To provide additional offsets.

SA 3361. Mr. BUNNING proposed an amendment to amendment SA 3336
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal
Revenue Code of 1986 to extend certain expiring provisions, and for
other purposes; as follows:

Strike all after the first word and insert the following:

1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``American
Workers, State, and Business Relief Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

TITLE I--EXTENSION OF EXPIRING PROVISIONS

Subtitle A--Energy

Sec. 101. Alternative motor vehicle credit for new qualified hybrid
motor vehicles other than passenger automobiles and light
trucks.
Sec. 102. Incentives for biodiesel and renewable diesel.
Sec. 103. Credit for electricity produced at certain open-loop biomass
facilities.
Sec. 104. Credit for refined coal facilities.
Sec. 105. Credit for production of low sulfur diesel fuel.
Sec. 106. Credit for producing fuel from coke or coke gas.
Sec. 107. New energy efficient home credit.
Sec. 108. Excise tax credits and outlay payments for alternative fuel
and alternative fuel mixtures.
Sec. 109. Special rule for sales or dispositions to implement FERC or
State electric restructuring policy for qualified
electric utilities.
Sec. 110. Suspension of limitation on percentage depletion for oil and
gas from marginal wells.

Subtitle B--Individual Tax Relief

PART I--Miscellaneous Provisions

Sec. 111. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 112. Additional standard deduction for State and local real
property taxes.
Sec. 113. Deduction of State and local sales taxes.
Sec. 114. Contributions of capital gain real property made for
conservation purposes.
Sec. 115. Above-the-line deduction for qualified tuition and related
expenses.
Sec. 116. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 117. Look-thru of certain regulated investment company stock in
determining gross estate of nonresidents.

PART II--Low-Income Housing Credits

Sec. 121. Election for refundable low-income housing credit for 2010.

Subtitle C--Business Tax Relief

Sec. 131. Research credit.
Sec. 132. Indian employment tax credit.
Sec. 133. New markets tax credit.
Sec. 134. Railroad track maintenance credit.
Sec. 135. Mine rescue team training credit.
Sec. 136. Employer wage credit for employees who are active duty
members of the uniformed services.
Sec. 137. 5-year depreciation for farming business machinery and
equipment.
Sec. 138. 15-year straight-line cost recovery for qualified leasehold
improvements, qualified restaurant buildings and
improvements, and qualified retail improvements.
Sec. 139. 7-year recovery period for motorsports entertainment
complexes.
Sec. 140. Accelerated depreciation for business property on an Indian
reservation.
Sec. 141. Enhanced charitable deduction for contributions of food
inventory.
Sec. 142. Enhanced charitable deduction for contributions of book
inventories to public schools.
Sec. 143. Enhanced charitable deduction for corporate contributions of
computer inventory for educational purposes.
Sec. 144. Election to expense mine safety equipment.
Sec. 145. Special expensing rules for certain film and television
productions.
Sec. 146. Expensing of environmental remediation costs.
Sec. 147. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 148. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 149. Exclusion of gain or loss on sale or exchange of certain
brownfield sites from unrelated business income.
Sec. 150. Timber REIT modernization.
Sec. 151. Treatment of certain dividends and assets of regulated
investment companies.
Sec. 152. RIC qualified investment entity treatment under FIRPTA.
Sec. 153. Exceptions for active financing income.
Sec. 154. Look-thru treatment of payments between related controlled
foreign corporations under foreign personal holding
company rules.
Sec. 155. Reduction in corporate rate for qualified timber gain.
Sec. 156. Basis adjustment to stock of S corps making charitable
contributions of property.
Sec. 157. Empowerment zone tax incentives.

[[Page S1062]]

Sec. 158. Tax incentives for investment in the District of Columbia.
Sec. 159. Renewal community tax incentives.
Sec. 160. Temporary increase in limit on cover over of rum excise taxes
to Puerto Rico and the Virgin Islands.
Sec. 161. American Samoa economic development credit.

Subtitle D--Temporary Disaster Relief Provisions

PART I--National Disaster Relief

Sec. 171. Waiver of certain mortgage revenue bond requirements.
Sec. 172. Losses attributable to federally declared disasters.
Sec. 173. Special depreciation allowance for qualified disaster
property.
Sec. 174. Net operating losses attributable to federally declared
disasters.
Sec. 175. Expensing of qualified disaster expenses.

PART II--Regional Provisions

subpart a--new york liberty zone

Sec. 181. Special depreciation allowance for nonresidential and
residential real property.
Sec. 182. Tax-exempt bond financing.

subpart b--go zone

Sec. 183. Special depreciation allowance.
Sec. 184. Increase in rehabilitation credit.
Sec. 185. Work opportunity tax credit with respect to certain
individuals affected by Hurricane Katrina for employers
inside disaster areas.

subpart c--midwestern disaster areas

Sec. 191. Special rules for use of retirement funds.
Sec. 192. Exclusion of cancellation of mortgage indebtedness.

TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

Subtitle A--Unemployment Insurance

Sec. 201. Extension of unemployment insurance provisions.

Subtitle B--Health Provisions

Sec. 211. Extension and improvement of premium assistance for COBRA
benefits.
Sec. 212. Extension of therapy caps exceptions process.
Sec. 213. Treatment of pharmacies under durable medical equipment
accreditation requirements.
Sec. 214. Enhanced payment for mental health services.
Sec. 215. Extension of ambulance add-ons.
Sec. 216. Extension of geographic floor for work.
Sec. 217. Extension of payment for technical component of certain
physician pathology services.
Sec. 218. Extension of outpatient hold harmless provision.
Sec. 219. EHR Clarification.
Sec. 220. Extension of reimbursement for all Medicare part B services
furnished by certain indian hospitals and clinics.
Sec. 221. Extension of certain payment rules for long-term care
hospital services and of moratorium on the establishment
of certain hospitals and facilities.
Sec. 222. Extension of the Medicare rural hospital flexibility program.
Sec. 223. Extension of section 508 hospital reclassifications.
Sec. 224. Technical correction related to critical access hospital
services.
Sec. 225. Extension for specialized MA plans for special needs
individuals.
Sec. 226. Extension of reasonable cost contracts.
Sec. 227. Extension of particular waiver policy for employer group
plans.
Sec. 228. Extension of continuing care retirement community program.
Sec. 229. Funding outreach and assistance for low-income programs.
Sec. 230. Family-to-family health information centers.
Sec. 231. Implementation funding.
Sec. 232. Extension of ARRA increase in FMAP.
Sec. 233. Extension of gainsharing demonstration.

Subtitle C--Other Provisions

Sec. 241. Extension of use of 2009 poverty guidelines.
Sec. 242. Refunds disregarded in the administration of Federal programs
and federally assisted programs.
Sec. 243. State court improvement program.
Sec. 244. Extension of national flood insurance program.
Sec. 245. Emergency disaster assistance.
Sec. 246. Small business loan guarantee enhancement extensions.

TITLE III--PENSION FUNDING RELIEF

Subtitle A--Single Employer Plans

Sec. 301. Extended period for single-employer defined benefit plans to
amortize certain shortfall amortization bases.
Sec. 302. Application of extended amortization period to plans subject
to prior law funding rules.
Sec. 303. Lookback for certain benefit restrictions.

Subtitle B--Multiemployer Plans

Sec. 311. Adjustments to funding standard account rules.

TITLE IV--OFFSET PROVISIONS

Subtitle A--Black Liquor

Sec. 401. Exclusion of unprocessed fuels from the cellulosic biofuel
producer credit.
Sec. 402. Prohibition on alternative fuel credit and alternative fuel
mixture credit for black liquor.

Subtitle B--Homebuyer Credit

Sec. 411. Technical modifications to homebuyer credit.

Subtitle C--Economic Substance

Sec. 421. Codification of economic substance doctrine; penalties.

Subtitle D--Additional Provisions

Sec. 431. Revision to the Medicare Improvement Fund.

TITLE V--SATELLITE TELEVISION EXTENSION

Sec. 501. Short title.

Subtitle A--Statutory Licenses

Sec. 501. Reference.
Sec. 502. Modifications to statutory license for satellite carriers.
Sec. 503. Modifications to statutory license for satellite carriers in
local markets.
Sec. 504. Modifications to cable system secondary transmission rights
under section 111.
Sec. 505. Certain waivers granted to providers of local-into-local
service for all DMAs.
Sec. 506. Copyright Office fees.
Sec. 507. Termination of license.
Sec. 508. Construction.

Subtitle B--Communications Provisions

Sec. 521. Reference.
Sec. 522. Extension of authority.
Sec. 523. Significantly viewed stations.
Sec. 524. Digital television transition conforming amendments.
Sec. 525. Application pending completion of rulemakings.
Sec. 526. Process for issuing qualified carrier certification.
Sec. 527. Nondiscrimination in carriage of high definition digital
signals of noncommercial educational television stations.
Sec. 528. Savings clause regarding definitions.
Sec. 529. State public affairs broadcasts.

Subtitle C--Reports and Savings Provision

Sec. 531. Definition.
Sec. 532. Report on market based alternatives to statutory licensing.
Sec. 533. Report on communications implications of statutory licensing
modifications.
Sec. 534. Report on in-state broadcast programming.
Sec. 535. Local network channel broadcast reports.
Sec. 536. Savings provision regarding use of negotiated licenses.
Sec. 537. Effective date; Noninfringement of copyright.

Subtitle D--Severability

Sec. 541. Severability.

TITLE VI--OTHER PROVISIONS

Sec. 601. Increase in the Medicare physician payment update.

TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

Sec. 701. Determination of budgetary effect.

TITLE VIII--ADDITIONAL OFFSETS

Sec. 801. Repeal of increase of the office budgets of Members of
Congress.
Sec. 802. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Agriculture.
Sec. 803. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Commerce.
Sec. 804. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Education.
Sec. 805. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Energy.
Sec. 806. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Health and Human Services.
Sec. 807. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Homeland Security.
Sec. 808. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Housing and Urban Development.
Sec. 809. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Interior.
Sec. 810. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Justice.

[[Page S1063]]

Sec. 811. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Labor.
Sec. 812. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of State.
Sec. 813. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Transportation.
Sec. 814. Repeal of excessive overhead, elimination of wasteful
spending, and consolidation of duplicative programs at
the Department of Treasury.
Sec. 815. Rescission of unspent and uncommitted funds Federal funds.
Sec. 816. Implementation of rescissions.

TITLE I--EXTENSION OF EXPIRING PROVISIONS

Subtitle A--Energy

SEC. 101. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED
HYBRID MOTOR VEHICLES OTHER THAN PASSENGER
AUTOMOBILES AND LIGHT TRUCKS.

(a) In General.--Paragraph (3) of section 30B(k) is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property purchased after December 31, 2009.

SEC. 102. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

(a) Credits for Biodiesel and Renewable Diesel Used as
Fuel.--Subsection (g) of section 40A is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel
and Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2009.

SEC. 103. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
LOOP BIOMASS FACILITIES.

(a) In General.--Clause (ii) of section 45(b)(4)(B) is
amended by striking ``5-year period'' and inserting ``6-year
period''.
(b) Effective Date.--The amendment made by this section
shall apply to electricity produced and sold after December
31, 2009.

SEC. 104. CREDIT FOR REFINED COAL FACILITIES.

(a) In General .--Subparagraphs (A) and (B) of section
45(d)(8) are each amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to facilities placed in service after December
31, 2009.

SEC. 105. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.

(a) Applicable Period.--Paragraph (4) of section 45H(c) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 339 of the
American Jobs Creation Act of 2004.

SEC. 106. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

(a) In General.--Paragraph (1) of section 45K(g) is amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section
shall apply to facilities placed in service after December
31, 2009.

SEC. 107. NEW ENERGY EFFICIENT HOME CREDIT.

(a) In General.--Subsection (g) of section 45L is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to homes acquired after December 31, 2009.

SEC. 108. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR
ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

(a) In General.--Sections 6426(d)(5), 6426(e)(3), and
6427(e)(6)(C) are each amended by striking ``December 31,
2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2009.

SEC. 109. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT
FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR
QUALIFIED ELECTRIC UTILITIES.

(a) In General.--Paragraph (3) of section 451(i) is amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section
shall apply to transactions after December 31, 2009.

SEC. 110. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION
FOR OIL AND GAS FROM MARGINAL WELLS.

(a) In General.--Clause (ii) of section 613A(c)(6)(H) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

Subtitle B--Individual Tax Relief

PART I--MISCELLANEOUS PROVISIONS

SEC. 111. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.

(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2009'' and inserting ``2009, or
2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 112. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL
REAL PROPERTY TAXES.

(a) In General.--Subparagraph (C) of section 63(c)(1) is
amended by striking ``or 2009'' and inserting ``2009, or
2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 113. DEDUCTION OF STATE AND LOCAL SALES TAXES.

(a) In General.--Subparagraph (I) of section 164(b)(5) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 114. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE
FOR CONSERVATION PURPOSES.

(a) In General.--Clause (vi) of section 170(b)(1)(E) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Contributions by Certain Corporate Farmers and
Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2009.

SEC. 115. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND
RELATED EXPENSES.

(a) In General.--Subsection (e) of section 222 is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 116. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT
PLANS FOR CHARITABLE PURPOSES.

(a) In General.--Subparagraph (F) of section 408(d)(8) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2009

SEC. 117. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY
STOCK IN DETERMINING GROSS ESTATE OF
NONRESIDENTS.

(a) In General.--Paragraph (3) of section 2105(d) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to estates of decedents dying after December 31,
2009.

PART II--LOW-INCOME HOUSING CREDITS

SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT
FOR 2010.

(a) In General.--Section 42 is amended by redesignating
subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
``(n) Election for Refundable Credits.--
``(1) In general.--The housing credit agency of each State
shall be allowed a credit in an amount equal to such State's
2010 low-income housing refundable credit election amount,
which shall be payable by the Secretary as provided in
paragraph (5).
``(2) 2010 low-income housing refundable credit election
amount.--For purposes of this subsection, the term `2010 low-
income housing refundable credit election amount' means, with
respect to any State, such amount as the State may elect
which does not exceed 85 percent of the product of--
``(A) the sum of--
``(i) 100 percent of the State housing credit ceiling for
2010 which is attributable to amounts described in clauses
(i) and (iii) of subsection (h)(3)(C), and
``(ii) 40 percent of the State housing credit ceiling for
2010 which is attributable to amounts described in clauses
(ii) and (iv) of such subsection, multiplied by
``(B) 10.
``(3) Coordination with non-refundable credit.--For
purposes of this section, the amounts described in clauses
(i) through (iv) of subsection (h)(3)(C) with respect to any
State for 2010 shall each be reduced by so much of such
amount as is taken into account in determining the amount of
the credit allowed with respect to such State under paragraph
(1).
``(4) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any
payment made under this subsection.
``(5) Payment of credit; use to finance low-income
buildings.--The Secretary shall pay to the housing credit
agency of each State an amount equal to the credit allowed
under paragraph (1). Rules similar to the rules of
subsections (c) and (d) of section 1602 of the American
Recovery and Reinvestment Tax Act of 2009 shall apply with
respect to any payment made under this paragraph, except that
such subsection (d) shall be applied by substituting `January
1, 2012' for `January 1, 2011'.''.
(b) Conforming Amendment.--Section 1324(b)(2) of title 31,
United States Code, is amended by inserting ``42(n),'' after
``36A,''.

[[Page S1064]]

Subtitle C--Business Tax Relief

SEC. 131. RESEARCH CREDIT.

(a) In General.--Subparagraph (B) of section 41(h)(1) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Conforming Amendment.--Subparagraph (D) of section
45C(b)(1) is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after December 31,
2009.

SEC. 132. INDIAN EMPLOYMENT TAX CREDIT.

(a) In General.--Subsection (f) of section 45A is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 133. NEW MARKETS TAX CREDIT.

(a) In General.--Subparagraph (F) of section 45D(f)(1) is
amended by inserting ``and 2010'' after ``2009''.
(b) Conforming Amendment.--Paragraph (3) of section 45D(f)
is amended by striking ``2014'' and inserting ``2015''.
(c) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after 2009.

SEC. 134. RAILROAD TRACK MAINTENANCE CREDIT.

(a) In General.--Subsection (f) of section 45G is amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2009.

SEC. 135. MINE RESCUE TEAM TRAINING CREDIT.

(a) In General.--Subsection (e) of section 45N is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 136. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE
DUTY MEMBERS OF THE UNIFORMED SERVICES.

(a) In General.--Subsection (f) of section 45P is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after December 31, 2009.

SEC. 137. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY
AND EQUIPMENT.

(a) In General.--Clause (vii) of section 168(e)(3)(B) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 138. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED
LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT
BUILDINGS AND IMPROVEMENTS, AND QUALIFIED
RETAIL IMPROVEMENTS.

(a) In General.--Clauses (iv), (v), and (ix) of section
168(e)(3)(E) are each amended by striking ``January 1, 2010''
and inserting ``January 1, 2011''.
(b) Conforming Amendments.--
(1) Clause (i) of section 168(e)(7)(A) is amended by
striking ``if such building is placed in service after
December 31, 2008, and before January 1, 2010,''.
(2) Paragraph (8) of section 168(e) is amended by striking
subparagraph (E).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 139. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS
ENTERTAINMENT COMPLEXES.

(a) In General.--Subparagraph (D) of section 168(i)(15) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 140. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
AN INDIAN RESERVATION.

(a) In General.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 141. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF
FOOD INVENTORY.

(a) In General.--Clause (iv) of section 170(e)(3)(C) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2009.

SEC. 142. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF
BOOK INVENTORIES TO PUBLIC SCHOOLS.

(a) In General.--Clause (iv) of section 170(e)(3)(D) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2009.

SEC. 143. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE
CONTRIBUTIONS OF COMPUTER INVENTORY FOR
EDUCATIONAL PURPOSES.

(a) In General.--Subparagraph (G) of section 170(e)(6) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2009.

SEC. 144. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

(a) In General.--Subsection (g) of section 179E is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 145. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND
TELEVISION PRODUCTIONS.

(a) In General.--Subsection (f) of section 181 is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to productions commencing after December 31,
2009.

SEC. 146. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

(a) In General.--Subsection (h) of section 198 is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred after December
31, 2009.

SEC. 147. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
IN PUERTO RICO.

(a) In General.--Subparagraph (C) of section 199(d)(8) is
amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 148. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS
TO CONTROLLING EXEMPT ORGANIZATIONS.

(a) In General.--Clause (iv) of section 512(b)(13)(E) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2009.

SEC. 149. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF
CERTAIN BROWNFIELD SITES FROM UNRELATED
BUSINESS INCOME.

(a) In General.--Subparagraph (K) of section 512(b)(19) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property acquired after December 31, 2009.

SEC. 150. TIMBER REIT MODERNIZATION.

(a) In General.--Paragraph (8) of section 856(c) is amended
by striking ``means'' and all that follows and inserting
``means December 31, 2010.''.
(b) Conforming Amendments.--
(1) Subparagraph (I) of section 856(c)(2) is amended by
striking ``the first taxable year beginning after the date of
the enactment of this subparagraph'' and inserting ``in a
taxable year beginning on or before the termination date''.
(2) Clause (iii) of section 856(c)(5)(H) is amended by
inserting ``in taxable years beginning'' after
``dispositions''.
(3) Clause (v) of section 857(b)(6)(D) is amended by
inserting ``in a taxable year beginning'' after ``sale''.
(4) Subparagraph (G) of section 857(b)(6) is amended by
inserting ``in a taxable year beginning'' after ``In the case
of a sale''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after May 22, 2009.

SEC. 151. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS OF
REGULATED INVESTMENT COMPANIES.

(a) In General.--Paragraphs (1)(C) and (2)(C) of section
871(k) are each amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 152. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER
FIRPTA.

(a) In General.--Clause (ii) of section 897(h)(4)(A) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on January 1, 2010. Notwithstanding the preceding
sentence, such amendment shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of
the enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
(A) which makes a distribution after December 31, 2009, and
before the date of the enactment of this Act, and
(B) which would (but for the second sentence of paragraph
(1)) have been required to withhold with respect to such
distribution under section 1445 of such Code,

such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld
and paid over to the Secretary of the Treasury.

SEC. 153. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

(a) In General.--Sections 953(e)(10) and 954(h)(9) are each
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Conforming Amendment.--Section 953(e)(10) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.

[[Page S1065]]

(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.

SEC. 154. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED
CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN
PERSONAL HOLDING COMPANY RULES.

(a) In General.--Subparagraph (C) of section 954(c)(6) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.

SEC. 155. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER
GAIN.

(a) In General.--Paragraph (1) of section 1201(b) is
amended by striking ``ending'' and all that follows through
``such date''.
(b) Conforming Amendment.--Paragraph (3) of section 1201(b)
is amended to read as follows:
``(3) Application of subsection.--The qualified timber gain
for any taxable year shall not exceed the qualified timber
gain which would be determined by not taking into account any
portion of such taxable year after December 31, 2010.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after May 22, 2009.

SEC. 156. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING
CHARITABLE CONTRIBUTIONS OF PROPERTY.

(a) In General.--Paragraph (2) of section 1367(a) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2009.

SEC. 157. EMPOWERMENT ZONE TAX INCENTIVES.

(a) In General.--Section 1391 is amended--
(1) by striking ``December 31, 2009'' in subsection
(d)(1)(A)(i) and inserting ``December 31, 2010'', and
(2) by striking the last sentence of subsection (h)(2).
(b) Increased Exclusion of Gain on Stock of Empowerment
Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is
amended--
(1) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(2) by striking ``2014'' in the heading and inserting
``2015''.
(c) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of an empowerment
zone the nomination for which included a termination date
which is contemporaneous with the date specified in
subparagraph (A)(i) of section 1391(d)(1) of the Internal
Revenue Code of 1986 (as in effect before the enactment of
this Act), subparagraph (B) of such section shall not apply
with respect to such designation unless, after the date of
the enactment of this section, the entity which made such
nomination reconfirms such termination date, or amends the
nomination to provide for a new termination date, in such
manner as the Secretary of the Treasury (or the Secretary's
designee) may provide.
(d) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2009.

SEC. 158. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.

(a) In General.--Subsection (f) of section 1400 is amended
by striking ``December 31, 2009'' each place it appears and
inserting ``December 31, 2010''.
(b) Tax-Exempt DC Empowerment Zone Bonds.--Subsection (b)
of section 1400A is amended by striking ``December 31, 2009''
and inserting ``December 31, 2010''.
(c) Zero-Percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(2) Limitation on period of gains.--
(A) In general.--Paragraph (2) of section 1400B(e) is
amended--
(i) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(ii) by striking ``2014'' in the heading and inserting
``2015''.
(B) Partnerships and s-corps.--Paragraph (2) of section
1400B(g) is amended by striking ``December 31, 2014'' and
inserting ``December 31, 2015''.
(d) First-Time Homebuyer Credit.--Subsection (i) of section
1400C is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to periods after December 31, 2009.
(2) Tax-exempt dc empowerment zone bonds.--The amendment
made by subsection (b) shall apply to bonds issued after
December 31, 2009.
(3) Acquisition dates for zero-percent capital gains
rate.--The amendments made by subsection (c) shall apply to
property acquired or substantially improved after December
31, 2009.
(4) Homebuyer credit.--The amendment made by subsection (d)
shall apply to homes purchased after December 31, 2009.

SEC. 159. RENEWAL COMMUNITY TAX INCENTIVES.

(a) In General.--Subsection (b) of section 1400E is
amended--
(1) by striking ``December 31, 2009'' in paragraphs (1)(A)
and (3) and inserting ``December 31, 2010'', and
(2) by striking ``January 1, 2010'' in paragraph (3) and
inserting ``January 1, 2011''.
(b) Zero-Percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(2) Limitation on period of gains.--Paragraph (2) of
section 1400F(c) is amended--
(A) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(B) by striking ``2014'' in the heading and inserting
``2015''.
(3) Clerical amendment.--Subsection (d) of section 1400F is
amended by striking ``and `December 31, 2014' for `December
31, 2014' ''.
(c) Commercial Revitalization Deduction.--
(1) In general.--Subsection (g) of section 1400I is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(2) Conforming amendment.--Subparagraph (A) of section
1400I(d)(2) is amended by striking ``after 2001 and before
2010'' and inserting ``which begins after 2001 and before the
date referred to in subsection (g)''.
(d) Increased Expensing Under Section 179.--Subparagraph
(A) of section 1400J(b)(1) is amended by striking ``January
1, 2010'' and inserting ``January 1, 2011''.
(e) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of a renewal
community the nomination for which included a termination
date which is contemporaneous with the date specified in
subparagraph (A) of section 1400E(b)(1) of the Internal
Revenue Code of 1986 (as in effect before the enactment of
this Act), subparagraph (B) of such section shall not apply
with respect to such designation unless, after the date of
the enactment of this section, the entity which made such
nomination reconfirms such termination date, or amends the
nomination to provide for a new termination date, in such
manner as the Secretary of the Treasury (or the Secretary's
designee) may provide.
(f) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to periods after December 31, 2009.
(2) Acquisitions.--The amendments made by subsections
(b)(1) and (d) shall apply to acquisitions after December 31,
2009.
(3) Commercial revitalization deduction.--
(A) In general.--The amendment made by subsection (c)(1)
shall apply to buildings placed in service after December 31,
2009.
(B) Conforming amendment.--The amendment made by subsection
(c)(2) shall apply to calendar years beginning after December
31, 2009.

SEC. 160. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM
EXCISE TAXES TO PUERTO RICO AND THE VIRGIN
ISLANDS.

(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2009.

SEC. 161. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

(a) In General.--Subsection (d) of section 119 of division
A of the Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.

Subtitle D--Temporary Disaster Relief Provisions

PART I--NATIONAL DISASTER RELIEF

SEC. 171. WAIVER OF CERTAIN MORTGAGE REVENUE BOND
REQUIREMENTS.

(a) In General.--Paragraph (11) of section 143(k) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Special Rule for Residences Destroyed in Federally
Declared Disasters.--Paragraph (13) of section 143(k), as
redesignated by subsection (c), is amended by striking
``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and
inserting ``January 1, 2011''.
(c) Technical Amendment.--Subsection (k) of section 143 is
amended by redesignating the second paragraph (12) (relating
to special rules for residences destroyed in federally
declared disasters) as paragraph (13).
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall apply to
bonds issued after December 31, 2009.
(2) Residences destroyed in federally declared disasters.--
The amendments made by subsection (b) shall apply with
respect to disasters occurring after December 31, 2009.
(3) Technical amendment.--The amendment made by subsection
(c) shall take effect as if included in section 709 of the
Tax Extenders and Alternative Minimum Tax Relief Act of 2008.

SEC. 172. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED
DISASTERS.

(a) In General.--Subclause (I) of section 165(h)(3)(B)(i)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.

[[Page S1066]]

(b) $500 Limitation.--Paragraph (1) of section 165(h) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to federally declared disasters occurring after
December 31, 2009.
(2) $500 limitation.--The amendment made by subsection (b)
shall apply to taxable years beginning after December 31,
2009.

SEC. 173. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED
DISASTER PROPERTY.

(a) In General.--Subclause (I) of section 168(n)(2)(A)(ii)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to disasters occurring after December 31, 2009.

SEC. 174. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY
DECLARED DISASTERS.

(a) In General.--Subclause (I) of section 172(j)(1)(A)(i)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to losses attributable to disasters occurring
after December 31, 2009.

SEC. 175. EXPENSING OF QUALIFIED DISASTER EXPENSES.

(a) In General.--Subparagraph (A) of section 198A(b)(2) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures on account of disasters occurring
after December 31, 2009.

PART II--REGIONAL PROVISIONS

Subpart A--New York Liberty Zone

SEC. 181. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL
AND RESIDENTIAL REAL PROPERTY.

(a) In General.--Subparagraph (A) of section 1400L(b)(2) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 182. TAX-EXEMPT BOND FINANCING.

(a) In General.--Subparagraph (D) of section 1400L(d)(2) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to bonds issued after December 31, 2009.

Subpart B--GO Zone

SEC. 183. SPECIAL DEPRECIATION ALLOWANCE.

(a) In General.--Paragraph (6) of section 1400N(d)(6) is
amended by striking subparagraph (D).
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.

