E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 111 CONGRESS, SECOND SESSION

Vol. 156 WASHINGTON, MONDAY, MARCH 1, 2010 No. 27 House of Representatives The House was not in session today. Its next meeting will be held on Tuesday, March 2, 2010, at 12.30 p.m. Senate MONDAY, MARCH 1, 2010

The Senate met at 2 p.m. and was to the Senate from the President pro MEASURES PLACED ON THE called to order by the Honorable MARK tempore (Mr. BYRD). CALENDAR—H.R. 4626 AND H.R. 4691 R. WARNER, a Senator from the Com- The legislative clerk read the fol- Mr. REID. Mr. President, there are monwealth of Virginia. lowing letter: two bills at the desk due for a second U.S. SENATE, reading. PRAYER PRESIDENT PRO TEMPORE, The ACTING PRESIDENT pro tem- The Chaplain, Dr. Barry C. Black, of- Washington, DC, March 1, 2010. pore. The clerk will report the bills by fered the following prayer: To the Senate: title. Under the provisions of rule I, paragraph 3, Let us pray. of the Standing Rules of the Senate, I hereby The legislative clerk read as follows: O God, whose approval we seek above appoint the Honorable MARK R. WARNER, a A bill (H.R. 4626) to restore the application humanity’s hollow applause, we pause Senator from the Commonwealth of Vir- of the Federal antitrust laws to the business today to experience the warmth of ginia, to perform the duties of the Chair. of health insurance to protect competition Your presence as You lift the light of ROBERT C. BYRD, and consumers. Your countenance upon us. President pro tempore. A bill (H.R. 4691) to provide a temporary Mr. WARNER thereupon assumed the extension of certain programs, and for other Give to the Members of this body purposes. pure hearts and a passion to faithfully chair as Acting President pro tempore. Mr. REID. I object to any further serve You and country. Across their f proceedings with respect to these two toiling hours, keep their hearts fixed bills. on You, the author and finisher of their RECOGNITION OF THE MAJORITY The ACTING PRESIDENT pro tem- faith. In a world of suspense, suspicion, LEADER pore. Objection is heard. and turmoil, breathe now in this quiet The ACTING PRESIDENT pro tem- The bills will be placed on the cal- moment Your peace on every heart. pore. The majority leader is recog- endar. Lord, prepare solutions for our Sen- nized. f ators’ complexities and resolve their f conflicts in a way that will glorify COSTLY INACTION You. SCHEDULE Mr. REID. Mr. President, every night We pray in Your sacred Name. Amen. Mr. REID. Mr. President, following too many out-of-work Nevadans and f leader remarks, there will be a period Americans, people who want to work, of morning business until 3 p.m., with who need to support their families but PLEDGE OF ALLEGIANCE Senators permitted to speak for up to can’t find a job, go to bed with at least The Honorable MARK R. WARNER led 10 minutes each. At 3 p.m., we will turn the comfort of having unemployment the Pledge of Allegiance, as follows: to consideration of H.R. 4213, the tax insurance and health benefits. Last I pledge allegiance to the Flag of the extenders legislation. Senator BAUCUS night, more than a million people United States of America, and to the Repub- will be recognized to call up a sub- throughout America who went to sleep lic for which it stands, one nation under God, stitute amendment. As previously an- relying on those benefits woke up with- indivisible, with liberty and justice for all. nounced, there will be no rollcall votes out the confidence they will be there f today. The first vote of the week will now. Early this morning, when they occur at 12:15 p.m. tomorrow. That vote would rather be spending their morn- APPOINTMENT OF ACTING will be on the motion to invoke cloture ings working, mothers and fathers in PRESIDENT PRO TEMPORE on the nomination of Barbara Keenan every State woke up to line up at the The PRESIDING OFFICER. The to be U.S. circuit judge for the Fourth unemployment office in a long line. clerk will please read a communication Circuit. News reports today are that these lines

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00001 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.000 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S826 CONGRESSIONAL RECORD — SENATE March 1, 2010 are very long today, all over the coun- bridge construction in Coeur d’Alene, He did it. The leader of the Democrats try, from Virginia to Nevada to Ken- ID. All over the country, this is hap- pulled that bill from the floor. tucky. They are long because these pening. The safety inspectors have no I support extending unemployment people are worried about how they are pay, so they have to leave. Nothing is benefits, COBRA benefits, flood insur- going to put food on the table and pay happening. This is going to lead to un- ance, the highway bill fix, the doc fix, the bills. For far too many Americans, told numbers of people—I said up to 1 small business loans, distant network those benefits were set to expire last million people—who will not be able to television for satellite viewers. If we night. So six times last week, Demo- work. can’t find $10 billion to pay for some- crats asked to extend their unemploy- It is really wrong what has taken thing we all support, we will never pay ment benefits for a short time while we place here. It is not too late to right for anything in the Senate. I have of- work on a longer extension. Six times, that wrong. I hope Republicans will re- fered several ways to do this, including Republicans said no. They didn’t say consider, think about their constitu- trying to negotiate with the majority no to us; that is, Members of the Sen- ents standing in the unemployment leader’s staff. None have been success- ate, they said no to the families in lines as we speak. I hope they recon- ful. their own States and all States who sider. We cannot keep adding to the debt. It count on us to act when we need ac- f is over $14 trillion and going up fast. If tion, who count on us to respond in the the budget before us passes, it will add event of an emergency. This is an UNANIMOUS-CONSENT REQUEST— another $1.5 trillion to the debt. emergency. H.R. 4691 Recently, we passed pay-go. For Republicans in the Senate are stand- Mr. REID. Based on that, I ask unan- those who don’t know what pay-go is, ing between these families and the help imous consent that the Senate proceed it means you have to pay for every- they need while these benefits expire. to H.R. 4691, which is a 30-day ex- thing you bring before the Senate. You It might work because under the Sen- tension of provisions which expired can’t charge it on the debt. You can’t ate rules they can do that, but it cer- yesterday—unemployment insurance; charge it. That is what pay-go says. tainly doesn’t work for working fami- COBRA, which is the health insurance Understanding that, I hope the Amer- lies whose need to buy groceries does for people out of work; flood insurance; ican people understand my serious ob- not expire. The need to heat your Satellite Home Viewer Act—11⁄2 million jection. homes, put gas in the car, make pay- people today are unable to watch TV f ments for furniture you buy, the car who could last night at midnight— you bought, your house payment, the UNANIMOUS-CONSENT REQUEST— highway funding—I talked about that— H.R. 4691 need to take medicine or support an SBA business loans; small business pro- aging parent or to take care of your visions of the American Recovery Act; Mr. BUNNING. Mr. President, I ask kids, they don’t expire. the doctors fix, the SGR, and poverty unanimous consent that the Senate Those opposed to helping our fellow guidelines, received from the House proceed to the immediate consider- citizens at their time of greatest need and at the desk; that the bill be read ation of H.R. 4691; that the amendment want to talk about process. My Repub- three times, passed, and the motion to at the desk, which offers a full offset, lican colleagues came to the floor and reconsider be laid upon the table. be agreed to; the bill, as amended, be talked about process. They had a right The ACTING PRESIDENT pro tem- read a third time and passed; and the to do that. Under the rules, I guess pore. Is there objection? motion to reconsider be laid upon the that is true. But if you can’t afford to Mr. BUNNING. I object. table. feed your kids, process doesn’t mean The ACTING PRESIDENT pro tem- The ACTING PRESIDENT pro tem- anything to you. pore. Objection is heard. pore. Is there objection? We often talk about the cost of inac- Mr. REID. Reserving the right to ob- Mr. REID. I thank the Chair. tion. It is the reason we insist on cre- ject, history is something I think you ating jobs and making health care f have to be involved in to understand more affordable and on strengthening RESERVATION OF LEADER TIME what really transpired. national security. When we talk about First of all, there was no bill on the the cost of inaction, it is more than The ACTING PRESIDENT pro tem- floor for me to take off the floor. There just rhetoric; it comes with dire con- pore. Under the previous order, the was discussion between Democrats and sequences. Americans who woke up leadership time is reserved. Republicans. On the Thursday before this morning without the benefits they f we left for the last weeklong break we need now know that better than any- MORNING BUSINESS took, I was in the back hall with Sen- one else. ators GRASSLEY, BAUCUS, and MCCON- The Associated Press runs all over The ACTING PRESIDENT pro tem- NELL. Senator MCCONNELL, my friend, the country—a newswire. Among other pore. Under the previous order, there said they weren’t ready to agree to things, this article says this morning: will now be a period of morning busi- anything yet. Two thousand federal transportation work- ness until 3 p.m., with Senators per- Well, it is very clear if we are going ers will be furloughed without pay [today]. mitted to speak therein for up to 10 to extend benefits for a lot of tax provi- The reason we are talking about minutes each. sions that are very important to busi- 2,000, this doesn’t count the thousands The Senator from Kentucky. ness, then we should at least consider and thousands, up to 1 million people f extending benefits for people who are who are not going to have jobs as a re- down and out in the same period of sult of not extending the highway bill. UNEMPLOYMENT BENEFITS time. That is what we want to do—let these Mr. BUNNING. Mr. President, just a So understand, the bill that came be- people work—because what has hap- brief explanation of why we are where fore the Senate included a jobs package pened is that even the inspectors can’t we are with this extension bill, a brief that extends the highway benefits for 1 go out and do their jobs, so people are extension of 30 days. year, saving a million jobs, creating just walking away from these jobs. There was an agreement between the jobs by allowing small businesses—or Secretary LaHood, the Secretary of majority leader of the Finance Com- any businesses—to hire somebody who Transportation—a Republican Con- mittee and the minority leader on the has been out of work for 60 days. They gressman until he was appointed—said Finance Committee, Senators BAUCUS do not have to pay their withholding construction workers will be sent home and GRASSLEY, on a 3-month extension tax and they get a $1,000 tax credit at from jobsites because Federal inspec- of these very same provisions. There the end of the year. tors must be furloughed. They named a were more provisions in the bill also. It In addition to that, to help small long list of construction sites that will cost a little more than the $10 billion businesses, we had a provision to allow be halted: George Washington Parkway that is asked for because it was a 3- small businesses to write off and not in Virginia, the Humpback Bridge—I month extension. Senator REID pulled depreciate up to $250,000 of purchases in don’t know where that is in Virginia— that bill from the floor of the Senate. a year—very important to create and

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00002 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.001 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S827 stimulate business—and we also had in Mr. REID. Mr. President, unless my dent, to have printed in the RECORD the that bill a provision to stimulate the friend has more to say, I suggest the letter I gave to President Obama on economy by extending the Build Amer- absence of a quorum. Thursday. ica Bonds that were so successful in The ACTING PRESIDENT pro tem- There being no objection, the mate- our Recovery Act and those funds ex- pore. The clerk will call the roll. rial was ordered to be printed in the pired. The legislative clerk proceeded to RECORD, as follows: One can have all the excuses one call the roll. U.S. SENATE, wants. The fact is, my friends on the Mr. ALEXANDER. Mr. President, I Washington, DC, February 25, 2010. other side of the aisle are opposing ex- ask unanimous consent that the order Hon. BARACK OBAMA, tending unemployment benefits for for the quorum call be rescinded. President, The White House, Pennsylvania Ave- people who are out of work. The ACTING PRESIDENT pro tem- nue, Washington, DC. I would also say this: Pay-go is very pore. Without objection, it is so or- DEAR MR. PRESIDENT: During today’s dis- interesting. I am glad my friend dered. cussion on health care, you and I disagreed brought that up. I am glad he brought about whether the health care bill that Mr. ALEXANDER. Mr. President, I passed the Senate on a party-line vote on De- up the big deficit because it is very big. ask unanimous consent to speak in cember 24 would cause health insurance pre- But where was my friend from Ken- morning business for up to 15 minutes. miums to rise even faster than if Congress tucky when we had two wars that were The ACTING PRESIDENT pro tem- did not act. I believe premiums will rise be- unpaid for during the Bush administra- pore. Without objection, it is so or- cause of independent analysis of the bill: tion, tax cuts that cost more than $1 dered. On November 30, the non-partisan Congres- trillion unpaid for? Where were my Mr. ALEXANDER. Thank you. Mr. sional Budget Office (CBO) wrote in a letter friend and the Republicans objecting to President, will the Acting President to Senator Bayh that ‘‘CBO and JCT esti- that? mate that the average premium per person pro tempore please let me know when I covered (including dependents) for new Pay-go is important, and we passed have consumed 12 of the 15 minutes. pay-go here—we, the Democrats, nongroup policies would be about 10 percent The ACTING PRESIDENT pro tem- to 13 percent higher in 2016 than the average passed it. My friend did not vote for it. pore. Yes. premium for nongroup coverage in that same It passed because Democrats voted for Mr. ALEXANDER. Thank you very year under current law.’’ it. Not a single Republican voted for it. much, Mr. President. When you asserted that CBO says pre- We had these in effect during the Clin- miums will decline by 14 to 20 percent under f ton years, and it worked. We paid down the Senate bill, you are leaving out an im- the debt in the last Clinton years. HEALTH CARE portant part of CBO’s calculations. These re- We also understand how important Mr. ALEXANDER. Mr. President, it ductions are overwhelmed by a 27 to 30 per- cent increase in premiums due to the man- the debt of this country is. It started to was my privilege last Thursday, along build up so strong during the 8 years of dated coverage requirements in the legisla- with some other Members of the Sen- tion. CBO added those figures together to ar- the Bush administration. We brought ate, to attend a health care summit at rive at a net increase of 10 to 13 percent—as to this floor—no one worked harder the invitation of President Obama. It shown in their chart in that same letter. than the Acting President pro tempore went on a long time. We learned one In that same letter, CBO wrote, ‘‘The legis- to come up with something to address thing we already knew, that our Presi- lation would impose several new fees on the debt with the chairman of our dent is smart and knows a lot about firms in the health sector. New fees would be Budget Committee and others. health care. So he stayed the whole imposed on providers of health insurance and on manufacturers and importers of medical We wanted a debt commission, and time. we brought to this floor a debt commis- devices. Both of those fees would be largely But it gave those of us on the Repub- passed through to consumers in the form of sion, a good one. It was based upon lican side a chance we do not have the what we did with military base clos- higher premiums for private coverage.’’ opportunity to have as often, which is, On December 10, the chief actuary for the ings. We tried for decades to close to be on center stage and let the Amer- Centers for Medicare and Medicaid Serv- bases that were unnecessary in the ican people know, A, who we are, and, ices—who works for your administration— country anymore, after World War II B, what our ideas are. So it was a ter- concurred with the CBO. In his analysis, the was over, the Korean war was over, rific way for us to show, for example, actuary said, ‘‘We anticipate such fees would Vietnam. We did not need all those generally be passed through to health con- that our goal is to reduce health care bases. But because of what happens sumers in the form of higher drug and device costs, that we wish to move step by when trying to close a base because of prices and higher insurance premiums.’’ He step toward that goal. local politics, we could not do it. So we also said, ‘‘The additional demand for health We identified a number of areas, such services could be difficult to meet initially passed a bill that said we are going to as being able to buy health insurance with existing health provider resources and have a base closing commission. They across State lines, allowing small busi- could lead to price increases, cost-shifting, will come back with recommendations, and/or changes in providers’ willingness to and the House and the Senate have a ness health plans to pool together, re- ducing junk lawsuits—all of which will treat patients with low-reimbursement choice: either vote no or yes on their health coverage.’’ recommendations. And they voted yes, tend to bring down the cost of pre- For these reasons, the Senate-passed bill both the House and the Senate, and we miums, which is what most Americans will, indeed, cause Americans’ insurance pre- closed numerous bases all over the want. miums to rise, which is the opposite of the country. During the discussion, early on, actu- goal I believe we should pursue. The debt commission we established ally, the President and I had a little Sincerely, LAMAR ALEXANDER. was based upon that—the same thing— disagreement about whether his plan, and we voted, we Democrats voted. It which is based upon the Senate bill, Mr. ALEXANDER. But today what I would have passed. Why did it not which passed on Christmas Eve, would wish to do in the next few minutes is pass? Because seven Republicans who raise premiums. What I had said in my explain why I believe I am correct, that cosponsored the legislation voted opening remarks on behalf of Repub- under the President’s health insurance against it. licans was that millions of Americans, plan, which is based upon the Senate So we do not need lectures here on under the Democratic plan, would pay plan, for millions of Americans in the debt. What we need is to recognize higher insurance premiums in the indi- individual market, premiums would go there are poor people all over America vidual market because of government up because of one-size-fits-all govern- who are desperate today, and people mandates and taxes. The President ment mandates, because of taxes that who are working, making good money says that is wrong. I cited a Congres- are passed on to consumers; but for on these road projects all over America sional Budget Office report to show I other reasons as well—by shifting today who are being told to go home was right. And rather than dispute the costs. because we do not have inspectors to President of the United States in pub- When you dump 15 million people or take care of their work. lic—I thought I had enough time to 18 million people into a program called Therefore, Mr. President, I object. make my case—I said I would send him Medicaid, what happens is, we do not The ACTING PRESIDENT pro tem- a letter, which I did that same day. So pay the doctors and the hospitals well pore. Objection is heard. I ask unanimous consent, Mr. Presi- enough to take care of those folks. So

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00003 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.005 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S828 CONGRESSIONAL RECORD — SENATE March 1, 2010 those providers shift the costs to peo- over the last year is to bring premiums care and health insurance systems would af- ple who are paying with private insur- down, not help drive premiums up. fect premiums paid for health insurance in ance, and premiums go up. What I said to the President, with re- various markets. Specifically, the Congres- spect, was that the Congressional sional Budget Office (CBO) and the staff of Costs for young people in the indi- the Joint Committee on Taxation have ana- vidual market will go up under this Budget Office, on November 30, said lyzed how health insurance premiums might plan because if you put in a rule that this about the Senate bill: be affected by enactment of the Patient Pro- says my insurance at my age cannot go The Congressional Budget Office and the tection and Affordable Care Act, as proposed up more than a certain amount com- Joint Committee on Taxation estimate that by Senator Reid on November 18, 2009. pared with my son’s insurance, then his the average premium per person covered for I hope this information is helpful to you. If insurance goes up, and because a new nongroup— you have any further questions, please con- scheme like the Democratic plan de- That means individual policies— tact me or the CBO staff. The primary staff contact for this analysis is Philip Ellis. pends upon requiring everybody to buy would be about 10 to 13 percent higher in 2016 Sincerely, insurance. There is a weak provision than the average premium for nongroup— DOUGLAS W. ELMENDORF, for that, and I suspect many young That is individual coverage— Director. people will rather pay the $750 fine in the same year under current law. Attachment. rather than buy a $2,500 insurance pol- In other words, if you buy an indi- SUMMARY OF FINDINGS icy, which they think they cannot af- vidual policy—that means not a policy The effects of the proposal on premiums ford. with your employer—by 2016 it will be would differ across insurance markets (see The President made the point in his at an average of 10 to 13 percent higher Table 1). The largest effects would be seen in the nongroup market, which would grow in usual very persuasive way that, wait a than it otherwise would. minute, actually you would be getting size under the proposal but would still ac- I ask unanimous consent to have count for only 17 percent of the overall in- better insurance. But that is com- printed in the RECORD the relevant surance market in 2016. The effects on pre- paring apples and oranges. As George parts of the Congressional Budget Of- miums would be much smaller in the small Will said on ABC’s ‘‘This Week’’ yester- fice letter of November 30 to Senator group and large group markets, which would day—he asked this question: If the gov- EVAN BAYH on this point. make up 13 percent and 70 percent of the ernment required you to buy a better, There being no objection, the mate- total insurance market, respectively. more expensive car, even if it was bet- rial was ordered to be printed in the NONGROUP POLICIES ter than the car you have, it would RECORD, as follows: CBO and JCT estimate that the average still be more expensive, would it not? U.S. CONGRESS, premium per person covered (including de- That is the case with the President’s CONGRESSIONAL BUDGET OFFICE, pendents) for new nongroup policies would be health care plan. In fact, premiums Washington, DC, November 30, 2009. about 10 percent to 13 percent higher in 2016 will go up for millions of Americans in Hon. EVAN BAYH, than the average premium for nongroup cov- U.S. Senate, Washington, DC. erage in that same year under current law. the individual market, up more than DEAR SENATOR: The attachment to this let- About half of those enrollees would receive they otherwise would over the next ter responds to your request—and the inter- government subsidies that would reduce several years—and we all know how est expressed by many other Members—for their costs well below the premiums that rapidly they are rising—and the whole an analysis of how proposals being consid- would be charged for such policies under cur- exercise we have been going through ered by the Congress to change the health rent law.

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00004 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.006 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S829

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00005 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.006 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE Insert offset folio 252 here ES01MR10.001 S830 CONGRESSIONAL RECORD — SENATE March 1, 2010 Mr. ALEXANDER. Now, the Presi- claims by its supporters, the bill will not de- need purchasing choices that provide the dent said: Wait a minute. The pre- liver the widely-promised help to the small flexibility in coverage options that reflect miums in the individual market will go business community. Instead, CBO findings their marketplace and business needs. If down 14 to 20 percent. That is also in report that the bill will increase non-group Congress doesn’t adjust the actuarial value premiums by 10 to 13 percent and result in, standards in the legislation, what may be af- the same letter. Of course, he is right at best, a 2 percent decrease for small group fordable this year may be unaffordable next about that. They go down because of coverage by 2016. These findings tell small year. As a result, small business owners will administrative efficiencies and new en- business all it needs to know—that the cur- be at risk of having to drop coverage due to rollment, but he left out that there are rent bill does not do enough to reduce costs cost increases that outpace their healthcare other factors involved so that the gov- for small business owners and their employ- budgets. ernment mandates will drive them up ees. DESTRUCTIVE RATING REFORMS AND PHASE-IN 27 to 30 percent or, in the end, the aver- Despite the inclusion of insurance market TIMELINES THAT THREATEN AFFORDABILITY reforms in the small-group and individual FOR ALL age, as the CBO said, premium per per- marketplaces, the savings that may mate- son covered in an individual policy NFIB supports balanced federal rating re- rialize are too small for too few and the in- forms that protect access and affordability, would be up 10 to 13 percent. crease in premium costs are too great for too regardless of an individual or group’s health The bill has subsidies in it for some many. Those costs, along with greater gov- status. However, the excessively tight age Americans. The same letter says about ernment involvement, higher taxes and new rating (3:1) in H.R. 3590 will increase more half of Americans who buy in the indi- mandates that are disproportionately tar- costs than it will decrease, and make cov- vidual market will get a subsidy. Well, geted at small business and are being used to erage unaffordable for the very populations we are paying for that subsidy, but finance H.R. 3590, create a reality that is that are most beneficial to the insurance worse than the status quo for small business. pool—the young and the healthy. Inde- let’s concede that point. Still, that The shortcomings of the Patient Protection leaves half of the people in the indi- pendent actuaries have analyzed the nega- and Affordable Care Act include: tive impact of such tight bands and have in- vidual market for whom premiums will A NEW SMALL BUSINESS HEALTH INSURANCE dicated that there will be devastating effects go up on an average of 10 to 13 percent. TAX to the long-term viability of a pool without Why is that? One reason is because Unlike large businesses, which self-insure action to correct this rating imbalance. the Senate bill says people will have to and find security under the blanket of Additionally, to prevent volatile spikes in buy a richer policy than they have ERISA, most small businesses are only able insurance premiums, also known as ‘‘rate today. That means it has a higher ac- to find and purchase insurance in the fully- shock,’’ federal rating reforms must be ap- tuarial value. They call it in the bill insured marketplace. The Senate bill in- propriately applied to all marketplaces and cludes a new $6.7 billion annual tax ($60.7 bil- phased in over a responsible period of time. ‘‘minimum creditable coverage.’’ It If this is not done, then certain plans, in- means this is the amount of insurance lion over 10 years) that falls almost exclu- sively on small business because the fee is cluding ‘‘grandfathered plans,’’ will utilize I think you should have before you buy assessed on the insurance companies. CBO’s different rating practices when underwriting a policy. That might be a good deci- most recent study reinforces those costs will risk, which can create adverse selection sion. It undoubtedly would be good to ultimately be passed on to their consumers, issues. Those selection problems will have a have the insurance. It just costs 27 to leaving the cost to be disproportionately striking negative impact on the new ex- changes—exchanges that are meant to im- 30 percent more than today’s average. borne by small business consumers in the in- prove, rather than decrease, affordability for dividual and small-group marketplace whose The National Federation of Inde- small business and individuals. pendent Businesses wrote a December only choice is to purchase those products or forgo insurance altogether. NATIONAL PLANS THAT PROVIDE LIMITED 12 letter in opposition to the Senate PROMISE FOR SUCCESS bill saying the benefit mandates will A NEW MANDATE THAT PUNISHES EMPLOYERS, EMPLOYEES AND HINDERS JOB CREATION Leveling the playing field for small busi- put small business owners ‘‘at risk of ness starts with allowing uniform benefit Employer mandates fail employers and em- having to drop coverage due to cost in- packages to be purchased across state lines. ployees in two ways. First, mandates do If done right, this can provide a greater secu- creases that outpace their health budg- nothing to address the core issue facing rity that, as people change jobs and move ets.’’ small business—high healthcare costs. Sec- I ask unanimous consent to have from state to state, they can keep the ben- ond, mandates destroy job creation opportu- efit plan that meets their healthcare needs. printed in the RECORD the letter from nities for employees. The job loss, whether National plans would be particularly helpful NFIB to Senator MCCONNELL and Sen- through lost hiring or greater reliance on for states with smaller populations and ator REID, dated December 8. part-time employees, harms low-wage or where consumers lack a robust marketplace There being no objection, the mate- entry-level workers the most. The employer with choice and competition for private rial was ordered to be printed in the mandate in H.R. 3590 sets up potentially plans. Specifically, the state ‘‘opt-out’’ lan- troubling outcomes for this sector of the RECORD, as follows: guage in the Patient Protection and Afford- workforce. The multiple penalties assessed able Care Act would create more disincen- NATIONAL FEDERATION OF on full-time workers will most certainly re- tives than incentives for carriers to embark INDEPENDENT BUSINESS, sult in a reduction of full-time workers to December 8, 2009. on these new opportunities. If the national part-time workers and discourage the hiring plan section is not significantly restructured Sen. HARRY REID, of those entrants into the workforce who to make national plans a viable option, then Majority Leader, Hart Senate Office Building, might qualify for a government subsidy, Washington, DC. these new opportunities will never mate- hardly an outcome that contributes to a rialize for small business. Sen. MITCH MCCONNELL, greater insured population. Minority Leader, Russell Senate Office Build- THREATENS FLEXIBILITY AND CHOICE FOR A POORLY-STRUCTURED SMALL BUSINESS TAX ing, Washington, DC. EMPLOYERS AND EMPLOYEES CREDIT DEAR SENATORS REID AND MCCONNELL: As Small employers need more affordable the Senate continues to debate the future of As structured, the small business tax cred- health insurance options and new alter- comprehensive healthcare reform, the Na- it will do little, if nothing, to propel either natives for employers to voluntarily con- tional Federation of Independent Business, more firms to take up coverage or produce tribute to individually-owned plans. Provi- the nation’s leading small business associa- greater overall affordability. Due to its sions also need to be structured to insure tion, is writing in opposition to the Patient short-term temporary nature and the limita- that options are widely available to both em- Protection and Affordable Care Act (H.R. tions based on the business’ average wage, ployers and employees. The simple cafeteria 3590). its benefit is, at best, a temporary solution plan language in H.R. 3590 excludes the own- When evaluating healthcare reform op- to the long-term cost and affordability prob- ers of many ‘‘pass-through’’ business entities tions, small business owners ask themselves lem. A tax credit that is poorly structured is from participating in these arrangements. If two specific questions. First, will the bill not going to provide sustainable and long- owners are unable to participate in the plan, lower insurance costs? Second, will the bill term relief from high healthcare costs, and they will be less likely to provide insurance increase the overall cost of doing business? If the recent CBO finding that the tax credit to their workforce. Finally, small business a bill increases the cost of doing business or would benefit only 12 percent of the small needs the freedom and flexibility to preserve fails to reduce insurance costs, then the bill business population illustrates its lack of ef- options that are already proven to work. fails to achieve their No. 1 goal—lower costs. fectiveness. Prohibiting the use of HSA, FSA and HRA In both cases, the Patient Protection and A BENEFIT PACKAGE THAT IS TOO HIGH A funds to purchase over-the-counter medica- Affordable Care Act (H.R. 3590) fails the HURDLE FOR SMALL BUSINESS tions, along with the $2,500 limit on FSA small business test and, therefore, fails small NFIB has voiced concern over establishing contributions, diminishes that flexibility business. The most recent CBO study detail- a benefit threshold that is too high a price and threatens to further limit the options ing the effect that H.R. 3590 will have on in- tag for small businesses to meet. Small busi- employers have to provide meaningful surance premiums reinforces that, despite nesses are especially price sensitive. They healthcare to their employees.

