each corporation filing a
consolidated return with such
partner) had no ordinary income
or loss from a section 988
transaction which is foreign
currency gain or loss (as the
case may be).''.
(d) Special Valuation Rules for Generation-Skipping Tax.--Clause
(ii) of section 2701(b)(2)(B) of such Code (relating to partnerships)
is amended to read as follows:
''(ii) in the case of a limited
partnership, the holding of any interest as a
partner who is not limited as to participation
in management or activity of the
partnership.''.
(e) Tax Matters Partner.--Paragraph (7) of section 6231(a) of such
Code (defining tax matters partner) is amended to read as follows:
''(7) Tax matters partner.--
''(A) In general.--The tax matters partner of any
partnership is--
''(i) the partner designated as the tax
matters partner as provided in regulations, or
''(ii) if there is no partner who has been
so designated, the partner having the largest
profits interest in the partnership at the
close of the taxable year involved (or, where
there is more than 1 such partner, the 1 of
such partners whose name would appear first in
an alphabetical listing).
''(B) Selection by secretary.--If there is no
partner designated under subparagraph (A)(i) and the
Secretary determines that it is impracticable to apply
subparagraph (A)(ii), the partner selected by the
Secretary shall be treated as the tax matters partner.
The Secretary shall, within 30 days of selecting a tax
matters partner under the preceding sentence, notify
all partners required to receive notice under section
6223(a) of the name and address of the person selected.
''(C) Restriction on designation of partner.--A
partner may not be designated as a tax matters partner
under subparagraph (A)(i) unless such partner is not
limited as to participation in management or activity
of the partnership.''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.

SEC. 3. REFERENCES TO LIMITED PARTNERS.

(a) Limited Entrepreneur.--
(1) In general.--Subparagraph (A) of section 464(e)(2) of
the Internal Revenue Code of 1986 (defining limited
entrepreneur) is amended by striking ''other than as a limited
partner''.
(2) Conforming amendments.--
(A) Section 464(c) of such Code is amended--
(i) by striking ''limited partners or'' in
paragraph (1)(B),
(ii) by striking ''a limited partner or''
in paragraph (2).
(B) Section 1256 of such Code is amended--
(i) by striking ''limited partners or''
each place it appears in subsections (e)(3)(B)
and (f)(4),
(ii) by striking ''a limited partner or''
in subsection (e)(3)(C), and
(iii) by striking ''limited partner or''
both places it appears in the heading and text
of subsection (e)(4)(A)(i).
(C) Section 1258(d)(5)(C) of such Code is amended--
(i) by striking ''limited partner or'' in
the matter preceding subclause (i),
(ii) by striking ''limited partner's (or
limited entrepreneur's) in subclause (i) and
inserting ''limited entrepreneur's'', and
(iii) by striking ''partners and limited''
in the heading.
(b) Passive Loss Rules.--
(1) Subsection (h) of section 469 of such Code is amended
by striking paragraph (2) and by redesignating paragraphs (3),
(4), and (5) as paragraphs (2), (3), and (4), respectively.
(2) Subparagraph (A) of section 469(c)(7) of such Code is
amended by striking the last sentence.
(3) Paragraph (6) of section 469(i) of such Code is amended
by striking subparagraph (C) and by redesignating subparagraph
(D) as subparagraph (C).
(4) Subsection (f) of section 772 of such Code (relating to
special rules for applying passive loss limitations) is amended
to read as follows:
''(f) Special Rules for Applying Passive Loss Limitations.--
''(1) In general.--If any person holds an interest in an
electing large partnership other than as a partner described in
paragraph (3)--
''(A) paragraph (2) of subsection (c) shall not
apply to such partner, and
''(B) such partner's distributive share of the
partnership items allocable to passive loss limitation
activities shall be taken into account separately to
the extent necessary to comply with the provisions of
section 469.
''(2) Exception.--Paragraph (1) shall not apply to any
items allocable to an interest held as a partner described in
paragraph (3).
''(3) Partner described.--For purposes of this subsection,
a partner is described in this paragraph if the partner is a
person whose participation in the management or business
activity of the partnership is limited under applicable State
law.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.

SEC. 4. PARTNERSHIP INCOME ATTRIBUTABLE TO CAPITAL EXCLUDED FROM NET
EARNINGS FROM SELF-EMPLOYMENT.

(a) In General.--Paragraph (13) of section 1402(a) of the Internal
Revenue Code of 1986 is amended to read as follows:
''(13) there shall be excluded the distributive share of
net income of a partner attributable to capital;''.
(b) Partnership Income Attributable to Capital.--Section 1402 of
such Code is amended by adding at the end the following new subsection:
''(l) Partnership Income Attributable to Capital.--
''(1) In general.--For purposes of subsection (a)(13), the
following amounts shall be treated as income attributable to
capital--
''(A) the amount, if any, in excess of what would
constitute reasonable compensation for services
rendered by such partner to the partnership, and
''(B) an amount equal to a reasonable rate of
return on unreturned capital of the partner determined
as of the beginning of the taxable year.
''(2) Definitions.--For purposes of paragraph (1)--
''(A) Unreturned capital.--The term 'unreturned
capital' means the excess of the aggregate amount of
money and the fair market value as of the date of
contribution of other consideration (net of
liabilities) contributed by the partner over the
aggregate amount of money and the fair market value as
of the date of distribution of other consideration (net
of liabilities) distributed by the partnership to the
partner, increased or decreased for the partner's
distributive share of all reportable items as
determined in section 702. If the partner acquires a
partnership interest and the partnership makes an
election under section 754, the partner's unreturned
capital shall take into account appropriate adjustments
under section 743.
''(B) Reasonable rate of return.--A reasonable rate
of return on unreturned capital shall equal 150 percent
(or such higher rate as is established in regulations)
of the highest applicable Federal rate, as determined
under section 1274(d)(1), at the beginning of the
partnership's taxable year.
''(3) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to services performed in taxable years beginning
after December 31, 2004.

SEC. 5. REPEAL OF ABILITY TO ELECT LARGE PARTNERSHIP REPORTING RULES.

(a) In General.--Paragraph (2) of section 775(a) of the Internal
Revenue Code of 1986 (relating to election) is amended by adding at the
end the following: ''No election under this subsection shall be made
after December 31, 2004.''.
(b) Effective Date.--The amendment made by this section shall apply
to partnership taxable years beginning after December 31, 2004.
[EX A]:
State Business Law Conformity Act of 2004 - Amends the Internal Revenue Code to: (1) revise certain partnership tax definitions and rules relating to general and limited partners; (2) exclude from net earnings from self-employment partnership income attributable to capital; and (3) repeal, after 2004, the election to apply large partnership (100 partners or more) tax rules.