SEC. 184. INCREASE IN REHABILITATION CREDIT.

(a) In General.--Subsection (h) of section 1400N is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after December 31,
2009.

SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN
INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR
EMPLOYERS INSIDE DISASTER AREAS.

(a) In General.--Paragraph (1) of section 201(b) of the
Katrina Emergency Tax Relief Act of 2005 is amended by
striking ``4-year'' and inserting ``5-year''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals hired after August 27, 2009.

Subpart C--Midwestern Disaster Areas

SEC. 191. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

(a) In General.--Section 702(d)(10) of the Heartland
Disaster Tax Relief Act of 2008 (Public Law 110-343; 122
Stat. 3918) is amended--
(1) by striking ``January 1, 2010'' both places it appears
and inserting ``January 1, 2011'', and
(2) by striking ``December 31, 2009'' both places it
appears and inserting ``December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 702(d)(10) of the
Heartland Disaster Tax Relief Act of 2008.

SEC. 192. EXCLUSION OF CANCELLATION OF MORTGAGE INDEBTEDNESS.

(a) In General.--Section 702(e)(4)(C) of the Heartland
Disaster Tax Relief Act of 2008 (Public Law 110-343; 122
Stat. 3918) is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to discharges of indebtedness after December 31,
2009.

TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

Subtitle A--Unemployment Insurance

SEC. 201. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

(a) In General.--(1) Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(A) by striking ``February 28, 2010'' each place it appears
and inserting ``December 31, 2010'';
(B) in the heading for subsection (b)(2), by striking
``february 28, 2010'' and inserting ``december 31, 2010'';
and
(C) in subsection (b)(3), by striking ``July 31, 2010'' and
inserting ``May 31, 2011''.
(2) Section 2002(e) of the Assistance for Unemployed
Workers and Struggling Families Act, as contained in Public
Law 111-5 (26 U.S.C. 3304 note; 123 Stat. 438), is amended--
(A) in paragraph (1)(B), by striking ``February 28, 2010''
and inserting ``December 31, 2010'';
(B) in the heading for paragraph (2), by striking
``february 28, 2010'' and inserting ``december 31, 2010'';
and
(C) in paragraph (3), by striking ``August 31, 2010'' and
inserting ``June 30, 2011''.
(3) Section 2005 of the Assistance for Unemployed Workers
and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note; 123 Stat. 444), is amended--
(A) by striking ``February 28, 2010'' each place it appears
and inserting ``January 1, 2011''; and
(B) in subsection (c), by striking ``July 31, 2010'' and
inserting ``June 1, 2011''.
(4) Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``July 31, 2010'' and inserting ``May 31,
2011''.
(b) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking ``1009'' and inserting
``1009(a)(1)''; and
(3) by inserting after subparagraph (C) the following new
subparagraph:
``(D) the amendments made by section 201(a)(1) of the
American Workers, State, and Business Relief Act of 2010;
and''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Department of Defense Appropriations Act, 2010 (Public Law
111-118).

Subtitle B--Health Provisions

SEC. 211. EXTENSION AND IMPROVEMENT OF PREMIUM ASSISTANCE FOR
COBRA BENEFITS.

(a) Extension of Eligibility Period.--Subsection (a)(3)(A)
of section 3001 of division B of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) is amended by
striking ``February 28, 2010'' and inserting ``December 31,
2010''.
(b) Clarifications Relating to Section 3001 of ARRA.--
(1) Clarification regarding cobra continuation resulting
from reductions in hours.--Subsection (a) of section 3001 of
division B of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5) is amended--
(A) in paragraph (3)(C), by inserting before the period at
the end the following: ``or consists of a reduction of hours
followed by such an involuntary termination of employment
during such period'';
(B) in paragraph (16)--
(i) by striking clause (ii) of subparagraph (A), and
inserting the following:
``(ii) such individual pays, by the latest of 60 days after
the date of the enactment of this paragraph, 30 days after
the date of provision of the notification required under
subparagraph (D)(ii), or the period described in section
4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the
amount of such premium, after the application of paragraph
(1)(A).''; and
(ii) by striking subclause (I) of subparagraph (C)(i), and
inserting the following:

``(I) such assistance eligible individual experienced an
involuntary termination that was a qualifying event prior to
the date of enactment of the Department of Defense
Appropriations Act, 2010; and''; and

(C) by adding at the end the following:
``(17) Special rules in case of individuals losing coverage
because of a reduction of hours.--
``(A) New election period.--
``(i) In general.--For purposes of the COBRA continuation
provisions, in the case of an individual described in
subparagraph (C) who did not make (or who made and
discontinued) an election of COBRA continuation coverage on
the basis of the reduction of hours of employment, the
involuntary termination of employment of such individual
after the date of the enactment of the American Workers,
State, and Business Relief Act of 2010 shall be treated as a
qualifying event.
``(ii) Counting cobra duration period from previous
qualifying event.--In any case of an individual referred to
in clause (i), the period of such individual's continuation
coverage shall be determined as though the qualifying event
were the reduction of hours of employment.
``(iii) Construction.--Nothing in this paragraph shall be
construed as requiring an individual referred to in clause
(i) to make a payment for COBRA continuation coverage between
the reduction of hours and the involuntary termination of
employment.
``(iv) Preexisting conditions.--With respect to an
individual referred to in clause (i) who elects COBRA
continuation coverage pursuant to such clause, rules similar
to the rules in paragraph (4)(C) shall apply.
``(B) Notices.--In the case of an individual described in
subparagraph (C), the administrator of the group health plan
(or other entity) involved shall provide, during the 60-day
period beginning on the date of such individual's involuntary
termination of employment, an additional notification
described in paragraph (7)(A), including information on the
provisions of this paragraph. Rules similar to the rules of
paragraph (7) shall apply with respect to such notification.

[[Page S1067]]

``(C) Individuals described.--Individuals described in this
subparagraph are individuals who are assistance eligible
individuals on the basis of a qualifying event consisting of
a reduction of hours occurring during the period described in
paragraph (3)(A) followed by an involuntary termination of
employment insofar as such involuntary termination of
employment occurred after the date of the enactment of the
American Workers, State, and Business Relief Act of 2010.''.
(2) Clarification of period of assistance.--Subsection
(a)(2)(A)(ii)(I) of such section is amended by striking ``of
the first month''.
(3) Enforcement.--Subsection (a)(5) of such section is
amended by adding at the end the following: ``In addition to
civil actions that may be brought to enforce applicable
provisions of such Act or other laws, the appropriate
Secretary or an affected individual may bring a civil action
to enforce such determinations and for appropriate relief. In
addition, such Secretary may assess a penalty against a plan
sponsor or health insurance issuer of not more than $110 per
day for each failure to comply with such determination of
such Secretary after 10 days after the date of the plan
sponsor's or issuer's receipt of the determination.''.
(4) Amendments relating to section 3001 of arra.--
(A) Subsection (g) of section 35 is amended by striking
``section 3002(a) of the Health Insurance Assistance for the
Unemployed Act of 2009'' and inserting ``section 3001(a) of
title III of division B of the American Recovery and
Reinvestment Act of 2009''.
(B) Section 139C is amended by striking ``section 3002 of
the Health Insurance Assistance for the Unemployed Act of
2009'' and inserting ``section 3001 of title III of division
B of the American Recovery and Reinvestment Act of 2009''.
(C) Section 6432 is amended--
(i) in subsection (a), by striking ``section 3002(a) of the
Health Insurance Assistance for the Unemployed Act of 2009''
and inserting ``section 3001(a) of title III of division B of
the American Recovery and Reinvestment Act of 2009'';
(ii) in subsection (c)(3), by striking ``section
3002(a)(1)(A) of such Act'' in subsection (c)(3) and
inserting ``section 3001(a)(1)(A) of title III of division B
of the American Recovery and Reinvestment Act of 2009''; and
(iii) by redesignating subsections (e) and (f) as
subsections (f) and (g), respectively, and inserting after
subsection (d) the following new subsection:.
``(e) Employer Determination of Qualifying Event as
Involuntary Termination.--For purposes of this section, in
any case in which--
``(1) based on a reasonable interpretation of section
3001(a)(3)(C) of division B of the American Recovery and
Reinvestment Act of 2009 and administrative guidance
thereunder, an employer determines that the qualifying event
with respect to COBRA continuation coverage for an individual
was involuntary termination of a covered employee's
employment, and
``(2) the employer maintains supporting documentation of
the determination, including an attestation by the employer
of involuntary termination with respect to the covered
employee,

the qualifying event for the individual shall be deemed to be
involuntary termination of the covered employee's
employment.''.
(D) Subsection (a) of section 6720C is amended by striking
``section 3002(a)(2)(C) of the Health Insurance Assistance
for the Unemployed Act of 2009'' and inserting ``section
3001(a)(2)(C) of title III of division B of the American
Recovery and Reinvestment Act of 2009''.
(c) Rules Relating to 2010 Extension.--Subsection (a) of
section 3001 of division B of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), as amended by
subsection (b)(1)(C), is further amended by adding at the end
the following:
``(18) Rules related to 2010 extension.--
``(A) Election to pay premiums retroactively and maintain
cobra coverage.--In the case of any premium for a period of
coverage during an assistance eligible individual's 2010
transition period, such individual shall be treated for
purposes of any COBRA continuation provision as having timely
paid the amount of such premium if--
``(i) such individual's qualifying event was on or after
March 1, 2010 and prior to the date of enactment of this
paragraph, and
``(ii) such individual pays, by the latest of 60 days after
the date of the enactment of this paragraph, 30 days after
the date of provision of the notification required under
paragraph (16)(D)(ii) (as applied by subparagraph (D) of this
paragraph), or the period described in section
4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the
amount of such premium, after the application of paragraph
(1)(A).
``(B) Refunds and credits for retroactive premium
assistance eligibility.--In the case of an assistance
eligible individual who pays, with respect to any period of
COBRA continuation coverage during such individual's 2010
transition period, the premium amount for such coverage
without regard to paragraph (1)(A), rules similar to the
rules of paragraph (12)(E) shall apply.
``(C) 2101 transition period.--
``(i) In general.--For purposes of this paragraph, the term
`transition period' means, with respect to any assistance
eligible individual, any period of coverage if--

``(I) such assistance eligible individual experienced an
involuntary termination that was a qualifying event prior to
the date of enactment of the American Workers, State, and
Business Relief Act of 2010, and
``(II) paragraph (1)(A) applies to such period by reason of
the amendments made by section 211 of the American Workers,
State, and Business Relief Act of 2010.

``(ii) Construction.--Any period during the period
described in subclauses (I) and (II) of clause (i) for which
the applicable premium has been paid pursuant to subparagraph
(A) shall be treated as a period of coverage referred to in
such paragraph, irrespective of any failure to timely pay the
applicable premium (other than pursuant to subparagraph (A))
for such period.
``(D) Notification.--Notification provisions similar to the
provisions of paragraph (16)(E) shall apply for purposes of
this paragraph.''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of section
3001 of division B of the American Recovery and Reinvestment
Act of 2009 to which they relate, except that--
(1) the amendments made by subsections (b)(1) shall apply
to periods of coverage beginning after the date of the
enactment of this Act; and
(2) the amendments made by paragraphs (2) and (3) of
subsection (b) shall take effect on the date of the enactment
of this Act.

SEC. 212. EXTENSION OF THERAPY CAPS EXCEPTIONS PROCESS.

Section 1833(g)(5) of the Social Security Act (42 U.S.C.
1395l(g)(5)) is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.

SEC. 213. TREATMENT OF PHARMACIES UNDER DURABLE MEDICAL
EQUIPMENT ACCREDITATION REQUIREMENTS.

(a) In General.--Section 1834(a)(20) of the Social Security
Act (42 U.S.C. 1395m(a)(20)) is amended--
(1) in subparagraph (F)--
(A) in clause (i)--
(i) by striking ``clause (ii)'' and inserting ``clauses
(ii) and (iii)'';
(ii) by striking ``January 1, 2010'' and inserting
``January 1, 2011''; and
(iii) by striking ``and'' at the end;
(B) in clause (ii)(II), by striking the period at the end
and inserting ``; and'';
(C) by inserting after clause (ii)(II) the following new
clause:
``(iii)(I) subject to subclause (II), with respect to items
and services furnished on or after January 1, 2011, the
accreditation requirement of clause (i) shall not apply to a
pharmacy described in subparagraph (G); and
``(II) effective with respect to items and services
furnished on or after the date of the enactment of this
subparagraph, the Secretary may apply to pharmacies quality
standards and an accreditation requirement established by the
Secretary that are an alternative to the quality standards
and accreditation requirement otherwise applicable under this
paragraph if the Secretary determines such alternative
quality standards and accreditation requirement are
appropriate for pharmacies.''; and
(D) by adding at the end the following flush sentence:

``If determined appropriate by the Secretary, any alternative
quality standards and accreditation requirement established
under clause (iii)(II) may differ for categories of
pharmacies established by the Secretary (such as pharmacies
described in subparagraph (G)).''; and
(2) by adding at the end the following new subparagraph:
``(G) Pharmacy described.--A pharmacy described in this
subparagraph is a pharmacy that meets each of the following
criteria:
``(i) The total billings by the pharmacy for such items and
services under this title are less than 5 percent of total
pharmacy sales for a previous period (of not less than 24
months) specified by the Secretary.
``(ii) The pharmacy has been enrolled under section 1866(j)
as a supplier of durable medical equipment, prosthetics,
orthotics, and supplies, has been issued (which may include
the renewal of) a provider number for at least 2 years, and
for which a final adverse action (as defined in section
424.57(a) of title 42, Code of Federal Regulations) has not
been imposed in the past 2 years.
``(iii) The pharmacy submits to the Secretary an
attestation, in a form and manner, and at a time, specified
by the Secretary, that the pharmacy meets the criteria
described in clauses (i) and (ii).
``(iv) The pharmacy agrees to submit materials as requested
by the Secretary, or during the course of an audit conducted
on a random sample of pharmacies selected annually, to verify
that the pharmacy meets the criteria described in clauses (i)
and (ii). Materials submitted under the preceding sentence
shall include a certification by an independent accountant on
behalf of the pharmacy or the submission of tax returns filed
by the pharmacy during the relevant periods, as requested by
the Secretary.''.
(b) Conforming Amendments.--Section 1834(a)(20)(E) of the
Social Security Act (42 U.S.C. 1395m(a)(20)(E)) is amended--
(1) in the first sentence, by striking ``The'' and
inserting ``Except as provided in the third sentence, the'';
and
(2) by adding at the end the following new sentences:
``Notwithstanding the preceding sentences, any alternative
quality standards

[[Page S1068]]

and accreditation requirement established under subparagraph
(F)(iii)(II) shall be established through notice and comment
rulemaking. The Secretary may implement by program
instruction or otherwise subparagraph (G) after consultation
with representatives of relevant parties. The specifications
developed by the Secretary in order to implement subparagraph
(G) shall be posted on the Internet website of the Centers
for Medicare & Medicaid Services.''.
(c) Administration.--Chapter 35 of title 44, United States
Code, shall not apply to this section.
(d) Rule of Construction.--Nothing in the provisions of, or
amendments made by, this section shall be construed as
affecting the application of an accreditation requirement for
pharmacies to qualify for bidding in a competitive
acquisition area under section 1847 of the Social Security
Act (42 U.S.C. 1395w-3).
(e) Waiver of 1-Year Reenrollment Bar.--In the case of a
pharmacy described in subparagraph (G) of section 1834(a)(20)
of the Social Security Act, as added by subsection (a), whose
billing privileges were revoked prior to January 1, 2011, by
reason of noncompliance with subparagraph (F)(i) of such
section, the Secretary of Health and Human Services shall
waive any reenrollment bar imposed pursuant to section
424.535(d) of title 42, Code of Federal Regulations (as in
effect on the date of the enactment of this Act) for such
pharmacy to reapply for such privileges.

SEC. 214. ENHANCED PAYMENT FOR MENTAL HEALTH SERVICES.

Section 138(a)(1) of the Medicare Improvements for Patients
and Providers Act of 2008 (Public Law 110-275) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.

SEC. 215. EXTENSION OF AMBULANCE ADD-ONS.

(a) In General.--Section 1834(l)(13) of the Social Security
Act (42 U.S.C. 1395m(l)(13)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``before January 1, 2010'' and inserting ``before January 1,
2011''; and
(B) in each of clauses (i) and (ii), by striking ``before
January 1, 2010'' and inserting ``before January 1, 2011''.
(b) Air Ambulance Improvements.--Section 146(b)(1) of the
Medicare Improvements for Patients and Providers Act of 2008
(Public Law 110-275) is amended by striking ``ending on
December 31, 2009'' and inserting ``ending on December 31,
2010''.
(c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the
Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended--
(1) in the first sentence, by striking ``2010'' and
inserting ``2011''; and
(2) by adding at the end the following new sentence: ``For
purposes of applying this subparagraph for ground ambulance
services furnished on or after January 1, 2010, and before
January 1, 2011, the Secretary shall use the percent increase
that was applicable under this subparagraph to ground
ambulance services furnished during 2009.''.

SEC. 216. EXTENSION OF GEOGRAPHIC FLOOR FOR WORK.

Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C.
1395w-4(e)(1)(E)) is amended by striking ``before January 1,
2010'' and inserting ``before January 1, 2011''.

SEC. 217. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF
CERTAIN PHYSICIAN PATHOLOGY SERVICES.

Section 542(c) of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as enacted
into law by section 1(a)(6) of Public Law 106-554), as
amended by section 732 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (42 U.S.C. 1395w-4
note), section 104 of division B of the Tax Relief and Health
Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public
Law 110-173), and section 136 of the Medicare Improvements
for Patients and Providers Act of 2008 (Public Law 110-275),
is amended by striking ``and 2009'' and inserting ``2009, and
2010''.

SEC. 218. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

(a) In General.--Section 1833(t)(7)(D)(i) of the Social
Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) is amended--
(1) in subclause (II)--
(A) in the first sentence, by striking ``2010''and
inserting ``2011''; and
(B) in the second sentence, by striking ``or 2009'' and
inserting ``, 2009, or 2010''; and
(2) in subclause (III), by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Permitting All Sole Community Hospitals To Be Eligible
for Hold Harmless.--Section 1833(t)(7)(D)(i)(III) of the
Social Security Act (42 U.S.C. 1395l(t)(7)(D)(i)(III)) is
amended by adding at the end the following new sentence: ``In
the case of covered OPD services furnished on or after
January 1, 2010, and before January 1, 2011, the preceding
sentence shall be applied without regard to the 100-bed
limitation.''.

SEC. 219. EHR CLARIFICATION.

(a) Qualification for Clinic-Based Physicians.--
(1) Medicare.--Section 1848(o)(1)(C)(ii) of the Social
Security Act (42 U.S.C. 1395w-4(o)(1)(C)(ii)) is amended by
striking ``setting (whether inpatient or outpatient)'' and
inserting ``inpatient or emergency room setting''.
(2) Medicaid.--Section 1903(t)(3)(D) of the Social Security
Act (42 U.S.C. 1396b(t)(3)(D)) is amended by striking
``setting (whether inpatient or outpatient)'' and inserting
``inpatient or emergency room setting''.
(b) Effective Date.--The amendments made by subsection (a)
shall be effective as if included in the enactment of the
HITECH Act (included in the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5)).
(c) Implementation.--Notwithstanding any other provision of
law, the Secretary may implement the amendments made by this
section by program instruction or otherwise.

SEC. 220. EXTENSION OF REIMBURSEMENT FOR ALL MEDICARE PART B
SERVICES FURNISHED BY CERTAIN INDIAN HOSPITALS
AND CLINICS.

Section 1880(e)(1)(A) of the Social Security Act (42 U.S.C.
1395qq(e)(1)(A)) is amended by striking ``5-year period'' and
inserting ``6-year period''.

SEC. 221. EXTENSION OF CERTAIN PAYMENT RULES FOR LONG-TERM
CARE HOSPITAL SERVICES AND OF MORATORIUM ON THE
ESTABLISHMENT OF CERTAIN HOSPITALS AND
FACILITIES.

(a) Extension of Certain Payment Rules.--Section 114(c) of
the Medicare, Medicaid, and SCHIP Extension Act of 2007 (42
U.S.C. 1395ww note), as amended by section 4302(a) of the
American Recovery and Reinvestment Act (Public Law 111-5), is
amended by striking ``3-year period'' each place it appears
and inserting ``4-year period''.
(b) Extension of Moratorium.--Section 114(d)(1) of such Act
(42 U.S.C. 1395ww note), as amended by section 4302(b) of the
American Recovery and Reinvestment Act (Public Law 111-5), in
the matter preceding subparagraph (A), is amended by striking
``3-year period'' and inserting ``4-year period''.

SEC. 222. EXTENSION OF THE MEDICARE RURAL HOSPITAL
FLEXIBILITY PROGRAM.

Section 1820(j) of the Social Security Act (42 U.S.C.
1395i-4(j)) is amended--
(1) by striking ``2010, and for'' and inserting ``2010,
for''; and
(2) by inserting ``and for making grants to all States
under subsection (g), such sums as may be necessary in fiscal
year 2011, to remain available until expended'' before the
period at the end.

SEC. 223. EXTENSION OF SECTION 508 HOSPITAL
RECLASSIFICATIONS.

(a) In General.--Subsection (a) of section 106 of division
B of the Tax Relief and Health Care Act of 2006 (42 U.S.C.
1395 note), as amended by section 117 of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
173) and section 124 of the Medicare Improvements for
Patients and Providers Act of 2008 (Public Law 110-275), is
amended by striking ``September 30, 2009'' and inserting
``September 30, 2010''.
(b) Special Rule for Fiscal Year 2010.--For purposes of
implementation of the amendment made by subsection (a),
including (notwithstanding paragraph (3) of section 117(a) of
the Medicare, Medicaid, and SCHIP Extension Act of 2007
(Public Law 110-173), as amended by section 124(b) of the
Medicare Improvements for Patients and Providers Act of 2008
(Public Law 110-275)) for purposes of the implementation of
paragraph (2) of such section 117(a), during fiscal year
2010, the Secretary of Health and Human Services (in this
subsection referred to as the ``Secretary'') shall use the
hospital wage index that was promulgated by the Secretary in
the Federal Register on August 27, 2009 (74 Fed. Reg. 43754),
and any subsequent corrections.

SEC. 224. TECHNICAL CORRECTION RELATED TO CRITICAL ACCESS
HOSPITAL SERVICES.

(a) In General.--Subsections (g)(2)(A) and (l)(8) of
section 1834 of the Social Security Act (42 U.S.C. 1395m) are
each amended by inserting ``101 percent of'' before ``the
reasonable costs''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect as if included in the enactment of section
405(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2266).

SEC. 225. EXTENSION FOR SPECIALIZED MA PLANS FOR SPECIAL
NEEDS INDIVIDUALS.

(a) In General.--Section 1859(f)(1) of the Social Security
Act (42 U.S.C. 1395w-28(f)(1)) is amended by striking
``2011'' and inserting ``2012''.
(b) Temporary Extension of Authority To Operate but No
Service Area Expansion for Dual Special Needs Plans That Do
Not Meet Certain Requirements.--Section 164(c)(2) of the
Medicare Improvements for Patients and Providers Act of 2008
(Public Law 110-275) is amended by striking ``December 31,
2010'' and inserting ``December 31, 2011''.

SEC. 226. EXTENSION OF REASONABLE COST CONTRACTS.

Section 1876(h)(5)(C)(ii) of the Social Security Act (42
U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter
preceding subclause (I), by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.

SEC. 227. EXTENSION OF PARTICULAR WAIVER POLICY FOR EMPLOYER
GROUP PLANS.

For plan year 2011 and subsequent plan years, to the extent
that the Secretary of Health and Human Services is applying
the 2008 service area extension waiver policy (as modified in
the April 11, 2008, Centers for Medicare & Medicaid Services'
memorandum with the subject ``2009 Employer Group Waiver-
Modification of the 2008 Service Area Extension Waiver
Granted to Certain MA Local Coordinated Care Plans'') to
Medicare Advantage coordinated care plans, the Secretary
shall extend the application of such

[[Page S1069]]

waiver policy to employers who contract directly with the
Secretary as a Medicare Advantage private fee-for-service
plan under section 1857(i)(2) of the Social Security Act (42
U.S.C. 1395w-27(i)(2)) and that had enrollment as of January
1, 2010.

SEC. 228. EXTENSION OF CONTINUING CARE RETIREMENT COMMUNITY
PROGRAM.

Notwithstanding any other provision of law, the Secretary
of Health and Human Services shall continue to conduct the
Erickson Advantage Continuing Care Retirement Community
(CCRC) program under part C of title XVIII of the Social
Security Act through December 31, 2011.

SEC. 229. FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME
PROGRAMS.

(a) Additional Funding for State Health Insurance
Programs.--Subsection (a)(1)(B) of section 119 of the
Medicare Improvements for Patients and Providers Act of 2008
(42 U.S.C. 1395b-3 note) is amended by striking ``(42 U.S.C.
1395w-23(f))'' and all that follows through the period at the
end and inserting ``(42 U.S.C. 1395w-23(f)), to the Centers
for Medicare & Medicaid Services Program Management Account--
``(i) for fiscal year 2009, of $7,500,000; and
``(ii) for fiscal year 2010, of $6,000,000.

Amounts appropriated under this subparagraph shall remain
available until expended.''.
(b) Additional Funding for Area Agencies on Aging.--
Subsection (b)(1)(B) of such section 119 is amended by
striking ``(42 U.S.C. 1395w-23(f))'' and all that follows
through the period at the end and inserting ``(42 U.S.C.
1395w-23(f)), to the Administration on Aging--
``(i) for fiscal year 2009, of $7,500,000; and
``(ii) for fiscal year 2010, of $6,000,000.

Amounts appropriated under this subparagraph shall remain
available until expended.''.
(c) Additional Funding for Aging and Disability Resource
Centers.--Subsection (c)(1)(B) of such section 119 is amended
by striking ``(42 U.S.C. 1395w-23(f))'' and all that follows
through the period at the end and inserting ``(42 U.S.C.
1395w-23(f)), to the Administration on Aging--
``(i) for fiscal year 2009, of $5,000,000; and
``(ii) for fiscal year 2010, of $6,000,000.

Amounts appropriated under this subparagraph shall remain
available until expended.''.
(d) Additional Funding for Contract With the National
Center for Benefits and Outreach Enrollment.--Subsection
(d)(2) of such section 119 is amended by striking ``(42
U.S.C. 1395w-23(f))'' and all that follows through the period
at the end and inserting ``(42 U.S.C. 1395w-23(f)), to the
Administration on Aging--
``(i) for fiscal year 2009, of $5,000,000; and
``(ii) for fiscal year 2010, of $2,000,000.

Amounts appropriated under this subparagraph shall remain
available until expended.''.

SEC. 230. FAMILY-TO-FAMILY HEALTH INFORMATION CENTERS.

Section 501(c)(1)(A)(iii) of the Social Security Act (42
U.S.C. 701(c)(1)(A)(iii)) is amended by striking ``fiscal
year 2009'' and inserting ``each of fiscal years 2009 through
2011''.

SEC. 231. IMPLEMENTATION FUNDING.

For purposes of carrying out the provisions of, and
amendments made by, this title that relate to titles XVIII
and XIX of the Social Security Act, there are appropriated to
the Secretary of Health and Human Services for the Centers
for Medicare & Medicaid Services Program Management Account,
from amounts in the general fund of the Treasury not
otherwise appropriated, $100,000,000. Amounts appropriated
under the preceding sentence shall remain available until
expended.

SEC. 232. EXTENSION OF ARRA INCREASE IN FMAP.