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00006 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.008 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S831 NEW PAPERWORK COSTS ON SMALL BUSINESSES Senator COLLINS used the example and a JCT letter to Senator GRASSLEY The cost associated with tax paperwork is that the most popular individual mar- in October of last year, both said these the most expensive paperwork burden that ket policy sold in Maine costs a 40- taxes will be passed on to patients, in- the federal government imposes on small year-old about $185 a month. Under the creasing health insurance premiums. business owners. The Senate bill dramati- Senate bill that 40-year-old would have The Chief Actuary of the Center for cally increases that cost with a new report- Medicare and Medicaid Services, who is ing requirement that is levied on business to pay at least $420 a month, more than transactions of more than $600 annually, twice as much for the policy that a part of the Obama administration leaving small business buried in paperwork meets the new minimum standard, or said: and increasing their paperwork compliance face a $750 penalty. It is true Maine We anticipate such fees would be generally expenses. citizens, as is true for all Americans— passed through to health consumers in the AN UNPRECEDENTED NEW PAYROLL TAX ON about half of them—would receive sub- form of higher drug and device prices and SMALL EMPLOYERS sidies to help them buy that policy, but higher insurance premiums. Since its creation the payroll taxes that the average premium for the other half That was on December 10 of last fund the Medicare programs have not been of the 87 percent is going to go up year, about the Senate bill. wage-based and are dedicated specifically to under the Democratic bill. The Lewin Group, on October 30, said: funding Medicare. The Senate bill changes We believe Americans ought to have Employer spending would increase steadily the nature of the tax and creates a precedent more choices than that. That is a fun- under the [Democratic] act, reflecting the to use payroll taxes to pay for non-Medicare cost of paying the various excise taxes under programs. damental difference of opinion. Should Washington decide you need to buy a the act. Total employer health spending THE ABSENCE OF REAL MEDICAL LIABILITY richer policy, or should you decide that would increase by 2.1 percent by 2019. REFORM for yourself based upon the other needs I ask unanimous consent to have NFIB strongly supports medical liability reform as a means to both inject more fair- of your family? printed in the RECORD the executive ness into the medical malpractice legal sys- The Congressional Budget Office does summary of the Lewin Group letter. tem, and to reduce unnecessary litigation state, as I have mentioned, that there There being no objection, the mate- and legal costs. Taking serious steps to are a number of enrollees—about half— rial was ordered to be printed in the adopt meaningful medical liability reform is who would have the subsidies, and that RECORD, as follows: a significant step toward restoring common is in the letter I have already intro- EXECUTIVE SUMMARY sense to our medical liability litigation sys- duced into the RECORD. But someone is In this study we estimate the impact of tem. It also is especially critical to improv- paying for those subsidies: the tax- The America’s Healthy Future Act as adopt- ing access to healthcare for those living in ed by the Senate Finance Committee. The rural areas, where it is becoming increas- payers are paying for them, which Act would require most Americans to have ingly difficult for those in need to locate spe- brings up the second reason I said on health insurance. To assure access to afford- cialists such as OB/GYNs and surgeons. Thursday that premiums for millions able coverage, the Bill expands the Medicaid THE CREATION OF A NEW GOVERNMENT-RUN of Americans in the individual market will go up. program to 133 percent of the Federal Pov- HEALTHCARE PROGRAM erty Level (FPL) for all adults. It also pro- A government-run plan will drive the pri- The commonsense idea is that if you vides a new premium tax credit for people vate healthcare marketplace out of business. tax an insurance company or a medical living between 133 percent and 400 percent of Private insurers will be unable to compete in device company or a manufacturer of the FPL (e.g., $88,000 for a family of four). a climate where the rules and practices are drugs, they will pass the taxes on to In addition, the Act establishes an ‘‘ex- tilted in favor of a massive government-run whom? To us, who are buying insur- change’’ that presents consumers with a se- plan. This means millions could lose their ance policies or medical devices or lection of health coverage alternatives that current coverage. This will decrease choice drugs. So we end up paying. In fact, is available to individuals and firms with and increase costs. On both accounts, the one part of the President’s proposal de- fewer than 100 workers. States would have government-run plan will leave small busi- the option to extend eligibility to larger em- ness with a single option the government- liberately does that. It is a 40-percent ployers beginning in 2017. Only people par- run plan, which is the exact opposite out- excise tax on insurance companies for ticipating in the exchange who do not have come small businesses want from healthcare what we call Cadillac plans, the high- access to employer coverage would be eligi- reform. cost private insurance plans. ble for the premium tax credit. The Act also There is near universal agreement that, if A letter from the Joint Committee reforms insurance markets by assuring guar- done right, small business has much to gain on Taxation, dated February 24, says anteed issue of coverage and prohibiting from healthcare reform. But if it is done the 40-percent excise tax will raise $32.7 plans from varying premiums with health wrong, then small business will have the billion, all of which will be passed status. most to lose. The Patient Protection and Af- along to consumers in the form of high- Employers with more than 50 workers are fordable Care Act, which is short on savings required to pay a penalty for each uninsured and long on costs, is the wrong reform, at er insurance premiums. That may be a worker receiving a premium tax credit the wrong time and will increase healthcare good thing. In fact, I think it is be- through the exchange. The Act also provides costs and the cost of doing business. NFIB cause it helps to discourage the pur- an employer health insurance tax credit for remains committed to healthcare reform, chase of more expensive policies. But it up to two years for firms with fewer than 25 and urges the Senate to develop common does raise premiums in the individual workers with an average employee earnings sense solutions to lower healthcare costs market. of less than $40,000. Workers offered coverage while ensuring that policies empower small The Joint Committee on Taxation by an employer are not eligible for premium business with the ability to make the invest- Memorandum on High Cost Plans, subsidies offered in the exchange unless the ments necessary to move our economy for- dated September 29, says: cost of employer coverage exceeds 10 percent ward. of income. Sincerely, The excise tax would be mainly passed The Act is funded with reductions in SUSAN ECKERLY, along through increases in premiums. spending under Medicare and Medicaid, a Senior Vice President, Because the new tax is indexed to new excise tax on high cost health plans Public Policy. regular inflation plus 1 percent instead (premiums over $8,000 for individuals and Mr. ALEXANDER. The one-size-fits- of medical inflation, which goes up $21,000 for families). It also includes a second all provision in the Democratic bill very much higher and quicker, the new excise tax on insurance, new excise taxes on says all individual and small group tax, like the alternative minimum tax, branded prescription drugs and device manu- facturers, and other changes in revenues. policies must have an actuarial value will pretty soon start to hit Chevy and In this study we provide estimates of the of 60 percent. Buick insurance policies and not just program’s impact on coverage and spending Senator SUSAN COLLINS of Maine, Cadillac policies. for the federal government, state and local who was the insurance commissioner of But there are other taxes in the governments, private employers and con- Maine, made a speech on the Senate President’s proposal. There are up to sumers. To demonstrate the long-term im- floor on December 18, and pointed out $1⁄2 trillion in new taxes, which will be pact of the Act, we provide estimates for a that 87 percent of the individual poli- passed on to consumers: $20 billion in 20-year period from 2010 through 2029. cies that are purchased in Maine today excise taxes on lifesaving medical de- Mr. ALEXANDER. The National Fed- would cost more under the Reid bill. vices, $33 billion on drugs, and $60 bil- eration of Independent Business letter I commend to my colleagues the Sen- lion on health insurance companies. In says the same. There are other reasons ator’s testimony of December 18, 2010. the previously mentioned CBO letter the premiums will go up.

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00007 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.010 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S832 CONGRESSIONAL RECORD — SENATE March 1, 2010 Mr. President, seeing no one else as an independent technical advisor to both SUMMARY here, I wonder if I might ask unani- the Administration and the Congress. The The table shown on page 2 presents finan- mous consent for 5 additional minutes. costs, savings, and coverage impacts shown cial impacts of the selected PPACA provi- The ACTING PRESIDENT pro tem- herein represent our best estimates for the sions on the Federal Budget in fiscal years Patient Protection and Affordable Care Act. 2010–2019. We have grouped the provisions of pore. Without objection, it is so or- We offer this analysis in the hope that it will dered. the bill into six major categories: be of interest and value to policy makers as (i) Coverage proposals, which include the Mr. ALEXANDER. I thank the Presi- they develop and debate national health care mandated coverage for health insurance, the dent. reforms. The statements, estimates, and expansion of Medicaid eligibility to those Here is a third reason, in addition to other information provided in this memo- with incomes at or under 133 percent of the government mandates and taxes, that randum are those of the Office of the Actu- Federal poverty level (FPL), and the addi- will cause premiums to rise. We call it ary and do not represent an official position tional funding for the Children’s Health In- cost-shift. Premiums will increase be- of the Department of Health & Human Serv- surance Program (CHIP); ices or the Administration. cause the bill dumps 15 million to 18 (ii) Medicare provisions; million more Americans into the gov- This memorandum summarizes the Office (iii) Medicaid and CHIP provisions other ernment program called Medicaid. This of the Actuary’s estimates of the financial than the coverage expansion and CHIP fund- and coverage effects through fiscal year 2019 ing; is the analysis of the Chief Actuary on of selected provisions of the ‘‘Patient Protec- (iv) Proposals aimed in part at changing January 8, 2010. tion and Affordable Care Act’’ (PPACA) as the trend in health spending growth; I ask unanimous consent that the passed by the Senate on December 24, 2009 (v) The Community Living Assistance relevant portions be printed in the (H.R. 3590, as amended). Included are the es- Services and Supports (CLASS) proposal; and RECORD. timated net Federal expenditures in support (vi) Immediate health insurance reforms. There being no objection, the mate- of expanded health insurance coverage, the The estimated costs and savings shown in rial was ordered to be printed in the associated numbers of people by insured sta- the table are based on the effective dates tus, the changes in Medicare and Medicaid specified in the bill as passed. Additionally, RECORD, as follows: expenditures and revenues, and the overall we assume that employers and individuals DEPARTMENT OF HEALTH & HUMAN impact on total national health expendi- would take roughly 3 to 5 years to fully SERVICES, CENTERS FOR MEDICARE tures. Except where noted, we have not esti- adapt to the insurance coverage provisions & MEDICAID SERVICES, mated the impact of the various tax and fee and that the enrollment of additional indi- Baltimore, MD. proposals or the impact on income and pay- viduals under the Medicaid coverage expan- Date: January 8, 2010 roll taxes due to economic effects of the leg- sion would be completed by the third year of From: Richard S. Foster, Chief Actuary islation. Similarly, the impact on Federal implementation. Because of these transition Subject: Estimated Financial Effects of the administrative expenses is excluded. A sum- effects and the fact that most of the cov- ‘‘Patient Protection and Affordable Care mary of the data, assumptions, and method- erage provisions would be in effect for only 6 Act,’’ as Passed by the Senate on Decem- ology underlying our estimates of national of the 10 years of the budget period, the cost ber 24, 2009. health reform proposals is available in the estimates shown in this memorandum do not The Office of the Actuary has prepared this appendix to our October 21 memorandum on represent a full 10-year cost for the proposed memorandum in our longstanding capacity H.R. 3200. legislation. ESTIMATED FEDERAL COSTS (+) OR SAVINGS (-) UNDER SELECTED PROVISIONS OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT AS PASSED BY THE SENATE [In billions]

Fiscal year— Provisions Total, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010–19

Total* ...... $11.6 $0.1 ¥$14.8 ¥$32.8 $14.7 $63.0 $71.4 $60.9 $55.8 $49.7 $279.5 Coverage† ...... 4.7 6.6 1.7 ...... 86.5 128.0 150.1 156.4 167.9 180.7 882.5 Medicare ...... 2.2 ¥3.6 ¥12.1 ¥23.4 ¥62.6 ¥55.1 ¥70.2 ¥87.6 ¥104.6 ¥123.7 ¥540.7 Medicaid/CHIP ...... ¥0.4 ¥0.1 0.2 ¥3.8 ¥3.1 ¥3.8 ¥3.9 ¥4.1 ¥4.0 ¥3.9 ¥27.1 Cost trend‡ ...... ¥0.0 ¥0.1 ¥0.2 ¥0.4 ¥0.6 ¥0.9 ¥2.3 CLASS program ...... ¥2.8 ¥4.5 ¥5.6 ¥5.9 ¥6.0 ¥4.3 ¥3.4 ¥2.8 ¥2.4 ¥37.8 Immediate reforms ...... 5.0 ...... 5.0

* Excludes Title IX revenue provisions except for section 9015, certain provisions with limited impacts, and Federal administrative costs. † Includes expansion of Medicaid eligibility and additional funding for CHIP. ‡ Includes estimated non-Medicare Federal savings from provisions for comparative effectiveness research, prevention and wellness, fraud and abuse, and administrative simplification. Excludes impacts of other provisions that would af- fect cost growth rates, such as the productivity adjustments to Medicare payment rates, which are reflected in the Medicare line.

As indicated in the table above, the provi- referred to as the ‘‘Exchanges’’), would lead As described in more detail in a later sec- sions in support of expanding health insur- to shifts across coverage types and a sub- tion of this memorandum, we estimate that ance coverage (including the Medicaid eligi- stantial overall reduction in the number of overall national health expenditures under bility changes and additional CHIP funding) uninsured, as many of these individuals be- this bill would increase by an estimated are estimated to cost $882 billion through fis- come covered through their employers, Med- total of $222 billion (0.6 percent) during cal- cal year 2019. The net savings from the Medi- icaid, or the Exchanges. endar years 2010–2019, principally reflecting care, Medicaid, growth-trend, and CLASS By calendar year 2019, the mandates, cou- the net impact of (i) greater utilization of proposals are estimated to total about $603 health care services by individuals becoming billion, leaving a net cost for this period of pled with the Medicaid expansion, would re- duce the number of uninsured from 57 mil- newly covered (or having more complete cov- $279 billion before consideration of addi- erage), (ii) lower prices paid to health pro- tional Federal administrative expenses and lion, as projected under current law, to an estimated 23 million under the PPACA. The viders for the subset of those individuals who the increase in Federal revenues that would become covered by Medicaid, and (iii) lower result from the excise tax on high-cost em- additional 34 million people who would be- come insured by 2019 reflect the net effect of payments and payment updates for Medicare ployer-sponsored health insurance coverage services, together with net Medicaid savings and other revenue provisions. (The addi- several shifts. First, an estimated 18 million would gain primary Medicaid coverage as a from provisions other than the coverage ex- tional Hospital Insurance payroll tax income pansion. Although several provisions would under section 9015 of the PPACA is included result of the expansion of eligibility to all legal resident adults under 133 percent of the help to reduce health care cost growth, their in the estimated Medicare savings shown impact would be more than offset through here.) The Congressional Budget Office and FPL (In addition, roughly 2 million people 2019 by the higher health expenditures re- Joint Committee on Taxation have esti- with employer-sponsored health insurance sulting from the coverage expansions. mated that the total net amount of Medicare would enroll in Medicaid for supplemental savings and additional tax and other reve- coverage.) Another 21 million persons (most The actual future impacts of the PPACA nues would somewhat more than offset the of whom are currently uninsured) would re- on health expenditures, insured status, indi- cost of the national coverage provisions, re- ceive individual insurance coverage through vidual decisions, and employer behavior are sulting in an overall reduction in the Federal the newly created Exchanges, with the ma- very uncertain. The legislation would result deficit through 2019. jority of these qualifying for Federal pre- in numerous changes in the way that health The chart shown below summarizes the es- mium and cost-sharing subsidies. Finally, we care insurance is provided and paid for in the timated impacts of the PPACA on insurance estimate that the number of individuals with U.S., and the scope and magnitude of these coverage. The mandated coverage provisions, employer-sponsored health insurance would changes are such that few precedents exist which include new responsibilities for both decrease overall by about 4 million, reflect- for use in estimation. Consequently, the esti- individuals and employers, and the creation ing both gains and losses in such coverage mates presented here are subject to a sub- of the Health Benefit Exchanges (hereafter under the PPACA. stantially greater degree of uncertainty than

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00008 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.010 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S833 is usually the case with more routine health market. As a result, premium costs for large I ask unanimous consent to have care proposals. group plans will be $37 higher each year be- printed in the RECORD the letter from The balance of this memorandum discusses tween 2010 and 2014 for family coverage ($14 the American Academy of Actuaries of these financial and coverage estimates—and for single coverage), and $255 higher each their limitations—in greater detail. year between 2015 and 2019 ($96 for single cov- November 20, 2009. erage). There being no objection, the mate- Mr. ALEXANDER. The point is, Med- rial was ordered to be printed in the icaid only pays doctors and hospitals Mr. ALEXANDER. Younger Ameri- RECORD, as follows: about 60 percent of the cost of serving cans in the individual market will pay NOVEMBER 20, 2009. the 60 million patients who are now higher premiums under the Democratic plan because, as I mentioned earlier, it Re: Patient Protection and Affordable Care there. The Democratic bill would add Act. 15 million to 18 million more patients. will mandate for individual coverage that I can’t pay more than three times Hon. HARRY REID So what do the doctors and hospitals Majority Leader, U.S. Senate, Hart Senate Of- do? They see these patients, but then as much as my son can pay for an in- surance premium. That might help fice Building, Washington, DC. they shift the costs to the patients Hon. MITCH MCCONNELL, they see who have private insurance. keep my premiums down, but it is Minority Leader, U.S. Senate, Russell Senate The President himself said that adds going to send his up pretty far because Office Building, Washington, DC. about $1,000 to every policy today, this 42 States, including Tennessee, allow DEAR MAJORITY LEADER REID AND MINOR- cost-shifting. I have included that com- more variance of that. So young people ITY LEADER MCCONNELL: The American Acad- ment from the Chief Actuary. across America, who include about 30 emy of Actuaries’ Health Practice Council percent of the uninsured, are in for a commends members of the Senate as you The PriceWaterhouseCoopers report prepare to debate and vote on the Patient on the Senate Finance Committee bill big surprise when their individual poli- cies jump up 30 to 35 percent, which is Protection and Affordable Care Act. We in October of 2009 indicated that the what the Oliver Wyman report on Sep- share with you the goals of reducing the net effect of the bills before Congress tember 28 said theirs might do, or numbers of uninsured, increasing the avail- will make the Medicare and Medicaid ability of affordable coverage, controlling when, since they are uninsured, they cost-shift even more severe, raising the health spending growth, and improving the are required to buy insurance and they quality of care. On behalf of the council, I cost of private insurance premiums for find the insurance they are required to large employers by $255 a year between appreciate this opportunity to provide the buy is very expensive. following comments outlining the three key 2015 and 2019. I ask unanimous consent to have criteria that need to be considered when I ask unanimous consent to have printed in the RECORD the conclusion evaluating whether this legislation will lead printed in the RECORD the relevant por- of the Oliver Wyman report. to a viable health insurance system, and how tions of the PriceWaterhouseCoopers There being no objection, the mate- the legislation can be improved to meet report. rial was ordered to be printed in the these goals. In particular: For insurance markets to be viable, they There being no objection, the mate- RECORD, as follows: rial was ordered to be printed in the must attract a broad section of risks. Imple- CONCLUSION menting market reforms to prohibit insurers RECORD, as follows: As Congress considers approaches to maxi- from denying coverage and to restrict how POTENTIAL IMPACT OF HEALTH REFORM ON THE mize health insurance coverage in the United much premiums can vary will result in ad- COST OF PRIVATE HEALTH INSURANCE COV- States, it is important to consider the im- verse selection and upward pressure on pre- ERAGE pact of premium rate compression on current miums unless lower-risk individuals have in- ISSUE C—INCREASED COST SHIFTING purchasers and the uninsured. Providing af- centives to purchase coverage. An individual Today, certain costs (e.g., hospital ex- fordable premiums to young people is crit- mandate can bring lower-risk individuals penses) are shifted to the private sector (em- ical to encourage their participation and en- into the pool. To be effective, however, the ployers and consumers) as some participants sure the long-term sustainability of the in- penalties for not complying with the man- in the system pay less than their share of the surance pool in the years following health date must be meaningful relative to the pre- cost of their care. Public programs such as insurance reform. mium faced. The penalties in the Patient Requiring a young person to pay multiples Medicare and Medicaid reimburse less than Protection and Affordable Care Act are very of their expected medical expenses for health the cost of care for hospitals’ services. In ad- low, which is especially problematic given insurance is likely to cause these individuals dition, the uninsured or underinsured may the bill’s limits on premium variations by to decline to purchase coverage. Maintaining not be able to cover the full cost of care, and age, which will raise premiums for younger adequate flexibility in rating will minimize individuals. Strengthening the bill’s indi- this cost is then also transferred to the pri- the rate shock that many could see in the vidual mandate through higher financial vate market. marketplace and encourage higher levels of The initial hope of health reform was that penalties is needed to reduce adverse selec- coverage over time. Moreover, the elimi- tion that would arise due to the new issue by improving coverage of the currently unin- nation of health status as a rating factor sured, a significant percentage of uncompen- will already provide significant benefit to and rating restrictions. Market competition requires a level play- sated care would be eliminated. This is still older individuals, who are more likely to suf- anticipated to happen. However, the cost fer from chronic health conditions. ing field. All plans, including any new public shift ‘‘gains’’ from decreasing the numbers of In conclusion, our modeling demonstrates plans or health insurance cooperatives must uninsured now appear to be more than offset that the 5:1 age band, as originally included operate under the same rules. As written, by the losses from proposed cutbacks in in the Senate Finance Committee’s Chair- the public plan and cooperatives established Medicare and Medicaid spending allocated to man’s Mark, will reduce disruption com- under the legislation would be subject to the the hospital sector. pared to tight age bands. Maintaining 5:1 age same market rules and benefit requirements It should also be noted that the impact of bands will encourage more young people to that apply to public plans. They would also covering the uninsured may be different in participate in the insurance market, thereby be required to negotiate rates with pro- communities constrained by limited hospital keeping average rates more affordable. This, viders. The bill should retain these provi- capacity. In those communities, covering the in turn, will result in higher overall levels of sions and also ensure that start-up funds pro- uninsured could actually increase cost-shift- participation in the insurance market and vided to these plans are adequate to meet ing if the newly insured increase demand for fewer uninsured. not only pre-operational expenses but also healthcare services and the overall mix of Mr. ALEXANDER. Finally, the solvency needs. hospital patients migrates towards lower For long-term sustainability, health spend- paying government programs. young and the healthy can skip out of ing growth must be reduced. Provisions to The net impact is likely to result in an in- this. That will drive up premiums. control health care spending should include crease in cost shifting which translates into They may decide they would rather not only one-time improvements that will a 0.8 percent average annual increase in the pay a $750 fine than $2,500 for a health help address short-term goals, but also op- private sector spending between 2010 and insurance policy they think they don’t tions that permanently reduce spending 2019, or $145 on average per year for family need. growth to address long-term goals. The Pa- coverage in a large group plan (and $55 for The American Academies of Actu- tient Protection and Affordable Care Act in- single coverage). We note that this cost bur- aries wrote a letter on the Reid bill on cludes provisions that aim to reduce long- den ramps up over the projection period, November 20 that said: ‘‘Any premium term spending growth by shifting the health with an average annual increase in health care payment and delivery systems to focus costs of 1.2 percent over the second five-year variations by age limited to a 3.1 ratio on cost-effective and high-quality care. period. We assume that this increased cost to between the highest and lowest pre- Many of these efforts take the form of stud- the private sector will ultimately impact the miums,’’ and then it goes on to say, ies and demonstration projects. Policy- cost of coverage for individuals and busi- ‘‘would cause higher premiums on aver- makers need to focus intently on finding nesses in both the insured and self-insured age relative to current premiums.’’ ways to control spending and ensuring that

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promising approaches and successful dem- SUMMARY like to discuss these comments further, onstration projects are adopted on a broad The American Academy of Actuaries’ please contact Heather Jerbi, the Academy’s scale in a timely manner. . . Health Practice Council strongly supports senior health policy analyst (202.785.7869; To this end, the Act also includes provi- three key considerations for a sustainable [email protected]). sions that would help shift the health care health insurance system with increased ac- Sincerely, payment and delivery systems from reward- cess to affordable health insurance. In par- CORI E. UCCELLO, ing quantity of care to rewarding quality of ticular, for insurance markets to be viable Senior Health Fellow. care. The legislation includes many cost con- they must attract a broad cross section of tainment and quality improvement strate- risks; market competition requires a level Mr. ALEXANDER. All in all, these gies focused on the Medicare program, in- playing field; and for long-term sustain- factors suggest why, when Senator cluding provider payment and delivery sys- ability, health spending growth must be re- COLLINS took a look at Maine, she tem reforms that provide incentives for co- duced. found that 87 percent of people in ordinated and cost-effective care. Such a Outcomes of the reforms before you, be- comprehensive and coordinated approach to cause they involve so many complex inter- Maine are paying less for their indi- addressing quality and costs is needed to actions including market behavior, may not vidual policies than the policies would fundamentally transform the health system be fully known until implementation. Even cost under the Reid bill. It is true that to ensure its long-term sustainability. How- actuaries must make certain assumptions in half or more of them would receive ever, acknowledging that the impact on their projections, based on experience and some subsidy, which would reduce their health spending and health outcomes of expertise, as to what the exact effects will costs, but around half of them will pay many potential programs is still unclear, the be. However, as the full Senate casts votes, legislation directs many of these efforts in we urge you to first and foremost examine more. In Tennessee, Blue Cross Blue the form of studies and demonstration these criteria as a litmus for determining Shield, which covers about one-third of projects. Analyses from the Centers on Medi- the success of this reform effort. In par- Tennessee’s individual market, esti- care and Medicaid Services and from the ticular, we believe that strengthening the in- mates the premiums for those individ- Congressional Budget Office suggest that at dividual mandate through higher financial uals will increase by 30 to 45 percent least in their current limited form, these penalties is needed to reduce the adverse se- under the Reid bill. provisions will have only a minimal impact lection that would arise due to the new issue on health spending growth. Policymakers and rating restrictions. I ask unanimous consent to include a need to focus intently on finding ways to We welcome the opportunity to serve as an chart which demonstrates that. control spending and ensuring that prom- ongoing resource to you as health care re- ising approaches and successful demonstra- form legislation is considered in the Senate There being no objection, the mate- tion projects are adopted on a broad scale and through remainder of the legislative rial was ordered to be printed in the and in a timely manner. process. If you have any questions or would RECORD, as follows:

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VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00011 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.007 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE Insert offset folio 277 here ES01MR10.002 S836 CONGRESSIONAL RECORD — SENATE March 1, 2010 Mr. ALEXANDER. At our summit on floor the last six months of last year, AMENDMENT NO. 3336 Thursday, there were a number of good we have offered 6 steps to move toward (In the nature of a substitute) ideas about reducing health care costs that goal. Maybe the President can Mr. BAUCUS. Mr. President, I now that the President seemed to share think of six more. Maybe we can think call up my amendment by number and with Republican Members who were of six more. We did that with the urge its consideration. there. There was some obvious irrita- America COMPETES Act. We asked The ACTING PRESIDENT pro tem- tion on the part of the majority leader the national academies: What are the pore. The clerk will report the amend- and others when we said things such as 10 steps that can help us become more ment by number. there is $1⁄2 trillion worth of cuts in competitive as a country? They gave us The legislative clerk read as follows: Medicare, which there are. Our real ob- 20, and we passed most of them. In The Senator from Montana [Mr. BAUCUS] jection to it is that the cuts are not clean energy, we are coming together proposes an amendment numbered 3336. used to save Medicare, which is going on nuclear power, offshore drilling, and (The amendment is printed in today’s broke, but spent on a new program—$1⁄2 energy development. Those are steps RECORD under ‘‘Text of Amendments.’’) trillion in new taxes. There is $1⁄2 tril- toward a goal that would be a more Mr. BAUCUS. Mr. President, Martin lion in new taxes. sensible way for us to work. Luther King, Jr., once said: As I have just said, they tend to in- In the meantime, the unpleasant Life’s most urgent question is: What are crease premiums for millions of Ameri- truth is, the current bill being consid- you doing for others? cans. There are premium increases. ered—will cut Medicare, not spend it Pretty much all of us came here to There is a deficit increase. on Medicare—will raise taxes, and it the Senate to work on that urgent It is true the CBO has said that what will, as I have tried to demonstrate question. Pretty much all of us came was presented to them didn’t increase with respect to the President, raise in- here to help other Americans. the deficit, but what was not included dividual premiums because of the one- On a number of levels, the legislation in what was presented was paying doc- size-fits-all government mandates and before us today is urgent legislation. tors to serve patients in the govern- tax increases. The legislation before us today is ur- ment program we call Medicare. That Finally, I commend to my colleagues gent because it would prevent millions is like having a horse race without the today’s editorial from the Wall Street of Americans from falling through the horses. How are you going to have a Journal detailing how the Massachu- safety net. comprehensive health care bill and not setts health care plan has unexpectedly The legislation before us is urgent include within its costs paying doctors caused premiums to rise over the last because it would extend vital safety to serve patients in the government couple years and what lesson there net programs that expired yesterday. program? When you put it in, the def- might be in that for us. The legislation before us is urgent icit goes up. I yield the floor and suggest the ab- because it would put cash in the hands Then there is a problem of the pass- sence of a quorum. of Americans who could spend it quick- ing off to States these expanded Med- The ACTING PRESIDENT pro tem- ly, boosting economic demand. icaid costs without paying for them. I pore. The clerk will call the roll. The legislation before us today is ur- know as a former Governor—and I see The legislative clerk proceeded to gent because it would extend critical the former Governor of Virginia in the call the roll. programs and tax incentives that cre- chair—I struggled with that every sin- Mr. BAUCUS. Mr. President, I ask ate jobs. gle year. All the Governors are today unanimous consent that the order for The legislation before us today is ur- in both parties. They don’t want us the quorum call be rescinded. gent because it is important that we sending them a bill for expanded health The ACTING PRESIDENT pro tem- here can do this for other Americans. care. They can’t pay the bills they pore. Without objection, it is so or- Since the recession began, more than have. We shouldn’t do that. If we want dered. 7 million Americans have lost their to expand it, we should pay for it. That jobs. The unemployment rate remains is another part of the bill. f nearly 10 percent. For Americans with- So I came to the floor today to, No. out a job, this great recession is a 1, express my appreciation to the Presi- CONCLUSION OF MORNING great depression. If you do not have a dent for inviting us Thursday. It gave BUSINESS job, it is a depression. us a chance to show who we are and The ACTING PRESIDENT pro tem- Last week, with a solid bipartisan what we are for. I thought it was a pore. Morning business is now closed. vote, we passed legislation to help cre- good discussion. I believe there are 8 or ate jobs. We can and should do more, 10, maybe a dozen different good ideas f and by extending this package of vital Senator COBURN and people on both provisions we can do just that. sides of the aisle suggested. There are TAX EXTENDERS ACT OF 2009 The provisions in this bill are impor- some differences between those ideas tant to American families. They are but, basically, they represent a way to The ACTING PRESIDENT pro tem- important to communities that have move forward to reduce health care pore. Under the previous order, the suffered a natural disaster. They are costs. That is what we ought to do. We Senate will proceed to the consider- important to businesses competing in don’t do comprehensive very well in ation of H.R. 4213, which the clerk will the global economy. They are impor- the Senate. Comprehensive immigra- report. tant to furthering America’s commit- tion failed of its own weight. Com- The legislative clerk read as follows: ment to energy independence. prehensive economy-wide cap and trade A bill (H.R. 4213) to amend the Internal The need is urgent. Yesterday many seems to be failing, again of its own Revenue Code of 1986 to extend certain expir- of these important provisions expired. ing provisions, and for other purposes. weight. Comprehensive health care is Millions of Americans are being put at very difficult to pass. That shouldn’t The ACTING PRESIDENT pro tem- risk. The expiration of these provisions be a surprise to any of us. This is a pore. The Senator from Montana. has left gaping holes in the safety net. very big, difficult, complicated country PRIVILEGES OF THE FLOOR Among the provisions that expired with people of many different back- Mr. BAUCUS. Mr. President, I ask yesterday are these: expanded unem- grounds and, in my judgment, we are unanimous consent that the following ployment insurance benefits; COBRA just not wise enough for a few of us to staff be allowed the privilege of the subsidies to help people keep their rewrite the rules for 17 percent of our floor during consideration of the pend- health insurance; a provision that economy. ing bill: Randy Aussenberg, Aislinn keeps folks right at the poverty line I think the American people have Baker, Brittany Durell, Dustin Ste- from losing their benefits; the small tuned into that. They want us to fix vens, Greg Sullivan, Max Updike, and business loan program; the temporary health care, but they want us to reduce Ashley Zuelke. measure to prevent a 21-percent cut to costs. Again, we on the Republican side The ACTING PRESIDENT pro tem- doctors under Medicare; the Flood In- are ready to set that goal and, as we pore. Without objection, it is so or- surance Program; the Satellite Home said 173 different times on the Senate dered. Viewer Act.

