Part 1. Definition
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Part 2. Example
SECTION 1. LIABILITY OF BUSINESS ENTITIES PROVIDING USE OF FACILITIES
TO NONPROFIT ORGANIZATIONS.

(a) Definitions.--In this section:
(1) Business entity.--The term ''business entity'' means a
firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) Facility.--The term ''facility'' means any real
property, including any building, improvement, or appurtenance.
(3) Gross negligence.--The term ''gross negligence'' means
voluntary and conscious conduct by a person with knowledge (at
the time of the conduct) that the conduct is likely to be
harmful to the health or well-being of another person.
(4) Intentional misconduct.--The term ''intentional
misconduct'' means conduct by a person with knowledge (at the
time of the conduct) that the conduct is harmful to the health
or well-being of another person.
(5) Nonprofit organization.--The term ''nonprofit
organization'' means--
(A) any organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code; or
(B) any not-for-profit organization organized and
conducted for public benefit and operated primarily for
charitable, civic, educational, religious, welfare, or
health purposes.
(6) State.--The term ''State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Northern
Mariana Islands, any other territory or possession of the
United States, or any political subdivision of any such State,
territory, or possession.
(b) Limitation on Liability.--
(1) In general.--Subject to subsection (c), a business
entity shall not be subject to civil liability relating to any
injury or death occurring at a facility of the business entity
in connection with a use of such facility by a nonprofit
organization if--
(A) the use occurs outside of the scope of business
of the business entity;
(B) such injury or death occurs during a period
that such facility is used by the nonprofit
organization; and
(C) the business entity authorized the use of such
facility by the nonprofit organization.
(2) Application.--This subsection shall apply--
(A) with respect to civil liability under Federal
and State law; and
(B) regardless of whether a nonprofit organization
pays for the use of a facility.
(c) Exception for Liability.--Subsection (b) shall not apply to an
injury or death that results from an act or omission of a business
entity that constitutes gross negligence or intentional misconduct,
including any misconduct that--
(1) constitutes a crime of violence (as that term is
defined in section 16 of title 18, United States Code) or act
of international terrorism (as that term is defined in section
2331 of title 18) for which the defendant has been convicted in
any court;
(2) constitutes a hate crime (as that term is used in the
Hate Crime Statistics Act (28 U.S.C. 534 note));
(3) involves a sexual offense, as defined by applicable
State law, for which the defendant has been convicted in any
court; or
(4) involves misconduct for which the defendant has been
found to have violated a Federal or State civil rights law.
(d) Superseding Provision.--
(1) In general.--Subject to paragraph (2) and subsection
(e), this Act preempts the laws of any State to the extent that
such laws are inconsistent with this Act, except that this Act
shall not preempt any State law that provides additional
protection from liability for a business entity for an injury
or death with respect to which conditions under subparagraphs
(A) through (C) of subsection (b)(1) apply.
(2) Limitation.--Nothing in this Act shall be construed to
supersede any Federal or State health or safety law.
(e) Election of State Regarding Nonapplicability.--This Act shall
not apply to any civil action in a State court against a business
entity in which all parties are citizens of the State if such State
enacts a statute--
(1) citing the authority of this subsection;
(2) declaring the election of such State that this Act
shall not apply to such civil action in the State; and
(3) containing no other provision.
Answer: Shields a business entity from civil liability relating to any injury or death occurring at a facility of that entity in connection with a use of such facility by a nonprofit organization if: (1) the use occurs outside the scope of business of the business entity; (2) such injury or death occurs during a period that such facility is used by such organization; and (3) the business entity authorized the use of such facility by the organization.
Makes this Act inapplicable to an injury or death that results from an act or omission of a business entity that constitutes gross negligence or intentional misconduct, including misconduct that: (1) constitutes a hate crime or a crime of violence or act of international terrorism for which the defendant has been convicted in any court; or (2) involves a sexual offense for which the defendant has been convicted in any court or misconduct for which the defendant has been found to have violated a Federal or State civil rights law.
Preempts State laws to the extent that such laws are inconsistent with this Act, except State law that provides additional protection from liability. Specifies that this Act shall not be construed to supersede any Federal or State health or safety law.
Makes this Act inapplicable to any civil action in a State court against a business entity in which all parties are citizens of the State if such State, citing this Act's authority and containing no other provision, enacts a statute declaring the State's election that this Act shall not apply to such action in the State.
Explanation: This Bill focuses on shielding business entities from civil liability relating to an injury or death depending on the conditions of injury, hence the generated summary is correct.
Part 3. Exercise
SECTION 1. SHORT TITLE.

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

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

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

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

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

SEC. 4. GROUP RETURNS.

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

SEC. 5. DEFINITIONS AND EFFECTIVE DATE.

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

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

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

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

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