Section 5001 of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5) is amended--
(1) in subsection (a)(3), by striking ``first calendar
quarter'' and inserting ``first 3 calendar quarters'';
(2) in subsection (c)--
(A) in paragraph (2)(B), by striking ``July 1, 2010'' and
inserting ``January 1, 2011'';
(B) in paragraph (3)(B)(i), by striking ``July 1, 2010''
each place it appears and inserting ``January 1, 2011''; and
(C) in paragraph (4)(C)(ii), by striking ``the 3-
consecutive-month period beginning with January 2010'' and
inserting ``any 3-consecutive-month period that begins after
December 2009 and ends before January 2011'';
(3) in subsection (g)--
(A) in paragraph (1), by striking ``September 30, 2011''
and inserting ``March 31, 2012'';
(B) in paragraph (2)--
(i) by inserting ``of such Act'' after ``1923''; and
(ii) by adding at the end the following new sentence:
``Voluntary contributions by a political subdivision to the
non-Federal share of expenditures under the State Medicaid
plan or to the non-Federal share of payments under section
1923 of the Social Security Act shall not be considered to be
required contributions for purposes of this section.''; and
(C) by adding at the end the following:
``(3) Certification by chief executive officer.--No
additional Federal funds shall be paid to a State as a result
of this section with respect to a calendar quarter occurring
during the period beginning on January 1, 2011, and ending on
June 30, 2011, unless, not later than 45 days after the date
of enactment of this paragraph, the chief executive officer
of the State certifies that the State will request and use
such additional Federal funds.''; and
(4) in subsection (h)(3), by striking ``December 31, 2010''
and inserting ``June 30, 2011''.

SEC. 233. EXTENSION OF GAINSHARING DEMONSTRATION.

(a) In General.--Subsection (d)(3) of section 5007 of the
Deficit Reduction Act of 2005 (Public Law 109-171) is amended
by inserting ``(or 21 months after the date of the enactment
of the American Workers, State, and Business Relief Act of
2010, in the case of a demonstration project in operation as
of October 1, 2008)'' after ``December 31, 2009''.
(b) Funding.--
(1) In general.--Subsection (f)(1) of such section is
amended by inserting ``and for fiscal year 2010,
$1,600,000,'' after ``$6,000,000,''.
(2) Availability.--Subsection (f)(2) of such section is
amended by striking ``2010'' and inserting ``2014 or until
expended''.
(c) Reports.--
(1) Quality improvement and savings.--Subsection (e)(3) of
such section is amended by striking ``December 1, 2008'' and
inserting ``18 months after the date of the enactment of the
American Workers, State, and Business Relief Act of 2010''.
(2) Final report.--Subsection (e)(4) of such section is
amended by striking ``May 1, 2010'' and inserting ``42 months
after the date of the enactment of the American Workers,
State, and Business Relief Act of 2010''.
Subtitle C--Other Provisions

SEC. 241. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.

Section 1012 of the Department of Defense Appropriations
Act, 2010 (Public Law 111-118) is amended--
(1) by striking ``before March 1, 2010''; and
(2) by inserting ``for 2011'' after ``until updated poverty
guidelines''.

SEC. 242. REFUNDS DISREGARDED IN THE ADMINISTRATION OF
FEDERAL PROGRAMS AND FEDERALLY ASSISTED
PROGRAMS.

(a) In General.--Subchapter A of chapter 65 is amended by
adding at the end the following new section:

``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF
FEDERAL PROGRAMS AND FEDERALLY ASSISTED
PROGRAMS.

``(a) In General.--Notwithstanding any other provision of
law, any refund (or advance payment with respect to a
refundable credit) made to any individual under this title
shall not be taken into account as income, and shall not be
taken into account as resources for a period of 12 months
from receipt, for purposes of determining the eligibility of
such individual (or any other individual) for benefits or
assistance (or the amount or extent of benefits or
assistance) under any Federal program or under any State or
local program financed in whole or in part with Federal
funds.
``(b) Termination.--Subsection (a) shall not apply to any
amount received after December 31, 2010.''.
(b) Clerical Amendment.--The table of sections for such
subchapter is amended by adding at the end the following new
item:

``Sec. 6409. Refunds disregarded in the administration of
Federal programs and federally assisted programs.''.

(c) Effective Date.--The amendments made by this section
shall apply to amounts received after December 31, 2009.

SEC. 243. STATE COURT IMPROVEMENT PROGRAM.

Section 438 of the Social Security Act (42 U.S.C. 629h) is
amended--
(1) in subsection (c)(2)(A), by striking ``2010'' and
inserting ``2011''; and
(2) in subsection (e), by striking ``2010'' and inserting
``2011''.

SEC. 244. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

Section 129 of the Continuing Appropriations Resolution,
2010 (Public Law 111-68), as amended by section 1005 of
Public Law 111-118, is further amended by striking ``by
substituting'' and all that follows through the period at the
end, and inserting ``by substituting December 31, 2010, for
the date specified in each such section.''.

SEC. 245. EMERGENCY DISASTER ASSISTANCE.

(a) Definitions.--Except as otherwise provided in this
section, in this section:
(1) Disaster county.--
(A) In general.--The term ``disaster county'' means a
county included in the geographic area covered by a
qualifying natural disaster declaration for the 2009 crop
year.
(B) Exclusion.--The term ``disaster county'' does not
include a contiguous county.
(2) Eligible aquaculture producer.--The term ``eligible
aquaculture producer'' means an aquaculture producer that
during the 2009 calendar year, as determined by the
Secretary--
(A) produced an aquaculture species for which feed costs
represented a substantial percentage of the input costs of
the aquaculture operation; and
(B) experienced a substantial price increase of feed costs
above the previous 5-year average.
(3) Eligible producer.--The term ``eligible producer''
means an agricultural producer in a disaster county.
(4) Eligible specialty crop producer.--The term ``eligible
specialty crop producer'' means an agricultural producer
that, for the 2009 crop year, as determined by the
Secretary--

[[Page S1070]]

(A) produced, or was prevented from planting, a specialty
crop; and
(B) experienced crop losses in a disaster county due to
excessive rainfall or related condition.
(5) Qualifying natural disaster declaration.--The term
``qualifying natural disaster declaration'' means a natural
disaster declared by the Secretary for production losses
under section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C.
1621 note).
(b) Supplemental Direct Payment.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use such sums as are
necessary to make supplemental payments under sections 1103
and 1303 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8713, 8753) to eligible producers on farms located in
disaster counties that had at least 1 crop of economic
significance (other than crops intended for grazing) suffer
at least a 5-percent crop loss due to a natural disaster,
including quality losses, as determined by the Secretary, in
an amount equal to 90 percent of the direct payment the
eligible producers received for the 2009 crop year on the
farm.
(2) ACRE program.--Eligible producers that received
payments under section 1105 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8715) for the 2009 crop year and
that otherwise meet the requirements of paragraph (1) shall
be eligible to receive supplemental payments under that
paragraph in an amount equal to 90 percent of the reduced
direct payment the eligible producers received for the 2009
crop year under section 1103 or 1303 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753).
(3) Insurance requirement.--As a condition of receiving
assistance under this subsection, eligible producers on a
farm that--
(A) in the case of an insurable commodity, did not obtain a
policy or plan of insurance for the insurable commodity under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (other
than for a crop insurance pilot program under that Act) for
each crop of economic significance (other than crops intended
for grazing), shall obtain such a policy or plan for those
crops for the next available crop year, as determined by the
Secretary; or
(B) in the case of a noninsurable commodity, did not file
the required paperwork, and pay the administrative fee by the
applicable State filing deadline, for the noninsurable
commodity under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333) for each
crop of economic significance (other than crops intended for
grazing), shall obtain such coverage for those crops for the
next available crop year, as determined by the Secretary.
(4) Relationship to other law.--Assistance received under
this subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(c) Specialty Crop Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$150,000,000, to remain available until September 30, 2011,
to carry out a program of grants to States to assist eligible
specialty crop producers for losses due to excessive rainfall
and related conditions affecting the 2009 crops.
(2) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible specialty
crop producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible specialty crop producers.
(3) Provision of grants.--
(A) In general.--The Secretary shall make grants to States
for disaster counties with excessive rainfall and related
conditions on a pro rata basis based on the value of
specialty crop losses in those counties during the 2008
calendar year, as determined by the Secretary.
(B) Timing.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(C) Maximum grant.--The maximum amount of a grant made to a
State under this subsection may not exceed $40,000,000.
(4) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(A) use grant funds to assist eligible specialty crop
producers;
(B) provide assistance to eligible specialty crop producers
not later than 90 days after the date on which the State
receives grant funds; and
(C) not later than 30 days after the date on which the
State provides assistance to eligible specialty crop
producers, submit to the Secretary a report that describes--
(i) the manner in which the State provided assistance;
(ii) the amounts of assistance provided by type of
specialty crop; and
(iii) the process by which the State determined the levels
of assistance to eligible specialty crop producers.
(5) Relation to other law.--Assistance received under this
subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(d) Cottonseed Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$42,000,000 to provide supplemental assistance to eligible
producers and first-handlers of the 2009 crop of cottonseed
in a disaster county.
(2) General terms.--Except as otherwise provided in this
subsection, the Secretary shall provide disaster assistance
under this subsection under the same terms and conditions as
assistance provided under section 3015 of the Emergency
Agricultural Disaster Assistance Act of 2006 (title III of
Public Law 109-234; 120 Stat. 477).
(3) Distribution of assistance.--The Secretary shall
distribute assistance to first handlers for the benefit of
eligible producers in a disaster county in an amount equal to
the product obtained by multiplying--
(A) the payment rate, as determined under paragraph (4);
and
(B) the county-eligible production, as determined under
paragraph (5).
(4) Payment rate.--The payment rate shall be equal to the
quotient obtained by dividing--
(A) the sum of the county-eligible production, as
determined under paragraph (5); by
(B) the total funds made available to carry out this
subsection.
(5) County-eligible production.--The county-eligible
production shall be equal to the product obtained by
multiplying--
(A) the number of acres planted to cotton in the disaster
county, as reported to the Secretary by first-handlers;
(B) the expected cotton lint yield for the disaster county,
as determined by the Secretary based on the best available
information; and
(C) the national average seed-to-lint ratio, as determined
by the Secretary based on the best available information for
the 5 crop years immediately preceding the 2009 crop,
excluding the year in which the average ratio was the highest
and the year in which the average ratio was the lowest in
such period.
(e) Aquaculture Assistance.--
(1) Grant program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$25,000,000, to remain available until September 30, 2011, to
carry out a program of grants to States to assist eligible
aquaculture producers for losses associated with high feed
input costs during the 2009 calendar year.
(B) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible aquaculture
producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible aquaculture producers.
(C) Provision of grants.--
(i) In general.--The Secretary shall make grants to States
under this subsection on a pro rata basis based on the amount
of aquaculture feed used in each State during the 2008
calendar year, as determined by the Secretary.
(ii) Timing.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(D) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(i) use grant funds to assist eligible aquaculture
producers;
(ii) provide assistance to eligible aquaculture producers
not later than 60 days after the date on which the State
receives grant funds; and
(iii) not later than 30 days after the date on which the
State provides assistance to eligible aquaculture producers,
submit to the Secretary a report that describes--

(I) the manner in which the State provided assistance;
(II) the amounts of assistance provided per species of
aquaculture; and
(III) the process by which the State determined the levels
of assistance to eligible aquaculture producers.

(2) Reduction in payments.--An eligible aquaculture
producer that receives assistance under this subsection shall
not be eligible to receive any other assistance under the
supplemental agricultural disaster assistance program
established under section 531 of the Federal Crop Insurance
Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974
(19 U.S.C. 2497) for any losses in 2009 relating to the same
species of aquaculture.
(3) Report to congress.--Not later than 240 days after the
date of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report that--
(A) describes in detail the manner in which this subsection
has been carried out; and
(B) includes the information reported to the Secretary
under paragraph (1)(D)(iii).

[[Page S1071]]

(f) Hawaii Transportation Cooperative.--Notwithstanding any
other provision of law, the Secretary shall use $21,000,000
of funds of the Commodity Credit Corporation to make a
payment to an agricultural transportation cooperative in the
State of Hawaii, the members of which are eligible to
participate in the commodity loan program of the Farm Service
Agency, for assistance to maintain and develop employment.
(g) Livestock Forage Disaster Program.--
(1) Definition of disaster county.--In this subsection:
(A) In general.--The term ``disaster county'' means a
county included in the geographic area covered by a
qualifying natural disaster declaration announced by the
Secretary in calendar year 2009.
(B) Inclusion.--The term ``disaster county'' includes a
contiguous county.
(2) Payments.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$50,000,000 to carry out a program to make payments to
eligible producers that had grazing losses in disaster
counties in calendar year 2009.
(3) Criteria.--
(A) In general.--Except as provided in subparagraph (B),
assistance under this subsection shall be determined under
the same criteria as are used to carry out the programs under
section 531(d) of the Federal Crop Insurance Act (7 U.S.C.
1531(d)) and section 901(d) of the Trade Act of 1974 (19
U.S.C. 2497(d)).
(B) Drought intensity.--For purposes of this subsection, an
eligible producer shall not be required to meet the drought
intensity requirements of section 531(d)(3)(D)(ii) of the
Federal Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) and
section 901(d)(3)(D)(ii) of the Trade Act of 1974 (19 U.S.C.
2497(d)(3)(D)(ii)).
(4) Amount.--Assistance under this subsection shall be in
an amount equal to 1 monthly payment using the monthly
payment rate under section 531(d)(3)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)(3)(B)) and section
901(d)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2497(d)(3)(B)).
(5) Relation to other law.--An eligible producer that
receives assistance under this subsection shall be ineligible
to receive assistance for 2009 grazing losses under the
program carried out under section 531(d) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)) and section 901(d) of the
Trade Act of 1974 (19 U.S.C. 2497(d)) .
(h) Emergency Loans for Poultry Producers.--
(1) Definitions.--In this subsection:
(A) Announcement date.--The term ``announcement date''
means the date on which the Secretary announces the emergency
loan program under this subsection.
(B) Poultry integrator.--The term ``poultry integrator''
means a poultry integrator that filed proceedings under
chapter 11 of title 11, United States Code, in United States
Bankruptcy Court during the 30-day period beginning on
December 1, 2008.
(2) Loan program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$75,000,000, to remain available until expended, for the cost
of making no-interest emergency loans available to poultry
producers that meet the requirements of this subsection.
(B) Terms and conditions.--Except as otherwise provided in
this subsection, emergency loans under this subsection shall
be subject to such terms and conditions as are determined by
the Secretary.
(3) Loans.--
(A) In general.--An emergency loan made to a poultry
producer under this subsection shall be for the purpose of
providing financing to the poultry producer in response to
financial losses associated with the termination or
nonrenewal of any contract between the poultry producer and a
poultry integrator.
(B) Eligibility.--
(i) In general.--To be eligible for an emergency loan under
this subsection, not later than 90 days after the
announcement date, a poultry producer shall submit to the
Secretary evidence that--

(I) the contract of the poultry producer described in
subparagraph (A) was not continued; and
(II) no similar contract has been awarded subsequently to
the poultry producer.

(ii) Requirement to offer loans.--Notwithstanding any other
provision of law, if a poultry producer meets the eligibility
requirements described in clause (i), subject to the
availability of funds under paragraph (2)(A), the Secretary
shall offer to make a loan under this subsection to the
poultry producer with a minimum term of 2 years.
(4) Additional requirements.--
(A) In general.--A poultry producer that receives an
emergency loan under this subsection may use the emergency
loan proceeds only to repay the amount that the poultry
producer owes to any lender.
(B) Conversion of the loan.--A poultry producer that
receives an emergency loan under this subsection shall be
eligible to have the balance of the emergency loan converted,
but not refinanced, to a loan that has the same terms and
conditions as an operating loan under subtitle B of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et
seq.).
(i) Administration.--
(1) Regulations.--
(A) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall promulgate such
regulations as are necessary to implement this section.
(B) Procedure.--The promulgation of the regulations and
administration of this section shall be made without regard
to--
(i) the notice and comment provisions of section 553 of
title 5, United States Code;
(ii) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),
relating to notices of proposed rulemaking and public
participation in rulemaking; and
(iii) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(C) Congressional review of agency rulemaking.--In carrying
out this paragraph, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(2) Administrative costs.--Of the funds of the Commodity
Credit Corporation, the Secretary may use up to $15,000,000
to pay administrative costs incurred by the Secretary that
are directly related to carrying out this Act.
(3) Prohibition.--None of the funds of the Agricultural
Disaster Relief Trust Fund established under section 902 of
the Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry
out this Act.

SEC. 246. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT
EXTENSIONS.

(a) Appropriation.--There is appropriated, out of any funds
in the Treasury not otherwise appropriated, for an additional
amount for ``Small Business Administration - Business Loans
Program Account'', $354,000,000, to remain available through
December 31, 2010, for the cost of--
(1) fee reductions and eliminations under section 501 of
division A of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5; 123 Stat. 151), as amended by this
section, for loans guaranteed under section 7(a) of the Small
Business Act (15 U.S.C. 636(a)), title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 et seq.), or
section 502 of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 152),
as amended by this section; and
(2) loan guarantees under section 502 of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5; 123 Stat. 152), as amended by this section,

Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974.
(b) Extension of Programs.--
(1) Fees.--Section 501 of division A of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123
Stat. 151) is amended by striking ``September 30, 2010'' each
place it appears and inserting ``December 31, 2010''.
(2) Loan guarantees.--Section 502(f) of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5; 123 Stat. 153) is amended by striking ``February 28,
2010'' and inserting ``December 31, 2010''.
TITLE III--PENSION FUNDING RELIEF
Subtitle A--Single Employer Plans

SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT
PLANS TO AMORTIZE CERTAIN SHORTFALL
AMORTIZATION BASES.

(a) Amendments to ERISA.--
(1) In general.--Paragraph (2) of section 303(c) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1083(c)) is amended by adding at the end the following
subparagraph:
``(D) Special election for eligible plan years.--
``(i) In general.--If a plan sponsor elects to apply this
subparagraph with respect to the shortfall amortization base
of a plan for any eligible plan year (in this subparagraph
and paragraph (7) referred to as an `election year'), then,
notwithstanding subparagraphs (A) and (B)--

``(I) the shortfall amortization installments with respect
to such base shall be determined under clause (ii) or (iii),
whichever is specified in the election, and
``(II) the shortfall amortization installment for any plan
year in the 9-plan-year period described in clause (ii) or
the 15-plan-year period described in clause (iii),
respectively, with respect to such shortfall amortization
base is the annual installment determined under the
applicable clause for that year for that base.

``(ii) 2 plus 7 amortization schedule.--The shortfall
amortization installments determined under this clause are--

``(I) in the case of the first 2 plan years in the 9-plan-
year period beginning with the election year, interest on the
shortfall amortization base of the plan for the election year
(determined using the effective interest rate for the plan
for the election year), and
``(II) in the case of the last 7 plan years in such 9-plan-
year period, the amounts necessary to amortize the remaining
balance of the shortfall amortization base of the plan for
the election year in level annual installments over such last
7 plan years (using the segment rates under subparagraph (C)
for the election year).

``(iii) 15-year amortization.--The shortfall amortization
installments determined under this subparagraph are the
amounts necessary to amortize the shortfall amortization base
of the plan for the election year in level annual
installments over the 15-plan-year period beginning with the
election year (using the segment rates under subparagraph (C)
for the election year).

[[Page S1072]]

``(iv) Election.--

``(I) In general.--The plan sponsor of a plan may elect to
have this subparagraph apply to not more than 2 eligible plan
years with respect to the plan, except that in the case of a
plan described in section 106 of the Pension Protection Act
of 2006, the plan sponsor may only elect to have this
subparagraph apply to a plan year beginning in 2011.
``(II) Amortization schedule.--Such election shall specify
whether the amortization schedule under clause (ii) or (iii)
shall apply to an election year, except that if a plan
sponsor elects to have this subparagraph apply to 2 eligible
plan years, the plan sponsor must elect the same schedule for
both years.
``(III) Other rules.--Such election shall be made at such
time, and in such form and manner, as shall be prescribed by
the Secretary of the Treasury, and may be revoked only with
the consent of the Secretary of the Treasury. The Secretary
of the Treasury shall, before granting a revocation request,
provide the Pension Benefit Guaranty Corporation an
opportunity to comment on the conditions applicable to the
treatment of any portion of the election year shortfall
amortization base that remains unamortized as of the
revocation date.

``(v) Eligible plan year.--For purposes of this
subparagraph, the term `eligible plan year' means any plan
year beginning in 2008, 2009, 2010, or 2011, except that a
plan year shall only be treated as an eligible plan year if
the due date under subsection (j)(1) for the payment of the
minimum required contribution for such plan year occurs on or
after the date of the enactment of this subparagraph.
``(vi) Reporting.--A plan sponsor of a plan who makes an
election under clause (i) shall inform the Pension Benefit
Guaranty Corporation of such election in such form and manner
as the Director of the Pension Benefit Guaranty Corporation
may prescribe.
``(vii) Increases in required installments in certain
cases.--For increases in required contributions in cases of
excess compensation or extraordinary dividends or stock
redemptions, see paragraph (7).''.
(2) Increases in required installments in certain cases.--
Section 303(c) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end
the following paragraph:
``(7) Increases in alternate required installments in cases
of excess compensation or extraordinary dividends or stock
redemptions.--
``(A) In general.--If there is an installment acceleration
amount with respect to a plan for any plan year in the
restriction period with respect to an election year under
paragraph (2)(D), then the shortfall amortization installment
otherwise determined and payable under such paragraph for
such plan year shall, subject to the limitation under
subparagraph (B), be increased by such amount.
``(B) Total installments limited to shortfall base.--
Subject to rules prescribed by the Secretary of the Treasury,
if a shortfall amortization installment with respect to any
shortfall amortization base for an election year is required
to be increased for any plan year under subparagraph (A)--
``(i) such increase shall not result in the amount of such
installment exceeding the present value of such installment
and all succeeding installments with respect to such base
(determined without regard to such increase but after
application of clause (ii)), and
``(ii) subsequent shortfall amortization installments with
respect to such base shall, in reverse order of the otherwise
required installments, be reduced to the extent necessary to
limit the present value of such subsequent shortfall
amortization installments (after application of this
paragraph) to the present value of the remaining unamortized
shortfall amortization base.
``(C) Installment acceleration amount.--For purposes of
this paragraph--
``(i) In general.--The term `installment acceleration
amount' means, with respect to any plan year in a restriction
period with respect to an election year, the sum of--

``(I) the aggregate amount of excess employee compensation
determined under subparagraph (D) with respect to all
employees for the plan year, plus
``(II) the aggregate amount of extraordinary dividends and
redemptions determined under subparagraph (E) for the plan
year.

``(ii) Limitation to aggregate reduced required
contributions.--The installment acceleration amount for any
plan year shall not exceed the excess (if any) of--

``(I) the sum of the shortfall amortization installments
for the plan year and all preceding plan years in the
amortization period elected under paragraph (2)(D) with
respect to the shortfall amortization base with respect to an
election year, determined without regard to paragraph (2)(D)
and this paragraph, over
``(II) the sum of the shortfall amortization installments
for such plan year and all such preceding plan years,
determined after application of paragraph (2)(D) (and in the
case of any preceding plan year, after application of this
paragraph).

``(iii) Carryover of excess installment acceleration
amounts.--

``(I) In general.--If the installment acceleration amount
for any plan year (determined without regard to clause(ii))
exceeds the limitation under clause (ii), then, subject to
subclause (II), such excess shall be treated as an
installment acceleration amount with respect to the
succeeding plan year (without regard to whether such
succeeding plan year is in the restriction period).
``(II) Cap to apply.--If any amount treated as an
installment acceleration amount under subclause (I) or this
subclause with respect any succeeding plan year, when added
to other installment acceleration amounts (determined without
regard to clause (ii)) with respect to the plan year, exceeds
the limitation under clause (ii), the portion of such amount
representing such excess shall be treated as an installment
acceleration amount with respect to the next succeeding plan
year (without regard to whether such succeeding plan year is
in the restriction period).
``(III) Ordering rules.--For purposes of applying subclause
(II), installment acceleration amounts for the plan year
(determined without regard to any carryover under this
clause) shall be applied first against the limitation under
clause (ii) and then carryovers to such plan year shall be
applied against such limitation on a first-in, first-out
basis.

``(D) Excess employee compensation.--For purposes of this
paragraph--
``(i) In general.--The term `excess employee compensation'
means, with respect to any employee for any plan year, the
excess (if any) of--

``(I) the aggregate amount includible in income under
chapter 1 of the Internal Revenue Code of 1986 for
remuneration during the calendar year in which such plan year
begins for services performed by the employee for the plan
sponsor (whether or not performed during such calendar year),
over
``(II) $1,000,000.

``(ii) Amounts set aside for nonqualified deferred
compensation.--If during any calendar year assets are set
aside or reserved (directly or indirectly) in a trust (or
other arrangement as determined by the Secretary of the
Treasury), or transferred to such a trust or other
arrangement, by a plan sponsor for purposes of paying
deferred compensation of an employee under a nonqualified
deferred compensation plan (as defined in section 409A of
such Code) of the plan sponsor, then, for purposes of clause
(i), the amount of such assets shall be treated as
remuneration of the employee includible in income for the
calendar year unless such amount is otherwise includible in
income for such year. An amount to which the preceding
sentence applies shall not be taken into account under this
paragraph for any subsequent calendar year.
``(iii) Only remuneration for certain post-2009 services
counted.--Remuneration shall be taken into account under
clause (i) only to the extent attributable to services
performed by the employee for the plan sponsor after February
4, 2010.
``(iv) Exception for certain equity payments.--

``(I) In general.--There shall not be taken into account
under clause (i)(I) any amount includible in income with
respect to the granting on or after February 4, 2010, of
service recipient stock (within the meaning of section 409A
of the Internal Revenue Code of 1986) that, upon such grant,
is subject to a substantial risk of forfeiture (as defined
under section 83(c)(1) of such Code) for at least 5 years
from the date of such grant.

``(II) Secretarial authority.--The Secretary of the
Treasury may by regulation provide for the application of
this clause in the case of a person other than a corporation.

``(v) Other exceptions.--The following amounts includible
in income shall not be taken into account under clause
(i)(I):

``(I) Commissions.--Any remuneration payable on a
commission basis solely on account of income directly
generated by the individual performance of the individual to
whom such remuneration is payable.
``(II) Certain payments under existing contracts.--Any
remuneration consisting of nonqualified deferred
compensation, restricted stock, stock options, or stock
appreciation rights payable or granted under a written
binding contract that was in effect on February 4, 2010, and
which was not modified in any material respect before such
remuneration is paid.

``(vi) Self-employed individual treated as employee.--The
term `employee' includes, with respect to a calendar year, a
self-employed individual who is treated as an employee under
section 401(c) of such Code for the taxable year ending
during such calendar year, and the term `compensation' shall
include earned income of such individual with respect to such
self-employment.
``(vii) Indexing of amount.--In the case of any calendar
year beginning after 2010, the dollar amount under clause
(i)(II) shall be increased by an amount equal to--

``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) of such Code for the calendar year,
determined by substituting `calendar year 2009' for `calendar
year 1992' in subparagraph (B) thereof.

If the amount of any increase under clause (i) is not a
multiple of $1,000, such increase shall be rounded to the
next lowest multiple of $1,000.
``(E) Extraordinary dividends and redemptions.--
``(i) In general.--The amount determined under this
subparagraph for any plan year is the excess (if any) of--

``(I) the sum of the dividends declared during the plan
year by the plan sponsor plus the aggregate fair market value
of the stock of the plan sponsor redeemed during the plan
year, over

[[Page S1073]]

``(II) the adjusted net income (within the meaning of
section 4043) of the plan sponsor for the preceding plan
year.

``(ii) Only certain post-2009 dividends and redemptions
counted.--For purposes of clause (i), there shall only be
taken into account dividends declared, and redemptions
occurring, after February 4, 2010.
``(iii) Exception for intra-group dividends.--Dividends
paid by one member of a controlled group (as defined in
section 302(d)(3)) to another member of such group shall not
be taken into account under clause (i).
``(F) Other definitions and rules.--For purposes of this
paragraph--
``(i) Plan sponsor.--The term ` plan sponsor' includes any
member of the plan sponsor's controlled group (as defined in
section 302(d)(3)).
``(ii) Restriction period.--The term `restriction period'
means, with respect to any election year--

``(I) except as provided in subclause (II), the 4-year
period beginning with the election year, and
``(II) if the plan sponsor elects 15-year amortization for
the shortfall amortization base for the election year, the 7-
year period beginning with the election year.