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00012 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.015 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S837 Unless we reinstate the programs in cases, unemployed workers have the Senate recently recognized that a long- this bill, there will be real world con- right to keep their work coverage for term solution will require a short-term sequences for the people who depend on up to 18 months through the COBRA investment. The House followed suit. I these programs today. program. But to receive COBRA health hope this push will aid us in finding a Take unemployment insurance. This benefits, workers must typically pay permanent solution for the sake of our bill would extend the program for ex- all of the premium costs, plus an addi- seniors’ continued access to medical panded unemployment benefits. These tional 2 percent for administrative care. benefits expired on Sunday. The bill costs; that is, they pay 102 percent. A fourth provision in this bill affects would extend what is called Federal That is not right. the 2009 poverty guidelines. Why is this emergency unemployment compensa- For a family of four, the average important? Let me tell you. Dozens of tion. This bill would extend 100 percent monthly COBRA premium is $1,100. For programs are available to help lower Federal extended benefits. That is a most people out of work, that is simply income Americans. We all know the program where State governments nor- unaffordable. How can a family who is important role these programs play in mally have to pay 50 percent. We would out of work pay health benefits at a keeping those less fortunate fed, keep- also extend the additional $25 a week rate of $1,100 a month? They cannot do ing them healthy and safe. I am talk- for each beneficiary receiving unem- it. ing about programs such as Medicaid, ployment benefits. The Recovery Act helped unemployed the Supplemental Nutrition Assistance According to the National Employ- workers and their families to cover the Program—formerly known as food ment Law Project, 5.6 million people costs. This assistance helped millions stamps—the School Lunch Program, are currently benefiting from one of of unemployed workers and their fami- and the Low Income Home Emergency the Federal unemployment benefits. lies to maintain health insurance while Assistance Program, otherwise known Mr. President, 5.6 million people today they look for a new job. as LIHEAP. Unfortunately, COBRA assistance ex- benefit. Between March and November Eligibility for these and many other pired yesterday, and that is the provi- of last year, we distributed nearly $8.3 programs is based on the Federal pov- sion that gave a 65-percent subsidy. It billion in additional benefits through erty guidelines. These guidelines are expired yesterday. This means workers the additional $25-a-week supplement. updated every year for inflation. But For example, my office received word who lose their jobs today or afterwards the update for this year, 2010, will about one unemployed Montana worker will not be eligible for COBRA assist- cause people who are currently eligible who had been living in a homeless shel- ance. They can still buy health insur- for and benefiting from these programs ter for more than a month. This Mon- ance through the COBRA program if to lose their eligibility. You may won- tanan used emergency unemployment they can find the dollars to pay full der why at a time of economic crisis compensation benefits to move closer freight. That is 102 percent of their cur- poverty-based program eligibility to an out-of-State relative. The rel- rent premium. For many folks, that is would decrease. You might think that ative helped the Montanan through simply unaffordable. Unless we act, the sounds counterintuitive. this difficult time. With the help of ranks of those living in fear without emergency unemployment compensa- health insurance will grow even more. One of the effects of the current eco- tion benefits and the help of family, Third, without this legislation, phy- nomic crisis is that inflation went this Montanan was able to find work sicians who treat our seniors and mili- down. That means the average cost of again. tary families will face an immediate everyday things, such as clothes, trans- Unemployment benefits also make 21-percent pay cut. That is right, an portation, and rent, is less than it was good economic sense. The nonpartisan immediate 21-percent cut in pay. That the year before. However, because the Congressional Budget Office estimates is more than families lost in net worth Federal poverty guidelines are based on that every dollar spent on unemploy- during the worst of the recession in the average cost of everyday goods, the ment benefits generates up to $1.90 in 2008, and that is nearly twice as much poverty level for 2010 would be less additional gross domestic product. as home prices fell last year. than it was for 2009. This is the first That is $1 to $1.90. This makes unem- This cut would force doctors to stop time in the history of the guidelines ployment benefits one of the most cost- seeing patients. This cut would mean that such a decrease would occur. effective policies for stimulating the less access to care for our parents and That, clearly, is not the right outcome. economy. our grandparents. This cut would mean We should not make fewer people eligi- By helping our unemployment work- our doctors would be forced to cut ble for poverty-based programs at pre- ers through this long recession, we help their own costs, potentially forcing cisely the time when those safety-net to keep the neighborhood gas station them to lay off staff. programs are serving the very purpose operating. We help to keep a house Thankfully, the administration an- for which they were created. Safety-net from foreclosure. And we help to keep nounced on Friday it will use its exist- programs are there to help people when our economy from further damage. ing authority to delay the effect of this times are tough. That is their purpose. We must act immediately to help the cut for the immediate future. But that But there is a simple solution: we can more than 1 million people who lost is not going to last very long. We can- simply leave the guidelines developed their benefits yesterday. My heart goes not delay action any longer. Seniors, for 2009 in place. That way, people who out to them and to their families and military families, and physicians de- were eligible can remain eligible. Leav- hope that they can hold on while we serve better. ing the 2009 guidelines in place would work to clear up this mess, in order to In Montana, 2,000 doctors serve mean people would not lose their clear this bill and bring them the help 140,000 seniors who depend on Medicare health care by being kicked off of Med- they deserve and on which they have for lifesaving health care. Montana has icaid. It would mean families would not been depending. 32,000 military families who should not go hungry because they lost their eligi- A second vital program in this bill be turned away from their doctor’s bility for a number of nutrition pro- that expired yesterday is a program door either. They deserve access to the grams. It would mean low-income folks that provides a tax benefit for COBRA best health care we can give them. could still heat their homes this cold health benefits. What is that? That is They deserve a Congress willing to put and snowy winter thanks to LIHEAP. the program that helps workers who politics aside and put them first. Keeping the 2009 guidelines in place lose their jobs to keep their health in- This bill before us today will avert would not increase eligibility. It would surance. When workers lose their jobs, the 21-percent cut because of the so- mean we would avoid pulling the safety they lose more than just their pay- called sustainable growth rate. We net out from under the people it is checks. Unfortunately, they often lose adopt here another short-term stopgap. there to protect. their ability to afford health care cov- Next time, we hope and expect that we Fifth, for individuals and families, erage as well. will come back to a long-term solution. this bill provides much needed tax re- Today, roughly 60 percent of the non- We must find one. lief in a time of economic uncertainty. elderly population receives health in- By exempting part of the SGR from For example, many students don’t have surance through their jobs. In most the new statutory pay-go rules, the the books or supplies they need. Some

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00013 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.019 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S838 CONGRESSIONAL RECORD — SENATE March 1, 2010 teachers have to buy classroom sup- We addressed this bind temporarily Mr. GRASSLEY. I yield myself such plies using money from their own pock- in the Worker, Retiree and Employer time as I might consume. Maybe I bet- ets, if you can believe it. This bill ex- Recovery Act of 2008, but employers ter ask, are we under a time agree- tends the expense deduction for teach- are still facing the prospect of closing ment? ers buying school supplies for their plants and stores. Employers are still The ACTING PRESIDENT pro tem- classrooms. It extends the qualified faced with the possibility of termi- pore. There is no time limit. tuition deduction to help with college nating workers in order to make up for Mr. GRASSLEY. Mr. President, costs. The bill provides much needed lost asset values. The bill contains ad- today, the Senate starts debate on ex- relief to families who have suffered ditional temporary, targeted, and ap- piring tax and health provisions, for from natural disasters. It extends a propriate relief for these employers. At people outside Washington. Around package of disaster relief provisions de- the same time, the bill still maintains here, those tax provisions are generally veloped to address all federally de- the pension and security system. referred to with the word ‘‘extenders.’’ clared disaster areas with immediate, Seventh, this bill would also extend But before I discuss the bill before us, reliable, and robust tax relief. several important health provisions I would like to make a couple points on It extends important business provi- that expired at the end of 2009. Notable the process, before I get into the sub- sions to help create jobs and make our among these is the exceptions process stance of the substitute before the Sen- companies competitive in a global for Medicare therapy caps. Extending ate. What I find surprising is, we are economy. America counts for one-third this provision will help ensure Medi- taking up a package that, similar to of the world’s investment in scientific care beneficiaries will continue to re- last week’s exercise, absolutely belongs research and development. We rank ceive access to the therapy services to the Senate Democratic leadership; first among all countries, but relative they need. Several rural policies are that is to say, we are not taking up a to the size of our economy, America is also extended. bipartisan package that I put together in sixth place. The trends show that Eighth, these tough economic times with my friend, Finance Committee maintaining American leadership in have hit the States hard as well. So in- AUCUS. the future depends on an increased Chairman B cluded in this bill is a 6-month exten- To be sure, some of the structure re- commitment to science and research. sion of the additional Federal financial flects the agreement I have with Sen- Yet our R&D tax credit expired at the assistance for State Medicaid Pro- ator BAUCUS, but this package is al- end of last year. This will put Amer- grams. This will allow States to plan ican corporations at a competitive dis- most three times the size of the pack- for their next fiscal year with the cer- age we agreed upon. Virtually all the advantage. Corporations are unsure if tainty of continued help from the Fed- they will be able to obtain the R&D additional cost is due to proposals I eral Government. Additional Federal would not have agreed to in rep- credit next year, and they need to plan Medicaid match money—known as for the future. resenting the people of Iowa or the Re- FMAP—helps the economy grow. Ac- publican conference. American financial services compa- cording to economist Mark Zandi, this nies successfully compete in world fi- I was under the impression the Sen- funding has return on investment of ate Democratic leadership was genuine nancial markets. We need to make sure about $1.40 for every dollar invested. in its desire to work on a bipartisan the U.S. tax rules do not change that. The Nation’s Governors have repeat- basis, but clearly I was mistaken. Al- This legislation extends the active fi- edly asked for an extension of this Fed- though the Senate Democratic leader- nancing exception to subpart F. In so eral assistance, and this bill answers ship was highly involved in the devel- doing, it preserves the international their pleas. competitiveness of American-based fi- With so many Americans out of opment of that original bipartisan bill, nancial services companies, while in- work, our country needs Congress to they arbitrarily decided to replace it cluding safeguards to ensure that only enact this legislation. This bill con- with a bill that skews toward their lib- truly active businesses benefit. This tinues valuable tax incentives to fami- eral wing. So my first comment to my provision will put the American finan- lies and businesses that will help them colleagues, also to the media and to cial services industry on an equal foot- in these difficult economic times. The the entire Nation, is: Don’t let this ing with foreign-based competitors bill sustains vital safety-net programs package be mislabeled as the Baucus- that are not taxed on active financial that will also help foster economic Grassley package. It is not the package services income. growth. my friend, Chairman BAUCUS, and I ne- Several energy tax incentives also As I said at the outset, this is not gotiated. Again, the package before the expired at the end of last year. This just ordinary legislation; this is urgent Senate dramatically differs in cost, bill extends those incentives to encour- legislation. It would prevent millions balance, and dramatically is different age continued investment in tech- of Americans from falling through the in intent from the Baucus-Grassley nologies that promote energy inde- safety net. It would extend vital pro- compromise announced on February 12. pendence. For example, the bill extends grams that expired yesterday—expired My second preliminary comment incentives for new hybrid battery tech- yesterday. It would put cash in the goes to the way in which these expiring nology and the construction of new en- hands of Americans who would spend it tax provisions have been described by ergy-efficient homes. quickly, boosting economic demand. It many on the other side, including Sixth, in addition to these important would extend critical programs and tax those in the Democratic leadership. If provisions that provide direct assist- incentives that create jobs. It is an im- you roll the videotape back a week or ance and job creation, the bill includes portant bill that we here can do for so, you would hear a lot of disparaging other proposals that will provide relief other Americans. So let’s help Amer- comments about these routine, bipar- for businesses and individuals. One ica’s businesses to create more jobs. tisan extenders. From my perspective, such provision is pension funding re- Let’s join to work across the aisle on those comments were made in an effort lief. These days, American employers this commonsense legislation, and let’s to sully the bipartisan agreement are faced with the need to make higher enact these tax incentives and safety- reached by Chairman BAUCUS and this pension contributions. Several factors net provisions into law. Senator. If you take a look at news- have combined to require these higher Mr. President, I yield the floor, and I paper accounts of a week or so ago, you contributions: There is the funding suggest the absence of a quorum. come away with the impression that changes of the Pension Protection Act The ACTING PRESIDENT pro tem- the tax extenders are partisan work of of 2006, there is the slide in the stock pore. The clerk will call the roll. Republicans and only for Republican market in 2008, and then there is the The assistant legislative clerk pro- interests. A representative sample ensuing great recession. These require- ceeded to call the roll. comes from one report which describes ments for higher contributions are Mr. GRASSLEY. Mr. President, I ask the bipartisan bill as: coming upon employers just when they unanimous consent the order for the . . . an extension of soon-to-expire tax are facing lower asset values and lower quorum call be rescinded. breaks that are highly beneficial to major cash flow. Meeting these requirements The ACTING PRESIDENT pro tem- corporations, known as tax extenders, as could divert resources employers could pore. Without objection, it is so or- well as other corporate giveaways that had use to keep workers on the payroll. dered. been designed to win GOP support.

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00014 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.021 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S839 The Washington Post included this passed the Senate by unanimous con- ever, these bills were all missing a crit- attribution to the Senate Democratic sent and one vote against it on the con- ical ingredient for spurring job cre- leadership in an article last week: ference report. One Member on the ation, and that was substantial tax re- ″We’re pretty close,’’ [the majority leader] other side said: lief targeted to small business. said Friday during a television appearance in Our side isn’t sure that the Republicans Everybody knows small business is Nevada, adding that he thought, ‘fat cats’ are real interested in developing good policy where the jobs are created in America; would have benefited too much from the and to move forward together. Instead, they 70 percent of the net new jobs. In Octo- larger Baucus-Grassley bill.’’ are more inclined to play rope-a-dope again. ber 2008, Congress enacted the Troubled That quote happens to be from the My own view is, let’s test them. Asset Relief Program that we all call majority leader. So we are testing each other when we TARP around here, T-A-R-P. That was The portrait that was painted by cer- are talking about merely reimposing a $700 billion financial bailout bill that tain members of the majority and was some policy that has been on the books we were told had to be enacted imme- echoed without critical examination— for a long period of time and just hap- diately in order to deal with the so- and in some press reports was outright pens to sunset, to force some review by called toxic assets to keep credit from inaccurate. For one thing, the tax ex- Congress. drying up, which would have choked off tenders included provisions such as de- We had another Member of this large the lifeblood of the American economy. ductions for qualified tuition and re- 59-vote majority exclaim: lated expenses and also the deduction It looks more like a tax bill than a jobs bill What we actually got—because we for certain expenses for elementary and to me. What the Democratic caucus is going sure did not take out these toxic as- secondary schoolteachers. If you are to put on the floor is something that’s more sets. So what we actually got was di- going to college or if you are a grade focused on job creation than tax breaks. rect infusion of cash into the largest school teacher, the Senate Democratic Reading these comments, I found my- Wall Street banks, which was 180 de- leadership apparently views you as a self obviously scratching my head. The grees different than what we were told fat cat. If your house was destroyed in only explanation for this behavior is, by Treasury before that bill was voted a recent natural disaster and you still certain Senators decided last week it on, and the purpose of that bill as well. need any of the temporary disaster re- serves a deeply partisan goal to slander Later came the bailout of General Mo- lief provisions contained in the extend- what had been for several years bipar- tors and Chrysler using TARP money ers package, too bad because helping tisan and popular tax provisions bene- after the Senate had just voted not to you would amount to a corporate give- fiting many different people. bail out GM and Chrysler. away in the eyes of some. Such distor- The Washington Post article I quoted This inconsistent policy by Treasury tion of the extenders—some of them from earlier includes a statement from created uncertainty in the financial have been on the books for a long pe- a Democratic Senate leadership aide markets and the business community. riod of time; some of them passing this saying that ‘‘no decisions have been Moreover, exorbitant bonuses were body by consensus—belittles helping made, but anyone expecting us imme- paid to executives and the management some people who have needs. diately to go back to a bill that in- of firms that would have been out of a Again, I wish to say the tax extend- cludes tax extenders will be sorely dis- job if not for Congress and Treasury ers have been routinely passed repeat- appointed.’’ and the Federal Reserve intervening. edly because they are bipartisan and, You can imagine that, today, a little frankly, very popular. Democrats have over a week after these comments, I How effective was the bailout in im- consistently voted in favor of extend- scratch my head, once again. We have proving the credit markets? In October ing these tax provisions. Let me tell before us the expiring tax and health 2009, the Government Accountability Office released a report reviewing you what House Speaker NANCY PELOSI provisions that were disparaged just a released recently, a very strong state- short time ago. Have they morphed TARP’s first-year performance. The ment when the House passed these very from corporate tax pork? Have they GAO report found credit had improved same tax extenders at the end of last suddenly reacquired their bipartisan based on certain market indicators. year saying this was ‘‘good for busi- character? Are these time-sensitive However, they were not able to deter- ness, good for homeowners, and good items, now expired for more than 2 mine how much, if any, was attributed for our community.’’ months, suddenly jobs related? to TARP as compared to general mar- That was December of 2009, not very We are beginning another debate, a ket forces or other Federal action. long ago. jobs bill debate. So I wanted to focus While it is unclear the extent credit In 2006, the then Democratic leader on the economy, small business, and has been freed up as a result of TARP, released a blistering statement ‘‘after jobs after giving you that partisanship it is clear who has reaped the benefits Bush Republicans in the Senate that should not have existed a week of those programs. This past year, blocked passage of critical tax extend- ago, to explain that it existed and not many financial firms, including Gold- ers American families and businesses much has changed since then, but all of man Sachs, JPMorgan Chase, and oth- are paying the price because this Do a sudden there is some idea of being bi- ers who received TARP funds, posted Nothing Republican Congress refuses partisan. record or near-record profits. to extend important tax breaks.’’ So we are going to talk about the While Wall Street executives have Recent bipartisan votes in the Senate substance of this bill. We all agree our clearly benefitted form TARP, small extending bipartisan tax provisions had Nation is currently facing challenging businesses and their employers have come in the Emergency Economic Sta- economic times. While there have been not been that fortunate. Small busi- bilization Act of 2008 and the Tax Re- some signs of improvement such as the nesses continue to struggle to obtain lief and Health Care Act of 2006. By the recent growth in our gross domestic credit in order to expand their oper- way, that passed the Senate by unani- product, job losses continue to mount ations, purchase inventories, and even mous consent. Then we had the Work- and many hard-working Americans are make payroll. The so-called stimulus ing Family Tax Relief Act of 2004, struggling to make ends meet. bill, enacted almost solely by an over- which originally passed the Senate by According to the Bureau of Labor whelming Democratic majority in Con- voice vote, although the conference re- Statistics, over 8 million jobs have gress last February, has not spurred port only received 92 votes in favor and been lost since our economy officially job creation either. a whopping 3 against it. slipped into recession in December 2007. Let me give what the nonpartisan The unemployment rate is currently This massive $800 billion spending Congressional Research Service has to 9.7 percent, which is simply an unac- bill was hastily rushed to the floor of say about the history of these extend- ceptable level. The lack of job creation the Senate with little time to delib- ers which are now before us, which continues despite aggressive action erate its merit. Lawrence Summers, should have been passed in December. taken at the Federal level in order to the Director of President Obama’s Na- They have been consistently widely stabilize the economy. tional Economic Council, said: supported because they mention the This includes the enactment of TARP The test for the stimulus is whether it is Tax Relief Extension Act of 1999, which and the $800 billion stimulus bill. How- timely, targeted, and temporary.

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00015 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.022 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S840 CONGRESSIONAL RECORD — SENATE March 1, 2010 This stimulus bill hit the trifecta. It expensing of equipment purchased by employee will generate additional rev- has failed in all three. Through a re- small businesses. But it is a very small enue that exceeds the cost of the em- port issued in January 2009 by the cur- provision. It only gave small businesses ployee. The latest survey of the Small rent Chair of President Obama’s Coun- what they have already been getting Business Economic Trends—and that is cil of Economic Advisors, Christine for the last couple of years, just ex- produced by the National Federation of Roemer, the administration predicted tending it; in other words, just extend- Independent Businesses, or NFIB, as we that the stimulus would save or create ing that figure. That provision was know it—shows that many small busi- 3 million jobs. We were told by the only $35 million out of $62 billion, the nesses may not be in a place that they Obama administration that if the bill $15 billion that everyone talks about, can afford to hire new employees even was not passed quickly we would expe- plus the $47 billion for the highway with the provisions of that bill passing rience unemployment of 9 percent. trust fund that is typically not men- the Senate last week called the Payroll At this point we have a chart. The tioned. Tax Holiday. middle line, where it says 9 percent, Last year, I introduced S. 1381, the I have a chart from the National Fed- the White House projected unemploy- Small Business Tax Relief Act. My bill eration of Independent Businesses to ment at 9 percent with no stimulus. would double the amount of equipment which I now want to refer. That chart However, we were also told by the that small businesses could expense has selected components from the Obama administration that if the stim- and would make those higher levels Small Business Optimism Index. While ulus bill passed, unemployment would permanent instead of just for 1 year, as many components of this index im- not go over 8 percent, and that would the Reid bill did. proved slightly from December, it is be the bottom line. In my negotiations on the jobs bill, I clear that small businesses continue to Well, the bill was passed. But what sought to include provisions for my struggle. You will see from the chart a did we get for $800 billion of debt before small business tax relief bill. But there net negative 1 percent of owners who interest that was laid at the feet of our was no agreement to put small busi- plan to create new jobs in the next 3 children and our grandchildren? The ness tax relief provisions for my bill in months. You will see on the chart a net unemployment rate jumped from 7.7 the bipartisan compromise that we positive of only 1 percent of business percent in January right before the reached. Instead, we were asked to owners expect the economy to improve. Only 4 percent of business owners said stimulus was enacted, to a high of 10.1 defer those provisions to a future tax it was a good time to expand, and a net percent in October. bill. While unemployment recently dipped According to ADP, national employ- negative 42 percent of owners reported slightly to 9.7 percent—you can see ment data from January 2009 through higher earnings. This last component is especially im- that is the red line at the top—this was January 2010, small businesses with portant for businesses when it comes to not due to job creation but because fewer than 500 employees saw employ- hiring new employees. If earnings are millions of individuals have literally ment decline by 2.67 million jobs, while declining, there is little a payroll holi- large businesses with 500 or more em- given up looking for work and obvi- day will do to spark hiring since busi- ployees saw employment decline by ously do not show up in the unemploy- nesses need to know that the revenue 694,000. ment statistics. generated by the additional employees The Obama administration also stat- While I am sure many of us disagree will exceed the cost, not just today but ed that ‘‘more than 90 percent of the about the effectiveness of the financial in the future. jobs created are likely to be in the pri- bailout and stimulus spending in get- Before I go on to this NFIB survey, at vate sector.’’ ting our economy back on track, I the grassroots of my State, I had the In all, 3.3 million jobs have been lost know for sure that we all agree there opportunity the previous weekend to since the stimulus bill was enacted. has been a lack of job creation and too spend part of a Friday and part of a That is 3.3 million compared to the 3.7 many people continue to be unem- Sunday afternoon in what is called the million the President said. Of course, ployed. Because the stimulus bill has Des Moines Home and Garden Show 3.2 million of those jobs were in the pri- so clearly failed in what it was sup- which has probably been around for 30 vate sector. posed to do, which was to create jobs, years or so, that one weekend a year. In summary, the Obama administra- and the administration and the con- On the Saturday in between, I had an tion was terribly inaccurate regarding gressional Democratic leadership are opportunity to attend a like show its stimulus jobs projection. At the running away from the word ‘‘stim- called the Home Improvement Show in time the stimulus bill was passed, I ulus’’ faster than the Triple Crown Waterloo. You walk around and talk to raised concerns that the bill was not winning horse Secretariat. Everything vendors, small business people. You targeted enough at small businesses proposed now is called a ‘‘jobs bill’’ kind of look at what do they expect and job creation. However, my point of even if it includes proposals that were Congress to do about creating jobs. I view lost out and less than one-half of always labeled ‘‘stimulus’’ in the past. never got anything positive about 1 percent of the bill included tax relief Only 6 percent of Americans believe something we might do, but I got a lot for small business. the stimulus bill created jobs. That is of ideas that they want us to do that The money in the stimulus bill gave less than the 7 percent of Americans said: You have to give us some cer- tax credits to people who buy electric who believe that Elvis is still alive. tainty. plug-in golf carts or to pay for rattle- Last week, the Senate passed a bill Do you know what they quoted. They snake husbandry in Oregon, among that included provisions designed to in- quoted the big tax increase coming up other ill-advised provisions, which crease hiring. This includes a payroll at the end of this year as some of that would have been better allocated to tax holiday for businesses that hire un- uncertainty. They quoted the cap-and- small business tax relief, the place employed workers and a tax credit for trade tax that possibly could pass the where employment starts. Since the the retention of newly hired individ- Senate. Then they quoted the potential stimulus, small businesses have been uals throughout all of 2010. cost to small business because of the bearing the brunt of job losses in our The payroll tax holiday part of this health care reform bill. They said: economy. However, the words of those proposal is likely to spark some mod- Take all of those potential things out on the other side regarding the impor- est hiring at businesses at the margins of the picture, and we will start hiring. tance of small business job creation do among those who have seen some im- But it is the uncertainty that is out not match their action when looking at provement in their business but are on there of what Congress is going to do the paltry amount of small business the fence about whether to hire some- to us that is keeping us from hiring tax relief being provided. body now or wait a while. However, people. Again, in the jobs bill, or stimulus many businesses continue to struggle I want to go back to the NFIB sur- bill, or whatever you want to call it and will not hire new employees just vey. When businesses are asked what that passed the Senate last week, there because it is the stated policy goal of the single most important problem fac- was only one provision directed solely Congress. ing their business is, the answer is lack to small business tax relief. That was a Before a business can hire a new em- of sales. That is in addition to the un- provision I supported which increased ployee, they need to know that new certainty I related. But this is closely

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00016 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.023 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S841 followed by what I did say, taxes, and cial congressional scorekeeper on tax they were formed as C corporations be- then government regulation, and red- issues, shows that 44 percent of the fore other entities such as LLCs be- tape. I am glad my colleagues on the flowthrough business income will be came more widely used. other side have recognized that true hit with the increase in the top two tax Among other provisions, my bill job creation comes through the private rates proposed by the President. This would also lower the potential tax bur- sector and have thus sought hiring in- hits small businesses particularly hard den on small C corporations that con- centives through payroll tax relief. since most small businesses are orga- vert to S corporations. However, this minor tax relief is a nized as flowthrough entities. It will The NFIB has written a letter sup- drop in the bucket considering the increase taxes on single small business porting my small business tax relief challenges small businesses face due to owners who make more than $200,000 bill, stating: the economy and proposed increased per year, even if they plow all of their To get the small business economy moving taxes and redtape included in the income back into their small business again, small businesses need the tools and incentives to expand and grow their busi- President’s budget. Whether we are to keep paying their workers and hire speaking about cap and trade that will nesses. S. 1381 provides the kind of tools and additional workers. Increasing taxes on incentives that small business needs. drastically increase energy costs, this group punishes their success and health care reform that would mandate I want to talk about an opportunity limits their ability to reinvest in their for true bipartisanship that was killed small businesses offer health benefits company. It prevents them from put- that will increase the cost of labor, or by the Democratic leadership. The ting away funds for tough economic same day Chairman BAUCUS and I re- the call for tax increases on so-called times to keep their business afloat. wealthy taxpayers earning over $200,000 leased a bipartisan bill that contained Government is currently creating a significant compromises, behind closed that will largely fall on the backs of climate of uncertainty where the pri- small businesses, if our intention is to doors the Democratic leadership cher- vate sector does not know what we will ry-picked four provisions out of the increase long-term employment, the do next, what taxes will be raised, and last thing we should be doing at this larger bill Chairman BAUCUS and I what regulatory barriers will be put in agreed to. Those provisions had been time of economic uncertainty is to in- their way. We can start to put some crease taxes and place additional bur- agreed to in a meeting of senior Mem- certainty back into the business world bers of the other side only while Chair- dens on those who are responsible for by declaring we will not increase taxes creating 70 percent of the jobs in our man BAUCUS and I were negotiating. I on businesses 1 dime, by making the was extremely disappointed to see the economy; namely, small business. 2001 and 2003 bipartisan tax measures Providing small businesses a payroll Democratic leadership blow up the bi- permanent. partisan deal Chairman BAUCUS and I tax holiday while intending to impose Let me be clear: Businesses do not increased taxes, regulations, and man- reached. To pour a little salt into the want to be certain that the govern- wound, the Democratic leadership then dates amounts to throwing them a few ment is going to raise their taxes and peanuts while taking away their sup- prohibited any Senator on either side make them go up through more red- per. In recent months, I have spoken at of the aisle from even offering an tape. They want to be certain that it is length about the impact of tax in- amendment to improve a bill that he not going to happen. Until then, many creases set to kick in 10 months from hijacked. One of the four provisions the will simply sit on the sidelines and not today. I have examined the impact of Democratic leaders cherry-picked is hire more workers, as I reported from these tax increases on small busi- Build America Bonds. If it had been my weekend before last at a couple af- nesses. I think Members ought to take just me drafting the bill, I wouldn’t fairs in the State of Iowa. have included this provision. However, a closer look at it before we actually Moreover, we can directly provide enact big tax hikes. for the sake of bipartisanship and com- targeted relief to small businesses. The President and my colleagues on promise in the context of a much larg- Last June, I proposed legislation to do the other side of the aisle have pro- er bill, I reluctantly agreed that put- posed increasing the two marginal tax that. I introduced the Small Business ting this provision in the bill would not rates from 33 and 35 percent to 36 and Tax Relief Act to lower taxes on job- cause the overall bill to lose my sup- 39.6 percent, respectively; increasing creating small businesses. Since the port. Build America Bonds is a very the tax rates on capital gains and divi- Democratic leadership barred any rich spending program disguised as tax dends to 20 percent, fully reinstating amendments last week, I am hopeful cuts. Bloomberg reported that large the personal exemption phaseout for we will debate and vote on an amend- Wall Street investment banks have those making over $200,000, and fully ment offered by Senator THUNE. Many been charging 37 percent higher under- reinstating the limitation on itemized provisions in my bill are contained in writing fees on Build America Bonds deductions for those making more than the Thune bill. My bill contains a num- deals than on other deals. Therefore, $200,000. ber of provisions that will leave more American taxpayers appear to be fund- With these two provisions fully rein- money in the hands of small businesses ing huge underwriting fees for large stated, the individuals in the top two so they can hire more, continue to pay Wall Street investment banks as part rates could see their marginal tax rates the salaries of their current employees, of the Build America Bonds program. increase over 15 percent or more. My and make additional investments. This Democratic leadership has said the colleagues on the other side of the aisle includes allowing flowthrough small Build America Bonds program is about respond that these proposals will only businesses, partnerships, S corpora- creating jobs. I wanted to know wheth- hit ‘‘wealthy individuals’’ and only a tions, LLCs, and sole partnerships to er it is about lining the pockets of Wall small percentage of small businesses deduct 20 percent of their income, ef- Street executives. So last week I asked fall into this category. I have been try- fectively reducing their taxes by 20 per- the Goldman Sachs CEO a number of ing to tell them for 3 or 4 years that cent. My bill also includes tax relief for questions about these much larger un- what they want to talk about, the small business owners from the unfair derwriting fees subsidized by American small percentage of small businesses alternative minimum tax. It takes gen- taxpayers. I expect to have that discus- falling into that category—I will not eral business credits, such as the em- sion shortly. convince them, because I don’t know ployer-provided childcare credit, out of Turning back to the bill being de- what they are reading—is wrong. Be- the alternative minimum tax. This bated this week, the Thune amend- cause small business is going to be hit would allow a mom-and-pop retail ment, which incorporates many of the very definitely by these increases. store that provides childcare for its provisions from my small business tax What my colleagues fail to understand employees to get the same tax relief a relief bill, provides substantial small is that the small businesses that fit Fortune 500 company gets when it pro- business tax relief and should be adopt- into this group are not static but con- vides childcare for its employees. ed. sist of different businesses over time My bill would also allow more than In this bill, I hope we can all work that go in and out of the top two tax nearly 2 million small C corporations toward improving our economy, not brackets depending on the market. to benefit from the lower tax rates for through more government but by let- Data from the Joint Committee on the smallest C corporations. There are ting the engine of job creation, mean- Taxation, which is a nonpartisan offi- so many small C corporations because ing small business, keep more of its

