To establish the Small Business Lending Fund Program, and for other purposes.

SA 4500. Mr. REID (for Mr. LeMieux (for himself, Ms. Landrieu, Mr.
Merkley, Mrs. Boxer, Ms. Cantwell, Ms. Klobuchar, and Mrs. Murray))
proposed an amendment to amendment SA 4499 proposed by Mr. Reid (for
Mr. Baucus) to the bill H.R. 5297, to create the Small Business Lending
Fund Program to direct the Secretary of the Treasury to make capital
investments in eligible institutions in order to increase the
availability of credit for small businesses, to amend the Internal
Revenue Code of 1986 to provide tax incentives for small business job
creation, and for other purposes; as follows:

At the end, add the following:

TITLE V--ADDITIONAL SMALL BUSINESS PROVISIONS

Subtitle A--Small Business Lending Fund

SEC. 5101. PURPOSE.

The purpose of this subtitle is to address the ongoing
effects of the financial crisis on small businesses by
providing temporary authority to the Secretary of the
Treasury to make capital investments in eligible institutions
in order to increase the availability of credit for small
businesses.

SEC. 5102. DEFINITIONS.

For purposes of this subtitle:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Small Business and Entrepreneurship,
the Committee on Agriculture, Nutrition, and Forestry, the
Committee on Banking, Housing, and Urban Affairs, the
Committee on Finance, the Committee on the Budget, and the
Committee on Appropriations of the Senate; and
(B) the Committee on Small Business, the Committee on
Agriculture, the Committee on Financial Services, the
Committee on Ways and Means, the Committee on the Budget, and
the Committee on Appropriations of the House of
Representatives.
(2) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given
such term under section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)).
(3) Bank holding company.--The term ``bank holding
company'' has the meaning given such term under section
2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(2)(a)(1)).
(4) Call report.--The term ``call report'' means--
(A) reports of Condition and Income submitted to the Office
of the Comptroller of the Currency, the Board of Governors of
the Federal Reserve System, and the Federal Deposit Insurance
Corporation;
(B) the Office of Thrift Supervision Thrift Financial
Report;
(C) any report that is designated by the Office of the
Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance
Corporation, or the Office of Thrift Supervision, as
applicable, as a successor to any report referred to in
subparagraph (A) or (B);
(D) reports of Condition and Income as designated through
guidance developed by the Secretary, in consultation with the
Director of the Community Development Financial Institutions
Fund; and
(E) with respect to an eligible institution for which no
report exists that is described under subparagraph (A), (B),
(C), or (D), such other report or set of information as the
Secretary, in consultation with the Administrator of the
Small Business Administration, may prescribe.
(5) CDCI.--The term ``CDCI'' means the Community
Development Capital Initiative created by the Secretary under
the Troubled Asset Relief Program established by the
Emergency Economic Stabilization Act of 2008.
(6) CDCI investment.--The term ``CDCI investment'' means,
with respect to any eligible institution, the principal
amount of any investment made by the Secretary in such
eligible institution under the CDCI that has not been repaid.
(7) CDFI; community development financial institution.--The
terms ``CDFI'' and ``community development financial
institution'' have the meaning given the term ``community
development financial institution'' under the Riegle
Community Development and Regulatory Improvement Act of 1994.
(8) CDLF; community development loan fund.--The terms
``CDLF'' and ``community development loan fund'' mean any
entity that--
(A) is certified by the Department of the Treasury as a
community development financial institution loan fund;
(B) is exempt from taxation under the Internal Revenue Code
of 1986; and
(C) had assets less than or equal to $10,000,000,000 as of
the end of the fourth quarter of calendar year 2009.
(9) CPP.--The term ``CPP'' means the Capital Purchase
Program created by the Secretary under the Troubled Asset
Relief Program established by the Emergency Economic
Stabilization Act of 2008.
(10) CPP investment.--The term ``CPP investment'' means,
with respect to any eligible institution, the principal
amount of any investment made by the Secretary in such
eligible institution under the CPP that has not been repaid.
(11) Eligible institution.--The term ``eligible
institution'' means--
(A) any insured depository institution, which--
(i) is not controlled by a bank holding company or savings
and loan holding company that is also an eligible
institution;
(ii) has total assets of equal to or less than
$10,000,000,000, as reported in the call report of the
insured depository institution as of the end of the fourth
quarter of calendar year 2009; and
(iii) is not directly or indirectly controlled by any
company or other entity that has total consolidated assets of
more than $10,000,000,000, as so reported;
(B) any bank holding company which has total consolidated
assets of equal to or less than $10,000,000,000, as reported
in the call report of the bank holding company as of the end
of the fourth quarter of calendar year 2009;
(C) any savings and loan holding company which has total
consolidated assets of equal to or less than $10,000,000,000,
as reported in the call report of the savings and loan
holding company as of the end of the fourth quarter of
calendar year 2009; and
(D) any community development financial institution loan
fund which has total assets of equal to or less than
$10,000,000,000, as reported in audited financial statements
for the fiscal year of the community development financial
institution loan fund that ends in calendar year 2009.
(12) Fund.--The term ``Fund'' means the Small Business
Lending Fund established under section 5103(a)(1).
(13) Insured depository institution.--The term ``insured
depository institution'' has the meaning given such term
under section 3(c)(2) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(c)(2)).
(14) Minority-owned and women-owned business.--The terms
``minority-owned business'' and ``women-owned business''
shall have the meaning given the terms ``minority-owned
business'' and ``women's business'', respectively, under
section 21A(r)(4) of the Federal Home Loan Bank Act (12
U.S.C. 1441A(r)(4)).
(15) Program.--The term ``Program'' means the Small
Business Lending Fund Program authorized under section
5103(a)(2).
(16) Savings and loan holding company.--The term ``savings
and loan holding company'' has the meaning given such term
under section 10(a)(1)(D) of the Home Owners' Loan Act (12
U.S.C. 1467a(a)(1)(D)).
(17) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(18) Small business lending.--
(A) In general.--The term ``small business lending'' means
lending, as defined by and reported in an eligible
institutions' quarterly call report, where each loan
comprising such lending is one of the following types:
(i) Commercial and industrial loans.
(ii) Owner-occupied nonfarm, nonresidential real estate
loans.
(iii) Loans to finance agricultural production and other
loans to farmers.
(iv) Loans secured by farmland.
(B) Exclusion.--No loan that has an original amount greater
than $10,000,000 or that goes to a business with more than
$50,000,000 in revenues shall be included in the measure.
(C) Treatment of holding companies.--In the case of
eligible institutions that are bank holding companies or
savings and loan holding companies having one or more insured
depository institution subsidiaries, small business lending
shall be measured based on the combined small business
lending reported in the call report of the insured depository
institution subsidiaries.
(19) Veteran-owned business.--
(A) The term ``veteran-owned business'' means a business--
(i) more than 50 percent of the ownership or control of
which is held by 1 or more veterans;
(ii) more than 50 percent of the net profit or loss of
which accrues to 1 or more veterans; and
(iii) a significant percentage of senior management
positions of which are held by veterans.
(B) For purposes of this paragraph, the term ``veteran''
has the meaning given such term in section 101(2) of title
38, United States Code.