``(iii) Elections for multiple plans.--If a plan sponsor
makes elections under paragraph (2)(D) with respect to 2 or
more plans, the Secretary of the Treasury shall provide rules
for the application of this paragraph to such plans,
including rules for the ratable allocation of any installment
acceleration amount among such plans on the basis of each
plan's relative reduction in the plan's shortfall
amortization installment for the first plan year in the
amortization period described in subparagraph (A) (determined
without regard to this paragraph).
``(iv) Mergers and acquisitions.--The Secretary of the
Treasury shall prescribe rules for the application of
paragraph (2)(D) and this paragraph in any case where there
is a merger or acquisition involving a plan sponsor making
the election under paragraph (2)(D).''.
(3) Conforming amendments.--Section 303 of such Act (29
U.S.C. 1083) is amended--
(A) in subsection (c)(1), by striking ``the shortfall
amortization bases for such plan year and each of the 6
preceding plan years'' and inserting ``any shortfall
amortization base which has not been fully amortized under
this subsection'', and
(B) in subsection (j)(3), by adding at the end the
following:
``(F) Quarterly contributions not to include certain
increased contributions.--Subparagraph (D) shall be applied
without regard to any increase under subsection (c)(7).''.
(b) Amendments to Internal Revenue Code of 1986.--
(1) In general.--Paragraph (2) of section 430(c) is amended
by adding at the end the following subparagraph:
``(D) Special election for eligible plan years.--
``(i) In general.--If a plan sponsor elects to apply this
subparagraph with respect to the shortfall amortization base
of a plan for any eligible plan year (in this subparagraph
and paragraph (7) referred to as an `election year'), then,
notwithstanding subparagraphs (A) and (B)--

``(I) the shortfall amortization installments with respect
to such base shall be determined under clause (ii) or (iii),
whichever is specified in the election, and
``(II) the shortfall amortization installment for any plan
year in the 9-plan-year period described in clause (ii) or
the 15-plan-year period described in clause (iii),
respectively, with respect to such shortfall amortization
base is the annual installment determined under the
applicable clause for that year for that base.

``(ii) 2 plus 7 amortization schedule.--The shortfall
amortization installments determined under this clause are--

``(I) in the case of the first 2 plan years in the 9-plan-
year period beginning with the election year, interest on the
shortfall amortization base of the plan for the election year
(determined using the effective interest rate for the plan
for the election year), and
``(II) in the case of the last 7 plan years in such 9-plan-
year period, the amounts necessary to amortize the remaining
balance of the shortfall amortization base of the plan for
the election year in level annual installments over such last
7 plan years (using the segment rates under subparagraph (C)
for the election year).

``(iii) 15-year amortization.--The shortfall amortization
installments determined under this subparagraph are the
amounts necessary to amortize the shortfall amortization base
of the plan for the election year in level annual
installments over the 15-plan-year period beginning with the
election year (using the segment rates under subparagraph (C)
for the election year).
``(iv) Election.--

``(I) In general.--The plan sponsor of a plan may elect to
have this subparagraph apply to not more than 2 eligible plan
years with respect to the plan, except that in the case of a
plan described in section 106 of the Pension Protection Act
of 2006, the plan sponsor may only elect to have this
subparagraph apply to a plan year beginning in 2011.
``(II) Amortization schedule.--Such election shall specify
whether the amortization schedule under clause (ii) or (iii)
shall apply to an election year, except that if a plan
sponsor elects to have this subparagraph apply to 2 eligible
plan years, the plan sponsor must elect the same schedule for
both years.
``(III) Other rules.--Such election shall be made at such
time, and in such form and manner, as shall be prescribed by
the Secretary, and may be revoked only with the consent of
the Secretary. The Secretary shall, before granting a
revocation request, provide the Pension Benefit Guaranty
Corporation an opportunity to comment on the conditions
applicable to the treatment of any portion of the election
year shortfall amortization base that remains unamortized as
of the revocation date.

``(v) Eligible plan year.--For purposes of this
subparagraph, the term `eligible plan year' means any plan
year beginning in 2008, 2009, 2010, or 2011, except that a
plan year shall only be treated as an eligible plan year if
the due date under subsection (j)(1) for the payment of the
minimum required contribution for such plan year occurs on or
after the date of the enactment of this subparagraph.
``(vi) Reporting.--A plan sponsor of a plan who makes an
election under clause (i) shall inform the Pension Benefit
Guaranty Corporation of such election in such form and manner
as the Director of the Pension Benefit Guaranty Corporation
may prescribe.
``(vii) Increases in required installments in certain
cases.--For increases in required contributions in cases of
excess compensation or extraordinary dividends or stock
redemptions, see paragraph (7).''.
(2) Increases in required contributions if excess
compensation paid.--Section 430(c) is amended by adding at
the end the following paragraph:
``(7) Increases in alternate required installments in cases
of excess compensation or extraordinary dividends or stock
redemptions.--
``(A) In general.--If there is an installment acceleration
amount with respect to a plan for any plan year in the
restriction period with respect to an election year under
paragraph (2)(D), then the shortfall amortization installment
otherwise determined and payable under such paragraph for
such plan year shall, subject to the limitation under
subparagraph (B), be increased by such amount.
``(B) Total installments limited to shortfall base.--
Subject to rules prescribed by the Secretary, if a shortfall
amortization installment with respect to any shortfall
amortization base for an election year is required to be
increased for any plan year under subparagraph (A)--
``(i) such increase shall not result in the amount of such
installment exceeding the present value of such installment
and all succeeding installments with respect to such base
(determined without regard to such increase but after
application of clause (ii)), and
``(ii) subsequent shortfall amortization installments with
respect to such base shall, in reverse order of the otherwise
required installments, be reduced to the extent necessary to
limit the present value of such subsequent shortfall
amortization installments (after application of this
paragraph) to the present value of the remaining unamortized
shortfall amortization base.
``(C) Installment acceleration amount.--For purposes of
this paragraph--
``(i) In general.--The term `installment acceleration
amount' means, with respect to any plan year in a restriction
period with respect to an election year, the sum of--

``(I) the aggregate amount of excess employee compensation
determined under subparagraph (D) with respect to all
employees for the plan year, plus
``(II) the aggregate amount of extraordinary dividends and
redemptions determined under subparagraph (E) for the plan
year.

``(ii) Limitation to aggregate reduced required
contributions.--The installment acceleration amount for any
plan year shall not exceed the excess (if any) of--

``(I) the sum of the shortfall amortization installments
for the plan year and all preceding plan years in the
amortization period elected under paragraph (2)(D) with
respect to the shortfall amortization base with respect to an
election year, determined without regard to paragraph (2)(D)
and this paragraph, over
``(II) the sum of the shortfall amortization installments
for such plan year and all such preceding plan years,
determined after application of paragraph (2)(D) (and in the
case of any preceding plan year, after application of this
paragraph).

``(iii) Carryover of excess installment acceleration
amounts.--

``(I) In general.--If the installment acceleration amount
for any plan year (determined without regard to clause(ii))
exceeds the limitation under clause (ii), then, subject to
subclause (II), such excess shall be treated as an
installment acceleration amount with respect to the
succeeding plan year (without regard to whether such
succeeding plan year is in the restriction period).
``(II) Cap to apply.--If any amount treated as an
installment acceleration amount under subclause (I) or this
subclause with respect any succeeding plan year, when added
to other installment acceleration amounts (determined without
regard to clause (ii)) with respect to the plan year, exceeds
the limitation under clause (ii), the portion of such amount
representing such excess shall be treated as an installment
acceleration amount with respect to the next succeeding plan
year (without regard to whether such succeeding plan year is
in the restriction period).

[[Page S1074]]

``(III) Ordering rules.--For purposes of applying subclause
(II), installment acceleration amounts for the plan year
(determined without regard to any carryover under this
clause) shall be applied first against the limitation under
clause (ii) and then carryovers to such plan year shall be
applied against such limitation on a first-in, first-out
basis.

``(D) Excess employee compensation.--For purposes of this
paragraph--
``(i) In general.--The term `excess employee compensation'
means, with respect to any employee for any plan year, the
excess (if any) of--

``(I) the aggregate amount includible in income under this
chapter for remuneration during the calendar year in which
such plan year begins for services performed by the employee
for the plan sponsor (whether or not performed during such
calendar year), over
``(II) $1,000,000.

``(ii) Amounts set aside for nonqualified deferred
compensation.--If during any calendar year assets are set
aside or reserved (directly or indirectly) in a trust (or
other arrangement as determined by the Secretary), or
transferred to such a trust or other arrangement, by a plan
sponsor for purposes of paying deferred compensation of an
employee under a nonqualified deferred compensation plan (as
defined in section 409A) of the plan sponsor, then, for
purposes of clause (i), the amount of such assets shall be
treated as remuneration of the employee includible in income
for the calendar year unless such amount is otherwise
includible in income for such year. An amount to which the
preceding sentence applies shall not be taken into account
under this paragraph for any subsequent calendar year.
``(iii) Only remuneration for certain post-2009 services
counted.--Remuneration shall be taken into account under
clause (i) only to the extent attributable to services
performed by the employee for the plan sponsor after February
4, 2010.
``(iv) Exception for certain equity payments.--

``(I) In general.--There shall not be taken into account
under clause (i)(I) any amount includible in income with
respect to the granting on or after February 4, 2010, of
service recipient stock (within the meaning of section 409A)
that, upon such grant, is subject to a substantial risk of
forfeiture (as defined under section 83(c)(1)) for at least 5
years from the date of such grant.
``(II) Secretarial authority.--The Secretary may by
regulation provide for the application of this clause in the
case of a person other than a corporation.

``(v) Other exceptions.--The following amounts includible
in income shall not be taken into account under clause
(i)(I):

``(I) Commissions.--Any remuneration payable on a
commission basis solely on account of income directly
generated by the individual performance of the individual to
whom such remuneration is payable.
``(II) Certain payments under existing contracts.--Any
remuneration consisting of nonqualified deferred
compensation, restricted stock, stock options, or stock
appreciation rights payable or granted under a written
binding contract that was in effect on February 4, 2010, and
which was not modified in any material respect before such
remuneration is paid.

``(vi) Self-employed individual treated as employee.--The
term `employee' includes, with respect to a calendar year, a
self-employed individual who is treated as an employee under
section 401(c) for the taxable year ending during such
calendar year, and the term `compensation' shall include
earned income of such individual with respect to such self-
employment.
``(vii) Indexing of amount.--In the case of any calendar
year beginning after 2010, the dollar amount under clause
(i)(II) shall be increased by an amount equal to--

``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2009' for `calendar year 1992' in
subparagraph (B) thereof.

If the amount of any increase under clause (i) is not a
multiple of $1,000, such increase shall be rounded to the
next lowest multiple of $1,000.
``(E) Extraordinary dividends and redemptions.--
``(i) In general.--The amount determined under this
subparagraph for any plan year is the excess (if any) of--

``(I) the sum of the dividends declared during the plan
year by the plan sponsor plus the aggregate fair market value
of the stock of the plan sponsor redeemed during the plan
year, over
``(II) the adjusted net income (within the meaning of
section 4043 of the Employee Retirement Income Security Act
of 1974) of the plan sponsor for the preceding plan year.

``(ii) Only certain post-2009 dividends and redemptions
counted.--For purposes of clause (i), there shall only be
taken into account dividends declared, and redemptions
occurring, after February 4, 2010.
``(iii) Exception for intra-group dividends.--Dividends
paid by one member of a controlled group (as defined in
section 412(d)(3)) to another member of such group shall not
be taken into account under clause (i).
``(F) Other definitions and rules.--For purposes of this
paragraph--
``(i) Plan sponsor.--The term ` plan sponsor' includes any
member of the plan sponsor's controlled group (as defined in
section 412(d)(3)).
``(ii) Restriction period.--The term `restriction period'
means, with respect to any election year--

``(I) except as provided in subclause (II), the 4-year
period beginning with the election year, and
``(II) if the plan sponsor elects 15-year amortization for
the shortfall amortization base for the election year, the 7-
year period beginning with the election year.

``(iii) Elections for multiple plans.--If a plan sponsor
makes elections under paragraph (2)(D) with respect to 2 or
more plans, the Secretary shall provide rules for the
application of this paragraph to such plans, including rules
for the ratable allocation of any installment acceleration
amount among such plans on the basis of each plan's relative
reduction in the plan's shortfall amortization installment
for the first plan year in the amortization period described
in subparagraph (A) (determined without regard to this
paragraph).
``(iv) Mergers and acquisitions.--The Secretary shall
prescribe rules for the application of paragraph (2)(D) and
this paragraph in any case where there is a merger or
acquisition involving a plan sponsor making the election
under paragraph (2)(D).''.
(3) Conforming amendments.--Section 430 is amended--
(A) in subsection (c)(1), by striking ``the shortfall
amortization bases for such plan year and each of the 6
preceding plan years'' and inserting ``any shortfall
amortization base which has not been fully amortized under
this subsection'', and
(B) in subsection (j)(3), by adding at the end the
following:
``(F) Quarterly contributions not to include certain
increased contributions.--Subparagraph (D) shall be applied
without regard to any increase under subsection (c)(7).''.
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31, 2007.

SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO
PLANS SUBJECT TO PRIOR LAW FUNDING RULES.

(a) In General.--Title I of the Pension Protection Act of
2006 is amended by redesignating section 107 as section 108
and by inserting the following after section 106:

``SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO
PLANS WITH DELAYED EFFECTIVE DATE.

``(a) In General.--If the plan sponsor of a plan to which
section 104, 105, or 106 of this Act applies elects to have
this section apply for any eligible plan year (in this
section referred to as an `election year'), section 302 of
the Employee Retirement Income Security Act of 1974 and
section 412 of the Internal Revenue Code of 1986 (as in
effect before the amendments made by this subtitle and
subtitle B) shall apply to such year in the manner described
in subsection (b) or (c), whichever is specified in the
election. All references in this section to `such Act' or
`such Code' shall be to such Act or such Code as in effect
before the amendments made by this subtitle and subtitle B.
``(b) Application of 2 and 7 Rule.--In the case of an
election year to which this subsection applies--
``(1) 2-year lookback for determining deficit reduction
contributions for certain plans.--For purposes of applying
section 302(d)(9) of such Act and section 412(l)(9) of such
Code, the funded current liability percentage (as defined in
subparagraph (C) thereof) for such plan for such plan year
shall be such funded current liability percentage of such
plan for the second plan year preceding the first election
year of such plan.
``(2) Calculation of deficit reduction contribution.--For
purposes of applying section 302(d) of such Act and section
412(l) of such Code to a plan to which such sections apply
(after taking into account paragraph (1))--
``(A) in the case of the increased unfunded new liability
of the plan, the applicable percentage described in section
302(d)(4)(C) of such Act and section 412(l)(4)(C) of such
Code shall be the third segment rate described in sections
104(b), 105(b), and 106(b) of this Act, and
``(B) in the case of the excess of the unfunded new
liability over the increased unfunded new liability, such
applicable percentage shall be determined without regard to
this section.
``(c) Application of 15-Year Amortization.--In the case of
an election year to which this subsection applies, for
purposes of applying section 302(d) of such Act and section
412(l) of such Code--
``(1) in the case of the increased unfunded new liability
of the plan, the applicable percentage described in section
302(d)(4)(C) of such Act and section 412(l)(4)(C) of such
Code for any pre-effective date plan year beginning with or
after the first election year shall be the ratio of--
``(A) the annual installments payable in each year if the
increased unfunded new liability for such plan year were
amortized over 15 years, using an interest rate equal to the
third segment rate described in sections 104(b), 105(b), and
106(b) of this Act, to
``(B) the increased unfunded new liability for such plan
year, and
``(2) in the case of the excess of the unfunded new
liability over the increased unfunded new liability, such
applicable percentage shall be determined without regard to
this section.

[[Page S1075]]

``(d) Election.--
``(1) In general.--The plan sponsor of a plan may elect to
have this section apply to not more than 2 eligible plan
years with respect to the plan, except that in the case of a
plan to which section 106 of this Act applies, the plan
sponsor may only elect to have this section apply to 1
eligible plan year.
``(2) Amortization schedule.--Such election shall specify
whether the rules under subsection (b) or (c) shall apply to
an election year, except that if a plan sponsor elects to
have this section apply to 2 eligible plan years, the plan
sponsor must elect the same rule for both years.
``(3) Other rules.--Such election shall be made at such
time, and in such form and manner, as shall be prescribed by
the Secretary of the Treasury, and may be revoked only with
the consent of the Secretary of the Treasury.
``(e) Definitions.--For purposes of this section--
``(1) Eligible plan year.--For purposes of this
subparagraph, the term `eligible plan year' means any plan
year beginning in 2008, 2009, 2010, or 2011, except that a
plan year beginning in 2008 shall only be treated as an
eligible plan year if the due date for the payment of the
minimum required contribution for such plan year occurs on or
after the date of the enactment of this clause.
``(2) Pre-effective date plan year.--The term `pre-
effective date plan year' means, with respect to a plan, any
plan year prior to the first year in which the amendments
made by this subtitle and subtitle B apply to the plan.
``(3) Increased unfunded new liability.--The term
`increased unfunded new liability' means, with respect to a
year, the excess (if any) of the unfunded new liability over
the amount of unfunded new liability determined as if the
value of the plan's assets determined under subsection
302(c)(2) of such Act and section 412(c)(2) of such Code
equaled the product of the current liability of the plan for
the year multiplied by the funded current liability
percentage (as defined in section 302(d)(8)(B) of such Act
and 412(l)(8)(B) of such Code) of the plan for the second
plan year preceding the first election year of such plan.
``(4) Other definitions.--The terms `unfunded new
liability' and `current liability' shall have the meanings
set forth in section 302(d) of such Act and section 412(l) of
such Code.''.
(b) Eligible Charity Plans.--Section 104 of the Pension
Protection Act of 2006 is amended--
(1) by striking ``eligible cooperative plan'' wherever it
appears in subsections (a) and (b) and inserting ``eligible
cooperative plan or an eligible charity plan'', and
(2) by adding at the end the following new subsection:
``(d) Eligible Charity Plan Defined.--For purposes of this
section, a plan shall be treated as an eligible charity plan
for a plan year if the plan is maintained by more than one
employer and 100 percent of the employers are described in
section 501(c)(3) of such Code.''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect as if included in the Pension Protection Act of
2006.
(2) Eligible charity plan.--The amendments made by
subsection (b) shall apply to plan years beginning after
December 31, 2007, except that a plan sponsor may elect to
apply such amendments to plan years beginning after December
31, 2008. Any such election shall be made at such time, and
in such form and manner, as shall be prescribed by the
Secretary of the Treasury, and may be revoked only with the
consent of the Secretary of the Treasury.

SEC. 303. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.

(a) In General.--
(1) Amendment to erisa.--Section 206(g)(9) of the Employee
Retirement Income Security Act of 1974 is amended by adding
at the end the following:
``(D) Special rule for certain years.--Solely for purposes
of any applicable provision--
``(i) In general.--For plan years beginning on or after
October 1, 2008, and before October 1, 2010, the adjusted
funding target attainment percentage of a plan shall be the
greater of--

``(I) such percentage, as determined without regard to this
subparagraph, or
``(II) the adjusted funding target attainment percentage
for such plan for the plan year beginning after October 1,
2007, and before October 1, 2008, as determined under rules
prescribed by the Secretary of the Treasury.

``(ii) Special rule.--In the case of a plan for which the
valuation date is not the first day of the plan year--

``(I) clause (i) shall apply to plan years beginning after
December 31, 2007, and before January 1, 2010, and
``(II) clause (i)(II) shall apply based on the last plan
year beginning before November 1, 2007, as determined under
rules prescribed by the Secretary of the Treasury.

``(iii) Applicable provision.--For purposes of this
subparagraph, the term `applicable provision' means--

``(I) paragraph (3), but only for purposes of applying such
paragraph to a payment which, as determined under rules
prescribed by the Secretary of the Treasury, is a payment
under a social security leveling option which accelerates
payments under the plan before, and reduces payments after, a
participant starts receiving social security benefits in
order to provide substantially similar aggregate payments
both before and after such benefits are received, and
``(II) paragraph (4).''.

(2) Amendment to internal revenue code of 1986.--Section
436(j) of the Internal Revenue Code of 1986 is amended by
adding at the end the following:
``(3) Special rule for certain years.--Solely for purposes
of any applicable provision--
``(A) In general.--For plan years beginning on or after
October 1, 2008, and before October 1, 2010, the adjusted
funding target attainment percentage of a plan shall be the
greater of--
``(i) such percentage, as determined without regard to this
paragraph, or
``(ii) the adjusted funding target attainment percentage
for such plan for the plan year beginning after October 1,
2007, and before October 1, 2008, as determined under rules
prescribed by the Secretary.
``(B) Special rule.--In the case of a plan for which the
valuation date is not the first day of the plan year--
``(i) subparagraph (A) shall apply to plan years beginning
after December 31, 2007, and before January 1, 2010, and
``(ii) subparagraph (A)(ii) shall apply based on the last
plan year beginning before November 1, 2007, as determined
under rules prescribed by the Secretary.
``(C) Applicable provision.--For purposes of this
paragraph, the term `applicable provision' means--
``(i) subsection (d), but only for purposes of applying
such paragraph to a payment which, as determined under rules
prescribed by the Secretary, is a payment under a social
security leveling option which accelerates payments under the
plan before, and reduces payments after, a participant starts
receiving social security benefits in order to provide
substantially similar aggregate payments both before and
after such benefits are received, and
``(ii) subsection (e).''.
(b) Interaction With Wrera Rule.--Section 203 of the
Worker, Retiree, and Employer Recovery Act of 2008 shall
apply to a plan for any plan year in lieu of the amendments
made by this section applying to sections 206(g)(4) of the
Employee Retirement Income Security Act of 1974 and 436(e) of
the Internal Revenue Code of 1986 only to the extent that
such section produces a higher adjusted funding target
attainment percentage for such plan for such year.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning on or after October 1, 2008.
(2) Special rule.--In the case of a plan for which the
valuation date is not the first day of the plan year, the
amendments made by this section shall apply to plan years
beginning after December 31, 2007.
Subtitle B--Multiemployer Plans

SEC. 311. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.

(a) Adjustments.--
(1) Amendment to erisa.--Section 304(b) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is
amended by adding at the end the following new paragraph:
``(8) Special relief rules.--Notwithstanding any other
provision of this subsection--
``(A) Amortization of net investment losses.--
``(i) In general.--A multiemployer plan with respect to
which the solvency test under subparagraph (C) is met may
treat the portion of its experience loss attributable to the
net investment losses (if any) incurred in either or both of
the first two plan years ending after August 31, 2008, as an
item separate from other experience losses, to be amortized
in equal annual installments (until fully amortized) over a
period of 30 plan years.
``(ii) Coordination with extensions.--If this subparagraph
applies for any plan year--

``(I) no extension of the amortization period under clause
(i) shall be allowed under subsection (d), and
``(II) if an extension was granted under subsection (d) for
any plan year before the election to have this subparagraph
apply to the plan year, such extension shall not result in
such amortization period exceeding 30 years.

``(iii) Net investment losses.--For purposes of this
subparagraph--

``(I) In general.--Net investment losses shall be
determined in the manner prescribed by the Secretary of the
Treasury on the basis of the difference between actual and
expected returns (including any difference attributable to
any criminally fraudulent investment arrangement).
``(II) Criminally fraudulent investment arrangements.--The
determination as to whether an arrangement is a criminally
fraudulent investment arrangement shall be made under rules
substantially similar to the rules prescribed by the
Secretary of the Treasury for purposes of section 165 of the
Internal Revenue Code of 1986.

``(B) Expanded smoothing period.--
``(i) In general.--A multiemployer plan with respect to
which the solvency test under subparagraph (C) is met may
change its asset valuation method in a manner which--

``(I) spreads the difference between expected and actual
returns for either or both

[[Page S1076]]

of the first 2 plan years ending after August 31, 2008, over
a period of not more than 10 years,
``(II) provides that for either or both of such 2 plan
years the value of plan assets at any time shall not be less
than 80 percent or greater than 130 percent of the fair
market value of such assets at such time, or
``(III) makes both changes described in subclauses (I) and
(II) to such method.

``(ii) Asset valuation methods.--If this subparagraph
applies for any plan year--

``(I) the Secretary of the Treasury shall not treat the
asset valuation method of the plan as unreasonable solely
because of the changes in such method described in clause
(i), and
``(II) such changes shall be deemed approved by such
Secretary under section 302(d)(1) and section 412(d)(1) of
such Code.

``(iii) Amortization of reduction in unfunded accrued
liability.--If this subparagraph and subparagraph (A) both
apply for any plan year, the plan shall treat any reduction
in unfunded accrued liability resulting from the application
of this subparagraph as a separate experience amortization
base, to be amortized in equal annual installments (until
fully amortized) over a period of 30 plan years rather than
the period such liability would otherwise be amortized over.
``(C) Solvency test.--The solvency test under this
paragraph is met only if the plan actuary certifies that the
plan is projected to have sufficient assets to timely pay
expected benefits and anticipated expenditures over the
amortization period, taking into account the changes in the
funding standard account under this paragraph.
``(D) Restriction on benefit increases.--If subparagraph
(A) or (B) apply to a multiemployer plan for any plan year,
then, in addition to any other applicable restrictions on
benefit increases, a plan amendment increasing benefits may
not go into effect during either of the 2 plan years
immediately following such plan year unless--
``(i) the plan actuary certifies that--

``(I) any such increase is paid for out of additional
contributions not allocated to the plan immediately before
the application of this paragraph to the plan, and
``(II) the plan's funded percentage and projected credit
balances for such 2 plan years are reasonably expected to be
at least as high as such percentage and balances would have
been if the benefit increase had not been adopted, or

``(ii) the amendment is required as a condition of
qualification under part I of subchapter D of chapter 1 of
the Internal Revenue Code of 1986 or to comply with other
applicable law.
``(E) Reporting.--A plan sponsor of a plan to which this
paragraph applies shall inform the Pension Benefit Guaranty
Corporation of such application in such form and manner as
the Director of the Pension Benefit Guaranty Corporation may
prescribe.''.
(2) Amendment to internal revenue code of 1986.--Section
431(b) is amended by adding at the end the following new
paragraph:
``(8) Special relief rules.--Notwithstanding any other
provision of this subsection--
``(A) Amortization of net investment losses.--
``(i) In general.--A multiemployer plan with respect to
which the solvency test under subparagraph (C) is met may
treat the portion of its experience loss attributable to the
net investment losses (if any) incurred in either or both of
the first two plan years ending after August 31, 2008, as an
item separate from other experience losses, to be amortized
in equal annual installments (until fully amortized) over a
period of 30 plan years.
``(ii) Coordination with extensions.--If this subparagraph
applies for any plan year--

``(I) no extension of the amortization period under clause
(i) shall be allowed under subsection (d), and
``(II) if an extension was granted under subsection (d) for
any plan year before the election to have this subparagraph
apply to the plan year, such extension shall not result in
such amortization period exceeding 30 years.

``(iii) Net investment losses.--For purposes of this
subparagraph--

``(I) In general.--Net investment losses shall be
determined in the manner prescribed by the Secretary on the
basis of the difference between actual and expected returns
(including any difference attributable to any criminally
fraudulent investment arrangement).
``(II) Criminally fraudulent investment arrangements.--The
determination as to whether an arrangement is a criminally
fraudulent investment arrangement shall be made under rules
substantially similar to the rules prescribed by the
Secretary for purposes of section 165.

``(B) Expanded smoothing period.--
``(i) In general.--A multiemployer plan with respect to
which the solvency test under subparagraph (C) is met may
change its asset valuation method in a manner which--

``(I) spreads the difference between expected and actual
returns for either or both of the first 2 plan years ending
after August 31, 2008, over a period of not more than 10
years,
``(II) provides that for either or both of such 2 plan
years the value of plan assets at any time shall not be less
than 80 percent or greater than 130 percent of the fair
market value of such assets at such time, or
``(III) makes both changes described in subclauses (I) and
(II) to such method.

``(ii) Asset valuation methods.--If this subparagraph
applies for any plan year--

``(I) the Secretary shall not treat the asset valuation
method of the plan as unreasonable solely because of the
changes in such method described in clause (i), and
``(II) such changes shall be deemed approved by the
Secretary under section 302(d)(1) of the Employee Retirement
Income Security Act of 1974 and section 412(d)(1).