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00017 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.024 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S842 CONGRESSIONAL RECORD — SENATE March 1, 2010 own money in the form of substantial So there are real-life consequences to stand on principle, the fact is, twice, at small business tax relief. your objection, and the real-life con- least—I do not know if there were more I yield the floor. sequences are being visited on innocent times—the Senator has reached an op- The PRESIDING OFFICER (Mr. people who, through no fault of their posite conclusion and agreed with the KAUFMAN). The Democratic whip. own, lost their job and cannot find one majority, the bipartisan majority, that Mr. DURBIN. First, let me serve no- in an economy where we have five un- we were truly in an economic emer- tice on the Republican side that I will employed people for every job avail- gency. be making a unanimous consent re- able. There is one other aspect of this quest about the extension of unemploy- In your State of Kentucky, my State which is troubling, and that is the first ment benefits so that Senator BUNNING of Illinois, and virtually every other casualty of most people who are unem- or someone else on his behalf will be on State, these people are struggling. ployed is health insurance. The em- the floor if they care to object. Some of them have reached the end of ployer is not paying it any longer. If Let me say, before my friend from the rope. They are making decisions you want to continue health insurance, Iowa leaves the floor, one of the rea- you and I would never want to face COBRA lets you pay for it all, and it is sons we can’t get to the issues you about whether they are going to have too expensive—roughly $1,300 a month want is because we are in the midst of to give up a home—literally give up a for health insurance for a family in my a filibuster by the Senator from Ken- home. And it could happen. State of Illinois, and the unemploy- tucky who has stopped us from extend- It is great to have a political debate ment compensation is about $1,100 a ing unemployment benefits, COBRA in the Senate. We should. That is what month. So do the math and understand benefits for 30 days. As I understand it, the Senate is supposed to be about. But that most people cannot do it. that filibuster now applies to a non- when the victims in the middle of the So President Obama said, as part of controversial judicial nominee. So we debate are unemployed people, I do not our effort to turn this economy around, have multiple filibusters holding us think that is fair. I do not think it is we will help people pay for their health back from considering some of the fundamentally fair. These people are insurance through COBRA. We will pay measures you mentioned. I might say, trying—this one young man, David I believe the figure is 65 percent of the some of them I find appealing and hope Seanior, showed me a list of 300 appli- premiums so people will be paying one- we can make them part of the package. cations he had made to try to find a job third of their health insurance pre- The reason why your initial agreement during the last year. He said: I go on- miums when they have lost a job—still with Senator BAUCUS met some resist- line every day. This is a man who had a substantial sum of money: $300 or ance on our side of the aisle is that we worked for years, had a strong work $400 they would have to pay each thought there was a lack of balance. record, until he was laid off. He said: I month. But imagine if you had a sick Although I support the tax extenders just can’t find anything. I am des- child at home, and imagine that child being extended for the remainder of the perate. I am trying everything I can needed at least the possibility of cov- year in your initial agreement with think of, and now you are going to cut erage should they be hospitalized for Senator BAUCUS, the extension of un- off my unemployment benefits. diabetes or cancer or whatever the employment benefits and COBRA was Frankly, we came to the Senate floor cause may be. If you get a gap in cov- only for a few months. We felt that last Thursday night to urge the Sen- erage and you lose your health insur- both should be extended until the end ator from Kentucky to reconsider his ance because you cannot afford to of the year. I hope we can reach that objection. The net result of this is make the payment, you could find agreement when we come back to the going to create hardship all across yourself in a predicament where you amendment that is pending before us, America, and it gets worse by the day. not only do not have health insurance as soon as the filibusters that have We estimate that roughly 2,000 more but the prospect of buying additional been initiated by the Senator from people tonight will lose their unem- health insurance is next to zero. Kentucky are completed. ployment benefits in Illinois. So by Senator BUNNING’s objection cut off Let me say a word about those fili- next Sunday, instead of 15,000 losing this benefit, this 65-percent benefit on busters. We tried last week to extend their checks, it will be up to nearly health insurance. We have tried to ex- for 30 days unemployment benefits that 30,000. By the end of March, the total is tend it for 30 days. So that means these would run out across America, starting estimated to be 65,000 people who will people will not only lose their unem- literally at midnight last night. There lose their unemployment checks be- ployment check, they will lose this was one objection from Senator cause of the objection of Senator help with their COBRA benefit. BUNNING from Kentucky; he objected to BUNNING of Kentucky and this initi- I have been, once in my life, in a pre- extending unemployment benefits and ation of a filibuster. dicament being a father with a sick COBRA benefits. The net result of this I do not think that is what we should child and no health insurance. Mr. one Senator’s objection is to put us do. This is an economic emergency fac- President, I want to tell you, if there is into a procedural process that could ing this Nation. It is not the first time something that tears you apart as a literally take days. Senator BUNNING has been asked to ex- dad, it is going into a hospital with no What happens to the people who were tend unemployment benefits that were health insurance with a sick baby. I on unemployment during that period of not paid for. See, that is his issue: You have been there. I have done that. time? They are cut off. Fifteen thou- are not paying for the unemployment Thank God it happened years ago and sand people on unemployment in Illi- benefits. You should not extend it. my little girl made it through that epi- nois last night were cut off because of Senator BUNNING voted for the fiscal sode. the Senator from Kentucky, and rough- year 2008 war supplemental bill which But we are forcing literally hundreds ly 400,000 nationwide have seen their extended unemployment insurance of thousands of Americans into this unemployment benefits cut off. benefits for 13 weeks. He also supported situation because of the objection and I met two of those people in Chicago ending debate and did not object to the the filibuster of one Senator from Ken- yesterday. They have been unemployed voice vote of a measure to extend un- tucky. That is unfair—not only unfor- for extended periods of time, and they employment benefits for an additional tunate but unfair. If we are going to have been spending literally every day 7 weeks for workers who exhausted fight a battle over our budget deficit trying to find a job. One of them has a their current compensation by March and get involved in lengthy debates, as little 3-year-old daughter. I asked him: 31, 2009. That bill also extended bene- we can, there are plenty of chances to What is going to happen now that you fits for an additional 13 weeks—half the do it. We will have a budget resolution do not have your unemployment duration of regular unemployment in just a few months. We will have a check? compensation—for workers in States score—at least a dozen—of appropria- He said: I don’t know. The first thing with unemployment rates of 6 percent tions bills to fight this battle over, and I will do is default on my student loan. or higher. Neither of the extensions he I think the battle can be joined. I will have to do that. I can’t make my voted for—one in a record vote and one We said to the Senator from Ken- payment if I want to put food on the by voice vote—had any budget offsets. tucky: If you want to offer an amend- table. So to argue that now we are taking a ment to pay for the unemployment

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00018 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.025 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S843 benefits and the COBRA benefits, you I do not get it. I do not understand it. could not pass it on time to keep the are entitled to offer that amendment. President Obama is doing his best to Transportation Department author- You are entitled to come to the Senate get this economy moving forward. He ized. So we came to the floor to pass a floor, express your point of view on inherited a weak economy that was 30-day extension of transportation law how this should be paid for, and to ac- losing 700,000 to 800,000 jobs a month. along with the COBRA and unemploy- cept the will of the Senate. Let them Things have improved somewhat, ment benefits. Senator BUNNING’s ob- vote on your amendment. If they agree though they are not where we want jection has basically shut down the with you, fine. If they disagree, it will them to be, and I believe we ought to highway trust fund, the Federal high- be a matter of public record. You will be standing behind the people in our way trust fund. have your day on the floor of the Sen- Nation who are struggling to find a job This is uncharted territory. We do ate, which is about the best most of us and get back to work. Many of them not let surface transportation legisla- could hope for in this job. are trying to keep families together tion expire. It has not happened before. But the Senator from Kentucky said: and care for their children. The Department of Transportation is No, I am not going to do it because I Last week, nearly 500,000 Americans shutting down highway reimburse- might lose. Well, yes, you might win filed for unemployment for the first ments to States. That means hundreds and you might lose, and that is what time. The number surged to just below of millions of dollars that should be we all face when we come forward with 500,000 last week. It climbed more than flowing from the Federal Treasury to an idea on how to deal with the budget 12 percent over the past 2 weeks. I wish these States are not. deficit. I do not think it is fair to insist that were not the case but it is. So you The Department of Transportation is that it is my way or the highway when see, the economy is still struggling. I furloughing nearly 2,000 employees it comes to something as basic as un- believe the first thing we ought to do is without pay as of today because of Sen- employment benefits and health care to care for our own. If someone came to ator BUNNING’s objection. The Depart- for the people who are unemployed the floor with an emergency request ment of Transportation is removing across America. now because of a drought, a flood, a Federal inspectors from critical con- As I visit these unemployment offices hurricane, a tornado, we would honor struction projects, forcing work to stop and meet with these people, I find a lot it. We do that almost on a regular basis on Federal lands. of determined folks whom you would because at some point you say: First, DOT’s safety agencies, such as the think would have given up a heck of a help these poor people. Then deal with National Highway Traffic Safety Ad- long time ago still trying. They con- the budget challenge it brings at an- ministration, are furloughing employ- sider it a victory if at the end of the other time. ees who work on safety programs—pro- day one of the posted jobs on the Inter- But now, when it comes to helping grams that stop drunk driving, reduce net leads to an interview. They are our own, the citizens of this country traffic injuries, and increase child pas- that desperate. Yet we are saying to who are out of work, that, unfortu- senger safety—because of the objection them: We are going to cut off the nately, is not the case. Right now over of the Senator from Kentucky. money you need to feed your family in 4.6 million Americans continue to col- In my State, we are going to lose 50 an effort to make a point about deficit lect unemployment. That is up 6,000 Federal Highway Administration em- reduction. That, I think, is unfortu- from the preceding weeks—the number ployees—furloughed today. These nate. of claimants. workers have been instructed not to re- We have asked for an extension of un- In addition to the filibuster initiated port to work until we pass this exten- employments benefits repeatedly be- by Senator BUNNING hurting those who sion. cause we are in the worst shape in our are unemployed, it is also going to Second, the Illinois Department of economy in 75 years, and a lot of people have an impact on the Small Business Transportation will not be receiving are struggling to make ends meet. I Administration. Most everyone agrees Federal reimbursement for projects be- know there are those who argue that at the key to bringing this economy for- cause of this objection by the Senator some point we have to cut off these un- ward is helping small businesses stay from Kentucky. They were scheduled employment benefits. But I would ask in business and create jobs. The Small to submit the next Federal bill for re- them to consider this as well: Unem- Business Administration loans money imbursement as of tomorrow. The Illi- ployment assistance is the most direct to small businesses, which during dif- nois Department of Transportation will infusion of money into the economy. ficult times need a helping hand. submit a bill of about $25 million for Those who are economists tell us the The Senator’s filibuster and his ob- work already completed to which they first dollar you give in unemployment jection has closed down SBA programs are entitled. But because of the objec- assistance is going to be spent imme- that provide credit to small businesses. tion of the Senator from Kentucky, diately. It is not going to be banked, What are we thinking to stop assist- that bill cannot be paid. There is no saved, or invested. These folks need it, ance to small businesses at this mo- question that my State is entitled to and they will spend it the day after ment in our history? Most of us believe it. I imagine the State of Kentucky has they get it, for obvious needs, and that this is central and essential if we are a similar situation. The question is creates more economic activity. going to turn the corner and move for- whether there is anyone there to proc- So you are not only doing the right ward. Yet the Senator from Kentucky ess it, and because of his objection, thing that a caring nation does when has objected. there is not. so many of us are facing hard times, it It also has some ramifications in cut- Delays in Federal reimbursements is an economic stimulus—No. 1, inci- ting back on money that is available will make it difficult for the Illinois dentally, by the Congressional Budget for transportation. I do not know if the Department of Transportation to pay Office—in terms of what we can do to Senator is even aware of what he has the contractors and workers on these get this economy moving forward. It is done when it comes to his objection, projects. So the ripple effect of this is not just a matter of helping those who but in my State and many others, we the money doesn’t go back to the con- are helpless; it is a matter of injecting are finding that people are losing their struction companies or to the workers money into the economy in the most jobs today. We have been running our and their families, leading to unem- efficient way. Federal transportation program with ployment. I am afraid this has happened before. short-term extensions since September The Senator from Kentucky is op- The last time the Senate extended un- 30 of last year—almost 5 months. These posed to extending unemployment employment, the other side of the aisle stopgap extensions were underfunding compensation. The unemployment objected three times—the leaders on our transportation system and hurting rate, incidentally, in the construction those three occasions. Incidentally, our States, cities, counties, and work- industry is 24 percent nationwide. Lay- that extension of unemployment bene- ers. The short-term extensions created ing off more construction workers at fits was completely paid for. So it ap- an unstable environment in the Fed- this time is exactly the opposite of pears whether it was paid for or not eral transportation program. what we ought to be doing in this econ- paid for, there is objection on the Re- We passed a yearlong extension in omy. Future work on Illinois transpor- publican side of the aisle. last week’s jobs bill, but the House tation projects could be in jeopardy if

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00019 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.026 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S844 CONGRESSIONAL RECORD — SENATE March 1, 2010 we do not pass an extension. The Illi- for a vote: Bring your approach to the The debt we have arrived at, even the nois Department of Transportation is floor. Let the Senate decide. Accept head of the Federal Reserve Bank, scheduled to release the largest bid the decision of the Senate, win or lose. Chairman Bernanke, said is not sus- lettings on April 23 for projects under- That is the most any Senator can ask tainable. It is unsustainable. What does way this construction season, and so for. Yet he wants more. He wants a that mean to the American people, to the construction season will be de- guarantee that he wins. Well, there is the same people who are struggling to layed. no guarantee you win in the Senate. pay for bills, who are on unemploy- I am trying to give the whole picture. There is no guarantee you win in base- ment, who could have been covered had As we wait for the Senator from Ken- ball. You do the best you can. Under the Baucus-Grassley bill been consid- tucky to agree to a short-term exten- these circumstances, I think what we ered and could have been covered not sion of these critical programs, we are have reached is a point that is difficult for 30 days but for 3 months? Because jeopardizing jobs, more people will be to understand and explain. there were some tax extenders in that unemployed, and we are jeopardizing I would like to invite my Republican bill, the Democratic majority stopped future projects which will be short- colleagues—all of them—to come to the bill from being considered. changed because construction seasons the floor and express themselves on I am not filibustering the bill. A fili- are limited. this. If they believe we should cut off buster is somebody who talks a long This 1-month extension of transpor- unemployment benefits, health insur- time. I am exercising my right as a tation law—and that is all we are ask- ance benefits, close down the U.S. De- Senator, duly elected from Kentucky, ing for—has already had overwhelming partment of Transportation’s work in to object to a UC. That is completely bipartisan support in the past, and the the States, close down the SBA pro- different than filibustering. Everybody 1-month extension itself costs nothing. grams for small businesses, I hope they knows a Member of this body, any 100 Last week, we passed a 1-year transpor- will come and express that point of of us can object to anything that is tation fix as part of the jobs bill. view. They should, if they feel that brought to the floor of the Senate, The following groups have written way. If they feel, as I do, that this is whether it be a nominee, whether it be letters urging us to move on this ex- unfair and unfortunate, if they will a judge, whether it be somebody who is tension: the American Association of come forward and join us on the floor, appointed to the Treasury. Anybody State Highway and Transportation Of- we can try to build up some momen- can object. There is a procedure that ficials, the American Road and Trans- tum for moving this issue forward. takes place that can overcome that ob- portation Builders Association, the As- There are people in every State of jection. Why doesn’t the Democratic sociated General Contractors of Amer- the Union who are suffering today be- majority use that procedure? ica, the U.S. Chamber of Commerce, cause of the objection of one Senator, So I am going to take one more shot. the Laborers International Union, and because of the filibuster of one Sen- As long as we continue to have the ex- the American Automobile Association. ator, and that is a sad indication of tenders being brought forth unpaid for, The House did its work last week and what has happened in the Senate; that I am going to object. passed this 30-day extension, sending it we have reached this point and that Mr. President, I ask unanimous con- over to us, where we learned Thursday even offering an up-or-down vote on an sent that the Senate proceed to the im- night that the Senator from Kentucky amendment is not enough. mediate consideration of H.R. 4691; was going to object. Nine of us took to What the Senator is looking for is a that the amendment at the desk, which the floor Thursday night and made a guaranteed result. We can’t give him offers a full offset, be agreed to; the request several times for him to with- that guaranteed result. bill, as amended, be read a third time draw his objection, which he refused to I yield the floor. and passed, and the motions to recon- do. I made another request on Friday The PRESIDING OFFICER. The Sen- sider be laid upon the table. morning on the floor and the Senator ator from Kentucky. The PRESIDING OFFICER. Is there continued his objection and then sev- Mr. BUNNING. Mr. President, it is objection? eral today. amazing to me the Senator from Illi- Mr. DURBIN. Mr. President, reserv- So I am going to make the 11th re- nois has what we call a convenient ing the right to object, the Senator, quest of the Senator from Kentucky, memory. Just last week there was a bi- again, is asking that he win without a on behalf of the people I represent in Il- partisan bill proposed by Senator BAU- vote. I object. linois, some 15,000 who have lost their CUS and Senator GRASSLEY that would The PRESIDING OFFICER. Objec- unemployment checks because of his have covered the extension of unem- tion is heard. filibuster, and 400,000 across America ployment benefits, COBRA health care Mr. BUNNING. Mr. President, we who are wondering: What happened? assistance, flood insurance, highway tried and we will continue trying. As What did we do wrong here? Why aren’t bill assistance, the doc fix, small busi- many people who get up and propose we receiving the check we need for the ness loans, and the Rural Satellite Tel- that UC, I will be there, whenever it is. necessities of life? evision Viewer Act. The convenient I want it passed as badly as the Sen- Mr. President, I ask unanimous con- memory loss of the Senator from Illi- ator from Illinois does because I also sent that the Senate proceed to the im- nois has allowed him to forget that his have people in Kentucky who have the mediate consideration of H.R. 4691, the leader, Senator REID, did not allow same problems as his people do in Illi- 30-day extension of provisions which that bill to come to the floor and in- nois. All the States that are rep- expired on Sunday, February 28, in- stead substituted his jobs bill. The ma- resented by two Senators do as well, cluding unemployment insurance, jority leader’s jobs bill was also not but let’s do it and pay for it because COBRA, flood insurance, the Satellite fully paid for, by the way. Ten billion the money is available in many areas. Home Viewer Act, highway funding, dollars wasn’t; five billion dollars was. The money was available for the Grass- SBA business loans and small business So $10 billion from the jobs bill that ley-Baucus bill, which extended things provisions of the American Recovery was passed went to the bottom of the for a year, in some cases, and extended Act, SGR and poverty guidelines, re- deficit. these provisions I am talking about ceived from the House and at the desk; There comes a time when 100 Sen- and the Senator from Illinois is talking that the bill be read three times, ators are for something we all support, about for a full 3 months. We would not passed, and the motions to reconsider if we can’t find $10 billion to pay for it, be in this position if the Senator from be made and laid upon the table. we are not going to pay for anything. Nevada had allowed that bill to come The PRESIDING OFFICER. Is there We will not pay for anything fully on to the floor. objection? the floor of the Senate. Thank you. I yield the floor. Mr. BUNNING. I object. He said I only offered one way to pay The PRESIDING OFFICER. The Re- The PRESIDING OFFICER. Objec- for this. That is untrue. I offered more publican whip. tion is heard. than one way. I negotiated with the Mr. KYL. Mr. President, until my Mr. DURBIN. Mr. President, keep in leader—the leader’s staff, rather—and voice gives out, I wish to address the mind we have repeatedly offered to the we had worked out a 2-week extension bill that is on the floor. The bill has Senator from Kentucky an opportunity for $5 billion with a different pay-for. been denominated by my colleagues on

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00020 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.028 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S845 the Democratic side as a jobs bill, but ing. We predicted that as soon as we costs a lot of money and, therefore, it will not create any new jobs and passed the pay-go legislation, our they had to raise taxes in order to pay when considered in conjunction with Democratic colleagues would come to for it. Among other things, the Presi- the health care legislation the Presi- the floor and seek to have their next dent’s plan, unlike the plan that passed dent has proposed will actually cost legislation exempted from it. Sure the House or the Senate, would raise jobs and I wish to address that. enough, that is exactly what was done. the Medicare payroll tax on small busi- This legislation extends some current Both the matter Senator BUNNING nesses. It would raise taxes by 31 per- provisions of law, including tax provi- has objected to and the bill we are on cent. It would also apply the Medicare sions, unemployment compensation, now have to be exempted from the pay- payroll tax to investment income, such COBRA insurance. It extends a provi- go requirements and, therefore, add to as interest, dividends, rent, and royal- sion of Federal subsidies to the States the Federal deficit—in this case, $104 ties. for Medicaid, and there are a few other billion. Some of these provisions are We all know if you tax something, provisions. None of these create new useful provisions. But the truth is you you get less of it. Taxing investment jobs. The tax extenders are useful. can’t, on the one hand, say everything income would, therefore, reduce invest- That is our Washington, DC, speak for we do has to be offset with spending ment in the economy. Putting a tax on provisions of the Tax Code that last 1 cuts or tax increases and then waive the employment of people means busi- year and have to be renewed each year. the pay-go legislation every time you nesses are going to hire fewer people or They are generally used to enable busi- want to do it—as it turns out so far, there are going to be fewer people on nesses to deduct from their taxes ordi- every time we have considered legisla- their payroll. We cannot afford to lose nary business expenses and include tion. more people to unemployment. We things such as research and develop- The reality is, we could pay for this need to begin hiring people. How do we ment tax credits which I think are sup- legislation and, as Senator BUNNING do that? You surely don’t do it by mak- ported by all 100 Senators. So we do said, we could pay for the so-called ing it more costly to employ people or this every year. We extend these tax temporary extension of unemployment by increasing by almost one-third the provisions for another year. It should benefits because we have money we au- Medicare payroll tax. That makes no have been done at the end of last year; thorized and appropriated earlier in the sense. To apply it now to investment it wasn’t. So it has to be done now and so-called stimulus bill which would income will directly drive down pro- made retroactive to the beginning of more than offset the cost of this legis- ductivity and economic growth. Less the year. One could argue that some of lation. Republicans, of course, would investment will, obviously, lead to those may theoretically create a few like to offer an amendment to pay for lower productivity, slower economic jobs, but they are something we do it from the stimulus funds. According growth, weaker wages and salaries, and lower household wealth. every year, and they are not for the to recovery.gov, the Web site for the For example, each new dollar of tax purpose of creating jobs; they are sim- stimulus bill, only $186 billion of the paid by a small business is one less dol- $499 billion in appropriated and direct ply good business practices. So this bill lar that could go toward hiring new spending from the stimulus has been takes on the usual business of the Sen- employees. ate. There is nothing new, as I said, to spent so far. The Heritage Foundation just did a create jobs. That means $313 billion or 63 percent study on this proposal. It found that What of the subject of unemployment remains unspent. So $160 billion of between 2011 and 2020, regarding this coverage extension which we have just these funds hasn’t even been made investment income proposal alone, it been debating? That doesn’t create new available to be spent yet. would result in an average of 115,000 The original CBO estimate of the jobs. In fact, if anything, continuing to lost job opportunities per year; it stimulus shows 21 percent of the pay people unemployment compensa- would reduce household disposable in- tion is a disincentive for them to seek money, $122 billion of the appropriated come by $17.3 billion per year; it would new work. I am sure most of them and direct spending, will not occur cut wages and salaries by $14 billion would like work and probably have until 2012 or thereafter. We have an im- per year; and it would decrease house- tried to seek it, but you can’t argue it mediate crisis. Our Democratic col- hold wealth by $267 billion per year. is a job enhancer. If anything, as I said, leagues say we have to extend unem- Last week, Congress passed a new it is a disincentive and the same thing ployment insurance. In fact, it is such job-hiring tax credit. With great fan- with the COBRA extension and the an immediate crisis, they have to fare, my colleagues on the other side of other extensions here. So it is not a waive the pay-go requirements that the aisle said this is the way to help jobs bill, and it is beyond me how it would ordinarily apply because it is an small businesses hire more people. The could be denominated as such. emergency. whole idea was to put more people to Moreover—and the reason for my col- If that is the case, then why not sim- work. The very same week, the Presi- league’s objection to the temporary ply take this money that isn’t going to dent announces his health care pro- bill—the Congressional Budget Office be spent until after 2012 and pay for the posal that will make it harder for peo- preliminary estimate shows this bill legislation that is before us right now? ple to go back to work. If the goal is to adds $104 billion to the deficit over the Why would we put aside stimulus get more people to work, I submit that next 10 years, and that is in addition to money to spend in 2012 when people my Democratic friends should shelve the $10 billion that would be added that need it today? That is the very argu- their health care plan, which will have my colleague, Senator BUNNING, has ment my colleague from Illinois was the opposite result. It is very hard to been talking about. This number is pri- making to my colleague from Ken- justify legislation that is going to hurt marily due to the extension of unem- tucky. Why pile on the deficit if we job creation. ployment insurance, the expanded have this money available? Therefore, As I say, when you consider the fact COBRA extension, and the new Federal my colleague from Kentucky made a that, No. 1, the bill before us creates no assistance to States for Medicaid pa- good point when he suggested this new jobs—and I challenge my Demo- tients. These are given emergency des- money should be paid for out of the cratic friends to show us how doing ignations. As a result, we don’t have to stimulus funding. I am sorry to see my what we always do and what was done supply an offset, a spending reduction, Democratic colleagues object to that last year—extending the R&D tax cred- to pay for the cost of these provisions. request. it, extending COBRA insurance, ex- This comes just a week after our The conclusion is, therefore, the bill tending unemployment benefits—cre- Democratic colleagues were bragging will do nothing to create new jobs. ates jobs. What is the estimate for job about the fact that they passed a bill What is more, when considered in con- creation by the CBO on this? It can’t called the pay-go bill. junction with the health care legisla- be very much. The pay-go bill is supposed to require tion, it will actually cause a loss of Finally, my colleague from Illinois, that if we are going to spend money, jobs. in responding to Senator BUNNING a lit- we find an offset in the form of a spend- The President, who talked about his tle bit ago, said Republicans always ob- ing deduction or revenue enhancement plan last Thursday at the so-called ject—and we have many times on pre- that covers the cost of that new spend- health care summit, noted that the bill vious occasions—to the consideration

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00021 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.029 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S846 CONGRESSIONAL RECORD — SENATE March 1, 2010 of unemployment legislation. I recall The PRESIDING OFFICER. The Sen- body going very long. Lots of folks are back in October—in fact, I will quote ator from Montana is recognized. looking for jobs, and they are not from a story, dated October 13, 2009, by Mr. BAUCUS. Mr. President, the Sen- available. Failure to pass the extenders Dan Friedman. He says: ator from Arizona argues that unem- bill could be fairly stated as a job de- Last Thursday, Democrats announced a ployment insurance is a disincentive to stroyer because there are so many peo- deal that gave all 50 States a 14-week exten- jobs. Nothing could be further from the ple who have taken advantage of many sion. truth. I don’t think anybody who is out provisions of the bill—for example, the I think that was about three exten- of work and receiving unemployment R&D tax credit, which the Senator sions ago. I have forgotten exactly. insurance believes that payment is suf- mentioned, and there are other provi- The Senate Finance Committee Chairman, ficient not to find a job. The payments sions in the bill, such as the teachers Max Baucus, within hours of that sought are so much lower than a salary or expense, for example, and there is a de- unanimous consent to pass the bill. Even wage would be, it is ridiculous. There duction for tuition. Take unemploy- though Republicans had already indicated are five unemployed Americans today that they would object so that they could try ment. Say unemployment insurance to amend the bill to replace the extension of for every job opening in the economy— was not continued. That would be a the tax or to provide a pay-for in the Demo- five unemployed Americans who are huge drag on the economy. If the provi- crats’ plan with the use of stimulus money. looking for work but cannot find it. sions we are seeking merely to extend It noted the fact that I had also That is the case and has been the case were not passed, it would be a job de- asked that we see the CBO score on for a long time. People are looking for stroyer. that. It noted that Senators REID, BAU- work. They are not unemployed be- The President’s office said, and many CUS, and other Democrats quickly cause they have a choice. It is because commentators have often said, our goal bashed Republicans: ‘‘The delay is a of the recession that struck and the is to save or create so many jobs. It is threat to millions of workers strug- economy. It is not because people don’t hard to know what is saved or created gling to feed their families as they re- want to work. sometimes. But we certainly want to tain or search for new jobs,’’ my friend, An additional point. Many of us save jobs too. We don’t want the reces- the chairman of the committee, said. asked the CBO to rank what measures sion to be worse. Failure to pass this Earlier in this particular article—I would be most effective in helping the legislation is certainly going to cause will read how it starts off: economy. The one they came up with tremendous hardship on a lot of Ameri- Senate Democrats in recent weeks have re- was unemployment benefits because cans, and it would be a disincentive for peatedly used unanimous consent agreement unemployment benefits generate about the economy to turn around. It would requests to rack up talking points against $1.90 in GDP growth for every $1 we be a disincentive for unemployment Senate Republicans—a tactic that GOP aides paid out in terms of unemployment rates to come down to a lower level said the majority is using deceptively to benefits. that we all find acceptable. Failure to blame Republicans rather than internal dis- I wished to make the point—and I putes for stalled legislation. Senate leaders pass this bill is a jobs destroyer. have long used the tactic of asking for unan- don’t know if the Senator meant this, I yield the floor. imous consent to pass legislation they know but he strongly implied it, and I took Mr. KYL. Mr. President, I respond to will draw an objection from the minority and him to mean that unemployment in- my colleague, the point I was making then blasting the objectors for obstruction. surance is a disincentive for people to is that it is hard to describe this as a I fear that is what we are seeing here. look for work. I don’t think it is be- jobs bill because it does not create Immediately after Democrats, behind cause the benefits are so low and so jobs. Each year, we extend these tax closed doors, develop legislation, they many are looking for work—it is the provisions. That is why we in Wash- immediately come to the floor and say: economy or recession that cost us jobs. ington call it the tax extenders bill. Let’s pass it, and Republicans say: Mr. KYL. If my colleague will yield, This is not some new job creator. I Let’s at least see how much it costs I said it is not a job creator. If any- agree with my colleague that to the ex- and give us a chance to amend it. We thing, it could be argued it is a dis- tent we continue this in practice— thought the Democrats liked to do incentive for work because people are though everybody who takes advantage that. Oh, no, we cannot have that, not being paid even though they are not of it knows it will be extended. So they when it applies to unemployment ex- working. I certainly did not say, and have not made decisions based upon tension. would never imply, that the reason the prospect that we are not going to That is all my colleague from Ken- people don’t have jobs is because they do it. They know we are going to do it tucky is trying to do. As I said, that is are not looking for them. It is true retroactively, so it is not creating any $10 billion not paid for. The bill before that a lot of Americans have gotten so new jobs. I support the extension. I us is another $104 billion not paid for, tired of looking for jobs or believe they think it is a good thing. But let’s don’t and it doesn’t create a single new job. are not going to find them that they call it a jobs bill. Yet my colleagues on the other side of have stopped looking and, as a result, By contrast, as I said, the health care the aisle are unwilling to use stimulus the unemployment numbers are prob- legislation my colleague supports is a money to pay for it. ably higher than the roughly 10 percent job killer. I pointed out just one provi- I will be very interested, when we do that is quoted now. Some people be- sion: 115,000 jobs per year lost just be- have an opportunity to amend the bill lieve it could be as much as 17 percent. cause of the one provision taxing the before us—I assume we will, and I as- This is why I have supported every ex- so-called passive income, the dividends. sume one of those will be to pay for the tension of unemployment benefits. I And we are not even sure whether cap- bill with the stimulus funds—maybe we have voted for them. As my colleague ital gains are taxed in that. Their esti- can make it clear these are not funds says, there are five people looking for mate may even be low. that would be spent until after the every job that exists. If they cannot The reality is, if we are really talk- year 2012. It will be interesting to see if get the jobs, they needed support. ing about saving or creating jobs, let’s my Senate colleagues who support pay- But what I said is true, and if my col- forget this massive health care legisla- go would support that kind of amend- league can find a source that says it is tion that now adds two more job-kill- ment. After all, if this is supposed to be not true, show me. But providing un- ing provisions to it: a 31-percent in- a stimulus bill for job creation, you employment benefits doesn’t create crease in the payroll tax and taxing for would think it could be used for that jobs. The bill we have before us is de- the first time passive income as a part purpose. nominated around here as a jobs bill. of Medicare. That is a job killer. I hope my colleagues will consider That is the biggest single expenditure If we are going to talk about jobs that every time we pass one of these in the bill, and it doesn’t create jobs. with regard to the legislation we have bills, we are adding to the deficit and Mr. BAUCUS. I appreciate that. I before us, I think it is a fair point to we are not creating new jobs. It is a le- have a question. First of all, unemploy- also talk about legislation our col- gitimate point for Republicans to ment benefits in Montana are about leagues on the other side of the aisle make. I hope we will have the oppor- $300 a month. That is all. It is $300 a want very much to try to get passed. tunity to address that subject with month in Montana. I know doggone Mr. BAUCUS. Mr. President, I don’t amendments as this bill goes forward. well that is not enough to keep any- want to prolong this too long, but the