[[Page S6111]]

SEC. 5103. SMALL BUSINESS LENDING FUND.

(a) Fund and Program.--
(1) Fund established.--There is established in the Treasury
of the United States a fund to be known as the ``Small
Business Lending Fund'', which shall be administered by the
Secretary.
(2) Programs authorized.--The Secretary is authorized to
establish the Small Business Lending Fund Program for using
the Fund consistent with this subtitle.
(b) Use of Fund.--
(1) In general.--Subject to paragraph (2), the Fund shall
be available to the Secretary, without further appropriation
or fiscal year limitation, for the costs of purchases
(including commitments to purchase), and modifications of
such purchases, of preferred stock and other financial
instruments from eligible institutions on such terms and
conditions as are determined by the Secretary in accordance
with this subtitle. For purposes of this paragraph and with
respect to an eligible institution, the term ``other
financial instruments'' shall include only debt instruments
for which such eligible institution is fully liable or equity
equivalent capital of the eligible institution. Such debt
instruments may be subordinated to the claims of other
creditors of the eligible institution.
(2) Maximum purchase limit.--The aggregate amount of
purchases (and commitments to purchase) made pursuant to
paragraph (1) may not exceed $30,000,000,000.
(3) Proceeds used to pay down public debt.--All funds
received by the Secretary in connection with purchases made
pursuant to paragraph (1), including interest payments,
dividend payments, and proceeds from the sale of any
financial instrument, shall be paid into the general fund of
the Treasury for reduction of the public debt.
(4) Limitation on purchases from cdlfs.--
(A) In general.--Not more than 1 percent of the maximum
purchase limit of the Program, pursuant to paragraph (2), may
be used to make purchases from community development loan
funds.
(B) Eligibility standards.--The Secretary, in consultation
with the Community Development Financial Institutions Fund,
shall develop eligibility criteria to determine the financial
ability of a CDLF to participate in the Program and repay the
investment. Such criteria shall include the following:
(i) Ratio of net assets to total assets is at least 20
percent.
(ii) Ratio of loan loss reserves to loans and leases 90
days or more delinquent (including loans sold with full
recourse) is at least 30 percent.
(iii) Positive net income measured on a 3-year rolling
average.
(iv) Operating liquidity ratio of at least 1.0 for the 4
most recent quarters and for one or both of the two preceding
years.
(v) Ratio of loans and leases 90 days or more delinquent
(including loans sold with full recourse) to total equity
plus loan loss reserves is less than 40 percent.
(C) Requirement to submit audited financial statements.--
CDLFs participating in the Program shall submit audited
financial statements to the Secretary, have a clean audit
opinion, and have at least 3 years of operating experience.
(c) Credits to the Fund.--There shall be credited to the
Fund amounts made available pursuant to section 5108, to the
extent provided by appropriations Acts.
(d) Terms.--
(1) Application.--
(A) Institutions with assets of $1,000,000,000 or less.--
Eligible institutions having total assets equal to or less
than $1,000,000,000, as reported in a call report as of the
end of the fourth quarter of calendar year 2009, may apply to
receive a capital investment from the Fund in an amount not
exceeding 5 percent of risk-weighted assets, as reported in
the call report immediately preceding the date of
application, less the amount of any CDCI investment and any
CPP investment.
(B) Institutions with assets of more than $1,000,000,000
and less than or equal to $10,000,000,000.--Eligible
institutions having total assets of more than $1,000,000,000
but less than $10,000,000,000, as of the end of the fourth
quarter of calendar year 2009, may apply to receive a capital
investment from the Fund in an amount not exceeding 3 percent
of risk-weighted assets, as reported in the call report
immediately preceding the date of application, less the
amount of any CDCI investment and any CPP investment.
(C) Treatment of holding companies.--In the case of an
eligible institution that is a bank holding company or a
savings and loan holding company having one or more insured
depository institution subsidiaries, total assets shall be
measured based on the combined total assets reported in the
call report of the insured depository institution
subsidiaries as of the end of the fourth quarter of calendar
year 2009 and risk-weighted assets shall be measured based on
the combined risk-weighted assets of the insured depository
institution subsidiaries as reported in the call report
immediately preceding the date of application.
(D) Treatment of applicants that are institutions
controlled by holding companies.--If an eligible institution
that applies to receive a capital investment under the
Program is under the control of a bank holding company or a
savings and loan holding company, then the Secretary may use
the Fund to purchase preferred stock or other financial
instruments from the top-tier bank holding company or savings
and loan holding company of such eligible institution, as
applicable. For purposes of this subparagraph, the term
``control'' with respect to a bank holding company shall have
the same meaning as in section 2(a)(2) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes
of this subparagraph, the term ``control'' with respect to a
savings and loan holding company shall have the same meaning
as in 10(a)(2) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)(2)).
(E) Requirement to provide a small business lending plan.--
At the time that an applicant submits an application to the
Secretary for a capital investment under the Program, the
applicant shall deliver to the appropriate Federal banking
agency, and, for applicants that are State-chartered banks,
to the appropriate State banking regulator, a small business
lending plan describing how the applicant's business strategy
and operating goals will allow it to address the needs of
small businesses in the areas it serves, as well as a plan to
provide linguistically and culturally appropriate outreach,
where appropriate. In the case of eligible institutions that
are community development loan funds, this plan shall be
submitted to the Secretary. This plan shall be confidential
supervisory information.
(F) Treatment of applicants that are community development
loan funds.--Eligible institutions that are community
development loan funds may apply to receive a capital
investment from the Fund in an amount not exceeding 5 percent
of total assets, as reported in the audited financial
statements for the fiscal year of the eligible institution
that ends in calendar year 2009.
(2) Consultation with regulators.--For each eligible
institution that applies to receive a capital investment
under the Program, the Secretary shall--
(A) consult with the appropriate Federal banking agency or,
in the case of an eligible institution that is a
nondepository community development financial institution,
the Community Development Financial Institution Fund, for the
eligible institution, to determine whether the eligible
institution may receive such capital investment;
(B) in the case of an eligible institution that is a State-
chartered bank, consider any views received from the State
banking regulator of the State of the eligible institution
regarding the financial condition of the eligible
institution; and
(C) in the case of a community development financial
institution loan fund, consult with the Community Development
Financial Institution Fund.
(3) Consideration of matched private investments.--
(A) In general.--For an eligible institution that applies
to receive a capital investment under the Program, if the
entity to be consulted under paragraph (2) would not
otherwise recommend the eligible institution to receive the
capital investment, the Secretary, in consultation with the
entity to be so consulted, may consider whether the entity to
be consulted would recommend the eligible institution to
receive a capital investment based on the financial condition
of the institution if the conditions in subparagraph (B) are
satisfied.
(B) Conditions.--The conditions referred to in subparagraph
(A) are as follows:
(i) Capital sources.--The eligible institution shall
receive capital both under the Program and from private,
nongovernment investors.
(ii) Amount of capital.--The amount of capital to be
received under the Program shall not exceed 3 percent of
risk-weighted assets, as reported in the call report
immediately preceding the date of application, less the
amount of any CDCI investment and any CPP investment.
(iii) Terms.--The amount of capital to be received from
private, nongovernment investors shall be--