``(iii) Amortization of reduction in unfunded accrued
liability.--If this subparagraph and subparagraph (A) both
apply for any plan year, the plan shall treat any reduction
in unfunded accrued liability resulting from the application
of this subparagraph as a separate experience amortization
base, to be amortized in equal annual installments (until
fully amortized) over a period of 30 plan years rather than
the period such liability would otherwise be amortized over.
``(C) Solvency test.--The solvency test under this
paragraph is met only if the plan actuary certifies that the
plan is projected to have sufficient assets to timely pay
expected benefits and anticipated expenditures over the
amortization period, taking into account the changes in the
funding standard account under this paragraph.
``(D) Restriction on benefit increases.--If subparagraph
(A) or (B) apply to a multiemployer plan for any plan year,
then, in addition to any other applicable restrictions on
benefit increases, a plan amendment increasing benefits may
not go into effect during either of the 2 plan years
immediately following such plan year unless--
``(i) the plan actuary certifies that--

``(I) any such increase is paid for out of additional
contributions not allocated to the plan immediately before
the application of this paragraph to the plan, and
``(II) the plan's funded percentage and projected credit
balances for such 2 plan years are reasonably expected to be
at least as high as such percentage and balances would have
been if the benefit increase had not been adopted, or

``(ii) the amendment is required as a condition of
qualification under part I of subchapter D or to comply with
other applicable law.
``(E) Reporting.--A plan sponsor of a plan to which this
paragraph applies shall inform the Pension Benefit Guaranty
Corporation of such application in such form and manner as
the Director of the Pension Benefit Guaranty Corporation may
prescribe.''.
(b) Effective Dates.--
(1) In general.--The amendments made by this section shall
take effect as of the first day of the first plan year ending
after August 31, 2008, except that any election a plan makes
pursuant to this section that affects the plan's funding
standard account for the first plan year ending after August
31, 2008, shall be disregarded for purposes of applying the
provisions of section 305 of the Employee Retirement Income
Security Act of 1974 and section 432 of the Internal Revenue
Code of 1986 to such plan year.
(2) Restrictions on benefit increases.--Notwithstanding
paragraph (1), the restrictions on plan amendments increasing
benefits in sections 304(b)(8)(D) of such Act and
431(b)(8)(D) of such Code, as added by this section, shall
take effect on the date of enactment of this Act.
TITLE IV--OFFSET PROVISIONS
Subtitle A--Black Liquor

SEC. 401. EXCLUSION OF UNPROCESSED FUELS FROM THE CELLULOSIC
BIOFUEL PRODUCER CREDIT.

(a) In General.--Subparagraph (E) of section 40(b)(6) is
amended by adding at the end the following new clause:
``(iii) Exclusion of unprocessed fuels.--The term
`cellulosic biofuel' shall not include any fuel if--

``(I) more than 4 percent of such fuel (determined by
weight) is any combination of water and sediment, or
``(II) the ash content of such fuel is more than 1 percent
(determined by weight).''.

(b) Effective Date.--The amendment made by this section
shall apply to fuels sold or used after the date of the
enactment of this Act.

SEC. 402. PROHIBITION ON ALTERNATIVE FUEL CREDIT AND
ALTERNATIVE FUEL MIXTURE CREDIT FOR BLACK
LIQUOR.

(a) In General.--The last sentence of section 6426(d)(2) is
amended by striking ``or biodiesel'' and inserting
``biodiesel, or any fuel (including lignin, wood residues, or
spent pulping liquors) derived from the production of paper
or pulp''.
(b) Effective Date.--The amendment made by this section
shall apply to fuel sold or used after December 31, 2009.
Subtitle B--Homebuyer Credit

SEC. 411. TECHNICAL MODIFICATIONS TO HOMEBUYER CREDIT.

(a) Expanded Documentation Requirement.--Subsection (d) of
section 36, as amended by the Worker, Homeownership, and
Business Assistance Act of 2009, is amended--
(1) by striking ``or'' at the end of paragraph (3),
(2) by striking the period at the end of paragraph (4) and
inserting a comma, and
(3) by adding at the end the following new paragraphs:
``(5) in the case of a taxpayer to whom such a credit would
be allowed (but for this paragraph) by reason of subsection
(c)(6), the taxpayer fails to attach to the return of tax for

[[Page S1077]]

such taxable year a copy of such property tax bills or other
documentation as are required by the Secretary to demonstrate
compliance with the requirements of subsection (c)(6), or
``(6) in the case of a taxpayer to whom such a credit would
be allowed (but for this paragraph) by reason of subsection
(h)(2), the taxpayer fails to attach to the return of tax for
such taxable year a copy of the binding contract which meets
the requirements of subsection (h)(2).''.
(b) Modification of Effective Date of Documentation
Requirements.--Paragraph (2) of section 12(e) of the Worker,
Homeownership, and Business Assistance Act of 2009 is amended
by striking ``returns for taxable years ending after the date
of the enactment of this Act'' and inserting ``returns filed
after the date of the enactment of this Act''.
(c) Effective Dates.--
(1) Documentation requirements.--The amendments made by
subsection (a) shall apply to purchases on or after the date
of the enactment of this Act.
(2) Effective date of worker, homeownership, and business
assistance act.--The amendment made by subsection (b) shall
apply to purchases of a principal residence on or after the
date of the enactment of the Worker, Homeownership, and
Business Assistance Act of 2009.
Subtitle C--Economic Substance

SEC. 421. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE;
PENALTIES.

(a) In General.--Section 7701 is amended by redesignating
subsection (o) as subsection (p) and by inserting after
subsection (n) the following new subsection:
``(o) Clarification of Economic Substance Doctrine.--
``(1) Application of doctrine.--In the case of any
transaction to which the economic substance doctrine is
relevant, such transaction shall be treated as having
economic substance only if--
``(A) the transaction changes in a meaningful way (apart
from Federal income tax effects) the taxpayer's economic
position, and
``(B) the taxpayer has a substantial purpose (apart from
Federal income tax effects) for entering into such
transaction.
``(2) Special rule where taxpayer relies on profit
potential.--
``(A) In general.--The potential for profit of a
transaction shall be taken into account in determining
whether the requirements of subparagraphs (A) and (B) of
paragraph (1) are met with respect to the transaction only if
the present value of the reasonably expected pre-tax profit
from the transaction is substantial in relation to the
present value of the expected net tax benefits that would be
allowed if the transaction were respected.
``(B) Treatment of fees and foreign taxes.--Fees and other
transaction expenses shall be taken into account as expenses
in determining pre-tax profit under subparagraph (A). The
Secretary may issue regulations requiring foreign taxes to be
treated as expenses in determining pre-tax profit in
appropriate cases.
``(3) State and local tax benefits.--For purposes of
paragraph (1), any State or local income tax effect which is
related to a Federal income tax effect shall be treated in
the same manner as a Federal income tax effect.
``(4) Financial accounting benefits.--For purposes of
paragraph (1)(B), achieving a financial accounting benefit
shall not be taken into account as a purpose for entering
into a transaction if the origin of such financial accounting
benefit is a reduction of Federal income tax.
``(5) Definitions and special rules.--For purposes of this
subsection--
``(A) Economic substance doctrine.--The term `economic
substance doctrine' means the common law doctrine under which
tax benefits under subtitle A with respect to a transaction
are not allowable if the transaction does not have economic
substance or lacks a business purpose.
``(B) Exception for personal transactions of individuals.--
In the case of an individual, paragraph (1) shall apply only
to transactions entered into in connection with a trade or
business or an activity engaged in for the production of
income.
``(C) Other common law doctrines not affected.--Except as
specifically provided in this subsection, the provisions of
this subsection shall not be construed as altering or
supplanting any other rule of law, and the requirements of
this subsection shall be construed as being in addition to
any such other rule of law.
``(D) Determination of application of doctrine not
affected.--The determination of whether the economic
substance doctrine is relevant to a transaction shall be made
in the same manner as if this subsection had never been
enacted.
``(E) Transaction.--The term `transaction' includes a
series of transactions.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection.''.
(b) Penalty for Underpayments Attributable to Transactions
Lacking Economic Substance.--
(1) In general.--Subsection (b) of section 6662 is amended
by inserting after paragraph (5) the following new paragraph:
``(6) Any disallowance of claimed tax benefits by reason of
a transaction lacking economic substance (within the meaning
of section 7701(o)) or failing to meet the requirements of
any similar rule of law.''.
(2) Increased penalty for nondisclosed transactions.--
Section 6662 is amended by adding at the end the following
new subsection:
``(i) Increase in Penalty in Case of Nondisclosed
Noneconomic Substance Transactions.--
``(1) In general.--In the case of any portion of an
underpayment which is attributable to one or more
nondisclosed noneconomic substance transactions, subsection
(a) shall be applied with respect to such portion by
substituting `40 percent' for `20 percent'.
``(2) Nondisclosed noneconomic substance transactions.--For
purposes of this subsection, the term `nondisclosed
noneconomic substance transaction' means any portion of a
transaction described in subsection (b)(6) with respect to
which the relevant facts affecting the tax treatment are not
adequately disclosed in the return nor in a statement
attached to the return.
``(3) Special rule for amended returns.--Except as provided
in regulations, in no event shall any amendment or supplement
to a return of tax be taken into account for purposes of this
subsection if the amendment or supplement is filed after the
earlier of the date the taxpayer is first contacted by the
Secretary regarding the examination of the return or such
other date as is specified by the Secretary.''.
(3) Conforming amendment.--Subparagraph (B) of section
6662A(e)(2) is amended--
(A) by striking ``section 6662(h)'' and inserting
``subsections (h) or (i) of section 6662''; and
(B) by striking ``gross valuation misstatement penalty'' in
the heading and inserting ``certain increased underpayment
penalties''.
(c) Reasonable Cause Exception Not Applicable to
Noneconomic Substance Transactions.--
(1) Reasonable cause exception for underpayments.--
Subsection (c) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(B) by striking ``paragraph (2)'' in paragraph (4)(A), as
so redesignated, and inserting ``paragraph (3)''; and
(C) by inserting after paragraph (1) the following new
paragraph:
``(2) Exception.--Paragraph (1) shall not apply to any
portion of an underpayment which is attributable to one or
more transactions described in section 6662(b)(6).''.
(2) Reasonable cause exception for reportable transaction
understatements.--Subsection (d) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(B) by striking ``paragraph (2)(C)'' in paragraph (4), as
so redesignated, and inserting ``paragraph (3)(C)''; and
(C) by inserting after paragraph (1) the following new
paragraph:
``(2) Exception.--Paragraph (1) shall not apply to any
portion of a reportable transaction understatement which is
attributable to one or more transactions described in section
6662(b)(6).''.
(d) Application of Penalty for Erroneous Claim for Refund
or Credit to Noneconomic Substance Transactions.--Section
6676 is amended by redesignating subsection (c) as subsection
(d) and inserting after subsection (b) the following new
subsection:
``(c) Noneconomic Substance Transactions Treated as Lacking
Reasonable Basis.--For purposes of this section, any
excessive amount which is attributable to any transaction
described in section 6662(b)(6) shall not be treated as
having a reasonable basis.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to transactions entered into after the date of the enactment
of this Act.
(2) Underpayments.--The amendments made by subsections (b)
and (c)(1) shall apply to underpayments attributable to
transactions entered into after the date of the enactment of
this Act.
(3) Understatements.--The amendments made by subsection
(c)(2) shall apply to understatements attributable to
transactions entered into after the date of the enactment of
this Act.
(4) Refunds and credits.--The amendment made by subsection
(d) shall apply to refunds and credits attributable to
transactions entered into after the date of the enactment of
this Act.
Subtitle D--Additional Provisions

SEC. 431. REVISION TO THE MEDICARE IMPROVEMENT FUND.

Section 1898(b)(1)(A) of the Social Security Act (42 U.S.C.
1395iii(b)(1)(A)), as amended by section 1011(b) of the
Department of Defense Appropriations Act, 2010 (Public Law
111-118), is amended by striking ``$20,740,000,000'' and
inserting ``$12,740,000,000''.
TITLE V--SATELLITE TELEVISION EXTENSION

SEC. 501. SHORT TITLE.

This title may be cited as the ``Satellite Television
Extension and Localism Act of 2010''.
Subtitle A--Statutory Licenses

SEC. 501. REFERENCE.

Except as otherwise provided, whenever in this subtitle an
amendment is made to a section or other provision, the
reference shall be considered to be made to such section or
provision of title 17, United States Code.

[[Page S1078]]

SEC. 502. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE
CARRIERS.

(a) Heading Renamed.--
(1) In general.--The heading of section 119 is amended by
striking ``superstations and network stations for private
home viewing'' and inserting ``distant television programming
by satellite''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 119 and
inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions of
distant television programming by satellite.''.

(b) Unserved Household Defined.--
(1) In general.--Section 119(d)(10) is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) cannot receive, through the use of an antenna, an
over-the-air signal containing the primary stream, or, on or
after the qualifying date, the multicast stream, originating
in that household's local market and affiliated with that
network of--
``(i) if the signal originates as an analog signal, Grade B
intensity as defined by the Federal Communications Commission
in section 73.683(a) of title 47, Code of Federal
Regulations, as in effect on January 1, 1999; or
``(ii) if the signal originates as a digital signal,
intensity defined in the values for the digital television
noise-limited service contour, as defined in regulations
issued by the Federal Communications Commission (section
73.622(e) of title 47, Code of Federal Regulations), as such
regulations may be amended from time to time;'';
(B) in subparagraph (B)--
(i) by striking ``subsection (a)(14)'' and inserting
``subsection (a)(13),''; and
(ii) by striking ``Satellite Home Viewer Extension and
Reauthorization Act of 2004'' and inserting ``Satellite
Television Extension and Localism Act of 2010''; and
(C) in subparagraph (D), by striking ``(a)(12)'' and
inserting ``(a)(11)''.
(2) Qualifying date defined.--Section 119(d) is amended by
adding at the end the following:
``(14) Qualifying date.--The term `qualifying date', for
purposes of paragraph (10)(A), means--
``(A) July 1, 2010, for multicast streams that exist on
December 31, 2009; and
``(B) January 1, 2011, for all other multicast streams.''.
(c) Filing Fee.--Section 119(b)(1) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(C) a filing fee, as determined by the Register of
Copyrights pursuant to section 708(a).''.
(d) Deposit of Statements and Fees; Verification
Procedures.--Section 119(b) is amended--
(1) by amending the subsection heading to read as follows:
``(b) Deposit of Statements and Fees; Verification
Procedures.--'';
(2) in paragraph (1), by striking subparagraph (B) and
inserting the following:
``(B) a royalty fee payable to copyright owners pursuant to
paragraph (4) for that 6-month period, computed by
multiplying the total number of subscribers receiving each
secondary transmission of a primary stream or multicast
stream of each non-network station or network station during
each calendar year month by the appropriate rate in effect
under this subsection; and'';
(3) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to permit
interested parties to verify and audit the statements of
account and royalty fees submitted by satellite carriers
under this subsection.'';
(5) in paragraph (3), as redesignated, in the first
sentence--
(A) by inserting ``(including the filing fee specified in
paragraph (1)(C))'' after ``shall receive all fees''; and
(B) by striking ``paragraph (4)'' and inserting ``paragraph
(5)'';
(6) in paragraph (4), as redesignated--
(A) by striking ``paragraph (2)'' and inserting ``paragraph
(3)''; and
(B) by striking ``paragraph (4)'' each place it appears and
inserting ``paragraph (5)''; and
(7) in paragraph (5), as redesignated, by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(e) Adjustment of Royalty Fees.--Section 119(c) is amended
as follows:
(1) Paragraph (1) is amended--
(A) in the heading for such paragraph, by striking
``analog'';
(B) in subparagraph (A)--
(i) by striking ``primary analog transmissions'' and
inserting ``primary transmissions''; and
(ii) by striking ``July 1, 2004'' and inserting ``July 1,
2009'';
(C) in subparagraph (B)--
(i) by striking ``January 2, 2005, the Librarian of
Congress'' and inserting ``March 1, 2010, the Copyright
Royalty Judges''; and
(ii) by striking ``primary analog transmission'' and
inserting ``primary transmissions'';
(D) in subparagraph (C), by striking ``Librarian of
Congress'' and inserting ``Copyright Royalty Judges'';
(E) in subparagraph (D)--
(i) in clause (i)--

(I) by striking ``(i) Voluntary agreements'' and inserting
the following:

``(i) Voluntary agreements; filing.--Voluntary
agreements''; and

(II) by striking ``that a parties'' and inserting ``that
are parties''; and

(ii) in clause (ii)--

(I) by striking ``(ii)(I) Within'' and inserting the
following:

``(ii) Procedure for adoption of fees.--

``(I) Publication of notice.--Within'';
(II) in subclause (I), by striking ``an arbitration
proceeding pursuant to subparagraph (E)'' and inserting ``a
proceeding under subparagraph (F)'';
(III) in subclause (II), by striking ``(II) Upon receiving
a request under subclause (I), the Librarian of Congress''
and inserting the following:
``(II) Public notice of fees.--Upon receiving a request
under subclause (I), the Copyright Royalty Judges''; and
(IV) in subclause (III)--

(aa) by striking ``(III) The Librarian'' and inserting the
following:

``(III) Adoption of fees.--The Copyright Royalty Judges'';

(bb) by striking ``an arbitration proceeding'' and
inserting ``the proceeding under subparagraph (F)''; and
(cc) by striking ``the arbitration proceeding'' and
inserting ``that proceeding'';
(F) in subparagraph (E)--
(i) by striking ``Copyright Office'' and inserting
``Copyright Royalty Judges''; and
(ii) by striking ``February 28, 2010'' and inserting
``December 31, 2014''; and
(G) in subparagraph (F)--
(i) in the heading, by striking ``compulsory arbitration''
and inserting `` copyright royalty judges proceeding'';
(ii) in clause (i)--

(I) in the heading, by striking ``proceedings'' and
inserting ``the proceeding'';
(II) in the matter preceding subclause (I)--

(aa) by striking ``May 1, 2005, the Librarian of Congress''
and inserting ``May 3, 2010, the Copyright Royalty Judges'';
(bb) by striking ``arbitration proceedings'' and inserting
``a proceeding'';
(cc) by striking ``fee to be paid'' and inserting ``fees to
be paid'';
(dd) by striking ``primary analog transmission'' and
inserting ``the primary transmissions''; and
(ee) by striking ``distributors'' and inserting
``distributors--'';

(III) in subclause (II)--

(aa) by striking ``Librarian of Congress'' and inserting
``Copyright Royalty Judges''; and
(bb) by striking ``arbitration''; and

(IV) by amending the last sentence to read as follows:
``Such proceeding shall be conducted under chapter 8.'';

(iii) in clause (ii), by amending the matter preceding
subclause (I) to read as follows:
``(ii) Establishment of royalty fees.--In determining
royalty fees under this subparagraph, the Copyright Royalty
Judges shall establish fees for the secondary transmissions
of the primary transmissions of network stations and non-
network stations that most clearly represent the fair market
value of secondary transmissions, except that the Copyright
Royalty Judges shall adjust royalty fees to account for the
obligations of the parties under any applicable voluntary
agreement filed with the Copyright Royalty Judges in
accordance with subparagraph (D). In determining the fair
market value, the Judges shall base their decision on
economic, competitive, and programming information presented
by the parties, including--'';
(iv) by amending clause (iii) to read as follows:
``(iii) Effective date for decision of copyright royalty
judges.--The obligation to pay the royalty fees established
under a determination that is made by the Copyright Royalty
Judges in a proceeding under this paragraph shall be
effective as of January 1, 2010.''; and
(v) in clause (iv)--

(I) in the heading, by striking ``fee'' and inserting
``fees''; and
(II) by striking ``fee referred to in (iii)'' and inserting
``fees referred to in clause (iii)''.

(2) Paragraph (2) is amended to read as follows:
``(2) Annual royalty fee adjustment.--Effective January 1
of each year, the royalty fee payable under subsection
(b)(1)(B) for the secondary transmission of the primary
transmissions of network stations and non-network stations
shall be adjusted by the Copyright Royalty Judges to reflect
any changes occurring in the cost of living as determined by
the most recent Consumer Price Index (for all consumers and
for all items) published by the Secretary of Labor before
December 1 of the preceding year. Notification of the
adjusted fees shall be published in the Federal Register at
least 25 days before January 1.''.
(f) Definitions.--
(1) Subscriber.--Section 119(d)(8) is amended to read as
follows:
``(8) Subscriber; subscribe.--
``(A) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
satellite carrier and pays a fee for the service, directly or
indirectly, to the satellite carrier or to a distributor.

[[Page S1079]]

``(B) Subscribe.--The term `subscribe' means to elect to
become a subscriber.''.
(2) Local market.--Section 119(d)(11) is amended to read as
follows:
``(11) Local market.--The term `local market' has the
meaning given such term under section 122(j).''.
(3) Low power television station.--Section 119(d) is
amended by striking paragraph (12) and redesignating
paragraphs (13) and (14) as paragraphs (12) and (13),
respectively.
(4) Multicast stream.--Section 119(d), as amended by
paragraph (3), is further amended by adding at the end the
following new paragraph:
``(14) Multicast stream.--The term `multicast stream' means
a digital stream containing programming and program-related
material affiliated with a television network, other than the
primary stream.''.
(5) Primary stream.--Section 119(d), as amended by
paragraph (4), is further amended by adding at the end the
following new paragraph:
``(15) Primary stream.--The term `primary stream' means--
``(A) the single digital stream of programming as to which
a television broadcast station has the right to mandatory
carriage with a satellite carrier under the rules of the
Federal Communications Commission in effect on July 1, 2009;
or
``(B) if there is no stream described in subparagraph (A),
then either--
``(i) the single digital stream of programming associated
with the network last transmitted by the station as an analog
signal; or
``(ii) if there is no stream described in clause (i), then
the single digital stream of programming affiliated with the
network that, as of July 1, 2009, had been offered by the
television broadcast station for the longest period of
time.''.
(6) Clerical amendment.--Section 119(d) is amended in
paragraphs (1), (2), and (5) by striking ``which'' each place
it appears and inserting ``that''.
(g) Superstation Redesignated as Non-Network Station.--
Section 119 is amended--
(1) by striking ``superstation'' each place it appears in a
heading and each place it appears in text and inserting
``non-network station''; and
(2) by striking ``superstations'' each place it appears in
a heading and each place it appears in text and inserting
``non-network stations''.
(h) Removal of Certain Provisions.--
(1) Removal of provisions.--Section 119(a) is amended--
(A) in paragraph (2), by striking subparagraph (C) and
redesignating subparagraph (D) as subparagraph (C);
(B) by striking paragraph (3) and redesignating paragraphs
(4) through (14) as paragraphs (3) through (13),
respectively; and
(C) by striking paragraph (15) and redesignating paragraph
(16) as paragraph (14).
(2) Conforming amendments.--Section 119 is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(5), (6), and (8)'' and
inserting ``(4), (5), and (7)'';
(ii) in paragraph (2)--

(I) in subparagraph (A), by striking ``subparagraphs (B)
and (C) of this paragraph and paragraphs (5), (6), (7), and
(8)'' and inserting ``subparagraph (B) of this paragraph and
paragraphs (4), (5), (6), and (7)'';
(II) in subparagraph (B)(i), by striking the second
sentence; and
(III) in subparagraph (C) (as redesignated), by striking
clauses (i) and (ii) and inserting the following:

``(i) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made by a
network station pursuant to subparagraph (A) shall, not later
than 90 days after commencing such secondary transmissions,
submit to the network that owns or is affiliated with the
network station a list identifying (by name and address,
including street or rural route number, city, State, and 9-
digit zip code) all subscribers to which the satellite
carrier makes secondary transmissions of that primary
transmission to subscribers in unserved households.
``(ii) Monthly lists.--After the submission of the initial
lists under clause (i), the satellite carrier shall, not
later than the 15th of each month, submit to the network a
list, aggregated by designated market area, identifying (by
name and address, including street or rural route number,
city, State, and 9-digit zip code) any persons who have been
added or dropped as subscribers under clause (i) since the
last submission under this subparagraph.''; and
(iii) in subparagraph (E) of paragraph (3) (as
redesignated)--

(I) by striking ``under paragraph (3) or''; and
(II) by striking ``paragraph (12)'' and inserting
``paragraph (11)''; and

(B) in subsection (b)(1), by striking the final sentence.
(i) Modifications to Provisions for Secondary Transmissions
by Satellite Carriers.--
(1) Predictive model.--Section 119(a)(2)(B)(ii) is amended
by adding at the end the following:

``(III) Accurate predictive model with respect to digital
signals.--Notwithstanding subclause (I), in determining
presumptively whether a person resides in an unserved
household under subsection (d)(10)(A) with respect to digital
signals, a court shall rely on a predictive model set forth
by the Federal Communications Commission pursuant to a
rulemaking as provided in section 339(c)(3) of the
Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that
model may be amended by the Commission over time under such
section to increase the accuracy of that model. Until such
time as the Commission sets forth such model, a court shall
rely on the predictive model as recommended by the Commission
with respect to digital signals in its Report to Congress in
ET Docket No. 05-182, FCC 05-199 (released December 9,
2005).''.

(2) Modifications to statutory license where
retransmissions into local market available.--Section
119(a)(3) (as redesignated) is amended--
(A) by striking ``analog'' each place it appears in a
heading and text;
(B) by striking subparagraphs (B), (C), and (D), and
inserting the following:
``(B) Rules for lawful subscribers as of date of enactment
of 2010 act.--In the case of a subscriber of a satellite
carrier who, on the day before the date of the enactment of
the Satellite Television Extension and Localism Act of 2010,
was lawfully receiving the secondary transmission of the
primary transmission of a network station under the statutory
license under paragraph (2) (in this subparagraph referred to
as the `distant signal'), other than subscribers to whom
subparagraph (A) applies, the statutory license under
paragraph (2) shall apply to secondary transmissions by that
satellite carrier to that subscriber of the distant signal of
a station affiliated with the same television network, and
the subscriber's household shall continue to be considered to
be an unserved household with respect to such network, until
such time as the subscriber elects to terminate such
secondary transmissions, whether or not the subscriber elects
to subscribe to receive the secondary transmission of the
primary transmission of a local network station affiliated
with the same network pursuant to the statutory license under
section 122.
``(C) Future applicability.--
``(i) When local signal available at time of
subscription.--The statutory license under paragraph (2)
shall not apply to the secondary transmission by a satellite
carrier of the primary transmission of a network station to a
person who is not a subscriber lawfully receiving such
secondary transmission as of the date of the enactment of the
Satellite Television Extension and Localism Act of 2010 and,
at the time such person seeks to subscribe to receive such
secondary transmission, resides in a local market where the
satellite carrier makes available to that person the
secondary transmission of the primary transmission of a local
network station affiliated with the same network pursuant to
the statutory license under section 122.
``(ii) When local signal available after subscription.--In
the case of a subscriber who lawfully subscribes to and
receives the secondary transmission by a satellite carrier of
the primary transmission of a network station under the
statutory license under paragraph (2) (in this clause
referred to as the `distant signal') on or after the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010, the statutory license under paragraph
(2) shall apply to secondary transmissions by that satellite
carrier to that subscriber of the distant signal of a station
affiliated with the same television network, and the
subscriber's household shall continue to be considered to be
an unserved household with respect to such network, until
such time as the subscriber elects to terminate such
secondary transmissions, but only if such subscriber
subscribes to the secondary transmission of the primary
transmission of a local network station affiliated with the
same network within 60 days after the satellite carrier makes
available to the subscriber such secondary transmission of
the primary transmission of such local network station.'';
(C) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (D), (E), and (F), respectively;
(D) in subparagraph (E) (as redesignated), by striking
``(C) or (D)'' and inserting ``(B) or (C)''; and
(E) in subparagraph (F) (as redesignated), by inserting
``9-digit'' before ``zip code''.
(3) Statutory damages for territorial restrictions.--
Section 119(a)(6) (as redesignated) is amended--
(A) in subparagraph (A)(ii), by striking ``$5'' and
inserting ``$250'';
(B) in subparagraph (B)----
(i) in clause (i), by striking ``$250,000 for each 6-month
period'' and inserting ``$2,500,000 for each 3-month
period''; and
(ii) in clause (ii), by striking ``$250,000'' and inserting
``$2,500,000''; and
(C) by adding at the end the following flush sentences:

``The court shall direct one half of any statutory damages
ordered under clause (i) to be deposited with the Register of
Copyrights for distribution to copyright owners pursuant to
subsection (b). The Copyright Royalty Judges shall issue
regulations establishing procedures for distributing such
funds, on a proportional basis, to copyright owners whose
works were included in the secondary transmissions that were
the subject of the statutory damages.''.
(4) Technical amendment.--Section 119(a)(4) (as
redesignated) is amended by striking ``and 509''.
(5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is
amended by striking ``In this clause'' and inserting ``In
this clause,''.