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00022 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.030 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S847 fact is, the President’s Council of Eco- triple. I will show a chart on that point This amendment Senator MCCASKILL nomic Advisers has concluded this leg- before I go into the details of it. One of and I have offered both restores and islation; that is, the health care reform the consequences of the public debt is strengthens the procedures that were legislation which is not before us right that we pay interest and we have to get proven to work in the 1990s. It would now, actually would create jobs, new nations or individuals to loan us their create 4-year discretionary spending jobs. That is the conclusion of the eco- money by buying our Treasury bills, caps or limits, and it would set those nomic advisers. bonds and notes. When they give us limits at the level of the fiscal year The PRESIDING OFFICER. The Sen- their money, this is not free. We have 2010 budget resolution Congress passed ator from Alabama. to pay them interest on all of the debt last year. AMENDMENT NO. 3337 TO AMENDMENT NO. 3336 we run up. This bill that is on the floor Last year, we passed a budget resolu- (Purpose: To reduce the deficit by today will add to the debt again be- tion, not 10 years as proposed by Presi- establishing discretionary spending caps) cause it is not paid for. dent Obama but 5 years. It is currently Mr. SESSIONS. Mr. President, I have This chart is what we get in stunning in effect. One of the things you learn at the desk amendment No. 3337. I ask numbers. It shows that in 2009, interest around here is the only part of the for its immediate consideration. on the public debt—the debt we owe to budget that has any teeth is the year The PRESIDING OFFICER. The people outside our government—was you are in. The discretionary spending clerk will report. $187 billion. The Congressional Budget on the omnibus bill that covered half The legislative clerk read as follows: Office scores it based on the 10-year the appropriations bills contained an budget President Obama submitted to increase of 12 percent. We are not doing The Senator from Alabama [Mr. SESSIONS], us. If his budget is in effect for 10 for himself and Mrs. MCCASKILL, proposes an a very good job at that. The budget has amendment numbered 3337 to amendment years, the deficit would go up every no teeth in these outer years. The No. 3336. single year. The debt will continue to amendment proposes, though, a fairly Mr. SESSIONS. Mr. President, I ask go up every single year, and in the out- responsible spending increase of 2 per- years the annual deficits will approach unanimous consent that the reading of cent or so a year over these 4 years. $1 trillion each year. The interest on the amendment be dispensed with. One could say: Senator SESSIONS, the debt in 1 year would be $799 billion. The PRESIDING OFFICER. Without your State is cutting its budget. My That is well above the current defense objection, it is so ordered. State is having to reduce its budget. (The amendment is printed in today’s budget. Aid to education is $50 billion My city is reducing its budget. My or $60 billion. State and Federal aid to RECORD under ‘‘Text of Amendments.’’) county is reducing its budget. My fam- Mr. SESSIONS. Mr. President, this is highways last year and the year before ily is reducing our budget. Why can’t the Sessions-McCaskill amendment, of- last was $40 billion. Mr. President, $800 you guys reduce the budget? And the billion in interest in 1 year? It is a fered with Senator MCCASKILL, my col- answer is, we can, of course. league from Missouri. It is a bipartisan stunning number, a breathtaking num- Some have suggested and the Presi- amendment, and it is one that I think ber. It is going to crowd out all kinds dent has suggested that we should have of plans some of my spending col- is very important. I hope my col- a freeze on the budget, which I would leagues would like to effectuate in fu- leagues will give it serious consider- support. But I am just saying to my ture years because we are not going to ation. We have close to enough votes to colleagues, last year our discretionary have the money or else we are going to make it law. I am absolutely convinced spending accounts had double digit in- inflate the currency and damage this it is one thing that will work to reduce creases; if we pass this amendment so economy in a most systemic way. the surging deficits in our country. that we have a statutory limit of 1 to This disturbing trend of higher and 2 percent increases for the next 4 years The week before last, I traveled my higher deficits and deficit spending State of Alabama—25 stops, 6 days of and it is subject to a two-thirds vote shows no sign of stopping. As of Sep- point of order in the Congress if there travel. People continually expressed to tember 30, the end of our fiscal year, me their concern about the financial is a proposal to go above that on the we finished with a record $1.4 trillion basis of some emergency need, I think future of our country. They want us to deficit. That is more than three times we will have a much better chance of do something about it. the highest deficit we have ever had. It making the kinds of tough decisions to I heard some of my colleagues ex- is projected that as of September 30 of press things like: This is just populist contain this ever-growing spending this year we will have a $1.4 trillion or level than we have been doing in the anger. It will pass off. We need to keep $1.5 trillion deficit this year, which last several years. a cool head here. We don’t really have would be the highest ever again in con- The Omnibus appropriations bill that to change how we do business. Things secutive years. It is stunning. We can- passed last year increased Federal are going to work out somehow, some- not continue to spend the way we are spending 12 percent in 1 year. That is a way, although nothing in the numbers spending. lot. At 7 percent, your money will dou- show that. Between 1990 and 2002, however, Con- ble in 10 years. At 12 percent, the Mr. Bernanke, the Chairman of the gress took some steps that actually spending in those accounts would dou- Federal Reserve, said last week in his worked to help get us out of a spiral of ble in 6 or 7 years, no doubt about it, testimony before Congress that our spending deficits. It was successful. unless something is done about those path is unsustainable. That is not the What we did was we passed statutory trends. first time he said that. Virtually every caps on discretionary spending only, I think this legislation Senator economist who has opined in the last 6 not Social Security, Medicare and MCCASKILL and I have offered will get months or more on our economy has those kinds of programs. We kept it to us there. I was pleased to see that 17 said our spending levels are 1 to 2 percent growth each year. As this Democratic Senators voted for the bill unsustainable and threaten the viabil- chart shows, these caps led to a sur- because I think there is a growing bi- ity of our country’s economic system. plus. The chart is upside down really. partisan consensus that we can do bet- It is very troubling. We all know that, These are the surplus years. These are ter. and we do not need to go into a whole the deficit years. During these years, A 2-percent containment in the lot of discussion about it. we begin to show a decline in deficits, growth of spending will not cause the The gross debt of our country has all the way to the surpluses. When it United States to sink into the ocean. grown to approximately $12 trillion— expired, it jumped up again. This looks We are still going to exist. The Amer- the highest in our Nation’s history. like a high deficit, and it was a very ican people are still going to have a Some of this is internal debt. We owe high deficit in 2004. That was about the government in Washington. There are Social Security and Medicare and highest, at that point $400 billion. still going to be bureaucrats here to other trust funds that may be in sur- I just made the point that this past take care of us if we just have a 2-per- plus. But we also owe trillions on the fiscal year, it was $1,400 billion and cent growth in the discretionary ac- public debt—the amount of debt this next year it is going to be $1,500 billion. count instead of 12 or whatever that country owes outside the government. We lost some discipline when we al- number was last year. Within 5 years our public debt will dou- lowed those statutory caps or spending I note that the President suggested ble, and in 10 years the public debt will levels to be breached and go away. freezing some of the accounts. Though

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00023 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.032 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S848 CONGRESSIONAL RECORD — SENATE March 1, 2010 there are some very significant gim- operations accounts, which went up 33 year they got a 33-percent increase in micks in it that make it much less percent this year, for a record $1.4 tril- their budget. And by the by, this does tight than it would appear from his lion deficit last year, and a projected not include any of the $800 billion stim- State of the Union Address, it still in- $1.4-plus trillion for fiscal year 2010. All ulus funds that were allocated—about dicates that the President himself of that was driven not by deficits in half of which has gone out. It doesn’t knows we have to reduce our spending, Medicare and Social Security but from include that. EPA got money out of and in some of these accounts we could a discretionary spending account. that, Interior got money out of that, easily freeze them with no damage to Our appropriators are always saying highways got money out of that—large our Nation. I salute him for that. the problem is all Social Security and amounts. We are seeing unprecedented This bill would create spending lim- Medicare. But the truth is, almost increases in spending in these ac- its, not based on what JEFF SESSIONS without exception, we have had sur- counts. says the limit should be, but these are pluses in those accounts and we are Consider the Department of Agri- the limits in the President’s budget, spending that to supplement our gen- culture. I remember people criticized that first 5 years of it that he proposed eral fund spending. We give evidence of President Bush for spending too much and that Congress passed last year. We debt back to our seniors from Medicare money on Agriculture. If you look at would be simply saying this would be a and Social Security, which the actu- his Agriculture budget over the 8 years hard limit on how much we can spend. aries tell us, without any doubt, will he was President, it averaged less than Now if we need to spend more than soon be in deficit. We are going to call a 2-percent increase. Last year, our Ag- that on an emergency, we would have those notes, and the Treasury will have riculture budget—not counting the to have strong support in the Congress to come up with it. stimulus package, which sent a large to create an emergency designation to So there is no free lunch. Nothing amount to Agriculture—increased 15 spend above that. We have been able to comes from nothing. If you spend percent. I always try to support the do that many times in the past when a money you don’t have, you borrow it Agriculture budget, but I could not true emergency arrived. from somewhere. You can print money, support that. That would double the Some say: JEFF, you are focusing too I suppose, and devalue the currency. entire agriculture spending in, what, 5 much on the discretionary spending. But everybody has the value, and the years, at compounded increases. It is Entitlements are bigger—Social Secu- money in their pocket is devalued. It is not responsible. We have to do better. rity, Medicare, those kind of things— the same as a tax. There is no way to The American people, I think, are and they are a bigger problem than dis- do this in a free way. We have been ir- upset. This recent CNN poll asked a cretionary spending. Well, there are responsible, and I think the American tough question of the voters in Amer- three reasons we have to act on discre- people are correct. ica: Which of the following comes clos- tionary spending. One is that while en- When I go to townhall meetings, er to your view of the budget deficit— titlements, such as Social Security and what can I tell them? Oh, we didn’t do the government should run a deficit if Medicare, are large, they actually have anything wrong. The Senate and the necessary when the country is in a re- a net surplus right now. In fact, Con- House, we have been handling your cession and at war, or the government gress raided $137 billion from Social Se- money fine, my fellow Alabamian. We should balance the budget even when curity in fiscal year 2009 to pay for have done great. Don’t complain. Don’t the country is in a recession and is at other things, such as the $800 billion get mad. You will get over it. war? Sixty-seven percent said balance stimulus package that we passed—that We have an $800 billion interest pay- the budget, you guys. Because they Congress passed—last year. ment coming up in 2019 and our chil- have heard these excuses before. They Of course, a $137 billion Social Secu- dren and grandchildren are going to have heard all of it before. What they rity surplus won’t pay for the pay that. Yet when Senator BUNNING are seeing is red ink as far as the eye Congress’s $800 billion stimulus pack- asks that unemployment insurance be can see, with record deficits above any- age, so where did the rest of the money paid for out of this unspent $800 billion thing we have ever seen. That is what come from? We borrowed it on the stimulus and not add it to the debt, I am hearing when I go out and talk to world market, on which we are paying which our grandchildren will pay, he my constituents. And frankly, I am interest. And what about the Social Se- was able to say with some personal glad I don’t have to defend having curity surplus; is that free money? No, conviction—with 42 grandchildren— voted for this stimulus package. I am it is not, because Social Security is that he wasn’t going to vote for it, and glad I don’t have to defend the $700 bil- heading to default. When we take the he didn’t. He didn’t support it and he lion Wall Street bailout, and $182 bil- Social Security surplus into the U.S. didn’t agree to let it pass without an lion going to AIG. They sold off one of Treasury and spend it on increasing objection. He said we should have paid their most profitable companies, or are discretionary spending by 12 percent, for it, and we could have paid for it out talking about it, I saw in the paper we give them back a debt instrument, of the stimulus. today, and they are going to bring in an IOU—a Treasury bond. Another reason I think we need to $35 billion. They are going to use a I am told they are in some location focus on discretionary spending is be- chunk of that to pay down some of that in West Virginia. I am sure the chair- cause, unlike the entitlements, such as $182 billion debt. But if they keep sell- man of the committee knows that but Social Security and Medicare, discre- ing off what they have, how will they I want to go out and see them. They tionary spending has overhead. There have any money to pay the rest of it? have notes out there, Treasury bills, is some, but really very little overhead I think they are not going to pay the evidencing the debt of the U.S. Treas- in Social Security and Medicare. And rest of it. ury to the Social Security Administra- we can do better. I know Chairman Finally, I will add that spending bil- tion. As soon as Social Security goes BAUCUS has worked on Medicare over- lions, adding billions to the baseline into deficit, it is going to call those head. I don’t know how much can be budget, makes a big difference. I made notes. So it does not make much dif- squeezed out of Social Security over- this chart for the DOD appropriations ference whether you borrowed it from head; not a lot, because most of it is bill. It is an interesting little chart. I Social Security or you borrowed it that check that goes out to seniors, hope my colleague can pay a little at- from the public. The interest rates are who count on it every month. But tention to this weird, fine print chart. very similar, too. The government pays there is overhead in discretionary It shows what happens when there was interest to Social Security and Medi- spending—all the things we spend our gimmicked up on the bill an $18 billion care, when Medicare has a surplus. money on. Trust me, I have been in the add-on, all unpaid for. There was $18 It is projected that Congress will raid Federal Government; I have worked billion added to the Defense bill. If this another $90 billion in 2010—this year we there. I know it can be made more effi- gets in as baseline spending, which is are in—to pay for things such as this cient. what it tends to do, then next year omnibus bill that is on the floor: for in- This past year, we increased spending when you advertise how much you in- creased transportation and HUD fund- on the Department of the Interior and crease the Defense bill, you have this ing, which went up 23 percent; create EPA by 17 percent total. I think the $18 billion in and it adds up, so that more funding for the State and foreign EPA account went up 33 percent. In 1 next year it is not just $18 billion, it is

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00024 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.033 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S849 the $18 billion additional money that is on every single account, on every sin- gencies since the emergency designa- in the baseline from the previous year gle funding in an appropriations bill tion was created in 1990 to try to con- and then you add another $18 billion. that comes through this Senate. tain spending, have received support of Let’s say, hypothetically, you jack it Can we get bipartisan support for more than 67 Senators. Isn’t that inter- up each year by $18 billion, and the net having a tougher line and containing esting? All of our emergency designa- deficit is $36 billion; and then next it is spending? I think the answer is abso- tions for hurricanes and earthquakes $36 billion plus $18 billion; and the next lutely we can. Why is there a conflict? and fires and storms and the like have year it is $54 billion plus $18 billion; The simple fact is the 5-year binding received more than 67 votes. So I think and the next year it is $72 billion plus caps that were passed in 1990 had broad it is just not a good argument to say $18 billion. You carry that out to the bipartisan support. In fact, a number of we can’t respond to a legitimate emer- tenth year, and it is $162 billion plus currently serving Republicans voted gency. $18 billion, or $180 billion extra for the for them and 10 of our currently serv- The prospect of massive Federal Defense budget in 1 year, which is ing Democratic Senators did also, in- spending is hurting jobs and growth. In about $990 billion over 10 years. cluding Senator REID, our Democratic a recent editorial in the Wall Street So an $18 billion addition, or failure leader, and Senator INOUYE, the chair- Journal, Stanford University econom- to contain the growth in a discre- man of the Appropriations Committee. ics professor Michael Boskin stated: tionary account, has tremendous rami- He voted for them in the 1990s. The explosion of spending, deficits and fications over the years. It is this kind If we think this through, we have debt foreshadows even higher prospective of psychology that has led us into this every reason to believe we can get taxes on work, saving, investment and em- there. The 5-year spending cap that ployment. That not only will damage our mess. Some of our appropriators and economic future but is harming jobs and others in this Congress, I think, have passed in the 1990 budget deal had even growth now. stronger bipartisan support. It passed felt a thrill if they can beat the limit China and other countries may not again in 1997. I know Senator BAUCUS on their account. If they have been be able to keep financing our debt in was here then, and it passed 85 to 15, given an account, and they get $80 bil- the future even if they would like to— lion or $100 billion to spend they can with 44 currently serving Senators sup- which I really think they won’t. Pro- figure a way to gimmick it up $18 bil- porting it, and 26 of them were Demo- fessor Allan Meltzer, a well-known lion or $5 billion or $7 billion, and they crats. Senators REID, DURBIN, CONRAD, scholar on the Federal Reserve and can maneuver it through and then tell and INOUYE all voted for them. If we monetary policy, noted in a column in you when the bill hits the floor: Well, could do it in 1990, and again in 1997, the Wall Street Journal that our cur- if you don’t vote for it, Sessions, you there is no reason we cannot do it now. rent and projected deficits are too are against agriculture and people back In fact, I and my staff have met with large relative to current and prospec- home are going to attack you because numerous groups across the political tive world savings to rely on other you voted against agriculture. And I spectrum, including the Brookings In- countries being able to finance them say: Well, Mr. Senator, you put too stitute, the Committee for Responsible for the next 10 years. In other words, much money in there. I can’t vote for Federal Government, the Urban Insti- there may not be enough surplus it; there is too big an increase. There- tute, the Progressive Policy Institute, money in the world to buy these debt fore, you are either for agriculture or the Concord Coalition, and the U.S. instruments we are going to have to you are against agriculture. Chamber of Commerce—everybody we issue. In fact, a recent Washington What they said to Senator BUNNING met with has said getting a handle on Times editorial entitled ‘‘Spending to a down here the other night, when he discretionary spending is essential. Depression’’ notes that, since China said unemployment insurance should Although AARP, the Association of and other countries are trying to re- be paid for, was: You are against unem- Retired Persons, initially expressed op- duce their holdings of dollars, we will ployment insurance. You do not want position to the amendment, I believe have to rely more and more on U.S. people to have any unemployment in- we have addressed their concerns. banks to buy our bonds, which will de- surance. That was absolutely false. Their chief concern was that we would crease capital available for lending to They repeated it over and over and not separate defense and nondefense businesses. over again. But he stood like a solid spending, which would let the defense On an airplane today, coming back rock and he didn’t give in. He said: I spending raid nondefense accounts. from Alabama, I read an article that am not agreeing to it because you However, we have separated them, so made reference to the fact that when could pay for it, and it is increasing that is not a danger. the Federal Government puts out this the debt on my 42 grandchildren. He Of course, one criticism some might much money and interest rates become didn’t agree to it. give to the bill is that it raises the higher than they have been. They are Well, every now and then somebody threshold for waiving—breaking the currently extraordinarily low, and stands up in this Senate and says: I spending limits from 60 Senate votes to banks are now buying Treasury securi- have had enough. I am not going to say 67 Senate votes, and they say that is ties at 3.6 or 3.7 percent interest for 10- yes this time. I respect him for the just too restrictive. But we have to year Treasury notes. Instead of loaning courage he showed. raise this threshold because we have a to local businesses, banks can get the The Committee for a Responsible 60-vote situation now and we have been money from the Fed at less than 1 per- Federal Budget, which is a bipartisan able to muster 60 votes to pass every cent and they can buy a Federal Gov- group in DC, issued a report not long kind of possible emergency bill, and ernment debt instrument for 3.5 or 4 ago that said that freezing all nonwar- some of those clearly were not emer- percent and not have to loan it to some related discretionary spending next gencies. It takes 67 votes in this Cham- businessperson who might be a higher year could save us $60 billion in 1 year, ber to make a change to the Senate risk. We are crowding out resources and it will set up a new baseline that Journal, but we can max out the Sen- necessary for economic growth. This is would save us—as this chart which cre- ate’s credit card with 60 votes. Some- a reality. ates a new baseline mentality shows— thing doesn’t seem right about that. I In a Budget Committee hearing on $600 billion over 10 years. That is a lot. think, with the seriousness of our situ- budget reform on November 10, former Even in Washington, $600 billion is real ation, this would be a good step. Comptroller of the Currency and GAO money. On the other hand, the com- Furthermore, the fiscal year 2010 head David Walker testified that by mittee stated that if we allow discre- budget resolution already accounted 2040, 30 years from now, we will have to tionary spending to grow at the pro- for about $10 billion per year in emer- double taxes just to keep up with cur- jected rate of GDP growth instead of gency spending, which we have allowed rent commitments. Can you imagine inflation, it would cost us $1.7 trillion to remain in this amendment. Any that? The way we are spending, we are more over the next 10 years. emergencies for which that is inad- going to have to double taxes in 30 This is a nonbiased group. I don’t equate should be able to receive the years. He stated that in 12 years, inter- think anybody would fundamentally support of 67 Senators—if we have an est will be the single biggest line item disagree with that. So it does make a emergency. In fact, all the disaster re- in the entire budget, even assuming in- difference how much money we spend lief emergencies, those kinds of emer- terest rates do not change from today’s

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00025 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.034 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S850 CONGRESSIONAL RECORD — SENATE March 1, 2010 low rates. But they are going to go up. He is concerned, as we all are, with our You might remember that when Everybody knows that. Some are pre- current fiscal situation, our debts and George W. Bush entered office, it was dicting the kinds of interest rates we our deficits. I might add—this is not an with a $200 billion budget surplus. He had in the late 1970s. I truly hope that excuse; it is clear we Americans have a also entered office with projections of does not occur, but many people be- problem that has to be addressed— nearly $1 billion in future surpluses lieve we do not have any idea how high other countries are in the same fix. It over the next decade, on a glide path to interest rates could surge when the is not just America. But again, that is paying off the entire national debt. whole world, including Europe and no excuse. Our deficits are high pri- But instead of doing the sensible other places, is spending money it does marily because of the financial crisis, thing and paying down our debt when not have and attempting to borrow in working our way through all that. The we had the means, the Bush adminis- the marketplace to have that happen. real test is whether we as a country, tration racked up massive deficits at a Mr. Walker also said that deficits are when times get better and incomes in- record pace. Vice President Cheney the public’s largest concern by 20 crease, live much more within our even said ‘‘deficits do not matter.’’ Fed points, in opinion polls. means. I certainly hope so. I know Chairman Alan Greenspan testified In a Financial Times editorial in every Senator in this body hopes so. that we might pay off our debt just too May of last year, Mr. Walker warned More precisely, the Senator from quickly. We were told we might have that the United States is in danger of Alabama seeks to place caps on the ap- too much money. Really. He did this. losing its triple-A credit rating. propriated accounts. That is pretty He testified to Congress saying that Moody’s made that clear. Moody’s stat- much the same amendment the Senate was a real worry. ed that the United States is in danger rejected about a month ago; I think it Then we paid for an unnecessary war of losing its triple-A credit rating. was January 28. in Iraq, without offsets. We passed Pierre Cailleteau, the chief economist I believe the pending Sessions Medicare Part D without offsets. We at Moody’s, stated that, unlike several amendment addresses matters within passed three different sets of tax cuts years ago, ‘‘Now the question of a po- the jurisdiction of the Budget Com- totaling trillions of dollars, most bene- tential downgrade of the U.S. is not in- mittee. It therefore violates section 306 fitting the wealthiest people in the Na- conceivable.’’ Under the most pessi- of the Congressional Budget Act. I will tion, without offsets. mistic scenario put forth by Moody’s, not raise that point of order at this Yet last Thursday night the Senate the United States could lose its top time, but I believe the amendment does repeatedly attempted to extend bene- rating in 2013—3 years from now. violate the Budget Act. fits for America’s unemployed workers, I was very pleased we had strong bi- Furthermore, this subject is really and these efforts were blocked sup- partisan support for the amendment more within the purview of the Appro- posedly because it was not fully offset. previously. By allowing us not to apply priations Committee. I defer to the For some reason benefits to the these budget limits we passed last year chairman of the Budget Committee to wealthiest Americans did not need to to the current year, it gives some relief address this amendment in due course. be offset, but keeping unemployment to our Members of the Senate who I also note that the Senator from benefits flowing to those families who complain that next year we will start Minnesota has been waiting very pa- have been hardest hit by this recession cutting spending but we should not tiently to speak. We are all anxious to suddenly need an offset. this year. We will give a little bit hear from the Senator from Minnesota, If this is a matter of principle, it there, although it will mean we will so I yield the floor. seems to me we have very bizarre prin- not save as much money for sure. But Mr. SESSIONS. Mr. President, did ciples. One principle we should all I really believe we need to pass this the Senator make a budget point of stand behind is supporting American legislation. I truly hope we can. We order? families when economic times are only need three or four more votes to Mr. BAUCUS. No, I did not. tough. Last week, half a million Amer- make it a reality. I count now, with Mr. SESSIONS. I thank the Senator. icans applied for unemployment bene- the ones who voted for it before and a The PRESIDING OFFICER. The Sen- fits for the first time. new Senator in the body, we will have ator from Minnesota is recognized. Despite what some might suggest, 57 votes. We need 60. The situation has Mr. FRANKEN. Mr. President, I wish our Nation’s unemployment crisis is not gotten any better, and I am hoping to speak as in morning business. not over. We know unemployment can my colleagues will look at it afresh and The PRESIDING OFFICER. Without persist long after recovery begins. This that we might be able to reach that objection, it is so ordered. downturn will continue affecting RANKEN are number. It will make a difference. It (The remarks of Mr. F American families for months and made a difference in the 1990s and led printed in today’s RECORD under years to come. to an actual surplus. I believe it could ‘‘Morning Business.’’) That is why we need to extend Fed- Mr. FRANKEN. Mr. President, I also help us again this time. We have much eral unemployment benefits now. With- would like to take a few minutes to more serious problems this time. We out an extension, over 1 million Ameri- speak on another topic, the extension have more challenges this time. But it cans, including thousands of Minneso- of unemployment benefits and COBRA could make a very significant dif- tans, will lose their benefits this subsidies. I admire those in this body ference in our spending level. It would month. Without those unemployment who take a principled stand. The Sen- really be a statement to the entire fi- benefits, many families will have no nancial world that we are beginning to ate would get more done if all Members other way to keep paying their mort- take some steps and that next year we were guided by their basic core prin- gage and buying groceries. Even with are not going to have 12 percent in- ciples and put principles ahead of polit- some economic progress, there are still creases in spending for discretionary ical posturing, ahead of party, ahead of six applicants for every job opening, accounts but we are going to hold it to polling. and in some industries there are simply To block a legislative measure be- the 1- or 2-percent increase level. I no jobs to be found. cause it is not fully offset—sure, that think that might have some psycho- Our obligation to America’s working could be based on principle. Believe logical improvement in our entire fi- families is a serious one. When there nancial condition. me, I am concerned about our budget are jobs to be had, working and middle- I apologize to the fine chairman of deficit. But principles are something class families keep our economy run- the Finance Committee for taking this you consistently stand behind. That is ning. After Wall Street’s indiscretions long, but I really believe it is an impor- what makes it a principle, something were the cause of an economic collapse tant issue. I am so hopeful we are get- you care about, something that guides and our government bailed them out, ting close to getting the votes to take you throughout your career. That is we are in no place to tell America’s this positive step. what makes it a principle. Principles families that there is not enough help I yield the floor. cannot be ignored, even when it is ex- to go around. Their interests should The PRESIDING OFFICER. The Sen- pedient or advantageous to do so. Yet have been placed ahead of the big ator from Montana is recognized. that is exactly what is happening now. banks from the start. Mr. BAUCUS. I appreciate the com- A principle is being invoked only now Further, the provisions that are cur- ments of the Senator from Alabama. that it is convenient. rently being blocked will also provide

VerDate Nov 24 2008 00:46 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00026 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.036 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S851 for the vital COBRA subsidy. Right ment and having to extend unemploy- sidered the other jobs bill that passed now, the COBRA subsidy is helping ment benefits and COBRA and other through here. That was a $15 billion American families retain their health types of benefits, all of which are con- jobs bill which I think is now pending care coverage while they continue to sidered in this underlying bill, is to get action in the House of Representatives. look for work. Facing a medical crisis people back to work. But I am offering this amendment while being employed and uninsured is That is fundamentally the very best now because we have this underlying a burden most families simply cannot thing that we can be doing—focusing tax extenders bill, and I think it is im- withstand. We should not be putting on how we create jobs, how we grow portant that we discuss and debate how Americans in that position when it is this economy, how we provide opportu- best we can stimulate the economy, due to no fault of their own. nities for those who have lost their how best we can grow the economy, get We should not be driving them to a jobs, who are underemployed, to get it expanding again, and how best we place where they simply have run out back into the workforce. That, to me, can create jobs to get people back to of options. This procedural stalling is ought to be the focus of our efforts in work. It seems to me, again, that unacceptable. I have heard from Min- the Senate. ought to be the first priority on which nesota’s employment commissioner The bill that was passed about a year we as a Senate get focused. that the expiration and subsequent ago, the stimulus legislation which we What my amendment would do is, it agreement on an extension will be an now know is going to cost somewhere would, for the year 2010, extend depre- administrative burden on our State, in the neighborhood of $862 billion ciation. It would permanently increase not to mention an inefficient use of without interest, with interest well the section 179 deductions that allow State resources. over $1 trillion, was all borrowed small business to expense more of the The delays are also stressful and dis- money. It is going to add $1 trillion to investment they make as opposed to ruptive for Minnesota’s families. This the national debt. having to depreciate those. is the case in all 50 of our States. So I Despite that amount of spending, By lowering the cost of new capital call on all of my colleagues to come to- only $6.2 billion was spent on tax in- expenditures, these provisions would gether today and stand behind the centives for small businesses, and an- encourage companies to invest in new principle, the principle of supporting other $730 million was spent in funding equipment, make capital purchases, American families when times are for the Small Business Administration. capital investments; it would increase tough. This is the principle on which So I want to think about for a moment both growth and employment. It would we should all be focused and all be what that means in terms of the di- also eliminate capital gains taxes on judged. mensions of the bill that was passed small business investment. I yield the floor. last year. We had a $1 trillion bill. To- This simple, permanent reduction in The PRESIDING OFFICER (Mrs. gether the incentives for small busi- taxes was supported by the President SHAHEEN.) The Senator from South Da- ness in that bill represented less than 1 in his State of the Union Address, and kota is recognized. percent of the total cost. it would increase investment as well in AMENDMENT NO. 3338 TO AMENDMENT NO. 3336 We all know small businesses have a small businesses. This amendment also (Purpose: To create additional tax relief much greater impact on the economy would allow a 20-percent deduction for for businesses, and for other purposes.) and on employment than that number small business income. We currently Mr. THUNE. Madam President, I call represents. Small businesses employ have a lot of small business owners up amendment No. 3338 and ask for its more than half of all of the Nation’s who pay their taxes at the individual immediate consideration. private sector employees. They create level. It is called flowthrough income. Mr. BAUCUS. Madam President, is nearly two-thirds of all of the new jobs They have a small business. The in- the Senator asking unanimous consent and create a disproportionate number come flows through to their individual to set aside the pending amendment? of the patents that are issued in our tax returns and so they pay at indi- Mr. THUNE. I would like to have my Nation. vidual tax rates, and those tax rates amendment be made pending. At the time we voted last year on the are set to rise on small businesses be- Mr. BAUCUS. You wish to set aside stimulus bill, I believe now this was ginning in 2011. In fact, a lot of our the pending amendment? one example of the priorities in that small businesses, about half, are going Mr. THUNE. Yes. legislation that were misplaced if we to be impacted by those increases in The PRESIDING OFFICER. Without are intent on and focused as a laser on marginal income tax rates that will objection, it is so ordered. creating jobs and getting this economy occur in 2011. This would help mitigate The clerk will report. growing again. the impact of those increases on the 20 The assistant legislative clerk read I made the argument at the time, as million people working in small busi- as follows: did many of my colleagues—and we of- nesses, those small businesses which The Senator from South Dakota [Mr. fered amendments in support of that would be taxed at a higher rate under THUNE] proposes an amendment numbered belief—that the best way to get the the President’s tax proposals. 3338 to amendment No. 3336. economy growing again is not to focus Finally, this bill would prevent Mr. THUNE. I ask unanimous con- on a lot of government spending on Davis-Bacon prevailing wage require- sent that the reading of the amend- new government programs, but, in fact, ments from raising the cost for ment be dispensed with. to provide incentives for small busi- projects funded under the stimulus bill. The PRESIDING OFFICER. Without nesses, the engines of our economy; to While I understand the importance of objection, it is so ordered. get out there and to start investing and good wages, projects that comply with (The amendment is printed in today’s to start creating jobs. Davis-Bacon restrictions see labor RECORD under ‘‘Text of Amendments.’’) So I offered an amendment that was costs on average 22 percent higher than Mr. THUNE. Madam President, as we an alternative to the stimulus bill a market rates. This stimulus bill was all know, our economy is suffering. We year ago, which, according to the eco- the first time where that requirement have an unemployment rate that is nomic model developed by the Presi- was inserted into this sort of a stim- currently at 9.7 percent. Furthermore, dent’s economic adviser, would have ulus bill designed to create jobs and we have large portions of the popu- created twice as many jobs, and it grow the economy. Waiving these pro- lation that are either underemployed would have cost half of what this stim- visions will help eliminate the confu- or have dropped out of the workforce ulus legislation is going to end up cost- sion and stretch taxpayer dollars so we because of limited job prospects. ing the taxpayers of this country— get more bang for our buck in the There are a variety of factors that again, all of which is borrowed from fu- amount of dollars currently out there, have contributed to this recession. The ture generations. hopefully, trying to create jobs. government’s response so far has been While the Senate passed a smaller My amendment would be paid for by largely ineffective, particularly with jobs bill last week, Senators in the redirecting unspent or unobligated regard to employment, and I would Chamber were blocked from offering stimulus funds from the bill passed last argue that the best thing that we can amendments. I wanted to offer this year. Out of that $862 billion in spend- do to address the issue of unemploy- amendment a week ago when we con- ing, according to what we hear from