(I) equal to or greater than 100 percent of the capital to
be received under the Program; and
(II) subordinate to the capital investment made by the
Secretary under the Program.

(4) Ineligibility of institutions on fdic problem bank
list.--
(A) In general.--An eligible institution may not receive
any capital investment under the Program, if--
(i) such institution is on the FDIC problem bank list; or
(ii) such institution has been removed from the FDIC
problem bank list for less than 90 days.
(B) Construction.--Nothing in subparagraph (A) shall be
construed as limiting the discretion of the Secretary to deny
the application of an eligible institution that is not on the
FDIC problem bank list.
(C) FDIC problem bank list defined.--For purposes of this
paragraph, the term ``FDIC problem bank list'' means the list
of depository institutions having a current rating of 4 or 5
under the Uniform Financial Institutions Rating System, or
such other list designated by the Federal Deposit Insurance
Corporation.
(5) Incentives to lend.--
(A) Requirements on preferred stock and other financial
instruments.--Any preferred stock or other financial
instrument issued to Treasury by an eligible institution
receiving a capital investment under the Program shall
provide that--
(i) the rate at which dividends or interest are payable
shall be 5 percent per annum initially;

[[Page S6112]]

(ii) within the first 2 years after the date of the capital
investment under the Program, the rate may be adjusted based
on the amount of an eligible institution's small business
lending. Changes in the amount of small business lending
shall be measured against the average amount of small
business lending reported by the eligible institution in its
call reports for the 4 full quarters immediately preceding
the date of enactment of this Act, minus adjustments from
each quarterly balance in respect of--

(I) net loan charge offs with respect to small business
lending; and
(II) gains realized by the eligible institution resulting
from mergers, acquisitions or purchases of loans after
origination and syndication; which adjustments shall be
determined in accordance with guidance promulgated by the
Secretary; and

(iii) during any calendar quarter during the initial 2-year
period referred to in clause (ii), an institution's rate
shall be adjusted to reflect the following schedule, based on
that institution's change in the amount of small business
lending relative to the baseline--

(I) if the amount of small business lending has increased
by less than 2.5 percent, the dividend or interest rate shall
be 5 percent;
(II) if the amount of small business lending has increased
by 2.5 percent or greater, but by less than 5.0 percent, the
dividend or interest rate shall be 4 percent;
(III) if the amount of small business lending has increased
by 5.0 percent or greater, but by less than 7.5 percent, the
dividend or interest rate shall be 3 percent;
(IV) if the amount of small business lending has increased
by 7.5 percent or greater, and but by less than 10.0 percent,
the dividend or interest rate shall be 2 percent; or
(V) if the amount of small business lending has increased
by 10 percent or greater, the dividend or interest rate shall
be 1 percent.

(B) Basis of initial rate.--The initial dividend or
interest rate shall be based on call report data published in
the quarter immediately preceding the date of the capital
investment under the Program.
(C) Timing of rate adjustments.--Any rate adjustment shall
occur in the calendar quarter following the publication of
call report data, such that the rate based on call report
data from any one calendar quarter, which is published in the
first following calendar quarter, shall be adjusted in that
first following calendar quarter and payable in the second
following quarter.
(D) Rate following initial 2-year period.--Generally, the
rate based on call report data from the eighth calendar
quarter after the date of the capital investment under the
Program shall be payable until the expiration of the 4\1/2\-
year period that begins on the date of the investment. In the
case where the amount of small business lending has remained
the same or decreased relative to the institution's baseline
in the eighth quarter after the date of the capital
investment under the Program, the rate shall be 7 percent
until the expiration of the 4\1/2\-year period that begins on
the date of the investment.
(E) Rate following initial 4\1/2\ -year period.--The
dividend or interest rate paid on any preferred stock or
other financial instrument issued by an eligible institution
that receives a capital investment under the Program shall
increase to 9 percent at the end of the 4\1/2\-year period
that begins on the date of the capital investment under the
Program.
(F) Limitation on rate reductions with respect to certain
amount.--The reduction in the dividend or interest rate
payable to Treasury by any eligible institution shall be
limited such that the rate reduction shall not apply to a
dollar amount of the investment made by Treasury that is
greater than the dollar amount increase in the amount of
small business lending realized under this program. The
Secretary may issue guidelines that will apply to new capital
investments limiting the amount of capital available to
eligible institutions consistent with this limitation.
(G) Rate adjustments for s corporation.--Before making a
capital investment in an eligible institution that is an S
corporation or a corporation organized on a mutual basis, the
Secretary may adjust the dividend or interest rate on the
financial instrument to be issued to the Secretary, from the
dividend or interest rate that would apply under
subparagraphs (A) through (F), to take into account any
differential tax treatment of securities issued by such
eligible institution. For purpose of this subparagraph, the
term ``S corporation'' has the same meaning as in section
1361(a) of the Internal Revenue Code of 1986.
(H) Repayment deadline.--The capital investment received by
an eligible institution under the Program shall be evidenced
by preferred stock or other financial instrument that--
(i) includes, as a term and condition, that the capital
investment will--