[[Page S1080]]

(j) Moratorium Extension.--Section 119(e) is amended by
striking ``February 28, 2010'' and inserting ``December 31,
2014''.
(k) Clerical Amendments.--Section 119 is amended--
(1) by striking ``of the Code of Federal Regulations'' each
place it appears and inserting ``, Code of Federal
Regulations''; and
(2) in subsection (d)(6), by striking ``or the Direct'' and
inserting ``, or the Direct''.

SEC. 503. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE
CARRIERS IN LOCAL MARKETS.

(a) Heading Renamed.--
(1) In general.--The heading of section 122 is amended by
striking ``by satellite carriers within local markets'' and
inserting ``of local television programming by satellite''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 122 and
inserting the following:

``122. Limitations on exclusive rights: Secondary transmissions of
local television programming by satellite.''.

(b) Statutory License.--Section 122(a) is amended to read
as follows:
``(a) Secondary Transmissions Into Local Markets.--
``(1) Secondary transmissions of television broadcast
stations within a local market.--A secondary transmission of
a performance or display of a work embodied in a primary
transmission of a television broadcast station into the
station's local market shall be subject to statutory
licensing under this section if--
``(A) the secondary transmission is made by a satellite
carrier to the public;
``(B) with regard to secondary transmissions, the satellite
carrier is in compliance with the rules, regulations, or
authorizations of the Federal Communications Commission
governing the carriage of television broadcast station
signals; and
``(C) the satellite carrier makes a direct or indirect
charge for the secondary transmission to--
``(i) each subscriber receiving the secondary transmission;
or
``(ii) a distributor that has contracted with the satellite
carrier for direct or indirect delivery of the secondary
transmission to the public.
``(2) Significantly viewed stations.--
``(A) In general.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station to subscribers
who receive secondary transmissions of primary transmissions
under paragraph (1) shall be subject to statutory licensing
under this paragraph if the secondary transmission is of the
primary transmission of a network station or a non-network
station to a subscriber who resides outside the station's
local market but within a community in which the signal has
been determined by the Federal Communications Commission to
be significantly viewed in such community, pursuant to the
rules, regulations, and authorizations of the Federal
Communications Commission in effect on April 15, 1976,
applicable to determining with respect to a cable system
whether signals are significantly viewed in a community.
``(B) Waiver.--A subscriber who is denied the secondary
transmission of the primary transmission of a network station
or a non-network station under subparagraph (A) may request a
waiver from such denial by submitting a request, through the
subscriber's satellite carrier, to the network station or
non-network station in the local market affiliated with the
same network or non-network where the subscriber is located.
The network station or non-network station shall accept or
reject the subscriber's request for a waiver within 30 days
after receipt of the request. If the network station or non-
network station fails to accept or reject the subscriber's
request for a waiver within that 30-day period, that network
station or non-network station shall be deemed to agree to
the waiver request.
``(3) Secondary transmission of low power programming.--
``(A) In general.--Subject to subparagraphs (B) and (C), a
secondary transmission of a performance or display of a work
embodied in a primary transmission of a television broadcast
station to subscribers who receive secondary transmissions of
primary transmissions under paragraph (1) shall be subject to
statutory licensing under this paragraph if the secondary
transmission is of the primary transmission of a television
broadcast station that is licensed as a low power television
station, to a subscriber who resides within the same
designated market area as the station that originates the
transmission.
``(B) No applicability to repeaters and translators.--
Secondary transmissions provided for in subparagraph (A)
shall not apply to any low power television station that
retransmits the programs and signals of another television
station for more than 2 hours each day.
``(C) No impact on other secondary transmissions
obligations.--A satellite carrier that makes secondary
transmissions of a primary transmission of a low power
television station under a statutory license provided under
this section is not required, by reason of such secondary
transmissions, to make any other secondary transmissions.
``(4) Special exceptions.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station to subscribers
who receive secondary transmissions of primary transmissions
under paragraph (1) shall, if the secondary transmission is
made by a satellite carrier that complies with the
requirements of paragraph (1), be subject to statutory
licensing under this paragraph as follows:
``(A) States with single full-power network station.--In a
State in which there is licensed by the Federal
Communications Commission a single full-power station that
was a network station on January 1, 1995, the statutory
license provided for in this paragraph shall apply to the
secondary transmission by a satellite carrier of the primary
transmission of that station to any subscriber in a community
that is located within that State and that is not within the
first 50 television markets as listed in the regulations of
the Commission as in effect on such date (47 C.F.R. 76.51).
``(B) States with all network stations and non-network
stations in same local market.--In a State in which all
network stations and non-network stations licensed by the
Federal Communications Commission within that State as of
January 1, 1995, are assigned to the same local market and
that local market does not encompass all counties of that
State, the statutory license provided under this paragraph
shall apply to the secondary transmission by a satellite
carrier of the primary transmissions of such station to all
subscribers in the State who reside in a local market that is
within the first 50 major television markets as listed in the
regulations of the Commission as in effect on such date
(section 76.51 of title 47, Code of Federal Regulations).
``(C) Additional stations.--In the case of that State in
which are located 4 counties that--
``(i) on January 1, 2004, were in local markets principally
comprised of counties in another State, and
``(ii) had a combined total of 41,340 television
households, according to the U.S. Television Household
Estimates by Nielsen Media Research for 2004,

the statutory license provided under this paragraph shall
apply to secondary transmissions by a satellite carrier to
subscribers in any such county of the primary transmissions
of any network station located in that State, if the
satellite carrier was making such secondary transmissions to
any subscribers in that county on January 1, 2004.
``(D) Certain additional stations.--If 2 adjacent counties
in a single State are in a local market comprised principally
of counties located in another State, the statutory license
provided for in this paragraph shall apply to the secondary
transmission by a satellite carrier to subscribers in those 2
counties of the primary transmissions of any network station
located in the capital of the State in which such 2 counties
are located, if--
``(i) the 2 counties are located in a local market that is
in the top 100 markets for the year 2003 according to Nielsen
Media Research; and
``(ii) the total number of television households in the 2
counties combined did not exceed 10,000 for the year 2003
according to Nielsen Media Research.
``(E) Networks of noncommercial educational broadcast
stations.--In the case of a system of three or more
noncommercial educational broadcast stations licensed to a
single State, public agency, or political, educational, or
special purpose subdivision of a State, the statutory license
provided for in this paragraph shall apply to the secondary
transmission of the primary transmission of such system to
any subscriber in any county or county equivalent within such
State, if such subscriber is located in a designated market
area that is not otherwise eligible to receive the secondary
transmission of the primary transmission of a noncommercial
educational broadcast station located within the State
pursuant to paragraph (1).
``(5) Applicability of royalty rates and procedures.--The
royalty rates and procedures under section 119(b) shall apply
to the secondary transmissions to which the statutory license
under paragraph (4) applies.''.
(c) Reporting Requirements.--Section 122(b) is amended--
(1) in paragraph (1), by striking ``station a list'' and
all that follows through the end and inserting the following:
``station--
``(A) a list identifying (by name in alphabetical order and
street address, including county and 9-digit zip code) all
subscribers to which the satellite carrier makes secondary
transmissions of that primary transmission under subsection
(a); and
``(B) a separate list, aggregated by designated market area
(by name and address, including street or rural route number,
city, State, and 9-digit zip code), which shall indicate
those subscribers being served pursuant to paragraph (2) of
subsection (a).''; and
(2) in paragraph (2), by striking ``network a list'' and
all that follows through the end and inserting the following:
``network--
``(A) a list identifying (by name in alphabetical order and
street address, including county and 9-digit zip code) any
subscribers who have been added or dropped as subscribers
since the last submission under this subsection; and
``(B) a separate list, aggregated by designated market area
(by name and street address, including street or rural route
number, city, State, and 9-digit zip code), identifying those
subscribers whose service pursuant to paragraph (2) of
subsection (a) has

[[Page S1081]]

been added or dropped since the last submission under this
subsection.''.
(d) No Royalty Fee for Certain Secondary Transmissions.--
Section 122(c) is amended--
(1) in the heading, by inserting ``for Certain Secondary
Transmissions'' after ``Required''; and
(2) by striking ``subsection (a)'' and inserting
``paragraphs (1), (2), and (3) of subsection (a)''.
(e)  Violations for Territorial Restrictions.--
(1) Modification to statutory damages.--Section 122(f) is
amended--
(A) in paragraph (1)(B), by striking ``$5'' and inserting
``$250''; and
(B) in paragraph (2), by striking ``$250,000'' each place
it appears and inserting ``$2,500,000''.
(2) Conforming amendments for additional stations.--Section
122 is amended--
(A) in subsection (f), by striking ``section 119 or'' each
place it appears and inserting the following: ``section 119,
subject to statutory licensing by reason of paragraph (2)(A),
(3), or (4) of subsection (a), or subject to''; and
(B) in subsection (g), by striking ``section 119 or'' and
inserting the following: ``section 119, paragraph (2)(A),
(3), or (4) of subsection (a), or''.
(f) Definitions.--Section 122(j) is amended--
(1) in paragraph (1), by striking ``which contracts'' and
inserting ``that contracts'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(6) and (7), respectively;
(3) in paragraph (3)--
(A) by redesignating such paragraph as paragraph (4);
(B) in the heading of such paragraph, by inserting ``non-
network station;'' after ``Network station;''; and
(C) by inserting `` `non-network station','' after ``
`network station','';
(4) by inserting after paragraph (2) the following:
``(3) Low power television station.--The term `low power
television station' means a low power TV station as defined
in section 74.701(f) of title 47, Code of Federal
Regulations, as in effect on June 1, 2004. For purposes of
this paragraph, the term `low power television station'
includes a low power television station that has been
accorded primary status as a Class A television licensee
under section 73.6001(a) of title 47, Code of Federal
Regulations.'';
(5) by inserting after paragraph (4) (as redesignated) the
following:
``(5) Noncommercial educational broadcast station.--The
term `noncommercial educational broadcast station' means a
television broadcast station that is a noncommercial
educational broadcast station as defined in section 397 of
the Communications Act of 1934, as in effect on the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010.''; and
(6) by amending paragraph (6) (as redesignated) to read as
follows:
``(6) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
satellite carrier and pays a fee for the service, directly or
indirectly, to the satellite carrier or to a distributor.''.

SEC. 504. MODIFICATIONS TO CABLE SYSTEM SECONDARY
TRANSMISSION RIGHTS UNDER SECTION 111.

(a) Heading Renamed.--
(1) In general.--The heading of section 111 is amended by
inserting at the end the following: ``of broadcast
programming by cable''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 111 and
inserting the following:

``111. Limitations on exclusive rights: Secondary transmissions of
broadcast programming by cable.''.

(b) Technical Amendment.--Section 111(a)(4) is amended by
striking ``; or'' and inserting ``or section 122;''.
(c) Statutory License for Secondary Transmissions by Cable
Systems.--Section 111(d) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``A cable system whose secondary'' and
inserting the following: ``Statement of account and royalty
fees.--Subject to paragraph (5), a cable system whose
secondary''; and
(ii) by striking ``by regulation--'' and inserting ``by
regulation the following:'';
(B) in subparagraph (A)--
(i) by striking ``a statement of account'' and inserting
``A statement of account''; and
(ii) by striking ``; and'' and inserting a period; and
(C) by striking subparagraphs (B), (C), and (D) and
inserting the following:
``(B) Except in the case of a cable system whose royalty
fee is specified in subparagraph (E) or (F), a total royalty
fee payable to copyright owners pursuant to paragraph (3) for
the period covered by the statement, computed on the basis of
specified percentages of the gross receipts from subscribers
to the cable service during such period for the basic service
of providing secondary transmissions of primary broadcast
transmitters, as follows:
``(i) 1.064 percent of such gross receipts for the
privilege of further transmitting, beyond the local service
area of such primary transmitter, any non-network programming
of a primary transmitter in whole or in part, such amount to
be applied against the fee, if any, payable pursuant to
clauses (ii) through (iv);
``(ii) 1.064 percent of such gross receipts for the first
distant signal equivalent;
``(iii) 0.701 percent of such gross receipts for each of
the second, third, and fourth distant signal equivalents; and
``(iv) 0.330 percent of such gross receipts for the fifth
distant signal equivalent and each distant signal equivalent
thereafter.
``(C) In computing amounts under clauses (ii) through (iv)
of subparagraph (B)--
``(i) any fraction of a distant signal equivalent shall be
computed at its fractional value;
``(ii) in the case of any cable system located partly
within and partly outside of the local service area of a
primary transmitter, gross receipts shall be limited to those
gross receipts derived from subscribers located outside of
the local service area of such primary transmitter; and
``(iii) if a cable system provides a secondary transmission
of a primary transmitter to some but not all communities
served by that cable system--

``(I) the gross receipts and the distant signal equivalent
values for such secondary transmission shall be derived
solely on the basis of the subscribers in those communities
where the cable system provides such secondary transmission;
and
``(II) the total royalty fee for the period paid by such
system shall not be less than the royalty fee calculated
under subparagraph (B)(i) multiplied by the gross receipts
from all subscribers to the system.

``(D) A cable system that, on a statement submitted before
the date of the enactment of the Satellite Television
Extension and Localism Act of 2010, computed its royalty fee
consistent with the methodology under subparagraph (C)(iii),
or that amends a statement filed before such date of
enactment to compute the royalty fee due using such
methodology, shall not be subject to an action for
infringement, or eligible for any royalty refund or offset,
arising out of its use of such methodology on such statement.
``(E) If the actual gross receipts paid by subscribers to a
cable system for the period covered by the statement for the
basic service of providing secondary transmissions of primary
broadcast transmitters are $263,800 or less--
``(i) gross receipts of the cable system for the purpose of
this paragraph shall be computed by subtracting from such
actual gross receipts the amount by which $263,800 exceeds
such actual gross receipts, except that in no case shall a
cable system's gross receipts be reduced to less than
$10,400; and
``(ii) the royalty fee payable under this paragraph to
copyright owners pursuant to paragraph (3) shall be 0.5
percent, regardless of the number of distant signal
equivalents, if any.
``(F) If the actual gross receipts paid by subscribers to a
cable system for the period covered by the statement for the
basic service of providing secondary transmissions of primary
broadcast transmitters are more than $263,800 but less than
$527,600, the royalty fee payable under this paragraph to
copyright owners pursuant to paragraph (3) shall be--
``(i) 0.5 percent of any gross receipts up to $263,800,
regardless of the number of distant signal equivalents, if
any; and
``(ii) 1 percent of any gross receipts in excess of
$263,800, but less than $527,600, regardless of the number of
distant signal equivalents, if any.
``(G) A filing fee, as determined by the Register of
Copyrights pursuant to section 708(a).'';
(2) in paragraph (2), in the first sentence--
(A) by striking ``The Register of Copyrights'' and
inserting the following ``Handling of fees.--The Register of
Copyrights''; and
(B) by inserting ``(including the filing fee specified in
paragraph (1)(G))'' after ``shall receive all fees'';
(3) in paragraph (3)--
(A) by striking ``The royalty fees'' and inserting the
following: ``Distribution of royalty fees to copyright
owners.--The royalty fees'';
(B) in subparagraph (A)--
(i) by striking ``any such'' and inserting ``Any such'';
and
(ii) by striking ``; and'' and inserting a period;
(C) in subparagraph (B)--
(i) by striking ``any such'' and inserting ``Any such'';
and
(ii) by striking the semicolon and inserting a period; and
(D) in subparagraph (C), by striking ``any such'' and
inserting ``Any such'';
(4) in paragraph (4), by striking ``The royalty fees'' and
inserting the following: ``Procedures for royalty fee
distribution.--The royalty fees''; and
(5) by adding at the end the following new paragraphs:
``(5) 3.75 percent rate and syndicated exclusivity
surcharge not applicable to multicast streams.--The royalty
rates specified in sections 256.2(c) and 256.2(d) of title
37, Code of Federal Regulations (commonly referred to as the
`3.75 percent rate' and the `syndicated exclusivity
surcharge', respectively), as in effect on the date of the
enactment of the Satellite Television Extension and Localism
Act of 2010, as such rates may be adjusted, or such sections
redesignated, thereafter by the Copyright Royalty

[[Page S1082]]

Judges, shall not apply to the secondary transmission of a
multicast stream.
``(6) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to provide for
the confidential verification by copyright owners whose works
were embodied in the secondary transmissions of primary
transmissions pursuant to this section of the information
reported on the semiannual statements of account filed under
this subsection on or after January 1, 2010, in order that
the auditor designated under subparagraph (A) is able to
confirm the correctness of the calculations and royalty
payments reported therein. The regulations shall--
``(A) establish procedures for the designation of a
qualified independent auditor--
``(i) with exclusive authority to request verification of
such a statement of account on behalf of all copyright owners
whose works were the subject of secondary transmissions of
primary transmissions by the cable system (that deposited the
statement) during the accounting period covered by the
statement; and
``(ii) who is not an officer, employee, or agent of any
such copyright owner for any purpose other than such audit;
``(B) establish procedures for safeguarding all non-public
financial and business information provided under this
paragraph;
``(C)(i) require a consultation period for the independent
auditor to review its conclusions with a designee of the
cable system;
``(ii) establish a mechanism for the cable system to remedy
any errors identified in the auditor's report and to cure any
underpayment identified; and
``(iii) provide an opportunity to remedy any disputed facts
or conclusions;
``(D) limit the frequency of requests for verification for
a particular cable system and the number of audits that a
multiple system operator can be required to undergo in a
single year; and
``(E) permit requests for verification of a statement of
account to be made only within 3 years after the last day of
the year in which the statement of account is filed.
``(7) Acceptance of additional deposits.--Any royalty fee
payments received by the Copyright Office from cable systems
for the secondary transmission of primary transmissions that
are in addition to the payments calculated and deposited in
accordance with this subsection shall be deemed to have been
deposited for the particular accounting period for which they
are received and shall be distributed as specified under this
subsection.''.
(d) Effective Date of New Royalty Fee Rates.--The royalty
fee rates established in section 111(d)(1)(B) of title 17,
United States Code, as amended by subsection (c)(1)(C) of
this section, shall take effect commencing with the first
accounting period occurring in 2010.
(e) Definitions.--Section 111(f) is amended--
(1) by striking the first undesignated paragraph and
inserting the following:
``(1) Primary transmission.--A `primary transmission' is a
transmission made to the public by a transmitting facility
whose signals are being received and further transmitted by a
secondary transmission service, regardless of where or when
the performance or display was first transmitted. In the case
of a television broadcast station, the primary stream and any
multicast streams transmitted by the station constitute
primary transmissions.'';
(2) in the second undesignated paragraph--
(A) by striking ``A `secondary transmission' '' and
inserting the following:
``(2) Secondary transmission.--A `secondary transmission'
''; and
(B) by striking `` `cable system' '' and inserting ``cable
system'';
(3) in the third undesignated paragraph--
(A) by striking ``A `cable system' '' and inserting the
following:
``(3) Cable system.--A `cable system' ''; and
(B) by striking ``Territory, Trust Territory, or
Possession'' and inserting ``territory, trust territory, or
possession of the United States'';
(4) in the fourth undesignated paragraph, in the first
sentence--
(A) by striking ``The `local service area of a primary
transmitter', in the case of a television broadcast station,
comprises the area in which such station is entitled to
insist'' and inserting the following:
``(4) Local service area of a primary transmitter.--The
`local service area of a primary transmitter', in the case of
both the primary stream and any multicast streams transmitted
by a primary transmitter that is a television broadcast
station, comprises the area where such primary transmitter
could have insisted'';
(B) by striking ``76.59 of title 47 of the Code of Federal
Regulations'' and inserting the following: ``76.59 of title
47, Code of Federal Regulations, or within the noise-limited
contour as defined in 73.622(e)(1) of title 47, Code of
Federal Regulations''; and
(C) by striking ``as defined by the rules and regulations
of the Federal Communications Commission,'';
(5) by amending the fifth undesignated paragraph to read as
follows:
``(5) Distant signal equivalent.--
``(A) In general.--Except as provided under subparagraph
(B), a `distant signal equivalent'--
``(i) is the value assigned to the secondary transmission
of any non-network television programming carried by a cable
system in whole or in part beyond the local service area of
the primary transmitter of such programming; and
``(ii) is computed by assigning a value of one to each
primary stream and to each multicast stream (other than a
simulcast) that is an independent station, and by assigning a
value of one-quarter to each primary stream and to each
multicast stream (other than a simulcast) that is a network
station or a noncommercial educational station.
``(B) Exceptions.--The values for independent, network, and
noncommercial educational stations specified in subparagraph
(A) are subject to the following:
``(i) Where the rules and regulations of the Federal
Communications Commission require a cable system to omit the
further transmission of a particular program and such rules
and regulations also permit the substitution of another
program embodying a performance or display of a work in place
of the omitted transmission, or where such rules and
regulations in effect on the date of the enactment of the
Copyright Act of 1976 permit a cable system, at its election,
to effect such omission and substitution of a nonlive program
or to carry additional programs not transmitted by primary
transmitters within whose local service area the cable system
is located, no value shall be assigned for the substituted or
additional program.
``(ii) Where the rules, regulations, or authorizations of
the Federal Communications Commission in effect on the date
of the enactment of the Copyright Act of 1976 permit a cable
system, at its election, to omit the further transmission of
a particular program and such rules, regulations, or
authorizations also permit the substitution of another
program embodying a performance or display of a work in place
of the omitted transmission, the value assigned for the
substituted or additional program shall be, in the case of a
live program, the value of one full distant signal equivalent
multiplied by a fraction that has as its numerator the number
of days in the year in which such substitution occurs and as
its denominator the number of days in the year.
``(iii) In the case of the secondary transmission of a
primary transmitter that is a television broadcast station
pursuant to the late-night or specialty programming rules of
the Federal Communications Commission, or the secondary
transmission of a primary transmitter that is a television
broadcast station on a part-time basis where full-time
carriage is not possible because the cable system lacks the
activated channel capacity to retransmit on a full-time basis
all signals that it is authorized to carry, the values for
independent, network, and noncommercial educational stations
set forth in subparagraph (A), as the case may be, shall be
multiplied by a fraction that is equal to the ratio of the
broadcast hours of such primary transmitter retransmitted by
the cable system to the total broadcast hours of the primary
transmitter.
``(iv) No value shall be assigned for the secondary
transmission of the primary stream or any multicast streams
of a primary transmitter that is a television broadcast
station in any community that is within the local service
area of the primary transmitter.'';
(6) by striking the sixth undesignated paragraph and
inserting the following:
``(6) Network station.--
``(A) Treatment of primary stream.--The term `network
station' shall be applied to a primary stream of a television
broadcast station that is owned or operated by, or affiliated
with, one or more of the television networks in the United
States providing nationwide transmissions, and that transmits
a substantial part of the programming supplied by such
networks for a substantial part of the primary stream's
typical broadcast day.
``(B) Treatment of multicast streams.--The term `network
station' shall be applied to a multicast stream on which a
television broadcast station transmits all or substantially
all of the programming of an interconnected program service
that--
``(i) is owned or operated by, or affiliated with, one or
more of the television networks described in subparagraph
(A); and
``(ii) offers programming on a regular basis for 15 or more
hours per week to at least 25 of the affiliated television
licensees of the interconnected program service in 10 or more
States.'';
(7) by striking the seventh undesignated paragraph and
inserting the following:
``(7) Independent station.--The term `independent station'
shall be applied to the primary stream or a multicast stream
of a television broadcast station that is not a network
station or a noncommercial educational station.'';
(8) by striking the eighth undesignated paragraph and
inserting the following:
``(8) Noncommercial educational station.--The term
`noncommercial educational station' shall be applied to the
primary stream or a multicast stream of a television
broadcast station that is a noncommercial educational
broadcast station as defined in section 397 of the
Communications Act of 1934, as in effect on the date of the
enactment of the Satellite Television Extension and Localism
Act of 2010.''; and
(9) by adding at the end the following:
``(9) Primary stream.--A `primary stream' is--

[[Page S1083]]

``(A) the single digital stream of programming that, before
June 12, 2009, was substantially duplicating the programming
transmitted by the television broadcast station as an analog
signal; or
``(B) if there is no stream described in subparagraph (A),
then the single digital stream of programming transmitted by
the television broadcast station for the longest period of
time.
``(10) Primary transmitter.--A `primary transmitter' is a
television or radio broadcast station licensed by the Federal
Communications Commission, or by an appropriate governmental
authority of Canada or Mexico, that makes primary
transmissions to the public.
``(11) Multicast stream.--A `multicast stream' is a digital
stream of programming that is transmitted by a television
broadcast station and is not the station's primary stream.
``(12) Simulcast.--A `simulcast' is a multicast stream of a
television broadcast station that duplicates the programming
transmitted by the primary stream or another multicast stream
of such station.
``(13) Subscriber; subscribe.--
``(A) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
cable system and pays a fee for the service, directly or
indirectly, to the cable system.
``(B) Subscribe.--The term `subscribe' means to elect to
become a subscriber.''.
(f) Timing of Section 111 Proceedings.--Section 804(b)(1)
is amended by striking ``2005'' each place it appears and
inserting ``2015''.
(g) Technical and Conforming Amendments.--
(1) Corrections to fix level designations.--Section 111 is
amended--
(A) in subsections (a), (c), and (e), by striking
``clause'' each place it appears and inserting ``paragraph'';
(B) in subsection (c)(1), by striking ``clauses'' and
inserting ``paragraphs''; and
(C) in subsection (e)(1)(F), by striking ``subclause'' and
inserting ``subparagraph''.
(2) Conforming amendment to hyphenate nonnetwork.--Section
111 is amended by striking ``nonnetwork'' each place it
appears and inserting ``non-network''.
(3) Previously undesignated paragraph.--Section 111(e)(1)
is amended by striking ``second paragraph of subsection (f)''
and inserting ``subsection (f)(2)''.
(4) Removal of superfluous ands.--Section 111(e) is
amended--
(A) in paragraph (1)(A), by striking ``and'' at the end;
(B) in paragraph (1)(B), by striking ``and'' at the end;
(C) in paragraph (1)(C), by striking ``and'' at the end;
(D) in paragraph (1)(D), by striking ``and'' at the end;
and
(E) in paragraph (2)(A), by striking ``and'' at the end.
(5) Removal of variant forms references.--Section 111 is
amended--
(A) in subsection (e)(4), by striking ``, and each of its
variant forms,''; and
(B) in subsection (f), by striking ``and their variant
forms''.
(6) Correction to territory reference.--Section 111(e)(2)
is amended in the matter preceding subparagraph (A) by
striking ``three territories'' and inserting ``five
entities''.
(h) Effective Date With Respect to Multicast Streams.--
(1) In general.--Subject to paragraphs (2) and (3), the
amendments made by this section, to the extent such
amendments assign a distant signal equivalent value to the
secondary transmission of the multicast stream of a primary
transmitter, shall take effect on the date of the enactment
of this Act.
(2) Delayed applicability.--
(A) Secondary transmissions of a multicast stream beyond
the local service area of its primary transmitter before 2010
act.--In any case in which a cable system was making
secondary transmissions of a multicast stream beyond the
local service area of its primary transmitter before the date
of the enactment of this Act, a distant signal equivalent
value (referred to in paragraph (1)) shall not be assigned to
secondary transmissions of such multicast stream that are
made on or before June 30, 2010.
(B) Multicast streams subject to preexisting written
agreements for the secondary transmission of such streams.--
In any case in which the secondary transmission of a
multicast stream of a primary transmitter is the subject of a
written agreement entered into on or before June 30, 2009,
between a cable system or an association representing the
cable system and a primary transmitter or an association
representing the primary transmitter, a distant signal
equivalent value (referred to in paragraph (1)) shall not be
assigned to secondary transmissions of such multicast stream
beyond the local service area of its primary transmitter that
are made on or before the date on which such written
agreement expires.
(C) No refunds or offsets for prior statements of
account.--A cable system that has reported secondary
transmissions of a multicast stream beyond the local service
area of its primary transmitter on a statement of account
deposited under section 111 of title 17, United States Code,
before the date of the enactment of this Act shall not be
entitled to any refund, or offset, of royalty fees paid on
account of such secondary transmissions of such multicast
stream.
(3) Definitions.--In this subsection, the terms ``cable
system'', ``secondary transmission'', ``multicast stream'',
and ``local service area of a primary transmitter'' have the
meanings given those terms in section 111(f) of title 17,
United States Code, as amended by this section.