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00027 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.038 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S852 CONGRESSIONAL RECORD — SENATE March 1, 2010 the administration’s Web site, recov- this cloud over the economy. It is cre- I encourage my colleagues to support ery.org, about 37 percent of that money ating economic anxiety. What I hear the amendment. has been spent as of the end of this last from a lot of small businesses and peo- I yield the floor. year. Bear in mind, a lot of that money ple who create jobs is that they are The PRESIDING OFFICER. The Sen- is obligated, but we understand that worried about the policy uncertainty ator from Oregon. the unspent, unobligated amount on in Washington, DC. Is Washington Mr. MERKLEY. I ask unanimous the spending portion, not on the tax going to pass this massive new health consent to speak as in morning busi- portion, is about $160 billion. It would care bill which includes an employer ness. seem to me that if the purpose of all mandate that would raise taxes on The PRESIDING OFFICER. Without our efforts is to create jobs, we ought small businesses? Is Washington going objection, it is so ordered. to begin to think about who creates to pass a climate change bill that has Mr. MERKLEY. Madam President, I those jobs. Two-thirds of the jobs in punishing energy taxes, particularly on rise to address the Republican fili- our economy are created by small busi- areas in the Midwest? I have a couple buster attacking the American worker nesses. Why then should we not be fo- of power plants in my State that are on and the Republican filibuster attacking cusing our efforts on creating incen- ice right now because of uncertainty America’s small businesses. about what is going to happen with re- tives for small businesses to invest? I had the chance to go home this gard to coal-fired power. Frankly, that would have been the way weekend. I started my trip home in I would have gone about the stimulus There is a lot of uncertainty out there swirling around about what Con- Deschutes County where there is 14 bill. percent unemployment. Next door to Many of my colleagues offered gress might do or, worse yet, what the Deschutes, Crook County has 16.8 per- amendments, and many of them sup- EPA might do on their own. There is cent unemployment. That is only ported my amendment. I think I had 37 uncertainty about what is going to counting workers officially unem- votes for my amendment that would happen with taxes. Are we going to see ployed as opposed to those who have have focused in the stimulus bill of a taxes go up in 2011? In fact, for small given up on finding jobs. I went down year ago more on small businesses, businesses, about half who do allow to Klamath County to the south, with whereas the bill that ultimately passed their income from their small business 12.6 percent unemployment. I went to only spent under 1 percent of that total to flow through to their individual in- Hood River and Columbia Gorge, Wash- amount, almost $1 trillion, on small come tax return are going to see those ington County, the Portland metropoli- businesses which are the economic en- marginal rates increase when they go tan area. Everywhere I went in Oregon, gine, the job creators in the economy. from 33 to 36 and 35 to 39.6 percent, sig- If we can figure out ways to get small nificant tax increases, which is why I whether it be eastern or western or businesses some relief so they can start have a deduction for small business in- north or south—because I was in every hiring again, we address all these other come as part of this amendment. We quarter this weekend—citizens wanted issues—9.7 percent unemployment need to bring some certainty to small to know why are the Republicans at- which, incidentally, the promises made businesses in the area of taxes, cer- tacking the American worker and when the big stimulus bill passed last tainty with regard to regulation, cer- American small business? year was that if we didn’t pass this tainty with regard to the litigation en- Across this country, our working stimulus bill, unemployment would go vironment. We have so much uncer- families are in trouble. They are look- up to 8 percent. We have blown way by. tainty swirling around Washington, it ing to this body for help. They want to That is at 9.7 percent. We were told it is creating a huge cloud. know when are we going to get it done. would create millions of jobs. We know Now we have a situation where small And by ‘‘it,’’ they mean extension of now that since its passage last year, we businesses are making decisions based unemployment benefits. They want to have actually lost 2.7 million jobs in upon political factors rather than eco- know when are we going to get ex- the economy. Clearly, the prescription nomic factors. We want them making tended the COBRA health benefits. put in place is not working. I argue decisions based upon economic factors, They want to know when we are going that is largely because it was mis- not worrying what has become the new to fix the Medicare rates that changed directed. It was directed toward cre- center of gravity, and that is Wash- today and dropped more than 20 per- ating new bureaucracies in Wash- ington, DC. Washington cannot create cent so that it is that much harder to ington, perhaps some government jobs, permanent, good-paying jobs in our get into the door of a doctor if you are but the fact is, the good-paying, perma- economy. Those can only be recreated a senior. They want to know why nent jobs in our economy are created in the economy as we unleash small transportation projects are grinding to in the private economy. The biggest businesses and entrepreneurs and pro- a halt, even though we need those jobs. creator of those jobs is small busi- vide incentives for them to do what The answer lies in this Chamber. nesses. they do best. That is to grow their This attack on the American worker Frankly, we ought to be looking at businesses and to make capital invest- by the Republican filibuster is unac- what types of policies can we put in ments and to create jobs. ceptable. This attack on the American place that will create an environment I hope my colleagues will support senior is unacceptable. This attack on in which small businesses can go back this amendment. It is paid for. It is off- American small business is unaccept- out there, make investments, put peo- set. This doesn’t add anything to the able. ple back to work and then we start, debt. We don’t have to borrow money. Not only does this directly impact hopefully, bringing the unemployment All we do is redirect unspent, unobli- working Americans and retired Ameri- rate down, get people back employed gated stimulus moneys, moneys left cans, it also affects the economy. Un- again, and a lot of these measures we over from last year’s stimulus bill to- employment insurance, COBRA exten- are now having to take with regard to ward small business tax incentives sions are good for the economy. They unemployment benefits hopefully which, frankly, many of us argue—and help put food on the table. They help would cost the taxpayers a lot less. The I argued at the time and I hope more pay the rent. All of that money stays best thing we could do for people who people agree now—should have been a in our economy. All of it goes for most are without a job is to get them back greater focus of the stimulus in the families, because they have bills to pay to work. The best way to do that is to first place. If we are serious about cre- to businesses in the communities. get small businesses hiring again. ating jobs, we have to go to where the Those businesses can then pay their One final point. One of the things I job creators are. The economic engine workers and pay their contractors. One hear repeatedly from small businesses is small business. My amendment cre- of the best bangs for the buck in terms in South Dakota and across the coun- ates tax incentives for them to go out of economic growth is right before us try is there is a sort of paralysis about and create jobs and does it in a way in unemployment insurance and a investors looking at investing in dif- that doesn’t add to the deficit, doesn’t COBRA extension. ferent areas and different projects. But add more borrowing and allows the I have puzzled over this challenge. looking at Washington, DC, and seeing small businesses to do what they do Because what I have observed is this: all this policy uncertainty, they see best. When it comes to giving away money

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00028 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.040 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S853 out of the Treasury to the wealthiest their benefits, and by June this number to their communities, and their only Americans, my colleagues across the will grow to 5 million unemployed sin is the fact that they have lost their aisle are delivering it on a silver plat- workers who will be left without vital job through no fault of their own. ter to the wealthiest and best off. But benefits if Congress does not act. They are trying to keep a roof over when it comes to a plan to assist work- Let’s talk about that small business their head, keep food on the table, keep ing Americans and seniors and small provision. Small business owners have the heat on, trying to make sure their businesses, my colleagues across the been hurt because the Small Business kids have what they need. Most of aisle, through this Republican fili- Administration’s general business loan them are receiving $200 or $300 a week buster, are taking the hatchet to them. program expired yesterday, making it to try to hold it together while they go They are saying: Working Americans more difficult for our small businesses job training, while they look every day don’t count. We only want to have ben- to access loans in an already difficult for work. People want to work. This is efits on the silver platter for the business climate. not about people who do not want to wealthiest. My colleague from South Dakota was work. People want to work. But we It is working Americans who made just on the floor speaking about the have six people applying for every one this Nation great. It is the American importance of helping small busi- job in America. middle class that created the strongest nesses. But I say to him and the Repub- So while we focus on job creation and economy in the world. It is the Amer- lican filibuster attacking small busi- partnering with the private sector to ican public school system and our ness in America: Come to this floor and make that happen, we have millions of working families that have come up say enough is enough; I am going to people in America who do not under- with the industriousness and the inge- stand with our workers and our seniors stand how something such as merely nuity to take this Nation forward. and our small businesses. extending unemployment benefits When I am talking about the silver It is time to end the political pos- could be held up. Last night, the unem- platter the Republicans have for the turing, take our eyes off November and ployment benefits stopped that process wealthiest in America, let’s examine put our eyes on the challenge of Amer- now. This month, people are getting the details. Unfunded Republican pro- ican families, and pass this legislation notices, afraid about what is going to gram, 2001 tax cuts, a $1.35 trillion right away. happen to themselves and their fami- giveaway, borrowed from the next gen- I thank the Chair. lies. eration, from our children. That is The PRESIDING OFFICER. The Sen- What we have is a misuse of the quite a gift. That is quite a silver plat- ator from Michigan. rules, in my judgment. What we have is ter. The 2003 tax cuts, $350 billion deliv- Ms. STABENOW. Madam President, an objection, and it is one for which we ered on a silver platter for the wealthi- first of all, I want to thank the Senator have been down here many times. We est Americans. Medicare Part D, an un- from Oregon for those very passionate have the charts now. We have had it funded program, $400 billion on a silver comments. We have had the oppor- happen over 116 times this session, platter; the Iraq and Afghanistan wars, tunity to join in a number of forums to where we have seen objections, bring- almost $1 trillion—$944 billion— speak out about the importance of cre- ing to a halt the will of the majority, through June of 2009. The total this ating jobs in America and of helping blocking the democratic process of vot- year will exceed $1 trillion, unpaid for, those who through no fault of their ing—of simply voting—and being able unfunded, borrowed from our children. own have lost their job, and I thank There have been some colleagues ris- to solve problems and move things for- the Senator for his eloquence and pas- ing to say how this is a matter of being ward. sion again this evening. consistent in paying for American pro- I received an e-mail from a woman in I come to the floor to also add my grams. But when you check the record, Livonia, MI, who lost her job last year. voice to what I believe to be an out- they voted time and time again for un- She took the opportunity to go back to rageous situation. I say this with all funded giveaways to the wealthiest school to get new job skills to become due respect to my friend from Ken- Americans—the 2001 tax cuts, the 2003 a registered dietitian. But now, as she tucky. We work together on a number tax cuts. And they voted for other pro- is doing that, because of this obstruc- of issues, and I look forward to con- grams I like but they were not funded, tion, this woman is going to lose the and I include in that Medicare Part D. tinuing to do that. But on this I believe help she needs to allow her to make it When I hear a colleague talking what is being done is absolutely wrong. and keep a roof over her head while she about fiscal responsibility, it is a little It is outrageous. is turning the corner and gaining new like listening to Bernie Madoff talking We are in a situation right now skills to get a new job. The rug is, about tough accounting rules; it is a where nearly 135,000 Michigan residents frankly, being pulled out from under little bit like hearing from Brett Favre will lose the unemployment assistance her, and I think that is outrageous. about promising he will retire; it is a they need by the end of this month if She is not alone. As I indicated be- little bit like listening to Simon we do not take action immediately. fore, we have nearly 135,000 people in Cowell delivering a lecture that people That is just in 1 month as to people Michigan who will lose the help they should not utilize sarcasm. Because who have been hit by nothing less than need under unemployment benefits by after these trillions of dollars of un- an economic tsunami. the end of this month if we do not act, funded giveaways, my colleagues have We have a sense of urgency when an and act immediately. put together a Republican filibuster to earthquake happens, when storms I received another e-mail from a attack the American worker in a com- come, and the floods come. Well, to woman in Greenbush, MI. She and her pletely inconsistent manner. families across this country, the husband both worked at the same man- I have a different outlook. I think storms have come. They have been ufacturing plant. It is a common story many of my colleagues here have a dif- here—in our case for years—and we in Michigan. They both lost their job. ferent outlook. We should be here to need to have the same sense of urgency She writes: make America work for working Amer- as any other disaster would call us, fo- We are both seeking work and schooling icans. That means when they are hurt- cusing not only on helping people who for new careers. We have both eceived a let- ing, we are going to assist them with have lost their job but in creating jobs. ter from the unemployment office that our unemployment insurance, we are going I am proud to be a part of a caucus benefits will end. We have no other source of to help with the COBRA extension, we that has placed jobs at the forefront income and we fear we will lose our home. are going to help with these loans to and a President who, last year, started This is real for millions of people small businesses, and we are going to at the beginning of the year with a jobs across this country, millions of middle- help our seniors by fixing that Medi- bill, a Recovery Act, and moving on, class families who assume that in a dis- care provision. We are not going to and this year with an entire jobs agen- aster, an economic disaster, their gov- take the hammer to those programs. da. But the reality is that until jobs ernment, the people of the country, We are going to assist our working are created, we have millions of people will step up to help. That is what un- families. in this country who have played by the employment benefits are all about. Because of this Republican filibuster, rules all their lives, paid their taxes, It is time to act, it is time to stop nearly 1.2 million Americans will lose cared about their families, gave back blocking democracy. If my friend from

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00029 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.041 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S854 CONGRESSIONAL RECORD — SENATE March 1, 2010 Kentucky has an amendment to offer, happens next. Part of that fear is not third quarter of last year, for example, offer it, debate it, and vote. But just only will they have a job, but what the Recovery Act caused between blocking us from exercising our right happens if they do not? And what is the 600,000 and 1.6 million people to have to vote is not the American way. The message that is sent if we do not make jobs. That sounds as though it is work- American way is to vote, to act, to it clear we will be there for them if ing to me. The CBO also said these peo- make decisions, not to block. We have that happens? Will they be able to con- ple had jobs who would not otherwise seen way too much of blocking democ- tinue to have the basics to keep their have had jobs. I, therefore, think we racy from our Republican colleagues in family going? should not be cutting back on the Re- these last months and months. I strongly urge we do everything pos- covery Act; rather, we should let it I also want to speak to other provi- sible. I know we will stop this obstruc- work its will. sions in this bill because I find it inter- tion, to allow the democratic process The investments the Senator from esting that within hours of the health to go forward, to allow us to vote, to South Dakota seeks to cut in addition care summit last Thursday, the block- solve problems, to move this bill for- are largely within the jurisdiction of ing of this bill showed us what the ward, and send a very strong message the Appropriations Committee and, health care plan is by Republicans: cut that we understand what is happening thus, I will defer to the chairman of people off from help with COBRA, cut to millions of families who have faced the Appropriations Committee who I doctors’ benefits. That came within a disaster of epic proportions. It is think at the appropriate time will have hours of the health care summit. We truly as much a disaster as anything quite a bit to say about this Thune are now getting calls from people who else any community has ever felt in amendment and will speak to it at are concerned about whether their doc- terms of losing their jobs and fighting greater length. I suggest that is an ap- tor is going to be available. and working to get something. propriate time to have a more lengthy Are senior citizens under Medicare I thank the Chair. discussion on this matter. going to be able to see their same doc- The PRESIDING OFFICER. The Sen- Madam President, I suggest the ab- tor because of the cuts that will hap- ator from Montana. sence of a quorum. pen if we do not act immediately? Peo- Mr. BAUCUS. Madam President, we The PRESIDING OFFICER. The ple who one day lost their job, the next are here to do the people’s business. clerk will call the roll. day lost their health care—we have The folks in our home States elected us The legislative clerk proceeded to been able to help them through the to do what is right. Most folks don’t call the roll. jobs bill we passed last February to be care too much about the process, as Mr. BAUCUS. Madam President, I able to continue their health insurance long as we get our job done and as long ask unanimous consent that the order through work. It is expensive to do as it is reasonable, within the bound- for the quorum call be rescinded. under something called COBRA, but we aries of reasonableness, and as long as The PRESIDING OFFICER. Without have been able to help them do that by they think we give the subject consid- objection, it is so ordered. helping to pay on a short-term basis erable thought. I think we agree that is f for part of that cost. true. I think it is largely true that So the health care summit happens most of the people would think: Well, MORNING BUSINESS on Thursday, and hours later there is gee, why don’t you go ahead and pass an objection that will stop health care that extenders thing you are talking CONGRATULATIONS TO for hundreds of thousands if not mil- about back there because it is the right MINNESOTA’S 2010 OLYMPIANS lions of Americans, and stop the ability thing to do. of doctors to be reimbursed at a fair People need to collect their unem- Mr. FRANKEN. Madam President, 50 rate to be able to care for their pa- ployment checks. They need their years ago this month, a group of ath- tients. This is, in my judgment, an ab- health insurance. Some of these tax letes gathered in Squaw Valley, CA, for solutely outrageous situation, and it provisions need to be continued; other- the Winter Olympics. A part of the U.S. has to stop. wise, this is a job-killer action the contingent—the 1960 men’s ice hockey I thank our chairman of the Finance other side is taking. It is a job de- team—unexpectedly surprised the Committee for his work and advocacy stroyer. To not continue these provi- world and brought home the Olympic and being here on the floor calling for sions actually destroys jobs. That is gold medal by defeating the Soviet us to vote. I am hopeful people around not what we want to do. Union, Czechoslovakia, and Canada. Of the country will speak out loudly be- On another matter: The Senator from these 17 remarkable men, 8 were from tween tonight and tomorrow and that South Dakota proposes an amendment my home State, the great State of Min- we will be able to come to the floor and to make a series of tax cuts for small nesota. As anyone could see from stop what is effectively blocking the business. I might say that some of watching this year’s games, this out- democratic process and blocking our these tax cuts, the ones he proposes, sized contribution from Minnesotans ability to vote, to make decisions, and actually have merit. We in the Finance continues to this day. to move forward. Committee hope to address small busi- Twenty years after this ‘‘forgotten We have millions of Americans who ness tax cuts in a markup perhaps as miracle,’’ Team USA again shocked the are counting on us to understand what early as this month. This is a jobs world by miraculously defeating Fin- is happening in real people’s lives agenda. It is additional legislation to land and the vaunted Soviet Union to every day—not political games, not all help create jobs, preserve jobs, and help again win the gold medal. Thirteen the partisanship, but real people’s the recovery come along a little more Minnesotans played for the 1980 ‘‘Mir- lives—who are going to get up tomor- quickly. acle on Ice’’ team, and a 14th was their row morning and say: OK, what do I do The offset, however, that the Senator coach. now? How am I going to keep my roof from South Dakota proposes is another This year’s Olympic men’s ice hockey over my head? And how am I going to matter. The Senator from South Da- team was considered by many not to continue to go to school to get that kota seeks to pay for his amendment have a chance for a medal. They were new skills I need? How am I going to by cutting funding from the Recovery too young, too inexperienced; they had put food on the table for my family? Act, and that idea does not have much not played together before. And the That is what is affecting people across merit, at least not in this Senator’s U.S. men had not defeated Canada in this country. judgment. Pretty much the last thing Olympic play in 50 years. Yet a week In addition to the millions of people we should do is to be seeking to cut the ago, despite being the underdog, Team who have lost their job and are on un- Recovery Act. USA upset the favored Canadians in employment, we have millions of oth- The nonpartisan Congressional Budg- their own arena. ers who are one paycheck away from et Office, the independent organization After defeating Switzerland and being in the very same situation—peo- we rely upon around here—both sides soundly beating Finland in the semi- ple who could be spending in the econ- of the aisle in both bodies—says the finals, Team USA played Canada a sec- omy now to be able to help move Recovery Act is working. The Congres- ond time last night for the gold medal. things forward, who are afraid of what sional Budget Act says that in the Although we fell behind early, Zach

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00030 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.042 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S855 Parise—a Prior Lake, MN, native—tied and competed, each of you is a cham- nities, performance fees, and a chance the game with under a minute to play. pion. to travel and perform around the Sadly for us, Canada would end up Olympians make the children of our world. scoring in overtime to win the gold State and Nation dream of what they The power of the Jesse White Tum- medal. But that cannot take away might do, and grownups like me dream blers to transform young lives and from what was truly a golden perform- of what we wish we could do, all while open new doors may be best illustrated ance by the Americans. Jamie fulfilling their dreams on the world’s by the story of three brothers. They Langenbrunner, from Cloquet, did a stage and representing our Nation ad- performed together with the Tumblers, stand-up job as captain, leading and mirably. We owe them thanks for their but at some point they decided to- pulling together a team that also in- hard work, their perseverance, and gether to drop out and join a gang. One cluded Minnesotans Erik Johnson, most of all their heart. And I hope I of the brothers was murdered by a rival from Bloomington, and David Backes, have the chance in the coming weeks gang. The second brother, seeking to from Blaine. to meet with each of these Minnesota avenge his brother’s death, killed an The American women’s ice hockey athletes so I can congratulate them in innocent man by mistake and ended up team was expected to be great. And person. going to jail for murder. Instead of fol- they were. Before falling to Canada, f lowing in his brothers’ footsteps, the they had outscored their opponents 40– third brother decided to rejoin the RECOGNIZING JESSE WHITE 2. With Edina native Natalie Darwitz Jesse White Tumblers. The direction TUMBLERS as captain, as well as Jenny Potter and discipline he received helped him from Edina and Gigi Marvin from Mr. DURBIN. Madam President, I not only avoid the pitfalls of his sib- Warroad, they brought home a well- rise to congratulate a well-loved Chi- lings but helped him earn a college earned silver medal. cago institution on a landmark anni- education and eventually a law degree And of the 12 members of the U.S. versary. from the University of Notre Dame. Olympic curling team, 8 are from Min- For 50 years, the Jesse White Tum- Multiply that story hundreds or even nesota. Natalie Nicholson of Bemidji blers troupe has delighted audiences in thousands of times and you begin to and Allison Pottinger of Eden Prairie Illinois and beyond and opened doors of understand the importance of the Jesse were on the women’s team. The men’s opportunity for thousands of young White Tumblers. team was an all-Minnesota affair with people. The Jesse White Tumblers have John Shuster and Jason Smith of Chis- Jesse White, the man who gave the earned their reputation as an icon in holm, Chris Plys and Jeff Isaacson of team its name, is probably best known the State of Illinois. The program has Duluth and John Benton of St. Mi- today as Illinois’ secretary of state and done wonders, and I wish it another 50 chael. Even their coach, Phil Drobnick the first African American ever elected years of continued success. is from Eveleth, MN. to statewide office in the ‘‘Land of Lin- f Tony Benshoof of White Bear Lake is coln.’’ an Olympic luger. Kaylin Richardson of As a child, Jesse White was studious LIBRARY OF CONGRESS OFFICE IN Edina was in her second Olympics, and well behaved. He was also a phe- JAKARTA, INDONESIA competing in alpine skiing. Wynn Rob- nomenal athlete. His passion for sports Mr. LUGAR. Madam President, as erts of Battle Lake was a competitor in won him a scholarship to Alabama my colleagues are aware, the Library the biathlon. Rebekah Bradford of State University, where he was all-con- of Congress, LOC, diligently works to Apple Valley is an Olympic speedskat- ference in baseball and basketball for keep the Congress fully informed on a er. And Caitlin Compton and Garrott all 4 years. plethora of issues. Today I would like Kuzzy, each of Minneapolis, competed After college, Jesse White served 2 to highlight the important work of a in cross-country skiing. years in the U.S. Army as a para- component of the LOC that is less And there are many other Olympic trooper. known to colleagues, and that is its op- athletes, like Lindsey Vonn, who have Then sports opened another door for eration in Southeast Asia. The work of strong Minnesota ties but reside now in him. Jesse White was able to fulfill this regional operation immensely con- other States—which have mountains. what for many of us is only a dream. tributes to U.S. understanding of Yesterday marked the end of the 2010 He played professional baseball for the Southeast Asia, the Pacific Islands, Winter Olympic Games in Vancouver. I Chicago Cubs Triple-A farm team. China and India, thereby facilitating am so proud to see that there were Returning to Chicago after his base- our foreign policy objectives. more athletes in this year’s Olympics ball days, Jesse White decided to be- The LOC office is one of six overseas from Minnesota than from any other come a Chicago Public Schools teach- offices operated by the Overseas Oper- State. Twenty-one Minnesotans took er. He also worked nights as a physical ations Division of the LOC. Staff to the part in these games. Most were in their education teacher for the Chicago Park overseas offices ‘‘acquire, catalog, pre- first Olympics. A few others were in District. serve and distribute library and re- their second Games. Natalie Darwitz In 1959, the park district asked him search materials . . . and provide as- has been to three. Jenny Potter has to create an acrobatic show. The result sistance to the U.S. Congress.’’ now been to four, winning a medal was so impressive that the troupe For too many Americans, Southeast every time. Isn’t that something—four- began performing on a regular basis. Asia is a distant unknown. In reality, time medal-winning Olympian and Its mission was—and remains—to keep the region is of significant economic mother of two. children in school, off of drugs, and out importance to the American people. Twenty-one athletes from all over of gangs in the Chicago area. And it The approximately 580-million citi- Minnesota who now will be going back has been a huge success. zens—and consumers—of the 10 nations to tending a bar or being a teacher or A half century later, more than 11,000 comprising the Association of South- being an engineer or a mom. Natalie young people have participated in the east Asian Nations, ASEAN, represent Nicholson will return to Red Lake In- Jesse White Tumblers. Becoming a the fourth largest market for American dian Reservation as a nurse practi- Jesse White Tumbler is no easy task. exports. tioner. The men’s ice hockey players Thousands of young people apply every Based in Jakarta, the mission of the will be going back to finish the Na- year but only a fraction are chosen. To LOC regional operation is diverse. Pri- tional Hockey League season. John make the team, members must stay in mary among its responsibilities is to Shuster will be getting married. All school and maintain at least a C aver- provide research and information serv- will continue to inspire us. age. They have to obey the law and ices to the U.S. Congress and the Con- I congratulate every single one of stay out of gangs and away from drugs gressional Research Service. Jakarta these competitors. Each has shown tre- and alcohol. In exchange, the young LOC staff also manage the Cooperative mendous grit and determination to athletes get to experience the excite- Acquisitions Program, CAPSEA, earn a place representing our Nation at ment and glory of performing before whereby they acquire materials from these Winter Olympics. Whether you appreciative fans. They also receive tu- countries in the region on behalf of the won a medal, or simply gave it your all toring and college scholarship opportu- LOC and member institutions, which