(I) be repaid not later than the end of the 10-year period
beginning on the date of the capital investment under the
Program; or
(II) at the end of such 10-year period, be subject to such
additional terms as the Secretary shall prescribe, which
shall include a requirement that the stock or instrument
shall carry the highest dividend or interest rate payable;
and

(ii) provides that the term and condition described under
clause (i) shall not apply if the application of that term
and condition would adversely affect the capital treatment of
the stock or financial instrument under current or successor
applicable capital provisions compared to a capital
instrument with identical terms other than the term and
condition described under clause (i).
(I) Requirements on financial instruments issued by a
community development financial institution loan fund.--Any
equity equivalent capital issued to the Treasury by a
community development loan fund receiving a capital
investment under the Program shall provide that the rate at
which interest is payable shall be 2 percent per annum for 8
years. After 8 years, the rate at which interest is payable
shall be 9 percent.
(6) Additional incentives to repay.--The Secretary may, by
regulation or guidance issued under section 5104(9),
establish repayment incentives in addition to the incentive
in paragraph (5)(E) that will apply to new capital
investments in a manner that the Secretary determines to be
consistent with the purposes of this subtitle.
(7) Capital purchase program refinance.--
(A) In general.--The Secretary shall, in a manner that the
Secretary determines to be consistent with the purposes of
this subtitle, issue regulations and other guidance to permit
eligible institutions to refinance securities issued to
Treasury under the CDCI and the CPP for securities to be
issued under the Program.
(B) Prohibition on participation by non-paying cpp
participants.--Subparagraph (A) shall not apply to any
eligible institution that has missed more than one dividend
payment due under the CPP. For purposes of this subparagraph,
a CPP dividend payment that is submitted within 60 days of
the due date of such payment shall not be considered a missed
dividend payment.
(8) Outreach to minorities, women, and veterans.--The
Secretary shall require eligible institutions receiving
capital investments under the Program to provide
linguistically and culturally appropriate outreach and
advertising in the applicant pool describing the availability
and application process of receiving loans from the eligible
institution that are made possible by the Program through the
use of print, radio, television or electronic media outlets
which target organizations, trade associations, and
individuals that--
(A) represent or work within or are members of minority
communities;
(B) represent or work with or are women; and
(C) represent or work with or are veterans.
(9) Additional terms.--The Secretary may, by regulation or
guidance issued under section 5104(9), make modifications
that will apply to new capital investments in order to manage
risks associated with the administration of the Fund in a
manner consistent with the purposes of this subtitle.
(10) Minimum underwriting standards.--The appropriate
Federal banking agency for an eligible institution that
receives funds under the Program shall within 60 days issue
guidance regarding prudent underwriting standards that must
be used for loans made by the eligible institution using such
funds.

SEC. 5104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

The Secretary may take such actions as the Secretary deems
necessary to carry out the authorities in this subtitle,
including, without limitation, the following:
(1) The Secretary may use the services of any agency or
instrumentality of the United States or component thereof on
a reimbursable basis, and any such agency or instrumentality
or component thereof is authorized to provide services as
requested by the Secretary using all authorities vested in or
delegated to that agency, instrumentality, or component.
(2) The Secretary may enter into contracts, including
contracts for services authorized by section 3109 of title 5,
United States Code.
(3) The Secretary may designate any bank, savings
association, trust company, security broker or dealer, asset
manager, or investment adviser as a financial agent of the
Federal Government and such institution shall perform all
such reasonable duties related to this subtitle as financial
agent of the Federal Government as may be required. The
Secretary shall have authority to amend existing agreements
with financial agents, entered into during the 2-year period
before the date of enactment of this Act, to perform
reasonable duties related to this subtitle.
(4) The Secretary may exercise any rights received in
connection with any preferred stock or other financial
instruments or assets purchased or acquired pursuant to the
authorities granted under this subtitle.
(5) Subject to section 5103(b)(3), the Secretary may manage
any assets purchased under this subtitle, including revenues
and portfolio risks therefrom.
(6) The Secretary may sell, dispose of, transfer, exchange
or enter into securities loans, repurchase transactions, or
other financial transactions in regard to, any preferred
stock or other financial instrument or asset purchased or
acquired under this subtitle, upon terms and conditions and
at a price determined by the Secretary.
(7) The Secretary may manage or prohibit conflicts of
interest that may arise in connection with the administration
and execution of the authorities provided under this
subtitle.
(8) The Secretary may establish and use vehicles, subject
to supervision by the Secretary, to purchase, hold, and sell
preferred stock or other financial instruments and issue
obligations.

[[Page S6113]]

(9) The Secretary may, in consultation with the
Administrator of the Small Business Administration, issue
such regulations and other guidance as may be necessary or
appropriate to define terms or carry out the authorities or
purposes of this subtitle.

SEC. 5105. CONSIDERATIONS.

In exercising the authorities granted in this subtitle, the
Secretary shall take into consideration--
(1) increasing the availability of credit for small
businesses;
(2) providing funding to minority-owned eligible
institutions and other eligible institutions that serve small
businesses that are minority-, veteran-, and women-owned and
that also serve low- and moderate-income, minority, and other
underserved or rural communities;
(3) protecting and increasing American jobs;
(4) increasing the opportunity for small business
development in areas with high unemployment rates that exceed
the national average;
(5) ensuring that all eligible institutions may apply to
participate in the program established under this subtitle,
without discrimination based on geography;
(6) providing transparency with respect to use of funds
provided under this subtitle;
(7) minimizing the cost to taxpayers of exercising the
authorities;
(8) promoting and engaging in financial education to would-
be borrowers; and
(9) providing funding to eligible institutions that serve
small businesses directly affected by the discharge of oil
arising from the explosion on and sinking of the mobile
offshore drilling unit Deepwater Horizon and small businesses
in communities that have suffered negative economic effects
as a result of that discharge with particular consideration
to States along the coast of the Gulf of Mexico.