SEC. 505. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-
LOCAL SERVICE FOR ALL DMAS.

Section 119 is amended by adding at the end the following
new subsection:
``(g) Certain Waivers Granted to Providers of Local-Into-
Local Service to All DMAs.--
``(1) Injunction waiver.--A court that issued an injunction
pursuant to subsection (a)(7)(B) before the date of the
enactment of this subsection shall waive such injunction if
the court recognizes the entity against which the injunction
was issued as a qualified carrier.
``(2) Limited temporary waiver.--
``(A) In general.--Upon a request made by a satellite
carrier, a court that issued an injunction against such
carrier under subsection (a)(7)(B) before the date of the
enactment of this subsection shall waive such injunction with
respect to the statutory license provided under subsection
(a)(2) to the extent necessary to allow such carrier to make
secondary transmissions of primary transmissions made by a
network station to unserved households located in short
markets in which such carrier was not providing local service
pursuant to the license under section 122 as of December 31,
2009.
``(B) Expiration of temporary waiver.--A temporary waiver
of an injunction under subparagraph (A) shall expire after
the end of the 120-day period beginning on the date such
temporary waiver is issued unless extended for good cause by
the court making the temporary waiver.
``(C) Failure to provide local-into-local service to all
dmas.--
``(i) Failure to act reasonably and in good faith.--If the
court issuing a temporary waiver under subparagraph (A)
determines that the satellite carrier that made the request
for such waiver has failed to act reasonably or has failed to
make a good faith effort to provide local-into-local service
to all DMAs, such failure--

``(I) is actionable as an act of infringement under section
501 and the court may in its discretion impose the remedies
provided for in sections 502 through 506 and subsection
(a)(6)(B) of this section; and
``(II) shall result in the termination of the waiver issued
under subparagraph (A).

``(ii) Failure to provide local-into-local service.--If the
court issuing a temporary waiver under subparagraph (A)
determines that the satellite carrier that made the request
for such waiver has failed to provide local-into-local
service to all DMAs, but determines that the carrier acted
reasonably and in good faith, the court may in its discretion
impose financial penalties that reflect--

``(I) the degree of control the carrier had over the
circumstances that resulted in the failure;
``(II) the quality of the carrier's efforts to remedy the
failure; and
``(III) the severity and duration of any service
interruption.

``(D) Single temporary waiver available.--An entity may
only receive one temporary waiver under this paragraph.
``(E) Short market defined.--For purposes of this
paragraph, the term `short market' means a local market in
which programming of one or more of the four most widely
viewed television networks nationwide as measured on the date
of the enactment of this subsection is not offered on the
primary stream transmitted by any local television broadcast
station.
``(3) Establishment of qualified carrier recognition.--
``(A) Statement of eligibility.--An entity seeking to be
recognized as a qualified carrier under this subsection shall
file a statement of eligibility with the court that imposed
the injunction. A statement of eligibility must include--
``(i) an affidavit that the entity is providing local-into-
local service to all DMAs;
``(ii) a request for a waiver of the injunction; and
``(iii) a certification issued pursuant to section 342(a)
of Communications Act of 1934.
``(B) Grant of recognition as a qualified carrier.--Upon
receipt of a statement of eligibility, the court shall
recognize the entity as a qualified carrier and issue the
waiver under paragraph (1).
``(C) Voluntary termination.--At any time, an entity
recognized as a qualified carrier may file a statement of
voluntary termination with the court certifying that it no
longer wishes to be recognized as a qualified carrier. Upon
receipt of such statement, the court shall reinstate the
injunction waived under paragraph (1).
``(D) Loss of recognition prevents future recognition.--No
entity may be recognized as a qualified carrier if such
entity had previously been recognized as a qualified carrier
and subsequently lost such recognition or voluntarily
terminated such recognition under subparagraph (C).
``(4) Qualified carrier obligations and compliance.--
``(A) Continuing obligations.--
``(i) In general.--An entity recognized as a qualified
carrier shall continue to provide local-into-local service to
all DMAs.

[[Page S1084]]

``(ii) Cooperation with gao examination.--An entity
recognized as a qualified carrier shall fully cooperate with
the Comptroller General in the examination required by
subparagraph (B).
``(B) Qualified carrier compliance examination.--
``(i) Examination and report.--The Comptroller General
shall conduct an examination and publish a report concerning
the qualified carrier's compliance with the royalty payment
and household eligibility requirements of the license under
this section. The report shall address the qualified
carrier's conduct during the period beginning on the date on
which the qualified carrier is recognized as such under
paragraph (3)(B) and ending on December 31, 2011.
``(ii) Records of qualified carrier.--Beginning on the date
that is one year after the date on which the qualified
carrier is recognized as such under paragraph (3)(B), but not
later than October 1, 2011, the qualified carrier shall
provide the Comptroller General with all records that the
Comptroller General, in consultation with the Register of
Copyrights, considers to be directly pertinent to the
following requirements under this section:

``(I) Proper calculation and payment of royalties under the
statutory license under this section.
``(II) Provision of service under this license to eligible
subscribers only.

``(iii) Submission of report.--The Comptroller General
shall file the report required by clause (i) not later than
March 1, 2012, with the court referred to in paragraph (1)
that issued the injunction, the Register of Copyrights, the
Committees on the Judiciary and on Energy and Commerce of the
House of Representatives, and the Committees on the Judiciary
and on Commerce, Science, and Transportation of the Senate.
``(iv) Evidence of infringement.--The Comptroller General
shall include in the report a statement of whether the
examination by the Comptroller General indicated that there
is substantial evidence that a copyright holder could bring a
successful action under this section against the qualified
carrier for infringement. The Comptroller General shall
consult with the Register of Copyrights in preparing such
statement.
``(v) Subsequent examination.--If the report includes the
Comptroller General's statement that there is substantial
evidence that a copyright holder could bring a successful
action under this section against the qualified carrier for
infringement, the Comptroller General shall, not later than 6
months after the report under clause (i) is published,
initiate another examination of the qualified carrier's
compliance with the royalty payment and household eligibility
requirements of the license under this section since the last
report was filed under clause (iii). The Comptroller General
shall file a report on such examination with the court
referred to in paragraph (1) that issued the injunction, the
Register of Copyrights, the Committees on the Judiciary and
on Energy and Commerce of the House of Representatives, and
the Committees on the Judiciary and on Commerce, Science, and
Transportation of the Senate. The report shall include a
statement described in clause (iv), prepared in consultation
with the Register of Copyrights.
``(vi) Compliance.--Upon motion filed by an aggrieved
copyright owner, the court recognizing an entity as a
qualified carrier shall terminate such designation upon
finding that the entity has failed to cooperate with the
examinations required by this subparagraph.
``(C) Affirmation.--A qualified carrier shall file an
affidavit with the district court and the Register of
Copyrights 30 months after such status was granted stating
that, to the best of the affiant's knowledge, it is in
compliance with the requirements for a qualified carrier.
``(D) Compliance determination.--Upon the motion of an
aggrieved television broadcast station, the court recognizing
an entity as a qualified carrier may make a determination of
whether the entity is providing local-into-local service to
all DMAs.
``(E) Pleading requirement.--In any motion brought under
subparagraph (D), the party making such motion shall specify
one or more designated market areas (as such term is defined
in section 122(j)(2)(C)) for which the failure to provide
service is being alleged, and, for each such designated
market area, shall plead with particularity the circumstances
of the alleged failure.
``(F) Burden of proof.--In any proceeding to make a
determination under subparagraph (D), and with respect to a
designated market area for which failure to provide service
is alleged, the entity recognized as a qualified carrier
shall have the burden of proving that the entity provided
local-into-local service with a good quality satellite signal
to at least 90 percent of the households in such designated
market area (based on the most recent census data released by
the United States Census Bureau) at the time and place
alleged.
``(5) Failure to provide service.--
``(A) Penalties.--If the court recognizing an entity as a
qualified carrier finds that such entity has willfully failed
to provide local-into-local service to all DMAs, such finding
shall result in the loss of recognition of the entity as a
qualified carrier and the termination of the waiver provided
under paragraph (1), and the court may, in its discretion--
``(i) treat such failure as an act of infringement under
section 501, and subject such infringement to the remedies
provided for in sections 502 through 506 and subsection
(a)(6)(B) of this section; and
``(ii) impose a fine of not less than $250,000 and not more
than $5,000,000.
``(B) Exception for nonwillful violation.--If the court
determines that the failure to provide local-into-local
service to all DMAs is nonwillful, the court may in its
discretion impose financial penalties for noncompliance that
reflect--
``(i) the degree of control the entity had over the
circumstances that resulted in the failure;
``(ii) the quality of the entity's efforts to remedy the
failure and restore service; and
``(iii) the severity and duration of any service
interruption.
``(6) Penalties for violations of license.--A court that
finds, under subsection (a)(6)(A), that an entity recognized
as a qualified carrier has willfully made a secondary
transmission of a primary transmission made by a network
station and embodying a performance or display of a work to a
subscriber who is not eligible to receive the transmission
under this section shall reinstate the injunction waived
under paragraph (1), and the court may order statutory
damages of not more than $2,500,000.
``(7) Local-into-local service to all dmas defined.--For
purposes of this subsection:
``(A) In general.--An entity provides `local-into-local
service to all DMAs' if the entity provides local service in
all designated market areas (as such term is defined in
section 122(j)(2)(C)) pursuant to the license under section
122.
``(B) Household coverage.--For purposes of subparagraph
(A), an entity that makes available local-into-local service
with a good quality satellite signal to at least 90 percent
of the households in a designated market area based on the
most recent census data released by the United States Census
Bureau shall be considered to be providing local service to
such designated market area.
``(C) Good quality satellite signal defined.--The term
`good quality signal' has the meaning given such term under
section 342(e)(2) of Communications Act of 1934.''.

SEC. 506. COPYRIGHT OFFICE FEES.

Section 708(a) is amended--
(1) in paragraph (8), by striking ``and'' after the
semicolon;
(2) in paragraph (9), by striking the period and inserting
a semicolon;
(3) by inserting after paragraph (9) the following:
``(10) on filing a statement of account based on secondary
transmissions of primary transmissions pursuant to section
119 or 122; and
``(11) on filing a statement of account based on secondary
transmissions of primary transmissions pursuant to section
111.''; and
(4) by adding at the end the following new sentence: ``Fees
established under paragraphs (10) and (11) shall be
reasonable and may not exceed one-half of the cost necessary
to cover reasonable expenses incurred by the Copyright Office
for the collection and administration of the statements of
account and any royalty fees deposited with such
statements.''.

SEC. 507. TERMINATION OF LICENSE.

Section 1003(a)(2)(A) of Public Law 111-118 is amended by
striking ``February 28, 2010'' and inserting ``December 31,
2014''.

SEC. 508. CONSTRUCTION.

Nothing in section 111, 119, or 122 of title 17, United
States Code, including the amendments made to such sections
by this subtitle, shall be construed to affect the meaning of
any terms under the Communications Act of 1934, except to the
extent that such sections are specifically cross-referenced
in such Act or the regulations issued thereunder.
Subtitle B--Communications Provisions

SEC. 521. REFERENCE.

Except as otherwise provided, whenever in this subtitle an
amendment is made to a section or other provision, the
reference shall be considered to be made to such section or
provision of the Communications Act of 1934 (47 U.S.C. 151 et
seq.).

SEC. 522. EXTENSION OF AUTHORITY.

Section 325(b) is amended--
(1) in paragraph (2)(C), by striking ``February 28, 2010''
and inserting ``December 31, 2014''; and
(2) in paragraph (3)(C), by striking ``March 1, 2010'' each
place it appears in clauses (ii) and (iii) and inserting
``January 1, 2015''.

SEC. 523. SIGNIFICANTLY VIEWED STATIONS.

(a) In General.--Paragraphs (1) and (2) of section 340(b)
are amended to read as follows:
``(1) Service limited to subscribers taking local-into-
local service.--This section shall apply only to
retransmissions to subscribers of a satellite carrier who
receive retransmissions of a signal from that satellite
carrier pursuant to section 338.
``(2) Service limitations.--A satellite carrier may
retransmit to a subscriber in high definition format the
signal of a station determined by the Commission to be
significantly viewed under subsection (a) only if such
carrier also retransmits in high definition format the signal
of a station located in the local market of such subscriber
and affiliated with the same network whenever such format is
available from such station.''.
(b) Rulemaking Required.--Within 180 days after the date of
the enactment of this

[[Page S1085]]

Act, the Federal Communications Commission shall take all
actions necessary to promulgate a rule to implement the
amendments made by subsection (a).

SEC. 524. DIGITAL TELEVISION TRANSITION CONFORMING
AMENDMENTS.

(a) Section 338.--Section 338 is amended--
(1) in subsection (a), by striking ``(3)  effective date.--
No satellite'' and all that follows through ``until January
1, 2002.''; and
(2) by amending subsection (g) to read as follows:
``(g) Carriage of Local Stations on a Single Reception
Antenna.--
``(1) Single reception antenna.--Each satellite carrier
that retransmits the signals of local television broadcast
stations in a local market shall retransmit such stations in
such market so that a subscriber may receive such stations by
means of a single reception antenna and associated equipment.
``(2) Additional reception antenna.--If the carrier
retransmits the signals of local television broadcast
stations in a local market in high definition format, the
carrier shall retransmit such signals in such market so that
a subscriber may receive such signals by means of a single
reception antenna and associated equipment, but such antenna
and associated equipment may be separate from the single
reception antenna and associated equipment used to comply
with paragraph (1).''.
(b) Section 339.--Section 339 is amended--
(1) in subsection (a)--
(A) in paragraph (1)(B), by striking ``Such two network
stations'' and all that follows through ``more than two
network stations.''; and
(B) in paragraph (2)--
(i) in the heading for subparagraph (A), by striking ``to
analog signals'';
(ii) in subparagraph (A)--

(I) in the heading for clause (i), by striking ``analog'';
(II) in clause (i)--

(aa) by striking ``analog'' each place it appears; and
(bb) by striking ``October 1, 2004'' and inserting
``October 1, 2009'';

(III) in the heading for clause (ii), by striking
``analog''; and
(IV) in clause (ii)--

(aa) by striking ``analog'' each place it appears; and
(bb) by striking ``2004'' and inserting ``2009'';
(iii) by amending subparagraph (B) to read as follows:
``(B) Rules for other subscribers.--
``(i) In general.--In the case of a subscriber of a
satellite carrier who is eligible to receive the signal of a
network station under this section (in this subparagraph
referred to as a `distant signal'), other than subscribers to
whom subparagraph (A) applies, the following shall apply:

``(I) In a case in which the satellite carrier makes
available to that subscriber, on January 1, 2005, the signal
of a local network station affiliated with the same
television network pursuant to section 338, the carrier may
only provide the secondary transmissions of the distant
signal of a station affiliated with the same network to that
subscriber if the subscriber's satellite carrier, not later
than March 1, 2005, submits to that television network the
list and statement required by subparagraph (F)(i).
``(II) In a case in which the satellite carrier does not
make available to that subscriber, on January 1, 2005, the
signal of a local network station pursuant to section 338,
the carrier may only provide the secondary transmissions of
the distant signal of a station affiliated with the same
network to that subscriber if--

``(aa) that subscriber seeks to subscribe to such distant
signal before the date on which such carrier commences to
carry pursuant to section 338 the signals of stations from
the local market of such local network station; and
``(bb) the satellite carrier, within 60 days after such
date, submits to each television network the list and
statement required by subparagraph (F)(ii).
``(ii) Special circumstances.--A subscriber of a satellite
carrier who was lawfully receiving the distant signal of a
network station on the day before the date of enactment of
the Satellite Television Extension and Localism Act of 2010
may receive both such distant signal and the local signal of
a network station affiliated with the same network until such
subscriber chooses to no longer receive such distant signal
from such carrier, whether or not such subscriber elects to
subscribe to such local signal.'';
(iv) in subparagraph (C)--

(I) by striking ``analog'';
(II) in clause (i), by striking ``the Satellite Home Viewer
Extension and Reauthorization Act of 2004; and'' and
inserting the following:

``the Satellite Television Extension and Localism Act of 2010
and, at the time such person seeks to subscribe to receive
such secondary transmission, resides in a local market where
the satellite carrier makes available to that person the
signal of a local network station affiliated with the same
television network pursuant to section 338 (and the
retransmission of such signal by such carrier can reach such
subscriber); or''; and

(III) by amending clause (ii) to read as follows:

``(ii) lawfully subscribes to and receives a distant signal
on or after the date of enactment of the Satellite Television
Extension and Localism Act of 2010, and, subsequent to such
subscription, the satellite carrier makes available to that
subscriber the signal of a local network station affiliated
with the same network as the distant signal (and the
retransmission of such signal by such carrier can reach such
subscriber), unless such person subscribes to the signal of
the local network station within 60 days after such signal is
made available.'';
(v) in subparagraph (D)--

(I) in the heading, by striking ``digital'';
(II) by striking clauses (i), (iii) through (v), (vii)
through (ix), and (xi);
(III) by redesignating clause (vi) as clause (i) and
transferring such clause to appear before clause (ii);
(IV) by amending such clause (i) (as so redesignated) to
read as follows:

``(i) Eligibility and signal testing.--A subscriber of a
satellite carrier shall be eligible to receive a distant
signal of a network station affiliated with the same network
under this section if, with respect to a local network
station, such subscriber--

``(I) is a subscriber whose household is not predicted by
the model specified in subsection (c)(3) to receive the
signal intensity required under section 73.622(e)(1) or, in
the case of a low-power station or translator station
transmitting an analog signal, section 73.683(a) of title 47,
Code of Federal Regulations, or a successor regulation;
``(II) is determined, based on a test conducted in
accordance with section 73.686(d) of title 47, Code of
Federal Regulations, or any successor regulation, not to be
able to receive a signal that exceeds the signal intensity
standard in section 73.622(e)(1) or, in the case of a low-
power station or translator station transmitting an analog
signal, section 73.683(a) of such title, or a successor
regulation; or
``(III) is in an unserved household, as determined under
section 119(d)(10)(A) of title 17, United States Code.'';
(V) in clause (ii)--

(aa) by striking ``digital'' in the heading;
(bb) by striking ``digital'' the first two places such term
appears;
(cc) by striking ``Satellite Home Viewer Extension and
Reauthorization Act of 2004'' and inserting ``Satellite
Television Extension and Localism Act of 2010''; and
(dd) by striking ``, whether or not such subscriber elects
to subscribe to local digital signals'';

(VI) by inserting after clause (ii) the following new
clause:

``(iii) Time-shifting prohibited.--In a case in which the
satellite carrier makes available to an eligible subscriber
under this subparagraph the signal of a local network station
pursuant to section 338, the carrier may only provide the
distant signal of a station affiliated with the same network
to that subscriber if, in the case of any local market in the
48 contiguous States of the United States, the distant signal
is the secondary transmission of a station whose prime time
network programming is generally broadcast simultaneously
with, or later than, the prime time network programming of
the affiliate of the same network in the local market.''; and

(VII) by redesignating clause (x) as clause (iv); and

(vi) in subparagraph (E), by striking ``distant analog
signal or'' and all that follows through ``(B), or (D))'' and
inserting ``distant signal'';
(2) in subsection (c)--
(A) by amending paragraph (3) to read as follows:
``(3) Establishment of improved predictive model and on-
location testing required.--
``(A) Predictive model.--Within 180 days after the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010, the Commission shall develop and
prescribe by rule a point-to-point predictive model for
reliably and presumptively determining the ability of
individual locations, through the use of an antenna, to
receive signals in accordance with the signal intensity
standard in section 73.622(e)(1) of title 47, Code of Federal
Regulations, or a successor regulation, including to account
for the continuing operation of translator stations and low
power television stations. In prescribing such model, the
Commission shall rely on the Individual Location Longley-Rice
model set forth by the Commission in CS Docket No. 98-201, as
previously revised with respect to analog signals, and as
recommended by the Commission with respect to digital signals
in its Report to Congress in ET Docket No. 05-182, FCC 05-199
(released December 9, 2005). The Commission shall establish
procedures for the continued refinement in the application of
the model by the use of additional data as it becomes
available.
``(B) On-location testing.--The Commission shall issue an
order completing its rulemaking proceeding in ET Docket No.
06-94 within 180 days after the date of enactment of the
Satellite Television Extension and Localism Act of 2010. In
conducting such rulemaking, the Commission shall seek ways to
minimize consumer burdens associated with on-location
testing.'';
(B) by amending paragraph (4)(A) to read as follows:
``(A) In general.--If a subscriber's request for a waiver
under paragraph (2) is rejected and the subscriber submits to
the subscriber's satellite carrier a request for a test
verifying the subscriber's inability to receive

[[Page S1086]]

a signal of the signal intensity referenced in clause (i) of
subsection (a)(2)(D), the satellite carrier and the network
station or stations asserting that the retransmission is
prohibited with respect to that subscriber shall select a
qualified and independent person to conduct the test
referenced in such clause. Such test shall be conducted
within 30 days after the date the subscriber submits a
request for the test. If the written findings and conclusions
of a test conducted in accordance with such clause
demonstrate that the subscriber does not receive a signal
that meets or exceeds the requisite signal intensity standard
in such clause, the subscriber shall not be denied the
retransmission of a signal of a network station under section
119(d)(10)(A) of title 17, United States Code.'';
(C) in paragraph (4)(B), by striking ``the signal
intensity'' and all that follows through ``United States
Code'' and inserting ``such requisite signal intensity
standard''; and
(D) in paragraph (4)(E), by striking ``Grade B intensity''.
(c) Section 340.--Section 340(i) is amended by striking
paragraph (4).

SEC. 525. APPLICATION PENDING COMPLETION OF RULEMAKINGS.

(a) In General.--During the period beginning on the date of
the enactment of this Act and ending on the date on which the
Federal Communications Commission adopts rules pursuant to
the amendments to the Communications Act of 1934 made by
section 523 and section 524 of this title, the Federal
Communications Commission shall follow its rules and
regulations promulgated pursuant to sections 338, 339, and
340 of the Communications Act of 1934 as in effect on the day
before the date of the enactment of this Act.
(b) Translator Stations and Low Power Television
Stations.--Notwithstanding subsection (a), for purposes of
determining whether a subscriber within the local market
served by a translator station or a low power television
station affiliated with a television network is eligible to
receive distant signals under section 339 of the
Communications Act of 1934, the rules and regulations of the
Federal Communications Commission for determining such
subscriber's eligibility as in effect on the day before the
date of the enactment of this Act shall apply until the date
on which the translator station or low power television
station is licensed to broadcast a digital signal.
(c) Definitions.--As used in this subtitle:
(1) Local market; low power television station; satellite
carrier; subscriber; television broadcast station.--The terms
``local market'', ``low power television station'',
``satellite carrier'', ``subscriber'', and ``television
broadcast station'' have the meanings given such terms in
section 338(k) of the Communications Act of 1934.
(2) Network station; television network.--The terms
``network station'' and ``television network'' have the
meanings given such terms in section 339(d) of such Act.

SEC. 526. PROCESS FOR ISSUING QUALIFIED CARRIER
CERTIFICATION.

Part I of title III is amended by adding at the end the
following new section:

``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER
CERTIFICATION.

``(a) Certification.--The Commission shall issue a
certification for the purposes of section 119(g)(3)(A)(iii)
of title 17, United States Code, if the Commission determines
that--
``(1) a satellite carrier is providing local service
pursuant to the statutory license under section 122 of such
title in each designated market area; and
``(2) with respect to each designated market area in which
such satellite carrier was not providing such local service
as of the date of enactment of the Satellite Television
Extension and Localism Act of 2010--
``(A) the satellite carrier's satellite beams are designed,
and predicted by the satellite manufacturer's pre-launch test
data, to provide a good quality satellite signal to at least
90 percent of the households in each such designated market
area based on the most recent census data released by the
United States Census Bureau; and
``(B) there is no material evidence that there has been a
satellite or sub-system failure subsequent to the satellite's
launch that precludes the ability of the satellite carrier to
satisfy the requirements of subparagraph (A).
``(b) Information Required.--Any entity seeking the
certification provided for in subsection (a) shall submit to
the Commission the following information:
``(1) An affidavit stating that, to the best of the
affiant's knowledge, the satellite carrier provides local
service in all designated market areas pursuant to the
statutory license provided for in section 122 of title 17,
United States Code, and listing those designated market areas
in which local service was provided as of the date of
enactment of the Satellite Television Extension and Localism
Act of 2010.
``(2) For each designated market area not listed in
paragraph (1):
``(A) Identification of each such designated market area
and the location of its local receive facility.
``(B) Data showing the number of households, and maps
showing the geographic distribution thereof, in each such
designated market area based on the most recent census data
released by the United States Census Bureau.
``(C) Maps, with superimposed effective isotropically
radiated power predictions obtained in the satellite
manufacturer's pre-launch tests, showing that the contours of
the carrier's satellite beams as designed and the geographic
area that the carrier's satellite beams are designed to cover
are predicted to provide a good quality satellite signal to
at least 90 percent of the households in such designated
market area based on the most recent census data released by
the United States Census Bureau.
``(D) For any satellite relied upon for certification under
this section, an affidavit stating that, to the best of the
affiant's knowledge, there have been no satellite or sub-
system failures subsequent to the satellite's launch that
would degrade the design performance to such a degree that a
satellite transponder used to provide local service to any
such designated market area is precluded from delivering a
good quality satellite signal to at least 90 percent of the
households in such designated market area based on the most
recent census data released by the United States Census
Bureau.
``(E) Any additional engineering, designated market area,
or other information the Commission considers necessary to
determine whether the Commission shall grant a certification
under this section.
``(c) Certification Issuance.--
``(1) Public comment.--The Commission shall provide 30 days
for public comment on a request for certification under this
section.
``(2) Deadline for decision.--The Commission shall grant or
deny a request for certification within 90 days after the
date on which such request is filed.
``(d) Subsequent Affirmation.--An entity granted qualified
carrier status pursuant to section 119(g) of title 17, United
States Code, shall file an affidavit with the Commission 30
months after such status was granted stating that, to the
best of the affiant's knowledge, it is in compliance with the
requirements for a qualified carrier.
``(e) Definitions.--For the purposes of this section:
``(1) Designated market area.--The term `designated market
area' has the meaning given such term in section 122(j)(2)(C)
of title 17, United States Code.
``(2) Good quality satellite signal.--
``(A) In general.--The term ``good quality satellite
signal'' means--
``(i) a satellite signal whose power level as designed
shall achieve reception and demodulation of the signal at an
availability level of at least 99.7 percent using--

``(I) models of satellite antennas normally used by the
satellite carrier's subscribers; and
``(II) the same calculation methodology used by the
satellite carrier to determine predicted signal availability
in the top 100 designated market areas; and

``(ii) taking into account whether a signal is in standard
definition format or high definition format, compression
methodology, modulation, error correction, power level, and
utilization of advances in technology that do not circumvent
the intent of this section to provide for non-discriminatory
treatment with respect to any comparable television broadcast
station signal, a video signal transmitted by a satellite
carrier such that--

``(I) the satellite carrier treats all television broadcast
stations' signals the same with respect to statistical
multiplexer prioritization; and
``(II) the number of video signals in the relevant
satellite transponder is not more than the then current
greatest number of video signals carried on any equivalent
transponder serving the top 100 designated market areas.

``(B) Determination.--For the purposes of subparagraph (A),
the top 100 designated market areas shall be as determined by
Nielsen Media Research and published in the Nielsen Station
Index Directory and Nielsen Station Index United States
Television Household Estimates or any successor publication
as of the date of a satellite carrier's application for
certification under this section.''.