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00031 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.012 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S856 CONGRESSIONAL RECORD — SENATE March 1, 2010 include 30 U.S. research libraries and 10 Florida panther. On that unusually of a refugee family’s flight from war- international research libraries. cold morning, he spoke about his expe- torn Kosovo to America. It is the 2010 It is important to note the ongoing, rience in the Youth Conservation Corps selection for Vermont Reads, a state- extensive assistance the Senate For- at 15 years old in Mississippi and how wide reading program. eign Relations Committee receives that molded his dedication to wildlife Katherine Paterson has long been from the Jakarta LOC office. Research conservation. Mr. Hamilton started his dedicated to promoting literacy among and preparation for committee projects career with the U.S. Fish and Wildlife young people, which makes her ap- on issues ranging from global food se- Service in Texas. He moved up the pointment as National Ambassador for curity, to international trade, non- ranks to become the southeast region’s Young People’s Literature particularly proliferation, the Extractive Industries director based in Atlanta. appropriate. She has chosen ‘‘Read for Transparency Initiative, EITI, counter- During his time in Atlanta, he Your Life’’ as the theme for her plat- terrorism and human trafficking, have oversaw the Service’s role in restoring form for the upcoming 2 years as Na- been augmented by the diligent efforts the Everglades ecosystem. He took the tional Ambassador. Throughout her of LOC staff in Jakarta and elsewhere Service’s role of advising Federal agen- tenure, she will be a most articulate in the region. cies with regard to the Endangered advocate for the importance of lit- The Jakarta LOC office ensures that Species Act seriously. He knew the ins erature in young people’s lives. the U.S. Congress and the Congres- and outs of the Apalachicola- We in Vermont are proud of Kath- sional Research Service have up-to- Chatahoochee-Flint River Basin, and erine Paterson’s accomplishments as a date legal and legislative regional in- worked to protect the threatened and writer. We are proud of her dedication formation, and it assists other U.S. endangered species that call that sys- to literacy among young readers. And, Government agencies in providing and tem home, like the gulf sturgeon and at this moment, we are proud that our sharing open source information as the purple bankclimber mussel. national library, the Library of Con- well as acquiring publications. Mr. Hamilton was an avid fisher and gress, has conferred upon her this new The Jakarta LOC office has also hunter, and this gave him perspective honor, and the enlarged task of being worked with the House Democracy on how to work with people from dif- the Nation’s leading advocate for Partnership, HDP, and The Asia Foun- ferent backgrounds towards a common young people’s literature.∑ dation to create a legislative library goal of conserving America’s wildlife and the habitat that sustains it. I know f for the National Parliament of Timor- that I echo my friends at the Depart- MESSAGES FROM THE PRESIDENT Leste and to train the library staff, and ment of the Interior like Secretary Ken is cooperating with the HDP to develop Messages from the President of the Salazar and the Assistant Secretary for a parliamentary research service and United States were communicated to Fish and Wildlife and Parks Tom an improved information technology the Senate by Mr. Pate, one of his sec- Strickland when I say that Mr. Ham- system there. retaries. ilton will be sorely missed and his Indonesia is a young democracy. Its f great contributions to my state and Parliament is confronted with many the country at large will not be forgot- EXECUTIVE MESSAGES REFERRED challenges, including the development ten. And to his family: wife Becky, As in executive session the Presiding of its own operational and staff infra- sons Sam Jr. and Clay, and grandson Officer laid before the Senate messages structure. The LOC office in Jakarta Davis, you are in our thoughts during from the President of the United serves as a bridge facilitating commu- this difficult time. Thank you for help- States submitting sundry nominations nications and meetings between the ing your husband, father, and grand- which were referred to the appropriate staff of the U.S. Congress and the Indo- father to serve this country.∑ committees. nesian Parliament. Our counterparts in (The nominations received today are the Indonesian Parliament have ex- f printed at the end of the Senate pro- pressed appreciation for this initiative. TRIBUTE TO KATHERINE ceedings.) In conclusion, I am grateful for the PATERSON f assistance provided to the U.S. Senate ∑ Mr. SANDERS. Madam President, I by the Southeast Asia LOC office, and wish to acknowledge the lifetime work PROPOSED CONSTITUTION FOR wanted to take this opportunity to and recent achievements of Katherine THE VIRGIN ISLANDS—PM 47 openly convey my appreciation. Paterson of Barre, VT. Recently, Ms. The PRESIDING OFFICER laid be- f Paterson was named National Ambas- fore the Senate the following message ADDITIONAL STATEMENTS sador for Young People’s Literature by from the President of the United the Librarian of Congress James H. States, together with an accompanying Billington. report; which was referred to the Com- REMEMBERING SAM HAMILTON Katherine Paterson’s accomplish- mittee on Energy and Natural Re- ments as an author surely merit her ∑ sources: Mr. NELSON of Florida. Madam appointment. She has twice been President, I speak today to commemo- awarded the prestigious Newbery To the Congress of the United States: rate the life of a true friend of Florida, Medal, once for ‘‘Bridge to Terabithia’’ In accordance with the requirements Mr. Sam Hamilton, who passed away and a second time for ‘‘Jacob Have I of Public Law 94–584 (the ‘‘Act’’), I on Saturday. In September of last year, Loved.’’ In addition, she won the Na- hereby transmit to the Congress a pro- Mr. Hamilton became the Director of tional Book Award, also twice, for posed constitution for the United the United States Fish and Wildlife ‘‘The Great Gilly Hopkins’’ and ‘‘The States Virgin Islands (USVI). The con- Service. That was a fitting position for Master Puppeteer.’’ Nor are these the stitution, drafted by the Fifth Con- a man who had dedicated 30 years to only major recognitions of her impor- stitutional Convention of the United protecting the Nation’s natural re- tance as one of the major writers of our States Virgin Islands, was submitted to sources and wildlife. time. She has won 19 additional lit- me on December 31, 2009, by Governor Long before he was Director of Fish erary awards for other works, includ- John P. deJongh, United States Virgin and Wildlife, Mr. Hamilton was com- ing the Hans Christian Andersen Islands. In submitting the proposed mitted to this country’s wild spaces. Medal, the Astrid Lindgren Memorial constitution, Governor deJongh ex- Just last month, I was fortunate Award and the Governor’s Award for pressed his concerns about several pro- enough to attend the groundbreaking Excellence in the Arts, which was visions of the proposed constitution, ceremony for an Everglades restoration awarded to her by her home State of but he also expressed his hope that the project called the Picayune Strand, Vermont. people of the United States Virgin Is- and Mr. Hamilton was there. It was a Katherine Paterson was named a Liv- lands continue to ‘‘move ahead towards proud day for us all, but certainly for a ing Legend by the Library of Congress [their] goal of increased local govern- man who had worked so long on Ever- in 2000. mental autonomy.’’ glades issues and knew how much this Her most recent book is ‘‘The Day of The Act requires that I submit this project would benefit the endangered the Pelican,’’ a moving, dramatic story proposed constitution to the Congress,

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00032 Fmt 4637 Sfmt 0634 E:\CR\FM\G01MR6.016 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S857 along with my comments. The Con- President publishes in the Federal Reg- ing in the Armed Forces, their heroic mili- gress then has 60 days to amend, mod- ister and transmits to the Congress a tary sacrifices, and their patriotism in fight- ify, or approve the proposed constitu- notice stating that the emergency is to ing for equal rights and for the dignity of a tion. If approved, or approved with continue in effect beyond the anniver- people and a Nation; to the Committee on Veterans’ Affairs. modification, the constitution will be sary date. In accordance with this pro- submitted for a referendum in the Vir- vision, I have sent to the Federal Reg- f gin Islands for acceptance or rejection ister for publication the enclosed notice MEASURES PLACED ON THE by the people. stating that the national emergency CALENDAR In carrying out my responsibilities with respect to the actions and policies The following bills were read the sec- pursuant to the Act, I asked the De- of certain members of the Government ond time, and placed on the calendar: partment of Justice, in consultation of Zimbabwe and other persons to un- H.R. 4626. An act to restore the application with the Department of the Interior, to dermine Zimbabwe’s democratic proc- of the Federal antitrust laws to the business provide its views of the proposed con- esses or institutions is to continue in of health insurance to protect competition stitution. The Department of Justice effect beyond March 6, 2010. and consumers. concluded that several features of the The crisis constituted by the actions H.R. 4691. An act to provide a temporary proposed constitution warrant analysis and policies of certain members of the extension of certain programs, and for other and comment, including: (1) the ab- Government of Zimbabwe and other purposes. sence of an express recognition of persons to undermine Zimbabwe’s f United States sovereignty and the su- democratic processes or institutions INTRODUCTION OF BILLS AND premacy of Federal law; (2) provisions has not been resolved. These actions JOINT RESOLUTIONS for a special election on the USVI’s ter- and policies continue to pose an un- The following bills and joint resolu- ritorial status; (3) provisions confer- usual and extraordinary threat to the tions were introduced, read the first ring legal advantages on certain groups foreign policy of the United States. For and second times by unanimous con- defined by place and timing of birth, these reasons, I have determined that sent, and referred as indicated: timing of residency, or ancestry; (4) it is necessary to continue this na- By Mr. NELSON of Florida (for himself residence requirements for certain of- tional emergency and to maintain in and Mr. LEMIEUX): fices; (5) provisions guaranteeing legis- force the sanctions to respond to this S. 3050. A bill to direct the Secretary of lative representation of certain geo- threat. Agriculture to convey to Miami-Dade Coun- graphic areas; (6) provisions addressing BARACK OBAMA. ty certain federally owned land in Florida, territorial waters and marine re- THE WHITE HOUSE, February 26, 2010. and for other purposes; to the Committee on Agriculture, Nutrition, and Forestry. sources; (7) imprecise language in cer- f tain provisions of the proposed con- By Mr. VITTER: S. 3051. A bill to suspend flood insurance stitution’s bill of rights; (8) the pos- MESSAGE FROM THE HOUSE DURING ADJOURNMENT rate map updates in geographic areas in sible need to repeal certain Federal which certain levees are being repaired; to laws if the proposed USVI constitution ENROLLED BILL SIGNED the Committee on Banking, Housing, and is adopted; and (9) the effect of congres- Under the authority of the order of Urban Affairs. sional action or inaction on the pro- the Senate of January 6, 2009, the fol- By Mr. MENENDEZ: posed constitution. lowing enrolled bill, previously signed S. 3052. A bill to address the establishment To assist the Congress in its delibera- by the Speaker of the House, was and maintenance of the Systemic Resolution tions about this important matter, I Fund of the Federal Deposit Insurance Cor- signed on February 26, 2010, during the poration, and for other purposes; to the Com- attach the analysis of the Department adjournment of the Senate, by the mittee on Banking, Housing, and Urban Af- of Justice, with which the Department President pro tempore (Mr. BYRD): fairs. of the Interior concurs. I believe that H.R. 3961. An act to extend expiring provi- By Mr. SPECTER: the analysis provided by the Depart- sions of the USA PATRIOT Improvement S. 3053. A bill to amend the Surface Mining ment of Justice warrants careful atten- and Reauthorization Act of 2005 and Intel- Control and Reclamation Act of 1977 to per- tion. ligence Reform and Terrorism Prevention mit the Abandoned Mine Reclamation Fund I commend the electorate of the Vir- Act of 2004 until February 28, 2011. to be used for transportation and use of gin Islands and its governmental rep- dredged materials for abandoned mine rec- f lamation, and for other purposes; to the resentatives in their continuing com- MESSAGE FROM THE HOUSE Committee on Energy and Natural Re- mitment to increasing self-government sources. and the rule of law. At 2:04 p.m., a message from the By Mr. MENENDEZ: BARACK OBAMA. House of Representatives, delivered by S. 3054. A bill to amend the Energy Policy THE WHITE HOUSE, February 26, 2010. Mr. Novotny, one of its reading clerks, and Conservation Act to establish efficiency standards for bottle-type water dispensers, f announced that the House has agreed to the following concurrent resolu- commercial hot food holding cabinets, and NOTICE RELATIVE TO THE CON- tions, in which it requests the concur- portable electric spas; to the Committee on TINUATION OF THE NATIONAL Energy and Natural Resources. rence of the Senate: By Mr. CASEY: EMERGENCY WITH RESPECT TO H. Con. Res. 227. Concurrent resolution S. 3055. A bill to require the Secretary of THE ACTIONS AND POLICIES OF supporting the goals and ideals of National Commerce to award grants to municipalities CERTAIN MEMBERS OF THE GOV- Urban Crimes Awareness Week. to carry out community greening initiatives, ERNMENT OF ZIMBABWE AND H. Con. Res. 238. Concurrent resolution rec- and for other purposes; to the Committee on OTHER PERSONS TO UNDERMINE ognizing the difficult challenges Black vet- Environment and Public Works. erans faced when returning home after serv- ZIMBABWE’S DEMOCRATIC PROC- f ESSES OR INSTITUTIONS—PM 48 ing in the Armed Forces, their heroic mili- tary sacrifices, and their patriotism in fight- SUBMISSION OF CONCURRENT AND The PRESIDING OFFICER laid be- ing for equal rights and for the dignity of a SENATE RESOLUTIONS people and a Nation. fore the Senate the following message The following concurrent resolutions from the President of the United f and Senate resolutions were read, and States, together with an accompanying referred (or acted upon), as indicated: report; which was referred to the Com- MEASURES REFERRED By Mr. BAUCUS (for himself, Mr. mittee on Banking, Housing, and The following concurrent resolutions TESTER, Mr. DURBIN, Mr. ISAKSON, Urban Affairs: were read, and referred as indicated: Mrs. MURRAY, Mr. REID, Mrs. BOXER, To the Congress of the United States: H. Con. Res. 227. Concurrent resolution Mrs. FEINSTEIN, and Mr. LEAHY): Section 202(d) of the National Emer- supporting the goals and ideals of National S. Res. 427. A resolution designating the Urban Crimes Awareness Week; to the Com- first week of April 2010 as ‘‘National Asbes- gencies Act (50 U.S.C. 1622(d)) provides mittee on the Judiciary. tos Awareness Week’’; to the Committee on for the automatic termination of a na- H. Con. Res. 238. Concurrent resolution rec- the Judiciary. tional emergency unless, prior to the ognizing the difficult challenges Black vet- By Mr. LEMIEUX (for himself and Mr. anniversary date of its declaration, the erans faced when returning home after serv- COBURN):

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00033 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.022 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S858 CONGRESSIONAL RECORD — SENATE March 1, 2010 S. Res. 428. A resolution expressing con- graphic literacy among kindergarten istration to prescribe regulations to cern about violations of civil liberties taking through grade 12 students in the United ensure that all crewmembers on air place in Venezuela and commending the peo- States by improving professional devel- carriers have proper qualifications and ple of Venezuela for their steadfast support opment programs for kindergarten experience, and for other purposes. of democracy; to the Committee on Foreign Relations. through grade 12 teachers offered S. 1966 through institutions of higher edu- f At the request of Mr. DODD, the name cation. of the Senator from Maryland (Mr. ADDITIONAL COSPONSORS S. 841 CARDIN) was added as a cosponsor of S. S. 384 At the request of Mr. KERRY, the 1966, a bill to provide assistance to im- At the request of Mr. LUGAR, the names of the Senator from North Da- prove the health of newborns, children, name of the Senator from Oregon (Mr. kota (Mr. CONRAD) and the Senator and mothers in developing countries, MERKLEY) was added as a cosponsor of from Arkansas (Mrs. LINCOLN) were and for other purposes. S. 384, a bill to authorize appropria- added as cosponsors of S. 841, a bill to S. 2760 tions for fiscal years 2010 through 2014 direct the Secretary of Transportation At the request of Mr. UDALL of New to provide assistance to foreign coun- to study and establish a motor vehicle Mexico, the name of the Senator from tries to promote food security, to stim- safety standard that provides for a Louisiana (Ms. LANDRIEU) was added as ulate rural economies, and to improve means of alerting blind and other pe- a cosponsor of S. 2760, a bill to amend emergency response to food crises, to destrians of motor vehicle operation. title 38, United States Code, to provide amend the Foreign Assistance Act of S. 902 for an increase in the annual amount 1961, and for other purposes. At the request of Mr. KERRY, the authorized to be appropriated to the S. 405 name of the Senator from Pennsyl- Secretary of Veterans Affairs to carry At the request of Mr. LEAHY, the vania (Mr. SPECTER) was added as a co- out comprehensive service programs name of the Senator from Michigan sponsor of S. 902, a bill to provide for homeless veterans. (Ms. STABENOW) was added as a cospon- grants to establish veteran’s treatment S. 2794 sor of S. 405, a bill to amend the Inter- courts. At the request of Mr. SCHUMER, the nal Revenue Code of 1986 to provide S. 941 name of the Senator from Idaho (Mr. that a deduction equal to fair market At the request of Mr. CRAPO, the CRAPO) was added as a cosponsor of S. value shall be allowed for charitable name of the Senator from Arizona (Mr. 2794, a bill to amend the Internal Rev- contributions of literary, musical, ar- MCCAIN) was added as a cosponsor of S. enue Code of 1986 to provide tax incen- tistic, or scholarly compositions cre- 941, a bill to reform the Bureau of Alco- tives for the donation of wild game ated by the donor. hol, Tobacco, Firearms, and Explo- meat. S. 428 sives, modernize firearm laws and regu- S. 2796 At the request of Mr. DORGAN, the lations, protect the community from At the request of Mr. ENZI, the name name of the Senator from Maryland criminals, and for other purposes. of the Senator from Missouri (Mr. (Mr. CARDIN) was added as a cosponsor S. 1067 BOND) was added as a cosponsor of S. of S. 428, a bill to allow travel between At the request of Mr. FEINGOLD, the 2796, a bill to extend the authority of the United States and Cuba. name of the Senator from Montana the Secretary of Education to purchase S. 535 (Mr. BAUCUS) was added as a cosponsor guaranteed student loans for an addi- At the request of Mr. NELSON of Flor- of S. 1067, a bill to support stabilization tional year, and for other purposes. ida, the name of the Senator from and lasting peace in northern Uganda S. 2919 North Carolina (Mrs. HAGAN) was added and areas affected by the Lord’s Resist- At the request of Mr. UDALL of Colo- as a cosponsor of S. 535, a bill to amend ance Army through development of a rado, the name of the Senator from Ne- title 10, United States Code, to repeal regional strategy to support multilat- vada (Mr. REID) was added as a cospon- requirement for reduction of survivor eral efforts to successfully protect ci- sor of S. 2919, a bill to amend the Fed- annuities under the Survivor Benefit vilians and eliminate the threat posed eral Credit Union Act to advance the Plan by veterans’ dependency and in- by the Lord’s Resistance Army and to ability of credit unions to promote demnity compensation, and for other authorize funds for humanitarian relief small business growth and economic purposes. and reconstruction, reconciliation, and development opportunities, and for S. 621 transitional justice, and for other pur- other purposes. At the request of Mr. DURBIN, the poses. S. 2961 name of the Senator from Rhode Island S. 1204 At the request of Mr. LAUTENBERG, (Mr. WHITEHOUSE) was added as a co- At the request of Mrs. MURRAY, the his name was added as a cosponsor of sponsor of S. 621, a bill to amend the name of the Senator from Iowa (Mr. S. 2961, a bill to provide debt relief to Public Health Service Act to coordi- GRASSLEY) was added as a cosponsor of Haiti, and for other purposes. nate Federal congenital heart disease S. 1204, a bill to amend the Department S. 2998 research efforts and to improve public of Veterans Affairs Health Care Pro- At the request of Mrs. GILLIBRAND, education and awareness of congenital grams Enhancement Act of 2001 to re- the name of the Senator from Massa- heart disease, and for other purposes. quire the provision of chiropractic care chusetts (Mr. KERRY) was added as a S. 738 and services to veterans at all Depart- cosponsor of S. 2998, a bill to tempo- At the request of Ms. LANDRIEU, the ment of Veterans Affairs medical cen- rarily expand the V nonimmigrant visa name of the Senator from Maine (Ms. ters, and for other purposes. category to include Haitians whose pe- SNOWE) was added as a cosponsor of S. S. 1643 tition for a family-sponsored immi- 738, a bill to amend the Consumer Cred- At the request of Ms. SNOWE, the grant visa was approved on or before it Protection Act to assure meaningful name of the Senator from Alaska (Mr. January 12, 2010. disclosures of the terms of rental-pur- BEGICH) was added as a cosponsor of S. S. 3021 chase agreements, including disclo- 1643, a bill to amend the Internal Rev- At the request of Mr. FEINGOLD, the sures of all costs to consumers under enue Code of 1986 to allow a credit for name of the Senator from Alaska (Mr. such agreements, to provide certain the conversion of heating using oil fuel BEGICH) was added as a cosponsor of S. substantive rights to consumers under to using natural gas or biomass feed- 3021, a bill to amend the Public Utility such agreements, and for other pur- stocks, and for other purposes. Regulatory Policies Act of 1978 to au- poses. S. 1744 thorize the Secretary of Energy to pro- S. 749 At the request of Mr. SCHUMER, the mulgate regulations to allow electric At the request of Mr. COCHRAN, the name of the Senator from Oregon (Mr. utilities to use renewable energy to name of the Senator from Maine (Ms. WYDEN) was added as a cosponsor of S. comply with any Federal renewable SNOWE) was added as a cosponsor of S. 1744, a bill to require the Adminis- electricity standard, and for other pur- 749, a bill to improve and expand geo- trator of the Federal Aviation Admin- poses.

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00034 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.018 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S859 S. 3036 Resources Development Act. The SUBMITTED RESOLUTIONS At the request of Mr. BAYH, the project deepens from 40 to 45 feet the names of the Senator from Louisiana main shipping channel of the Delaware (Ms. LANDRIEU) and the Senator from River from Philadelphia and Camden, SENATE RESOLUTION 427—DESIG- Wisconsin (Mr. FEINGOLD) were added NJ, to the mouth of the Delaware Bay. NATING THE FIRST WEEK OF as cosponsors of S. 3036, a bill to estab- Deepening the river will help sustain APRIL 2010 AS ‘‘NATIONAL AS- lish the Office of the National Alz- and grow the maritime economy of the BESTOS AWARENESS WEEK’’ heimer’s Project. Delaware Valley region, as the river’s Mr. BAUCUS (for himself, Mr. TEST- S. 3043 current depth, which has remained ER, Mr. DURBIN, Mr. ISAKSON, Mrs. At the request of Mrs. GILLIBRAND, stagnant since 1941, does not accommo- MURRAY, Mr. REID, Mrs. BOXER, Mrs. the names of the Senator from Ohio date the size of most modern ships. FEINSTEIN, and Mr. LEAHY) submitted (Mr. BROWN), the Senator from Illinois Despite the tremendous benefit the the following resolution; which was re- (Mr. BURRIS) and the Senator from New deepening will have on the region, ferred to the Committee on the Judici- York (Mr. SCHUMER) were added as co- some concerns have been raised regard- ary: sponsors of S. 3043, a bill to award plan- ing the disposal of the dredge material S. RES. 427 ning grants and implementation grants that will be produced during the deep- Whereas dangerous asbestos fibers are in- to State educational agencies to enable ening process. Currently, the Army visible and cannot be smelled or tasted; the State educational agencies to com- Corps of Engineers dredges the river Whereas the inhalation of airborne asbes- plete comprehensive planning to carry every year to maintain the 40-foot tos fibers can cause significant damage; out activities designed to integrate en- depth and deposits materials in Corps- Whereas asbestos fibers can cause mesothe- gineering education into K–12 instruc- owned sites along the river. While ca- lioma, asbestosis, and other health problems; Whereas asbestos-related diseases can take tion and curriculum and to provide pacity remains at these sites, there are compelling questions about whether 10 to 50 years to present themselves; evaluation grants to measure efficacy Whereas the expected survival time for of K–12 engineering education. dredge material may have other useful those diagnosed with mesothelioma is be- S. RES. 372 purposes. tween 6 and 24 months; On October 26, 2005, the Committee At the request of Mr. LEVIN, the Whereas generally, little is known about on Environment and Public Works name of the Senator from Utah (Mr. late-stage treatment of asbestos-related dis- passed a Resolution requesting the eases, and there is no cure for such diseases; HATCH) was added as a cosponsor of S. Army Corps of Engineers to study the Whereas early detection of asbestos-re- Res. 372, a resolution designating beneficial uses of dredge material from lated diseases may give some patients in- March 2010 as ‘‘National Autoimmune the Delaware River, including the po- creased treatment options and might im- Diseases Awareness Month’’ and sup- tential for use in coal and other mine prove their prognoses; porting efforts to increase awareness of Whereas the World Health Organization, restoration areas. The Corps has under- autoimmune diseases and increase the Environmental Protection Agency, and taken this study with funding I secured funding for autoimmune disease re- the Surgeon General currently state that for the past several years and intend to search. there is no safe level of exposure to asbestos; request this year and in the future. The Whereas the United States has reduced its S. RES. 409 outcome of this study could yield tre- consumption of asbestos substantially, yet At the request of Mr. FEINGOLD, the mendous benefits for the Nation, in- continues to consume almost 2,000 metric name of the Senator from Illinois (Mr. cluding in the Delaware Valley region tons of the fibrous mineral for use in certain DURBIN) was added as a cosponsor of S. and in Pennsylvania, where there are products throughout the Nation; Whereas asbestos-related diseases have Res. 409, a resolution calling on mem- already proposals to use the dredge ma- bers of the Parliament in Uganda to re- killed thousands of people in the United terials. States; ject the proposed ‘‘Anti-Homosexuality One such proposal involves using Whereas exposure to asbestos continues, Bill’’, and for other purposes. dredge material from the Delaware but safety and prevention of asbestos expo- S. RES. 414 River Deepening project to reclaim sure already has significantly reduced the in- At the request of Mr. KERRY, the abandoned mine lands in northeast cidence of asbestos-related diseases and can name of the Senator from New Jersey Pennsylvania. One likely benefit would further reduce the incidence of such diseases; Whereas asbestos has been a cause of occu- (Mr. LAUTENBERG) was added as a co- be stream quality improvement in the sponsor of S. Res. 414, a resolution ex- pational cancer; Pocono Mountains due to a reduction Whereas thousands of workers in the pressing the sense of the Senate on the in acid mine flows. This proposal would United States face significant asbestos expo- recovery, rehabilitation, and rebuild- also help advance an economic develop- sure; ing of Haiti following the humani- ment project in Hazleton, PA, which Whereas thousands of people in the United tarian crisis caused by the January 12, could potentially create thousands of States die from asbestos-related diseases 2010, earthquake in Haiti. jobs and contribute to the economic de- every year; Whereas a significant percentage of all as- f velopment of a region still impacted by the decline of the coal industry. The bestos-related disease victims were exposed STATEMENTS ON INTRODUCED to asbestos on naval ships and in shipyards; use of dredge material for these pur- BILLS AND JOINT RESOLUTIONS Whereas asbestos was used in the construc- poses has been endorsed by numerous tion of a significant number of office build- By Mr. SPECTER: local elected officials, state legislators ings and public facilities built before 1975; S. 3053. A bill to amend the Surface and members of the community. Whereas people in the small community of Mining Control and Reclamation Act of The legislation I have introduced Libby, Montana have asbestos-related dis- 1977 to permit the Abandoned Mine would authorize the use of funding eases at a significantly higher rate than the Reclamation Fund to be used for trans- under the Abandoned Mine Reclama- national average and suffer from mesothe- portation and use of dredged materials tion Fund for the transportation and lioma at a significantly higher rate than the for abandoned mine reclamation, and use of dredge material in the reclama- national average; and for other purposes; to the Committee Whereas the establishment of a ‘‘National tion of abandoned mines. Specifically, Asbestos Awareness Week’’ will raise public on Energy and Natural Resources. an eligible use of this funding would be awareness about the prevalence of asbestos- Mr. SPECTER. Mr. President, I have for dredging material from the Dela- related diseases and the dangers of asbestos sought recognition to introduce legis- ware River for use in abandoned mines exposure: Now, therefore, be it lation concerning the beneficial use of around the State of Pennsylvania. This Resolved, That the Senate— materials derived from river dredging use could significantly reduce the (1) designates the first week of April 2010 activities. This concept was the subject amount of additional dredge material as ‘‘National Asbestos Awareness Week’’; of a Committee Resolution passed by deposited along the river as well as ad- (2) urges the Surgeon General to warn and the Committee on Environment and educate people about the public health issue vance the mine cleanup effort which of asbestos exposure, which may be haz- Public Works on October 26, 2005. has been ongoing for decades in Penn- ardous to their health; and This legislation relates directly to sylvania. (3) respectfully requests that the Secretary the deepening of the Delaware River, I urge my colleagues to support this of the Senate transmit a copy of this resolu- which was authorized in the 1992 Water legislation. tion to the Office of the Surgeon General.

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00035 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.021 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S860 CONGRESSIONAL RECORD — SENATE March 1, 2010 SENATE RESOLUTION 428—EX- destabilizing regional arms race: Now, there- amendment intended to be proposed to PRESSING CONCERN ABOUT VIO- fore, be it amendment SA 3336 proposed by Mr. BAUCUS LATIONS OF CIVIL LIBERTIES Resolved, That the Senate— to the bill H.R. 4213, supra; which was or- (1) condemns the recurring and ongoing re- TAKING PLACE IN VENEZUELA dered to lie on the table. pression of peaceful demonstrators in Ven- SA 3345. Ms. LANDRIEU submitted an AND COMMENDING THE PEOPLE ezuela by security forces and government-af- amendment intended to be proposed to OF VENEZUELA FOR THEIR filiated groups; amendment SA 3336 proposed by Mr. BAUCUS STEADFAST SUPPORT OF DE- (2) mourns the loss of life resulting from to the bill H.R. 4213, supra; which was or- MOCRACY actions taken by authorities in Venezuela to dered to lie on the table. violently disband peaceful protestors, includ- Mr. LEMIEUX (for himself and Mr. ing the students killed on January 25, 2010, f COBURN) submitted the following reso- during demonstrations against President lution; which was referred to the Com- Cha´ vez’s decision to shutdown ‘‘Radio Cara- mittee on Foreign Relations: cas Televisio´ n Internacional’’; TEXT OF AMENDMENTS S. RES. 428 (3) urges both the people and the Govern- SA 3335. Ms. LANDRIEU (for herself, Whereas since his election as the President ment of Venezuela to choose a path towards Mr. VITTER, and Mr. WICKER) submitted of Venezuela in 1998, Hugo Cha´ vez has sys- democracy, transparency, and tolerance in an amendment intended to be proposed order to begin the process of achieving na- tematically weakened democratic institu- by her to the bill H.R. 4213, to amend tions in Venezuela by restricting individual tional reconciliation and a rebuilding of democratic institutions in their country; the Internal Revenue Code of 1986 to rights and the activities of political parties, extend certain expiring provisions, and discouraging the free exchange of ideas, and (4) urges the people of Venezuela to remain centralizing and expanding the powers of the vigilant against further encroachments on for other purposes; which was ordered Executive over the other branches of govern- their constitutional and internationally-rec- to lie on the table; as follows: ment and the people of Venezuela; ognized civil and human rights; After section 185, insert the following: (5) urges President Barack Obama to clear- Whereas Article 57 of the Constitution of SEC. 186. EXTENSION OF LOW-INCOME HOUSING the Bolivarian Republic of Venezuela guar- ly reject and call attention to the violent CREDIT RULES FOR BUILDINGS IN antees the right of all citizens to freely ex- measures taken by authorities in Venezuela GO ZONES. press their thoughts and opinions; against citizens who are exercising their con- Section 1400N(c)(5) is amended by striking Whereas Article 68 of the Constitution of stitutionally guaranteed civil liberties; ‘‘January 1, 2011’’ and inserting ‘‘January 1, the Bolivarian Republic of Venezuela guar- (6) urges the United States Ambassador to 2013’’. antees the right of all citizens to peacefully the Organization of American States to call demonstrate and prohibits the use of fire- on the member states of the Organization of SA 3336. Mr. BAUCUS proposed an arms or toxic substances to control peaceful American States to investigate events tak- amendment to the bill H.R. 4213, to ing place in Venezuela and adopt the nec- demonstrations; amend the Internal Revenue Code of Whereas on May 24, 2007, the Senate ap- essary measures to ensure the Government of Venezuela abides by its commitments 1986 to extend certain expiring provi- proved by unanimous consent Senate Resolu- sions, and for other purposes; as fol- tion 211, 110th Congress, expressing profound under the Inter-American Democratic Char- concern about the transgression against free- ter; and lows: dom of thought and expression that was (7) urges President Obama to provide ro- Strike all after the enacting clause and in- being carried out in Venezuela by the refusal bust support for peaceful civil society groups sert the following: of President Cha´ vez to renew the broad- in Venezuela and to take measures that pro- SECTION 1. SHORT TITLE; AMENDMENT OF 1986 casting license of ‘‘Radio Caracas tect the flow of uncensored information CODE; TABLE OF CONTENTS. Televisio´ n’’, also known as RCTV; among the people of Venezuela. (a) SHORT TITLE.—This Act may be cited as Whereas on May 24, 2007, the European Par- f the ‘‘American Workers, State, and Business liament adopted a Resolution criticizing the AMENDMENTS SUBMITTED AND Relief Act of 2010’’. non-renewal of the RCTV license for under- (b) AMENDMENT OF 1986 CODE.—Except as mining the right of the press to hold the au- PROPOSED otherwise expressly provided, whenever in thorities to account; SA 3335. Ms. LANDRIEU (for herself, Mr. this Act an amendment or repeal is ex- Whereas Venezuela and Cuba are the only VITTER, Mr. WICKER, and Mr. COCHRAN) sub- pressed in terms of an amendment to, or re- 2 Western Hemisphere countries listed in the mitted an amendment intended to be pro- peal of, a section or other provision, the ref- United States Commission for International posed by her to the bill H.R. 4213, to amend erence shall be considered to be made to a Religious Freedom ‘‘Watch List’’ as coun- the Internal Revenue Code of 1986 to extend section or other provision of the Internal tries requiring close monitoring due to the certain expiring provisions, and for other Revenue Code of 1986. nature and extent of violation of religious purposes; which was ordered to lie on the (c) TABLE OF CONTENTS.—The table of con- freedom engaged in or tolerated by their gov- table. tents for this Act is as follows: ernments; SA 3336. Mr. BAUCUS proposed an amend- Sec. 1. Short title; amendment of 1986 Code; Whereas the 2009 Report of the United ment to the bill H.R. 4213, supra. table of contents. States Commission for International Reli- SA 3337. Mr. SESSIONS (for himself and TITLE I—EXTENSION OF EXPIRING gious Freedom states that in Venezuela, ‘‘re- Mrs. MCCASKILL) proposed an amendment to PROVISIONS ligious communities and leaders viewed as amendment SA 3336 proposed by Mr. BAUCUS political opponents are routinely targeted to the bill H.R. 4213, supra. Subtitle A—Energy and harassed by government officials; SA 3338. Mr. THUNE submitted an amend- Sec. 101. Alternative motor vehicle credit Whereas several international human ment intended to be proposed to amendment for new qualified hybrid motor rights organizations have consistently ex- SA 3336 proposed by Mr. BAUCUS to the bill vehicles other than passenger pressed serious concerns regarding weak- H.R. 4213, supra. automobiles and light trucks. SA 3339. Mr. WARNER submitted an ening of respect for human rights in Ven- Sec. 102. Incentives for biodiesel and renew- amendment intended to be proposed by him ezuela; able diesel. to the bill H.R. 4213, supra; which was or- Whereas on January 24, 2010, President Sec. 103. Credit for electricity produced at ´ dered to lie on the table. Chavez ordered what amounted to a shut- SA 3340. Mr. WARNER submitted an certain open-loop biomass fa- ´ down of ‘‘Radio Caracas Television amendment intended to be proposed by him cilities. Internacional’’ due to its failure to air one of to the bill H.R. 4213, supra; which was or- Sec. 104. Credit for refined coal facilities. his speeches; dered to lie on the table. Sec. 105. Credit for production of low sulfur Whereas on the night of January 25, 2010, 2 SA 3341. Mr. WARNER submitted an diesel fuel. students were killed and 5 others were in- amendment intended to be proposed by him Sec. 106. Credit for producing fuel from coke jured by gunfire during peaceful demonstra- to the bill H.R. 4213, supra; which was or- or coke gas. tions against the order by President Cha´ vez dered to lie on the table. Sec. 107. New energy efficient home credit. to shutdown RCTV Internacional; SA 3342. Mr. WEBB (for himself and Mrs. Sec. 108. Excise tax credits and outlay pay- Whereas the Government of Venezuela has BOXER) submitted an amendment intended to ments for alternative fuel and increasingly failed to address the legitimate be proposed by him to the bill H.R. 4213, alternative fuel mixtures. needs of its people for greater economic, po- supra; which was ordered to lie on the table. Sec. 109. Special rule for sales or disposi- litical, and social opportunities and has ag- SA 3343. Ms. LANDRIEU submitted an tions to implement FERC or gravated political divisions in Venezuela; amendment intended to be proposed to State electric restructuring and amendment SA 3336 proposed by Mr. BAUCUS policy for qualified electric Whereas the Government of Venezuela has to the bill H.R. 4213, supra; which was or- utilities. engaged in a military build-up that goes be- dered to lie on the table. Sec. 110. Suspension of limitation on per- yond the reasonable security concerns of the SA 3344. Mr. LEVIN (for himself, Mrs. centage depletion for oil and Venezuelan state and threatens to launch a SHAHEEN, and Mr. WHITEHOUSE) submitted an gas from marginal wells.