SEC. 5106. REPORTS.

The Secretary shall provide to the appropriate committees
of Congress--
(1) within 7 days of the end of each month commencing with
the first month in which transactions are made under the
Program, a written report describing all of the transactions
made during the reporting period pursuant to the authorities
granted under this subtitle;
(2) after the end of March and the end of September,
commencing September 30, 2010, a written report on all
projected costs and liabilities, all operating expenses,
including compensation for financial agents, and all
transactions made by the Fund, which shall include
participating institutions and amounts each institution has
received under the Program; and
(3) within 7 days of the end of each calendar quarter
commencing with the first calendar quarter in which
transactions are made under the Program, a written report
detailing how eligible institutions participating in the
Program have used the funds such institutions received under
the Program.

SEC. 5107. OVERSIGHT AND AUDITS.

(a) Inspector General Oversight.--The Inspector General of
the Department of the Treasury shall conduct, supervise, and
coordinate audits and investigations of the Program through
the Office of Small Business Lending Fund Program Oversight
established under subsection (b).
(b) Office of Small Business Lending Fund Program
Oversight.--
(1) Establishment.--There is hereby established within the
Office of the Inspector General of the Department of the
Treasury a new office to be named the ``Office of Small
Business Lending Fund Program Oversight'' to provide
oversight of the Program.
(2) Leadership.--The Inspector General shall appoint a
Special Deputy Inspector General for SBLF Program Oversight
to lead the Office, with commensurate staff, who shall report
directly to the Inspector General and who shall be
responsible for the performance of all auditing and
investigative activities relating to the Program.
(3) Reporting.--
(A) In general.--The Inspector General shall issue a report
no less than two times a year to the Congress and the
Secretary devoted to the oversight provided by the Office,
including any recommendations for improvements to the
Program.
(B) Recommendations.--With respect to any deficiencies
identified in a report under subparagraph (A), the Secretary
shall either--
(i) take actions to address such deficiencies; or
(ii) certify to the appropriate committees of Congress that
no action is necessary or appropriate.
(4) Coordination.--The Inspector General, in maximizing the
effectiveness of the Office, shall work with other Offices of
Inspector General, as appropriate, to minimize duplication of
effort and ensure comprehensive oversight of the Program.
(5) Termination.--The Office shall terminate at the end of
the 6-month period beginning on the date on which all capital
investments are repaid under the Program or the date on which
the Secretary determines that any remaining capital
investments will not be repaid.
(6) Definitions.--For purposes of this subsection:
(A) Office.--The term ``Office'' means the Office of Small
Business Lending Fund Program Oversight established under
paragraph (1).
(B) Inspector general.--The term ``Inspector General''
means the Inspector General of the Department of the
Treasury.
(c) GAO Audit.--The Comptroller General of the United
States shall perform an annual audit of the Program and issue
a report to the appropriate committees of Congress containing
the results of such audit.
(d) Required Certifications.--
(1) Eligible institution certification.--Each eligible
institution that participates in the Program must certify
that such institution is in compliance with the requirements
of section 103.121 of title 31, Code of Federal Regulations,
a regulation that, at a minimum, requires financial
institutions, as that term is defined in 31 U.S.C. 5312(a)(2)
and (c)(1)(A), to implement reasonable procedures to verify
the identity of any person seeking to open an account, to the
extent reasonable and practicable, maintain records of the
information used to verify the person's identity, and
determine whether the person appears on any lists of known or
suspected terrorists or terrorist organizations provided to
the financial institution by any government agency.
(2) Loan recipients.--With respect to funds received by an
eligible institution under the Program, any business
receiving a loan from the eligible institution using such
funds after the date of the enactment of this Act shall
certify to such eligible institution that the principals of
such business have not been convicted of a sex offense
against a minor (as such terms are defined in section 111 of
the Sex Offender Registration and Notification Act (42 U.S.C.
16911)).
(e) Prohibition on Pornography.--None of the funds made
available under this subtitle may be used to pay the salary
of any individual engaged in activities related to the
Program who has been officially disciplined for violations of
subpart G of the Standards of Ethical Conduct for Employees
of the Executive Branch for viewing, downloading, or
exchanging pornography, including child pornography, on a
Federal Government computer or while performing official
Federal Government duties.

SEC. 5108. CREDIT REFORM; FUNDING.

(a) Credit Reform.--The cost of purchases of preferred
stock and other financial instruments made as capital
investments under this subtitle shall be determined as
provided under the Federal Credit Reform Act of 1990 (2
U.S.C. 661 et seq.).
(b) Funds Made Available.--There are hereby appropriated,
out of funds in the Treasury not otherwise appropriated, such
sums as may be necessary to pay the costs of $30,000,000,000
of capital investments in eligible institutions, including
the costs of modifying such investments, and reasonable costs
of administering the program of making, holding, managing,
and selling the capital investments.

SEC. 5109. TERMINATION AND CONTINUATION OF AUTHORITIES.

(a) Termination of Investment Authority.--The authority to
make capital investments in eligible institutions, including
commitments to purchase preferred stock or other instruments,
provided under this subtitle shall terminate 1 year after the
date of enactment of this Act.
(b) Continuation of Other Authorities.--The authorities of
the Secretary under section 5104 shall not be limited by the
termination date in subsection (a).

SEC. 5110. PRESERVATION OF AUTHORITY.

Nothing in this subtitle may be construed to limit the
authority of the Secretary under any other provision of law.

SEC. 5111. ASSURANCES.

(a) Small Business Lending Fund Separate From TARP.--The
Small Business Lending Fund Program is established as
separate and distinct from the Troubled Asset Relief Program
established by the Emergency Economic Stabilization Act of
2008. An institution shall not, by virtue of a capital
investment under the Small Business Lending Fund Program, be
considered a recipient of the Troubled Asset Relief Program.
(b) Change in Law.--If, after a capital investment has been
made in an eligible institution under the Program, there is a
change in law that modifies the terms of the investment or
program in a materially adverse respect for the eligible
institution, the eligible institution may, after consultation
with the appropriate Federal banking agency for the eligible
institution, repay the investment without impediment.