SEC. 527. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION
DIGITAL SIGNALS OF NONCOMMERCIAL EDUCATIONAL
TELEVISION STATIONS.

(a) In General.--Section 338(a) is amended by adding at the
end the following new paragraph:
``(5) Nondiscrimination in carriage of high definition
signals of noncommercial educational television stations.--
``(A) Existing carriage of high definition signals.--If,
before the date of enactment of the Satellite Television
Extension and Localism Act of 2010, an eligible satellite
carrier is providing, under section 122 of title 17, United
States Code, any secondary transmissions in high definition
format to subscribers located within the local market of a
television broadcast station of a primary transmission made
by that station, then such satellite carrier shall carry the
signals in high-definition format of qualified noncommercial
educational television stations located within that local
market in accordance with the following schedule:
``(i) By December 31, 2010, in at least 50 percent of the
markets in which such satellite carrier provides such
secondary transmissions in high definition format.
``(ii) By December 31, 2011, in every market in which such
satellite carrier provides such secondary transmissions in
high definition format.
``(B) New initiation of service.--If, on or after the date
of enactment of the Satellite

[[Page S1087]]

Television Extension and Localism Act of 2010, an eligible
satellite carrier initiates the provision, under section 122
of title 17, United States Code, of any secondary
transmissions in high definition format to subscribers
located within the local market of a television broadcast
station of a primary transmission made by that station, then
such satellite carrier shall carry the signals in high-
definition format of all qualified noncommercial educational
television stations located within that local market.''.
(b) Definitions.--Section 338(k) is amended--
(1) by redesignating paragraphs (2) through (8) as
paragraphs (3) through (9), respectively;
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Eligible satellite carrier.--The term `eligible
satellite carrier' means any satellite carrier that is not a
party to a carriage contract that--
``(A) governs carriage of at least 30 qualified
noncommercial educational television stations; and
``(B) is in force and effect within 60 days after the date
of enactment of the Satellite Television Extension and
Localism Act of 2010.'';
(3) by redesignating paragraphs (6) through (9) (as
previously redesignated) as paragraphs (7) through (10),
respectively; and
(4) by inserting after paragraph (5) (as so redesignated)
the following new paragraph:
``(6) Qualified noncommercial educational television
station.--The term `qualified noncommercial educational
television station' means any full-power television broadcast
station that--
``(A) under the rules and regulations of the Commission in
effect on March 29, 1990, is licensed by the Commission as a
noncommercial educational broadcast station and is owned and
operated by a public agency, nonprofit foundation, nonprofit
corporation, or nonprofit association; and
``(B) has as its licensee an entity that is eligible to
receive a community service grant, or any successor grant
thereto, from the Corporation for Public Broadcasting, or any
successor organization thereto, on the basis of the formula
set forth in section 396(k)(6)(B) of this title.''.

SEC. 528. SAVINGS CLAUSE REGARDING DEFINITIONS.

Nothing in this subtitle or the amendments made by this
subtitle shall be construed to affect--
(1) the meaning of the terms ``program related'' and
``primary video'' under the Communications Act of 1934; or
(2) the meaning of the term ``multicast'' in any
regulations issued by the Federal Communications Commission.

SEC. 529. STATE PUBLIC AFFAIRS BROADCASTS.

Section 335(b) is amended--
(1) by inserting ``STATE PUBLIC AFFAIRS,'' after
``EDUCATIONAL,'' in the heading;
(2) by striking paragraph (1) and inserting the following:
``(1) Channel capacity required.--
``(A) In general.--Except as provided in subparagraph (B),
the Commission shall require, as a condition of any
provision, initial authorization, or authorization renewal
for a provider of direct broadcast satellite service
providing video programming, that the provider of such
service reserve a portion of its channel capacity, equal to
not less than 4 percent nor more than 7 percent, exclusively
for noncommercial programming of an educational or
informational nature.
``(B) Requirement for qualified satellite provider.--The
Commission shall require, as a condition of any provision,
initial authorization, or authorization renewal for a
qualified satellite provider of direct broadcast satellite
service providing video programming, that such provider
reserve a portion of its channel capacity, equal to not less
than 3.5 percent nor more than 7 percent, exclusively for
noncommercial programming of an educational or informational
nature.'';
(3) in paragraph (5), by striking ``For purposes of the
subsection--'' and inserting ``For purposes of this
subsection:''; and
(4) by adding at the end of paragraph (5) the following:
``(C) The term `qualified satellite provider' means any
provider of direct broadcast satellite service that--
``(i) provides the retransmission of the State public
affairs networks of at least 15 different States;
``(ii) offers the programming of State public affairs
networks upon reasonable prices, terms, and conditions as
determined by the Commission under paragraph (4); and
``(iii) does not delete any noncommercial programming of an
educational or informational nature in connection with the
carriage of a State public affairs network.
``(D) The term `State public affairs network' means a non-
commercial non-broadcast network or a noncommercial
educational television station--
``(i) whose programming consists of information about State
government deliberations and public policy events; and
``(ii) that is operated by--

``(I) a State government or subdivision thereof;
``(II) an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986 that is exempt from
taxation under section 501(a) of such Code and that is
governed by an independent board of directors; or
``(III) a cable system.''.

Subtitle C--Reports and Savings Provision

SEC. 531. DEFINITION.

In this subtitle, the term ``appropriate Congressional
committees'' means the Committees on the Judiciary and on
Commerce, Science, and Transportation of the Senate and the
Committees on the Judiciary and on Energy and Commerce of the
House of Representatives.

SEC. 532. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY
LICENSING.

Not later than 1 year after the date of the enactment of
this Act, and after consultation with the Federal
Communications Commission, the Register of Copyrights shall
submit to the appropriate Congressional committees a report
containing--
(1) proposed mechanisms, methods, and recommendations on
how to implement a phase-out of the statutory licensing
requirements set forth in sections 111, 119, and 122 of title
17, United States Code, by making such sections inapplicable
to the secondary transmission of a performance or display of
a work embodied in a primary transmission of a broadcast
station that is authorized to license the same secondary
transmission directly with respect to all of the performances
and displays embodied in such primary transmission;
(2) any recommendations for alternative means to implement
a timely and effective phase-out of the statutory licensing
requirements set forth in sections 111, 119, and 122 of title
17, United States Code; and
(3) any recommendations for legislative or administrative
actions as may be appropriate to achieve such a phase-out.

SEC. 533. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY
LICENSING MODIFICATIONS.

(a) Study.--The Comptroller General shall conduct a study
that analyzes and evaluates the changes to the carriage
requirements currently imposed on multichannel video
programming distributors under the Communications Act of 1934
(47 U.S.C. 151 et seq.) and the regulations promulgated by
the Federal Communications Commission that would be required
or beneficial to consumers, and such other matters as the
Comptroller General deems appropriate, if Congress
implemented a phase-out of the current statutory licensing
requirements set forth under sections 111, 119, and 122 of
title 17, United States Code. Among other things, the study
shall consider the impact such a phase-out and related
changes to carriage requirements would have on consumer
prices and access to programming.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall report
to the appropriate Congressional committees the results of
the study, including any recommendations for legislative or
administrative actions.

SEC. 534. REPORT ON IN-STATE BROADCAST PROGRAMMING.

Not later than 1 year after the date of the enactment of
this Act, the Federal Communications Commission shall submit
to the appropriate Congressional committees a report
containing an analysis of--
(1) the number of households in a State that receive the
signals of local broadcast stations assigned to a community
of license that is located in a different State;
(2) the extent to which consumers in each local market have
access to in-state broadcast programming over the air or from
a multichannel video programming distributor; and
(3) whether there are alternatives to the use of designated
market areas, as defined in section 122 of title 17, United
States Code, to define local markets that would provide more
consumers with in-state broadcast programming.

SEC. 535. LOCAL NETWORK CHANNEL BROADCAST REPORTS.

(a) Requirement.--
(1) In general.--On the 180th day after the date of the
enactment of this Act, and on each succeeding anniversary of
such 180th day, each satellite carrier shall submit an annual
report to the Federal Communications Commission setting
forth--
(A) each local market in which it--
(i) retransmits signals of 1 or more television broadcast
stations with a community of license in that market;
(ii) has commenced providing such signals in the preceding
1-year period; and
(iii) has ceased to provide such signals in the preceding
1-year period; and
(B) detailed information regarding the use and potential
use of satellite capacity for the retransmission of local
signals in each local market.
(2) Termination.--The requirement under paragraph (1) shall
cease after each satellite carrier has submitted 5 reports
under such paragraph.
(b) FCC Study; Report.--
(1) Study.--If no satellite carrier files a request for a
certification under section 342 of the Communications Act of
1934 (as added by section 526 of this title) within 180 days
after the date of the enactment of this Act, the Federal
Communications Commission shall initiate a study of--
(A) incentives that would induce a satellite carrier to
provide the signals of 1 or more television broadcast
stations licensed to provide signals in local markets in
which the satellite carrier does not provide such signals;
and
(B) the economic and satellite capacity conditions
affecting delivery of local signals by satellite carriers to
these markets.
(2) Report.--Within 1 year after the date of the initiation
of the study under paragraph

[[Page S1088]]

(1), the Federal Communications Commission shall submit a
report to the appropriate Congressional committees containing
its findings, conclusions, and recommendations.
(c) Definitions.--In this section--
(1) the terms ``local market'' and ``satellite carrier''
have the meaning given such terms in section 339(d) of the
Communications Act of 1934 (47 U.S.C. 339(d)); and
(2) the term ``television broadcast station'' has the
meaning given such term in section 325(b)(7) of such Act (47
U.S.C. 325(b)(7)).

SEC. 536. SAVINGS PROVISION REGARDING USE OF NEGOTIATED
LICENSES.

(a) In General.--Nothing in this title, title 17, United
States Code, the Communications Act of 1934, regulations
promulgated by the Register of Copyrights under this title or
title 17, United States Code, or regulations promulgated by
the Federal Communications Commission under this title or the
Communications Act of 1934 shall be construed to prevent a
multichannel video programming distributor from
retransmitting a performance or display of a work pursuant to
an authorization granted by the copyright owner or, if within
the scope of its authorization, its licensee.
(b) Limitation.--Nothing in subsection (a) shall be
construed to affect any obligation of a multichannel video
programming distributor under section 325(b) of the
Communications Act of 1934 to obtain the authority of a
television broadcast station before retransmitting that
station's signal.

SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.

Unless specifically provided otherwise, this title, and the
amendments made by this title, shall take effect on February
27, 2010, and all references to enactment of this Act shall
be deemed to refer to such date unless otherwise specified.
The secondary transmission of a performance or display of a
work embodied in a primary transmission is not an
infringement of copyright if it was made by a satellite
carrier on or after February 27, 2010 and prior to enactment
of this Act, and was in compliance with the law as in
existence on February 27, 2010.
Subtitle D--Severability

SEC. 541. SEVERABILITY.

If any provision of this title, an amendment made by this
title, or the application of such provision or amendment to
any person or circumstance is held to be unconstitutional,
the remainder of this title, the amendments made by this
title, and the application of such provision or amendment to
any person or circumstance shall not be affected thereby.
TITLE VI--OTHER PROVISIONS

SEC. 601. INCREASE IN THE MEDICARE PHYSICIAN PAYMENT UPDATE.

Paragraph (10) of section 1848(d) of the Social Security
Act, as added by section 1011(a) of the Department of Defense
Appropriations Act, 2010 (Public Law 111-118), is amended--
(1) in subparagraph (A), by striking ``February 28, 2010''
and inserting ``September 30, 2010''; and
(2) in subparagraph (B), by striking ``March 1, 2010'' and
inserting ``October 1, 2010''.
TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

SEC. 701. DETERMINATION OF BUDGETARY EFFECTS.

(a) In General.--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.
(b) Emergency Designation.--Sections 201, 211, and 232 of
this Act are designated as an emergency requirement pursuant
to section 4(g) of the Statutory Pay-As-You-Go Act of 2010
(Public Law 111-139; 2 U.S.C. 933(g)) and section 403(a) of
S. Con. Res. 13 (111th Congress), the concurrent resolution
on the budget for fiscal year 2010. In the House of
Representatives, sections 201, 211, and 232 of this Act are
designated as an emergency for purposes of pay-as-you-go
principles.
TITLE VIII--ADDITIONAL OFFSETS

SEC. 801. REPEAL OF INCREASE OF THE OFFICE BUDGETS OF MEMBERS
OF CONGRESS.

Of the funds made available under Public Law 111-68 for the
legislative branch, $245,000,000 in unobligated balances are
permanently rescinded: Provided, That none of the funding
available for the Legislative Branch be available for any
pilot program for mailings of postal patron postcards by
Senators for the purpose of providing notice of a town
meeting by a Senator in a county (or equivalent unit of local
government) at which the Senator will personally attend.

SEC. 802. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
AGRICULTURE.

Of the funds made available under Public Law 111-80 for the
Department of Agriculture, $1,342,800,000 in unobligated
balances are permanently rescinded: Provided, That as
proposed by the President's FY 2010 budget, no funding may be
available for the Economic Action Program, which is
duplicative of USDA's Urban and Community Forestry program,
has been poorly managed, and has funded questionable
initiatives such as music festivals:  Provided further, That
no funding may be available for the High Energy Cost grant
program, which is duplicative of the $6,000,000,000 in low
interest loan programs offered by the UDSA's Rural Utilities
Service: Provided further, That as included in the
Congressional Budget Office's August 2009 Budget Options
document, which states that the program ``merely replaces
private spending with public spending'', no funding may be
available for the Foreign Market Development Program, which
also duplicates the Foreign Agricultures Service's Market
Access Program: Provided further, That the Secretary shall
consolidate and reduce the cost of administering the numerous
programs administered by the Department relating to
encouraging conservation, including the Conservation
Stewardship Program, which the Government Accountability
Office revealed in 2006 is duplicative of other USDA
conservations efforts, including the Conservation Reserve
Program, the Wetlands Reserve Program, the Farmland
Protection Program, the Wildlife Habitat Program, and the
Grassland Reserve Program: Provided further, That the
Secretary shall work with the Secretary of Energy to
consolidate and reduce the cost of administering the numerous
programs administered by both Departments relating to
bioenergy promotion, including the Department of Energy's
Biomass Program, the Department of Agriculture's Biomass Crop
Assistance Program, the Biorefinery Program for Advanced
Fuels Program, and the Biobased Products and Bioenergy
Program, the Biorefinery Repowering Assistance Program, the
New Era Rural Technology Competitive Grants Program, and the
Feedstock Flexibility Program: Provided further, That the
Secretary shall work with the Secretary of Energy to
consolidate and reduce the cost of administering the numerous
programs administered by both Departments relating to
alternative energy, including the Department of Energy's
Geothermal Technology Program, Wind Energy Program, and the
Solar Energy Technologies Program, and the Department of
Agriculture's Rural Energy for America Program: the Secretary
shall consolidate and reduce the cost of administering the
numerous programs administered by the Department that provide
food assistance to foreign countries, including the USAD
Foreign Agricultural Service, the food for Progress Program,
the McGovern-Dole International Food for Education and Child
Nutrition Program, the food for Peace programs, the Bill
Emerson Humanitarian Trust, and the Local and Regional
Procurement Projects; Provided further, That for any program
for which funding is prohibited in this section, any
activities under that program that are deemed by the
Secretary to be necessary or essential, the Secretary shall
assign to an existing program for which funding is not
prohibited in this section.

SEC. 803. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
COMMERCE.

Of the funds made available under Public Law 111-117 for
the Department of Commerce, $697,850,000 in unobligated
balances are permanently rescinded: Provided, That the
Secretary shall work with the Secretary of Agriculture to
consolidate and reduce the cost of administering the programs
administered by both Departments that provide rural public
telecom grants, including eliminating USDA's grants to rural
public broadcasting stations, as proposed by the President's
FY 2010 budget, which duplicates the Department of Commerce's
Public Telecommunications Facilities Program, and the
Corporation for Public Broadcasting, which also receives
Federal funding: Provided further, That no funding may be
made available for the Hollings Manufacturing Extension
Partnership Program, which duplicates the Small Business
Administration's Small Business Development Centers and which
has been found by the Office of Management and Budget to
``only serve a small percentage of small manufactures each
year'': Provided further, That the Secretary shall work with
the Secretaries of Housing and Rural Development and
Agriculture to consolidate and reduce the cost of
administering the programs administered by these Departments
relating to Economic Development, including the following
programs, the Economic Development Administration, the
Community Development Block Grants, Rural Development
Administration grants, the National Community Development
Initiative, the Brownfields Economic Development Initiative,
the Rural Housing and Economic Development grants, the
Community Service Block Grants, the Delta Regional Authority,
the Community Economic Development grants, and the
Historically Underutilized Business Zone program: Provided
further, That for any program for which funding is prohibited
in this section, any activities under that program that are
deemed by the Secretary to be necessary or essential, the
Secretary shall assign to an existing program for which
funding is not prohibited in this section.

SEC. 804. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
EDUCATION.

Of the funds made available under Public Law 111-117 for
the Department of Education, $3,213,800,000 in unobligated
balances are permanently rescinded: Provided, That the
Secretary shall work with Secretaries from other Federal
Departments to consolidate and reduce the cost of
administering the at least 30 Federal programs that provide

[[Page S1089]]

financial assistance to students to support postsecondary
education in the forms of grants, scholarships, fellowships,
and other types of stipends, including the 15 such programs
at the Department of Education, such as the Academic
Competitiveness Grants, the TEACH grants, the Federal
Supplemental Education Opportunity Grants, the Leveraging
Educational Assistance Program, the Javits Fellowships
Program, Graduate Assistance in Areas of National Need
program, as well as the three similar programs administered
by the National Science Foundation, such as the Robert Noyce
Teacher Scholarship program, as well as a program at the
Department of Justice and one at the Health Resources
Administration: Provided further, That the Secretary shall
work with Secretaries from other Federal Departments to
consolidate and reduce the cost of administering the at least
69 Federal programs dedicated in full or in part to
supporting early childhood education and child care, as
outlined by the Government Accountability Office, which found
that these 69 education programs are spread across 10
different agencies: Provided further, That the Secretary
shall work with Secretaries from other Federal Departments to
consolidate and reduce the cost of administering the at least
105 Federal science, technology, math, and engineering
education programs, as outlined by the Academic
Competitiveness Council, which found that these 105 education
programs are spread across numerous Federal agencies:
Provided further, That the Secretary shall work with
Secretaries from other Federal Departments to consolidate and
reduce the cost of administering the numerous student foreign
exchange and international education programs, including the
at least 14 programs at the Department, including the
American Overseas Research Centers, Business and
International Education, Centers for International Business
Education, the Foreign Language and Area Studies Fellowships,
the Institute for International Public Policy, the
International Research and Studies, the Language Resource
Centers, the National Resource Centers, the Technological
Innovation and Cooperation for Foreign Information Access,
and the Undergraduate International Studies and Foreign
Language Program, the State Department's Benjamin A. Gilman
International Scholarship Program, the Boren National
Security Education Trust Fund, and exchange programs
administered by the National Science Foundation's Office of
International Science and Engineering.

SEC. 805. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
ENERGY.

Of the funds made available under Public Law 111-85 for the
Department of Energy, $1,321,800,000 in unobligated balances
are permanently rescinded: Provided, That the Secretary shall
work with Secretaries from other Federal Departments to
consolidate and reduce the cost of administering the various
Federal weatherization efforts, including Federal funding for
State-run weatherization projects, the Department of Energy's
Energy Conservation and Weatherization grants, as well as the
Department of Energy's building Technologies Program, the
LIHEAP weatherization efforts, the National Park Service's
Weatherization and Improving the Energy Efficiency of
Historic Buildings program, and the Department of Housing and
Urban Development's Energy Innovation Fund: Provided further,
That the Secretary shall consolidate and reduce the cost of
administering the various energy grant programs, including
the Tribal Energy grant program, which overlaps with the
Department's Energy Efficiency and Conservation Block Grants,
and the Energy Start Energy Efficient appliance Rebate
Program: Provided further, That the Secretary shall
consolidate and reduce the cost of administering the various
vehicle technology programs at the Department, including the
Vehicle Technologies program, the Advanced Battery
Manufacturing grants, the Advanced Technology Vehicles
Manufacturing Loans Program, and the Innovative Technology
Loan Guarantee Program.

SEC. 806. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
HEALTH AND HUMAN SERVICES.

Of the funds made available under Public Law 111-117 for
the Department of Health and Human Services, $4,116,950,000
in unobligated balances are permanently rescinded: Provided,
That the Secretary, in coordination with the heads of other
Departments and agencies, shall consolidate the programs that
support nonresidential buildings and facilities construction,
including the 29 programs across 8 Federal agencies
identified by the Government Accountability Office. The
Secretary, in coordination with the Secretary of HUD and USDA
and other appropriate departments and agencies, shall
consolidate duplicative programs intended to reduce poverty
and revitalize low-income communities, including the HHS
Community Services Block Grant, the HUD Community Development
Block Grant, and USDA Rural Development program: Provided
further, That the Secretary shall work with Secretaries from
other Federal Departments to consolidate and reduce the cost
of administering the dozens of Federal programs, across
multiple agencies, that funded childhood obesity programs,
either as the main focus or as one component of the Federal
program.

SEC. 807. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
HOMELAND SECURITY.

Of the funds made available under Public Law 111-83 for the
Department of Homeland Security, $2,205,000,000 in
unobligated balances are permanently rescinded: Provided,
That the Secretary shall work with Secretaries from other
Federal Departments to consolidate and reduce the cost of
administering the dozens of Federal homeland security
programs, as identified by the Office of Management and
Budget, which states that ``a total of 31 agency budgets
include Federal homeland security funding in 2010''.

SEC. 808. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT.

Of the funds made available under Public Law 111-117 for
the Department of Housing and Urban Development,
$2,302,450,000 in unobligated balances are permanently
rescinded: Provided, That the Secretary shall work with
Secretaries from other Federal Departments to consolidate and
reduce the cost of administering the various Federal programs
aimed at addressing homelessness, including the Supportive
Housing Program, the Shelter Plus Care Program, the Single
Room Occupancy Program, the Emergency Shelter Grant Program,
programs at Health and Human Services such as the Basic
Center Program, Projects for Assistance in Transition from
Homelessness, and the Street Outreach Program, and also
including the more than 23 housing programs identified by the
Government Accounting Office that target or have special
features for the elderly.

SEC. 809. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
INTERIOR.

Of the funds made available under Public Law 111-88 for the
Department of Interior, $606,200,000 in unobligated balances
are permanently rescinded: Provided, That the Secretary shall
consolidate and reduce the cost of administering the at least
11 historic preservation programs at the Department,
including the 9 preservation programs at the Heritage
Preservation Services, such as the Federal Agency
Preservation Assistance Program, the Historic Preservation
Planning Program, the Technical Preservation Services for
Historic Buildings, as well as the Save America's Treasures
Grant Program, the Advisory Council on Historic Preservation,
and the Preserve America program: Provided further, That the
Secretary shall consolidate and reduce the cost of
administering the various climate change impact programs at
the Department, including the Bureau of Indian Affairs office
Tackling Climate Impacts Initiative, the U.S. Geological
Survey's National Climate Change and Wildlife Science Center,
the U.S. Fish and Wildlife Service climate change
initiatives, and the state and tribal wildlife conservation
grants which are being provided to entities to adapt and
mitigate the impacts of climate change on wildlife: Provided
further, That the Secretary shall consolidate and reduce the
cost of administering the dozens of invasive species
research, monitoring, and eradication programs at the
Department, including the eight programs administered by the
U.S. Fish and Wildlife Services, the similar programs
administered by the Bureau of Land Management, the National
Park Service, and the 4 Federal councils created to
coordinate Federal invasive species efforts, the National
Invasive Species Council, the National Invasive Species
Information Center, the Federal Interagency Committee for the
Management of Noxious and Exotic Weeds, and the Aquatic
Nuisance Species Task Force.

SEC. 810. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
JUSTICE.

Of the funds made available under Public Law 111-117 for
the Department of Justice, $1,385,100,000 in unobligated
balances are permanently rescinded: Provided, That the
Attorney General in coordination with the heads of other
Departments and agencies, shall consolidate Federal offender
reentry programs, including those authorized by the Second
Chance Act, the DOJ Office of Justice Programs Bureau of
Justice Assistance Prisoner Reentry Initiative, the
Department of Labor Reintegration of Ex-Offenders program,
the Department of Education Lifeskills for State and Local
Inmates Programs, and the HHS Young Offender Reentry Program:
Provided further, That the Attorney General shall consolidate
the four duplicative grant programs, including the State
Formula Grant program, the Juvenile Delinquency Prevention
Block Grant program, the Challenge/Demonstration Grant
program, and the Title V grant program, administered under
the Juvenile Justice and Delinquency Prevention Act and
reduce the cost of administering such programs: Provided
further, That the Attorney General, in coordination with the
Secretary of Health and Human Services (HHS) and the Office
of National Drug Control Policy (ONDCP), shall consolidate
Federal programs that assist state drug courts, including
substance abuse treatment services for offenders, such as the
HHS Adult, Juvenile, and Family Drug Court program, the
Substance Abuse and Mental

[[Page S1090]]

Health Services Administration Drug Court Treatment Program,
the DOJ Drug Court Program, the ONDCP National Drug Court
Institute: Provided further, That the Attorney General shall
eliminate the National Drug Intelligence Center (NDIC) which
duplicates the activities of 19 other drug intelligence
centers and reassign any essential duties performed by NDIC.

SEC. 811. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
LABOR.

Of the funds made available under Public Law 111-117 for
the Department of Labor, $679,100,000 in unobligated balances
are permanently rescinded: Provided, That the Secretary, in
coordination with the heads of other Departments and
agencies, shall consolidate the 18 programs administered by
the Department and ten programs administered by other
agencies that support job training and employment, such as
the Adult Employment and Training Activities program,
Dislocated Worked Employment and Training Activities, Youth
Activities, YouthBuild, and the Migrant and Seasonal Farmers
program and reduce the cost of administering such programs.

SEC. 812. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
STATE.

Of the funds made available under Public Law 111-117 for
the Department of State, $1,318,550,000 in unobligated
balances are permanently rescinded: Provided, That in
accordance with the President's FY 2010 budget, no funding
may be made available for the Center for Cultural and
Technical Interchange Between East and West, which duplicates
the State Departments cultural exchanges: Provided further,
That no funding may be made available for the Asia
Foundation, which duplicates efforts at USAID and the
National Endowment for Democracy: Provided further, That for
any program for which funding is prohibited in this section,
any activities under that program that are deemed by the
Secretary to be necessary or essential, the Secretary shall
assign to an existing program for which funding is not
prohibited in this section.

SEC. 813. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
TRANSPORTATION.

Of the funds made available under Public Law 111-117 for
the Department of Transportation, $1,090,500,000 in
unobligated balances are permanently rescinded: Provided,
That the Secretary shall consolidate and reduce the costs of
various duplicative highway programs, including the
regionally specific development programs, the Federal-Aid
Highway Programs under chapter I of title 23, United States
Code, the Research programs authorized under title V of
Public Law 109-59: Provided further, That the Secretary shall
consolidate and reduce the costs of various rail-line
relocation grant programs, including the Rail-Line Relocation
and Improvement Capital Program, and the Highway-Rail
Crossings Program, the Railroad Rehabilitation and
Improvement Financing program.

SEC. 814. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF
WASTEFUL SPENDING, AND CONSOLIDATION OF
DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF
TREASURY.

Of the funds made available under Public Law 111-117 for
the Department of Treasury, $677,650,000 in unobligated
balances are permanently rescinded.

SEC. 815. RESCISSION OF UNSPENT AND UNCOMMITTED FUNDS FEDERAL
FUNDS.

Notwithstanding any other provision of law, of the
$657,000,000,000 in Federal funds unobligated at the end of
fiscal year 2009, the discretionary, unexpired funds
available for more than 2 consecutive fiscal years, as of the
date of enactment of this Act, are permanently rescinded.

SEC. 816. IMPLEMENTATION OF RESCISSIONS.

All rescissions required by this title--
(1) shall come from discretionary amounts appropriated; and
(2) should be rescinded not later 14 days after the date of
enactment of this title.
______