SEC. 5112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED,
VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES.

(a) Study.--The Secretary shall conduct a study of the
impact of the Program on women-owned businesses, veteran-
owned businesses, and minority-owned businesses.
(b) Report.--Not later than one year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report on the results of the study conducted pursuant to
subsection (a). To the extent possible, the Secretary shall
disaggregate the results of such study by ethnic group and
gender.
(c) Information Provided to the Secretary.--Eligible
institutions that participate in the Program shall provide
the Secretary with such information as the Secretary may
require to carry out the study required by this section.

SEC. 5113. SENSE OF CONGRESS.

It is the sense of Congress that the Federal Deposit
Insurance Corporation and other bank regulators are sending
mixed messages to banks regarding regulatory capital
requirements and lending standards, which is a

[[Page S6114]]

contributing cause of decreased small business lending and
increased regulatory uncertainty at community banks.

Subtitle B--Other Provisions

PART I--SMALL BUSINESS EXPORT PROMOTION INITIATIVES

SEC. 5221. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION
ACTIVITIES OF THE DEPARTMENT OF COMMERCE.

(a) Increase in Employees With Responsibility for Global
Business Development and Promotion Activities.--
(1) In general.--During the 24-month period beginning on
the date of the enactment of this Act, the Secretary of
Commerce shall increase the number of full-time departmental
employees whose primary responsibilities involve promoting or
facilitating participation by United States businesses in the
global marketplace and facilitating the entry into, or
expansion of, such participation by United States businesses.
In carrying out this subsection, the Secretary shall ensure
that--
(A) the cohort of such employees is increased by not less
than 80 persons; and
(B) a substantial portion of the increased cohort is
stationed outside the United States.
(2) Enhanced focus on united states small- and medium-sized
businesses.--In carrying out this subsection, the Secretary
shall take such action as may be necessary to ensure that the
activities of the Department of Commerce relating to
promoting and facilitating participation by United States
businesses in the global marketplace include promoting and
facilitating such participation by small and medium-sized
businesses in the United States.
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for each of the fiscal
years 2011 and 2012 such sums as may be necessary to carry
out this section.
(b) Additional Funding for Global Business Development and
Promotion Activities of the Department of Commerce.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Commerce for the period beginning on the
date of the enactment of this Act and ending 18 months
thereafter, $30,000,000 to promote or facilitate
participation by United States businesses in the global
marketplace and facilitating the entry into, or expansion of,
such participation by United States businesses.
(2) Requirements.--In obligating and expending the funds
authorized to be appropriated by paragraph (1), the Secretary
of Commerce shall give preference to activities that--
(A) assist small- and medium-sized businesses in the United
States; and
(B) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.

SEC. 5222. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL
MARKETS FOR RURAL BUSINESSES.

(a) In General.--There are authorized to be appropriated to
the Secretary of Commerce $5,000,000 for each of the fiscal
years 2011 and 2012 for improving access to the global
marketplace for goods and services provided by rural
businesses in the United States.
(b) Requirements.--In obligating and expending the funds
authorized to be appropriated by subsection (a), the
Secretary of Commerce shall give preference to activities
that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.

SEC. 5223. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.

(a) In General.--There are authorized to be appropriated to
the Secretary of Commerce $11,000,000 for the period
beginning on the date of the enactment of this Act and ending
18 months thereafter, to expand ExporTech, a joint program of
the Hollings Manufacturing Partnership Program and the Export
Assistance Centers of the Department of Commerce.
(b) Requirements.--In obligating and expending the funds
authorized to be appropriated by subsection (a), the
Secretary of Commerce shall give preference to activities
that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.

SEC. 5224. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT
COOPERATOR PROGRAM OF THE DEPARTMENT OF
COMMERCE.

(a) In General.--There are authorized to be appropriated to
the Secretary of Commerce for the period beginning on the
date of the enactment of this Act and ending 18 months
thereafter, $15,000,000 for the Manufacturing and Services
unit of the International Trade Administration--
(1) to establish public-private partnerships under the
Market Development Cooperator Program of the International
Trade Administration; and
(2) to underwrite a portion of the start-up costs for new
projects carried out under that Program to strengthen the
competitiveness and market share of United States industry,
not to exceed, for each such project, the lesser of--
(A) \1/3\ of the total start-up costs for the project; or
(B) $500,000.
(b) Requirements.--In obligating and expending the funds
authorized to be appropriated by subsection (a), the
Secretary of Commerce shall give preference to activities
that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.

SEC. 5225. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM;
TECHNOLOGY INNOVATION PROGRAM.

(a) Hollings Manufacturing Partnership Program.--Section
25(f) of the National Institute of Standards and Technology
Act (15 U.S.C. 278k(f)) is amended by adding at the end the
following:
``(7) Global marketplace projects.--In making awards under
this subsection, the Director, in consultation with the
Manufacturing Extension Partnership Advisory Board and the
Secretary of Commerce, may--
``(A) take into consideration whether an application has
significant potential for enhancing the competitiveness of
small and medium-sized United States manufacturers in the
global marketplace; and
``(B) give a preference to applications for such projects
to the extent the Director deems appropriate, taking into
account the broader purposes of this subsection.''.
(b) Technology Innovation Program.--In awarding grants,
cooperative agreements, or contracts under section 28 of the
National Institute of Standards and Technology Act (15 U.S.C.
278n), in addition to the award criteria set forth in
subsection (c) of that section, the Director of the National
Institute of Standards and Technology may take into
consideration whether an application has significant
potential for enhancing the competitiveness of small- and
medium-sized businesses in the United States in the global
marketplace. The Director shall consult with the Technology
Innovation Program Advisory Board and the Secretary of
Commerce in implementing this subsection.

SEC. 5226. SENSE OF THE SENATE CONCERNING FEDERAL
COLLABORATION WITH STATES ON EXPORT PROMOTION
ISSUES.

It is the sense of the Senate that the Secretary of
Commerce should enhance Federal collaboration with the States
on export promotion issues by--
(1) providing the necessary training to the staff at State
international trade agencies to enable them to assist the
United States and Foreign Commercial Service (established by
section 2301 of the Export Enhancement Act of 1988 (15 U.S.C.
4721)) in providing counseling and other export services to
businesses in their communities; and
(2) entering into agreements with State international trade
agencies for those agencies to deliver export promotion
services in their local communities in order to extend the
outreach of United States and Foreign Commercial Service
programs.

SEC. 5227. REPORT ON TARIFF AND NONTARIFF BARRIERS.

Not later than 90 days after the date of the enactment of
this Act, the Secretary of Commerce, in consultation with the
United States Trade Representative and other appropriate
entities, shall report to Congress on the tariff and
nontariff barriers imposed by Colombia, the Republic of
Korea, and Panama with respect to exports of articles from
the United States, including articles exported or produced by
small- and medium-sized businesses in the United States.

PART II--MEDICARE FRAUD

SEC. 5241. USE OF PREDICTIVE MODELING AND OTHER ANALYTICS
TECHNOLOGIES TO IDENTIFY AND PREVENT WASTE,
FRAUD, AND ABUSE IN THE MEDICARE FEE-FOR-
SERVICE PROGRAM.

(a) Use in the Medicare Fee-for-service Program.--The
Secretary shall use predictive modeling and other analytics
technologies (in this section referred to as ``predictive
analytics technologies'') to identify improper claims for
reimbursement and to prevent the payment of such claims under
the Medicare fee-for-service program.
(b) Predictive Analytics Technologies Requirements.--The
predictive analytics technologies used by the Secretary
shall--
(1) capture Medicare provider and Medicare beneficiary
activities across the Medicare fee-for-service program to
provide a comprehensive view across all providers,
beneficiaries, and geographies within such program in order
to--
(A) identify and analyze Medicare provider networks,
provider billing patterns, and beneficiary utilization
patterns; and
(B) identify and detect any such patterns and networks that
represent a high risk of fraudulent activity;
(2) be integrated into the existing Medicare fee-for-
service program claims flow with minimal effort and maximum
efficiency;
(3) be able to--
(A) analyze large data sets for unusual or suspicious
patterns or anomalies or contain other factors that are
linked to the occurrence of waste, fraud, or abuse;
(B) undertake such analysis before payment is made; and
(C) prioritize such identified transactions for additional
review before payment is made in terms of the likelihood of
potential waste, fraud, and abuse to more efficiently utilize
investigative resources;

[[Page S6115]]

(4) capture outcome information on adjudicated claims for
reimbursement to allow for refinement and enhancement of the
predictive analytics technologies on the basis of such
outcome information, including post-payment information about
the eventual status of a claim; and
(5) prevent the payment of claims for reimbursement that
have been identified as potentially wasteful, fraudulent, or
abusive until such time as the claims have been verified as
valid.
(c) Implementation Requirements.--
(1) Request for proposals.--Not later than January 1, 2011,
the Secretary shall issue a request for proposals to carry
out this section during the first year of implementation. To
the extent the Secretary determines appropriate--
(A) the initial request for proposals may include
subsequent implementation years; and
(B) the Secretary may issue additional requests for
proposals with respect to subsequent implementation years.
(2) First implementation year.--The initial request for
proposals issued under paragraph (1) shall require the
contractors selected to commence using predictive analytics
technologies on July 1, 2011, in the 10 States identified by
the Secretary as having the highest risk of waste, fraud, or
abuse in the Medicare fee-for-service program.
(3) Second implementation year.--Based on the results of
the report and recommendation required under subsection
(e)(1)(B), the Secretary shall expand the use of predictive
analytics technologies on October 1, 2012, to apply to an
additional 10 States identified by the Secretary as having
the highest risk of waste, fraud, or abuse in the Medicare
fee-for-service program, after the States identified under
paragraph (2).
(4) Third implementation year.--Based on the results of the
report and recommendation required under subsection (e)(2),
the Secretary shall expand the use of predictive analytics
technologies on January 1, 2014, to apply to the Medicare
fee-for-service program in any State not identified under
paragraph (2) or (3) and the commonwealths and territories.
(5) Fourth implementation year.--Based on the results of
the report and recommendation required under subsection
(e)(3), the Secretary shall expand the use of predictive
analytics technologies, beginning April 1, 2015, to apply to
Medicaid and CHIP. To the extent the Secretary determines
appropriate, such expansion may be made on a phased-in basis.
(6) Option for refinement and evaluation.--If, with respect
to the first, second, or third implementation year, the
Inspector General of the Department of Health and Human
Services certifies as part of the report required under
subsection (e) for that year no or only nominal actual
savings to the Medicare fee-for-service program, the
Secretary may impose a moratorium, not to exceed 12 months,
on the expansion of the use of predictive analytics
technologies under this section for the succeeding year in
order to refine the use of predictive analytics technologies
to achieve more than nominal savings before further
expansion. If a moratorium is imposed in accordance with this
paragraph, the implementation dates applicable for the
succeeding year or years shall be adjusted to reflect the
length of the moratorium period.
(d) Contractor Selection, Qualifications, and Data Access
Requirements.--
(1) Selection.--
(A) In general.--The Secretary shall select contractors to
carry out this section using competitive procedures as
provided for in the Federal Acquisition Regulation.
(B) Number of contractors.--The Secretary shall select at
least 2 contractors to carry out this section with respect to
any year.
(2) Qualifications.--
(A) In general.--The Secretary shall enter into a contract
under this section with an entity only if the entity--
(i) has leadership and staff who--

(I) have the appropriate clinical knowledge of, and
experience with, the payment rules and regulations under the
Medicare fee-for-service program; and
(II) have direct management experience and proficiency
utilizing predictive analytics technologies necessary to
carry out the requirements under subsection (b); or

(ii) has a contract, or will enter into a contract, with
another entity that has leadership and staff meeting the
criteria described in clause (i).
(B) Conflict of interest.--The Secretary may only enter
into a contract under this section with an entity to the
extent that the entity complies with such conflict of
interest standards as are generally applicable to Federal
acquisition and procurement.
(3) Data access.--The Secretary shall provide entities with
a contract under this section with appropriate access to data
necessary for the entity to use predictive analytics
technologies in accordance with the contract.
(e) Reporting Requirements.--
(1) First implementation year report.--Not later than 3
months after the completion of the first implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the
public a report that includes the following:
(A) A description of the implementation of the use of
predictive analytics technologies during the year.
(B) A certification of the Inspector General of the
Department of Health and Human Services that--
(i) specifies the actual and projected savings to the
Medicare fee-for-service program as a result of the use of
predictive analytics technologies, including estimates of the
amounts of such savings with respect to both improper
payments recovered and improper payments avoided;
(ii) the actual and projected savings to the Medicare fee-
for-service program as a result of such use of predictive
analytics technologies relative to the return on investment
for the use of such technologies and in comparison to other
strategies or technologies used to prevent and detect fraud,
waste, and abuse in the Medicare fee-for-service program; and
(iii) includes recommendations regarding--

(I) whether the Secretary should continue to use predictive
analytics technologies;
(II) whether the use of such technologies should be
expanded in accordance with the requirements of subsection
(c); and
(III) any modifications or refinements that should be made
to increase the amount of actual or projected savings or
mitigate any adverse impact on Medicare beneficiaries or
providers.

(C) An analysis of the extent to which the use of
predictive analytics technologies successfully prevented and
detected waste, fraud, or abuse in the Medicare fee-for-
service program.
(D) A review of whether the predictive analytics
technologies affected access to, or the quality of, items and
services furnished to Medicare beneficiaries.
(E) A review of what effect, if any, the use of predictive
analytics technologies had on Medicare providers.
(F) Any other items determined appropriate by the
Secretary.
(2) Second year implementation report.--Not later than 3
months after the completion of the second implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the
public a report that includes, with respect to such year, the
items required under paragraph (1) as well as any other
additional items determined appropriate by the Secretary with
respect to the report for such year.
(3) Third year implementation report.--Not later than 3
months after the completion of the third implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress, and make available to the
public, a report that includes with respect to such year, the
items required under paragraph (1), as well as any other
additional items determined appropriate by the Secretary with
respect to the report for such year, and the following:
(A) An analysis of the cost-effectiveness and feasibility
of expanding the use of predictive analytics technologies to
Medicaid and CHIP.
(B) An analysis of the effect, if any, the application of
predictive analytics technologies to claims under Medicaid
and CHIP would have on States and the commonwealths and
territories.
(C) Recommendations regarding the extent to which technical
assistance may be necessary to expand the application of
predictive analytics technologies to claims under Medicaid
and CHIP, and the type of any such assistance.
(f) Independent Evaluation and Report.--
(1) Evaluation.--Upon completion of the first year in which
predictive analytics technologies are used with respect to
claims under Medicaid and CHIP, the Secretary shall, by
grant, contract, or interagency agreement, conduct an
independent evaluation of the use of predictive analytics
technologies under the Medicare fee-for-service program and
Medicaid and CHIP. The evaluation shall include an analysis
with respect to each such program of the items required for
the third year implementation report under subsection (e)(3).
(2) Report.--Not later than 18 months after the evaluation
required under paragraph (1) is initiated, the Secretary
shall submit a report to Congress on the evaluation that
shall include the results of the evaluation, the Secretary's
response to such results and, to the extent the Secretary
determines appropriate, recommendations for legislation or
administrative actions.
(g) Waiver Authority.--The Secretary may waive such
provisions of titles XI, XVIII, XIX, and XXI of the Social
Security Act, including applicable prompt payment
requirements under titles XVIII and XIX of such Act, as the
Secretary determines to be appropriate to carry out this
section.
(h) Funding.--
(1) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to the
Secretary to carry out this section, $100,000,000 for the
period beginning January 1, 2011, to remain available until
expended.
(2) Reservations.--
(A) Independent evaluation.--The Secretary shall reserve
not more than 5 percent of the funds appropriated under
paragraph (1) for purposes of conducting the independent
evaluation required under subsection (f).
(B) Application to medicaid and chip.--The Secretary shall
reserve such portion of the funds appropriated under
paragraph (1) as the Secretary determines appropriate for
purposes of providing assistance to States for administrative
expenses in the event of

[[Page S6116]]

the expansion of predictive analytics technologies to claims
under Medicaid and CHIP.
(i) Definitions.--In this section:
(1) Commonwealths and territories.--The term ``commonwealth
and territories'' includes the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, American Samoa, the Commonwealth of
the Northern Mariana Islands, and any other territory or
possession of the United States in which the Medicare fee-
for-service program, Medicaid, or CHIP operates.
(2) CHIP.--The term ``CHIP'' means the Children's Health
Insurance Program established under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.).
(3) Medicaid.--The term ``Medicaid'' means the program to
provide grants to States for medical assistance programs
established under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(4) Medicare beneficiary.--The term ``Medicare
beneficiary'' means an individual enrolled in the Medicare
fee-for-service program.
(5) Medicare fee-for-service program.--The term ``Medicare
fee-for-service program'' means the original medicare fee-
for-service program under parts A and B of title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.).
(6) Medicare provider.--The term ``Medicare provider''
means a provider of services (as defined in subsection (u) of
section 1861 of the Social Security Act (42 U.S.C. 1395x))
and a supplier (as defined in subsection (d) of such
section).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services, acting through the
Administrator of the Centers for Medicare & Medicaid
Services.
(8) State.--The term ``State'' means each of the 50 States
and the District of Columbia.

PART III--ADVANCE REFUNDABILITY

SEC. 5261. ELIMINATION OF ADVANCE REFUNDABILITY OF EARNED
INCOME CREDIT.

(a) In General.--Notwithstanding any other provision of
this Act, section 2122 and the amendments made by section
2122 shall have no force or effect.
(b) Elimination.--
(1) In general.--The following provisions of the Internal
Revenue Code of 1986 are repealed:
(A) Section 3507.
(B) Subsection (g) of section 32.
(C) Paragraph (7) of section 6051(a).
(2) Conforming amendments.--
(A) Section 6012(a) of the Internal Revenue Code of 1986 is
amended by striking paragraph (8) and by redesignating
paragraph (9) as paragraph (8).
(B) Section 6302 of such Code is amended by striking
subsection (i).
(C) The table of sections for chapter 25 of such Code is
amended by striking the item relating to section 3507.
(3) Effective date.--The repeals and amendments made by
this subsection shall apply to taxable years beginning after
December 31, 2010.
______