VerDate Nov 24 2008 03:45 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00036 Fmt 4637 Sfmt 0655 E:\CR\FM\A01MR6.025 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S861 Subtitle B—Individual Tax Relief Sec. 155. Reduction in corporate rate for Sec. 223. Extension of section 508 hospital PART I—MISCELLANEOUS PROVISIONS qualified timber gain. reclassifications. Sec. 111. Deduction for certain expenses of Sec. 156. Basis adjustment to stock of S Sec. 224. Technical correction related to elementary and secondary corps making charitable con- critical access hospital serv- school teachers. tributions of property. ices. Sec. 112. Additional standard deduction for Sec. 157. Empowerment zone tax incentives. Sec. 225. Extension for specialized MA plans State and local real property Sec. 158. Tax incentives for investment in for special needs individuals. taxes. the District of Columbia. Sec. 226. Extension of reasonable cost con- Sec. 113. Deduction of State and local sales Sec. 159. Renewal community tax incen- tracts. taxes. tives. Sec. 227. Extension of particular waiver pol- Sec. 114. Contributions of capital gain real Sec. 160. Temporary increase in limit on icy for employer group plans. property made for conservation cover over of rum excise taxes Sec. 228. Extension of continuing care re- purposes. to Puerto Rico and the Virgin tirement community program. Sec. 115. Above-the-line deduction for quali- Islands. Sec. 229. Funding outreach and assistance fied tuition and related ex- Sec. 161. American Samoa economic devel- for low-income programs. penses. opment credit. Sec. 230. Family-to-family health informa- Sec. 116. Tax-free distributions from indi- Subtitle D—Temporary Disaster Relief tion centers. vidual retirement plans for Provisions Sec. 231. Implementation funding. charitable purposes. Sec. 232. Extension of ARRA increase in Sec. 117. Look-thru of certain regulated in- PART I—NATIONAL DISASTER RELIEF FMAP. vestment company stock in de- Sec. 171. Waiver of certain mortgage rev- Sec. 233. Extension of gainsharing dem- termining gross estate of non- enue bond requirements. onstration. residents. Sec. 172. Losses attributable to federally de- Subtitle C—Other Provisions PART II—LOW-INCOME HOUSING CREDITS clared disasters. Sec. 173. Special depreciation allowance for Sec. 241. Extension of use of 2009 poverty Sec. 121. Election for refundable low-income guidelines. housing credit for 2010. qualified disaster property. Sec. 174. Net operating losses attributable to Sec. 242. Refunds disregarded in the admin- Subtitle C—Business Tax Relief federally declared disasters. istration of Federal programs Sec. 131. Research credit. Sec. 175. Expensing of qualified disaster ex- and federally assisted pro- Sec. 132. Indian employment tax credit. penses. grams. Sec. 133. New markets tax credit. Sec. 243. State court improvement program. Sec. 134. Railroad track maintenance credit. PART II—REGIONAL PROVISIONS Sec. 244. Extension of national flood insur- Sec. 135. Mine rescue team training credit. SUBPART A—NEW YORK LIBERTY ZONE ance program. Sec. 136. Employer wage credit for employ- Sec. 181. Special depreciation allowance for Sec. 245. Emergency disaster assistance. ees who are active duty mem- nonresidential and residential Sec. 246. Small business loan guarantee en- bers of the uniformed services. real property. hancement extensions. Sec. 137. 5-year depreciation for farming Sec. 182. Tax-exempt bond financing. business machinery and equip- TITLE III—PENSION FUNDING RELIEF ment. SUBPART B—GO ZONE Subtitle A—Single Employer Plans Sec. 138. 15-year straight-line cost recovery Sec. 183. Special depreciation allowance. Sec. 301. Extended period for single-em- for qualified leasehold improve- Sec. 184. Increase in rehabilitation credit. ployer defined benefit plans to ments, qualified restaurant Sec. 185. Work opportunity tax credit with amortize certain shortfall am- buildings and improvements, respect to certain individuals ortization bases. and qualified retail improve- affected by Hurricane Katrina Sec. 302. Application of extended amortiza- ments. for employers inside disaster tion period to plans subject to Sec. 139. 7-year recovery period for motor- areas. prior law funding rules. sports entertainment com- SUBPART C—MIDWESTERN DISASTER AREAS Sec. 303. Lookback for certain benefit re- plexes. strictions. Sec. 140. Accelerated depreciation for busi- Sec. 191. Special rules for use of retirement Subtitle B—Multiemployer Plans ness property on an Indian res- funds. ervation. Sec. 192. Exclusion of cancellation of mort- Sec. 311. Adjustments to funding standard Sec. 141. Enhanced charitable deduction for gage indebtedness. account rules. contributions of food inventory. TITLE II—UNEMPLOYMENT INSURANCE, TITLE IV—OFFSET PROVISIONS Sec. 142. Enhanced charitable deduction for HEALTH, AND OTHER PROVISIONS Subtitle A—Black Liquor contributions of book inven- Subtitle A—Unemployment Insurance tories to public schools. Sec. 401. Exclusion of unprocessed fuels from Sec. 143. Enhanced charitable deduction for Sec. 201. Extension of unemployment insur- the cellulosic biofuel producer corporate contributions of com- ance provisions. credit. puter inventory for educational Subtitle B—Health Provisions Sec. 402. Prohibition on alternative fuel credit and alternative fuel mix- purposes. Sec. 211. Extension and improvement of pre- ture credit for black liquor. Sec. 144. Election to expense mine safety mium assistance for COBRA equipment. benefits. Subtitle B—Homebuyer Credit Sec. 145. Special expensing rules for certain Sec. 212. Extension of therapy caps excep- Sec. 411. Technical modifications to home- film and television productions. tions process. buyer credit. Sec. 146. Expensing of environmental reme- Sec. 213. Treatment of pharmacies under du- Subtitle C—Economic Substance diation costs. rable medical equipment ac- Sec. 147. Deduction allowable with respect Sec. 421. Codification of economic substance creditation requirements. to income attributable to do- doctrine; penalties. Sec. 214. Enhanced payment for mental mestic production activities in health services. Subtitle D—Additional Provisions Puerto Rico. Sec. 215. Extension of ambulance add-ons. Sec. 148. Modification of tax treatment of Sec. 431. Revision to the Medicare Improve- Sec. 216. Extension of geographic floor for certain payments to controlling ment Fund. work. exempt organizations. TITLE V—SATELLITE TELEVISION Sec. 149. Exclusion of gain or loss on sale or Sec. 217. Extension of payment for technical EXTENSION component of certain physician exchange of certain brownfield Sec. 501. Short title. pathology services. sites from unrelated business Subtitle A—Statutory Licenses income. Sec. 218. Extension of outpatient hold harm- Sec. 150. Timber REIT modernization. less provision. Sec. 501. Reference. Sec. 151. Treatment of certain dividends and Sec. 219. EHR Clarification. Sec. 502. Modifications to statutory license assets of regulated investment Sec. 220. Extension of reimbursement for all for satellite carriers. companies. Medicare part B services fur- Sec. 503. Modifications to statutory license Sec. 152. RIC qualified investment entity nished by certain indian hos- for satellite carriers in local treatment under FIRPTA. pitals and clinics. markets. Sec. 153. Exceptions for active financing in- Sec. 221. Extension of certain payment rules Sec. 504. Modifications to cable system sec- come. for long-term care hospital ondary transmission rights Sec. 154. Look-thru treatment of payments services and of moratorium on under section 111. between related controlled for- the establishment of certain Sec. 505. Certain waivers granted to pro- eign corporations under foreign hospitals and facilities. viders of local-into-local serv- personal holding company Sec. 222. Extension of the Medicare rural ice for all DMAs. rules. hospital flexibility program. Sec. 506. Copyright Office fees.

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Sec. 507. Termination of license. SEC. 104. CREDIT FOR REFINED COAL FACILI- (b) EFFECTIVE DATE.—The amendment Sec. 508. Construction. TIES. made by this section shall apply to taxable Subtitle B—Communications Provisions (a) IN GENERAL .—Subparagraphs (A) and years beginning after December 31, 2009. (B) of section 45(d)(8) are each amended by SEC. 114. CONTRIBUTIONS OF CAPITAL GAIN Sec. 521. Reference. striking ‘‘January 1, 2010’’ and inserting Sec. 522. Extension of authority. REAL PROPERTY MADE FOR CON- ‘‘January 1, 2011’’. SERVATION PURPOSES. Sec. 523. Significantly viewed stations. (b) EFFECTIVE DATE.—The amendments Sec. 524. Digital television transition con- (a) IN GENERAL.—Clause (vi) of section made by this section shall apply to facilities 170(b)(1)(E) is amended by striking ‘‘Decem- forming amendments. placed in service after December 31, 2009. Sec. 525. Application pending completion of ber 31, 2009’’ and inserting ‘‘December 31, SEC. 105. CREDIT FOR PRODUCTION OF LOW SUL- rulemakings. 2010’’. FUR DIESEL FUEL. (b) CONTRIBUTIONS BY CERTAIN CORPORATE Sec. 526. Process for issuing qualified carrier (a) APPLICABLE PERIOD.—Paragraph (4) of certification. FARMERS AND RANCHERS.—Clause (iii) of sec- section 45H(c) is amended by striking ‘‘De- tion 170(b)(2)(B) is amended by striking ‘‘De- Sec. 527. Nondiscrimination in carriage of cember 31, 2009’’ and inserting ‘‘December 31, high definition digital signals cember 31, 2009’’ and inserting ‘‘December 31, 2010’’. 2010’’. of noncommercial educational (b) EFFECTIVE DATE.—The amendment (c) EFFECTIVE DATE.—The amendments television stations. made by this section shall take effect as if Sec. 528. Savings clause regarding defini- made by this section shall apply to contribu- included in section 339 of the American Jobs tions made in taxable years beginning after tions. Creation Act of 2004. Sec. 529. State public affairs broadcasts. December 31, 2009. SEC. 106. CREDIT FOR PRODUCING FUEL FROM SEC. 115. ABOVE-THE-LINE DEDUCTION FOR Subtitle C—Reports and Savings Provision COKE OR COKE GAS. QUALIFIED TUITION AND RELATED Sec. 531. Definition. (a) IN GENERAL.—Paragraph (1) of section EXPENSES. 45K(g) is amended by striking ‘‘January 1, Sec. 532. Report on market based alter- (a) IN GENERAL.—Subsection (e) of section natives to statutory licensing. 2010’’ and inserting ‘‘January 1, 2011’’. 222 is amended by striking ‘‘December 31, (b) EFFECTIVE DATE.—The amendment Sec. 533. Report on communications impli- 2009’’ and inserting ‘‘December 31, 2010’’. made by this section shall apply to facilities cations of statutory licensing (b) EFFECTIVE DATE.—The amendment placed in service after December 31, 2009. modifications. made by this section shall apply to taxable Sec. 534. Report on in-state broadcast pro- SEC. 107. NEW ENERGY EFFICIENT HOME CREDIT. years beginning after December 31, 2009. gramming. (a) IN GENERAL.—Subsection (g) of section 45L is amended by striking ‘‘December 31, SEC. 116. TAX-FREE DISTRIBUTIONS FROM INDI- Sec. 535. Local network channel broadcast VIDUAL RETIREMENT PLANS FOR reports. 2009’’ and inserting ‘‘December 31, 2010’’. CHARITABLE PURPOSES. (b) EFFECTIVE DATE.—The amendment Sec. 536. Savings provision regarding use of (a) IN GENERAL.—Subparagraph (F) of sec- made by this section shall apply to homes negotiated licenses. tion 408(d)(8) is amended by striking ‘‘De- acquired after December 31, 2009. Sec. 537. Effective date; noninfringement of cember 31, 2009’’ and inserting ‘‘December 31, copyright. SEC. 108. EXCISE TAX CREDITS AND OUTLAY PAY- 2010’’. Subtitle D—Severability MENTS FOR ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES. (b) EFFECTIVE DATE.—The amendment Sec. 541. Severability. (a) IN GENERAL.—Sections 6426(d)(5), made by this section shall apply to distribu- TITLE VI—OTHER PROVISIONS 6426(e)(3), and 6427(e)(6)(C) are each amended tions made in taxable years beginning after December 31, 2009. Sec. 601. Increase in the Medicare physician by striking ‘‘December 31, 2009’’ and insert- payment update. ing ‘‘December 31, 2010’’. SEC. 117. LOOK-THRU OF CERTAIN REGULATED (b) EFFECTIVE DATE.—The amendments INVESTMENT COMPANY STOCK IN TITLE VII—DETERMINATION OF made by this section shall apply to fuel sold DETERMINING GROSS ESTATE OF BUDGETARY EFFECTS NONRESIDENTS. or used after December 31, 2009. (a) IN GENERAL.—Paragraph (3) of section Sec. 701. Determination of budgetary ef- SEC. 109. SPECIAL RULE FOR SALES OR DISPOSI- fects. TIONS TO IMPLEMENT FERC OR 2105(d) is amended by striking ‘‘December 31, TITLE I—EXTENSION OF EXPIRING STATE ELECTRIC RESTRUCTURING 2009’’ and inserting ‘‘December 31, 2010’’. PROVISIONS POLICY FOR QUALIFIED ELECTRIC (b) EFFECTIVE DATE.—The amendment UTILITIES. made by this section shall apply to estates of Subtitle A—Energy (a) IN GENERAL.—Paragraph (3) of section decedents dying after December 31, 2009. SEC. 101. ALTERNATIVE MOTOR VEHICLE CREDIT 451(i) is amended by striking ‘‘January 1, PART II—LOW-INCOME HOUSING CREDITS FOR NEW QUALIFIED HYBRID 2010’’ and inserting ‘‘January 1, 2011’’. MOTOR VEHICLES OTHER THAN PAS- (b) EFFECTIVE DATE.—The amendment SEC. 121. ELECTION FOR REFUNDABLE LOW-IN- SENGER AUTOMOBILES AND LIGHT made by this section shall apply to trans- COME HOUSING CREDIT FOR 2010. TRUCKS. actions after December 31, 2009. (a) IN GENERAL.—Section 42 is amended by (a) IN GENERAL.—Paragraph (3) of section redesignating subsection (n) as subsection SEC. 110. SUSPENSION OF LIMITATION ON PER- 30B(k) is amended by striking ‘‘December 31, CENTAGE DEPLETION FOR OIL AND (o) and by inserting after subsection (m) the 2009’’ and inserting ‘‘December 31, 2010’’. GAS FROM MARGINAL WELLS. following new subsection: (b) EFFECTIVE DATE.—The amendment (a) IN GENERAL.—Clause (ii) of section ‘‘(n) ELECTION FOR REFUNDABLE CREDITS.— made by this section shall apply to property 613A(c)(6)(H) is amended by striking ‘‘Janu- ‘‘(1) IN GENERAL.—The housing credit agen- purchased after December 31, 2009. ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. cy of each State shall be allowed a credit in SEC. 102. INCENTIVES FOR BIODIESEL AND RE- (b) EFFECTIVE DATE.—The amendment an amount equal to such State’s 2010 low-in- NEWABLE DIESEL. made by this section shall apply to taxable come housing refundable credit election (a) CREDITS FOR BIODIESEL AND RENEWABLE years beginning after December 31, 2009. amount, which shall be payable by the Sec- DIESEL USED AS FUEL.—Subsection (g) of sec- Subtitle B—Individual Tax Relief retary as provided in paragraph (5). ‘‘(2) 2010 LOW-INCOME HOUSING REFUNDABLE tion 40A is amended by striking ‘‘December PART I—MISCELLANEOUS PROVISIONS 31, 2009’’ and inserting ‘‘December 31, 2010’’. CREDIT ELECTION AMOUNT.—For purposes of SEC. 111. DEDUCTION FOR CERTAIN EXPENSES (b) EXCISE TAX CREDITS AND OUTLAY PAY- this subsection, the term ‘2010 low-income OF ELEMENTARY AND SECONDARY housing refundable credit election amount’ MENTS FOR BIODIESEL AND RENEWABLE DIESEL SCHOOL TEACHERS. means, with respect to any State, such FUEL MIXTURES.— (a) IN GENERAL.—Subparagraph (D) of sec- (1) Paragraph (6) of section 6426(c) is tion 62(a)(2) is amended by striking ‘‘or 2009’’ amount as the State may elect which does amended by striking ‘‘December 31, 2009’’ and and inserting ‘‘2009, or 2010’’. not exceed 85 percent of the product of— inserting ‘‘December 31, 2010’’. (b) EFFECTIVE DATE.—The amendment ‘‘(A) the sum of— (2) Subparagraph (B) of section 6427(e)(6) is made by this section shall apply to taxable ‘‘(i) 100 percent of the State housing credit amended by striking ‘‘December 31, 2009’’ and years beginning after December 31, 2009. ceiling for 2010 which is attributable to inserting ‘‘December 31, 2010’’. SEC. 112. ADDITIONAL STANDARD DEDUCTION amounts described in clauses (i) and (iii) of (c) EFFECTIVE DATE.—The amendments FOR STATE AND LOCAL REAL PROP- subsection (h)(3)(C), and made by this section shall apply to fuel sold ERTY TAXES. ‘‘(ii) 40 percent of the State housing credit or used after December 31, 2009. (a) IN GENERAL.—Subparagraph (C) of sec- ceiling for 2010 which is attributable to SEC. 103. CREDIT FOR ELECTRICITY PRODUCED tion 63(c)(1) is amended by striking ‘‘or 2009’’ amounts described in clauses (ii) and (iv) of AT CERTAIN OPEN-LOOP BIOMASS and inserting ‘‘2009, or 2010’’. such subsection, multiplied by FACILITIES. (b) EFFECTIVE DATE.—The amendment ‘‘(B) 10. (a) IN GENERAL.—Clause (ii) of section made by this section shall apply to taxable ‘‘(3) COORDINATION WITH NON-REFUNDABLE 45(b)(4)(B) is amended by striking ‘‘5-year pe- years beginning after December 31, 2009. CREDIT.—For purposes of this section, the riod’’ and inserting ‘‘6-year period’’. SEC. 113. DEDUCTION OF STATE AND LOCAL amounts described in clauses (i) through (iv) (b) EFFECTIVE DATE.—The amendment SALES TAXES. of subsection (h)(3)(C) with respect to any made by this section shall apply to elec- (a) IN GENERAL.—Subparagraph (I) of sec- State for 2010 shall each be reduced by so tricity produced and sold after December 31, tion 164(b)(5) is amended by striking ‘‘Janu- much of such amount as is taken into ac- 2009. ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. count in determining the amount of the

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00038 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.037 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S863 credit allowed with respect to such State SEC. 138. 15-YEAR STRAIGHT-LINE COST RECOV- SEC. 146. EXPENSING OF ENVIRONMENTAL REME- under paragraph (1). ERY FOR QUALIFIED LEASEHOLD DIATION COSTS. ‘‘(4) SPECIAL RULE FOR BASIS.—Basis of a IMPROVEMENTS, QUALIFIED RES- (a) IN GENERAL.—Subsection (h) of section qualified low-income building shall not be TAURANT BUILDINGS AND IMPROVE- 198 is amended by striking ‘‘December 31, MENTS, AND QUALIFIED RETAIL IM- 2009’’ and inserting ‘‘December 31, 2010’’. reduced by the amount of any payment made PROVEMENTS. (b) EFFECTIVE DATE.—The amendment under this subsection. (a) IN GENERAL.—Clauses (iv), (v), and (ix) made by this section shall apply to expendi- ‘‘(5) PAYMENT OF CREDIT; USE TO FINANCE of section 168(e)(3)(E) are each amended by tures paid or incurred after December 31, LOW-INCOME BUILDINGS.—The Secretary shall striking ‘‘January 1, 2010’’ and inserting 2009. pay to the housing credit agency of each ‘‘January 1, 2011’’. SEC. 147. DEDUCTION ALLOWABLE WITH RE- State an amount equal to the credit allowed (b) CONFORMING AMENDMENTS.— SPECT TO INCOME ATTRIBUTABLE under paragraph (1). Rules similar to the (1) Clause (i) of section 168(e)(7)(A) is rules of subsections (c) and (d) of section 1602 TO DOMESTIC PRODUCTION ACTIVI- amended by striking ‘‘if such building is TIES IN PUERTO RICO. of the American Recovery and Reinvestment placed in service after December 31, 2008, and Tax Act of 2009 shall apply with respect to (a) IN GENERAL.—Subparagraph (C) of sec- before January 1, 2010,’’. tion 199(d)(8) is amended— any payment made under this paragraph, ex- (2) Paragraph (8) of section 168(e) is amend- cept that such subsection (d) shall be applied (1) by striking ‘‘first 4 taxable years’’ and ed by striking subparagraph (E). inserting ‘‘first 5 taxable years’’, and by substituting ‘January 1, 2012’ for ‘January (c) EFFECTIVE DATE.—The amendments 1, 2011’.’’. (2) by striking ‘‘January 1, 2010’’ and in- made by this section shall apply to property serting ‘‘January 1, 2011’’. (b) CONFORMING AMENDMENT.—Section placed in service after December 31, 2009. 1324(b)(2) of title 31, United States Code, is (b) EFFECTIVE DATE.—The amendments SEC. 139. 7-YEAR RECOVERY PERIOD FOR MOTOR- amended by inserting ‘‘42(n),’’ after ‘‘36A,’’. made by this section shall apply to taxable SPORTS ENTERTAINMENT COM- years beginning after December 31, 2009. Subtitle C—Business Tax Relief PLEXES. SEC. 148. MODIFICATION OF TAX TREATMENT OF SEC. 131. RESEARCH CREDIT. (a) IN GENERAL.—Subparagraph (D) of sec- CERTAIN PAYMENTS TO CONTROL- (a) IN GENERAL.—Subparagraph (B) of sec- tion 168(i)(15) is amended by striking ‘‘De- LING EXEMPT ORGANIZATIONS. tion 41(h)(1) is amended by striking ‘‘Decem- cember 31, 2009’’ and inserting ‘‘December 31, (a) IN GENERAL.—Clause (iv) of section ber 31, 2009’’ and inserting ‘‘December 31, 2010’’. 512(b)(13)(E) is amended by striking ‘‘Decem- 2010’’. (b) EFFECTIVE DATE.—The amendment ber 31, 2009’’ and inserting ‘‘December 31, (b) CONFORMING AMENDMENT.—Subpara- made by this section shall apply to property 2010’’. graph (D) of section 45C(b)(1) is amended by placed in service after December 31, 2009. (b) EFFECTIVE DATE.—The amendment striking ‘‘December 31, 2009’’ and inserting SEC. 140. ACCELERATED DEPRECIATION FOR made by this section shall apply to payments ‘‘December 31, 2010’’. BUSINESS PROPERTY ON AN INDIAN received or accrued after December 31, 2009. RESERVATION. (c) EFFECTIVE DATE.—The amendments SEC. 149. EXCLUSION OF GAIN OR LOSS ON SALE made by this section shall apply to amounts (a) IN GENERAL.—Paragraph (8) of section OR EXCHANGE OF CERTAIN paid or incurred after December 31, 2009. 168(j) is amended by striking ‘‘December 31, BROWNFIELD SITES FROM UNRE- 2009’’ and inserting ‘‘December 31, 2010’’. LATED BUSINESS INCOME. SEC. 132. INDIAN EMPLOYMENT TAX CREDIT. (b) EFFECTIVE DATE.—The amendment (a) IN GENERAL.—Subparagraph (K) of sec- (a) IN GENERAL.—Subsection (f) of section made by this section shall apply to property tion 512(b)(19) is amended by striking ‘‘De- 45A is amended by striking ‘‘December 31, placed in service after December 31, 2009. cember 31, 2009’’ and inserting ‘‘December 31, 2009’’ and inserting ‘‘December 31, 2010’’. 2010’’. (b) EFFECTIVE DATE.—The amendment SEC. 141. ENHANCED CHARITABLE DEDUCTION (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable FOR CONTRIBUTIONS OF FOOD IN- VENTORY. made by this section shall apply to property years beginning after December 31, 2009. (a) IN GENERAL.—Clause (iv) of section acquired after December 31, 2009. SEC. 133. NEW MARKETS TAX CREDIT. 170(e)(3)(C) is amended by striking ‘‘Decem- SEC. 150. TIMBER REIT MODERNIZATION. (a) IN GENERAL.—Subparagraph (F) of sec- ber 31, 2009’’ and inserting ‘‘December 31, (a) IN GENERAL.—Paragraph (8) of section tion 45D(f)(1) is amended by inserting ‘‘and 2010’’. 856(c) is amended by striking ‘‘means’’ and 2010’’ after ‘‘2009’’. (b) EFFECTIVE DATE.—The amendment all that follows and inserting ‘‘means De- (b) CONFORMING AMENDMENT.—Paragraph made by this section shall apply to contribu- cember 31, 2010.’’. (3) of section 45D(f) is amended by striking tions made after December 31, 2009. (b) CONFORMING AMENDMENTS.— ‘‘2014’’ and inserting ‘‘2015’’. SEC. 142. ENHANCED CHARITABLE DEDUCTION (1) Subparagraph (I) of section 856(c)(2) is (c) EFFECTIVE DATE.—The amendments FOR CONTRIBUTIONS OF BOOK IN- amended by striking ‘‘the first taxable year made by this section shall apply to calendar VENTORIES TO PUBLIC SCHOOLS. beginning after the date of the enactment of years beginning after 2009. (a) IN GENERAL.—Clause (iv) of section this subparagraph’’ and inserting ‘‘in a tax- SEC. 134. RAILROAD TRACK MAINTENANCE CRED- 170(e)(3)(D) is amended by striking ‘‘Decem- able year beginning on or before the termi- IT. ber 31, 2009’’ and inserting ‘‘December 31, nation date’’. (a) IN GENERAL.—Subsection (f) of section 2010’’. (2) Clause (iii) of section 856(c)(5)(H) is 45G is amended by striking ‘‘January 1, 2010’’ (b) EFFECTIVE DATE.—The amendment amended by inserting ‘‘in taxable years be- and inserting ‘‘January 1, 2011’’. made by this section shall apply to contribu- ginning’’ after ‘‘dispositions’’. (b) EFFECTIVE DATE.—The amendment tions made after December 31, 2009. (3) Clause (v) of section 857(b)(6)(D) is made by this section shall apply to expendi- SEC. 143. ENHANCED CHARITABLE DEDUCTION amended by inserting ‘‘in a taxable year be- tures paid or incurred in taxable years begin- FOR CORPORATE CONTRIBUTIONS ginning’’ after ‘‘sale’’. ning after December 31, 2009. OF COMPUTER INVENTORY FOR (4) Subparagraph (G) of section 857(b)(6) is SEC. 135. MINE RESCUE TEAM TRAINING CREDIT. EDUCATIONAL PURPOSES. amended by inserting ‘‘in a taxable year be- (a) IN GENERAL.—Subsection (e) of section (a) IN GENERAL.—Subparagraph (G) of sec- ginning’’ after ‘‘In the case of a sale’’. 45N is amended by striking ‘‘December 31, tion 170(e)(6) is amended by striking ‘‘De- (c) EFFECTIVE DATE.—The amendments 2009’’ and inserting ‘‘December 31, 2010’’. cember 31, 2009’’ and inserting ‘‘December 31, made by this section shall apply to taxable (b) EFFECTIVE DATE.—The amendment 2010’’. years ending after May 22, 2009. made by this section shall apply to taxable (b) EFFECTIVE DATE.—The amendment SEC. 151. TREATMENT OF CERTAIN DIVIDENDS years beginning after December 31, 2009. made by this section shall apply to contribu- AND ASSETS OF REGULATED IN- tions made in taxable years beginning after SEC. 136. EMPLOYER WAGE CREDIT FOR EMPLOY- VESTMENT COMPANIES. EES WHO ARE ACTIVE DUTY MEM- December 31, 2009. (a) IN GENERAL.—Paragraphs (1)(C) and BERS OF THE UNIFORMED SERV- SEC. 144. ELECTION TO EXPENSE MINE SAFETY (2)(C) of section 871(k) are each amended by ICES. EQUIPMENT. striking ‘‘December 31, 2009’’ and inserting (a) IN GENERAL.—Subsection (f) of section (a) IN GENERAL.—Subsection (g) of section ‘‘December 31, 2010’’. 45P is amended by striking ‘‘December 31, 179E is amended by striking ‘‘December 31, (b) EFFECTIVE DATE.—The amendments 2009’’ and inserting ‘‘December 31, 2010’’. 2009’’ and inserting ‘‘December 31, 2010’’. made by this section shall apply to taxable (b) EFFECTIVE DATE.—The amendment (b) EFFECTIVE DATE.—The amendment years beginning after December 31, 2009. made by this section shall apply to payments made by this section shall apply to property SEC. 152. RIC QUALIFIED INVESTMENT ENTITY made after December 31, 2009. placed in service after December 31, 2009. TREATMENT UNDER FIRPTA. SEC. 137. 5-YEAR DEPRECIATION FOR FARMING SEC. 145. SPECIAL EXPENSING RULES FOR CER- (a) IN GENERAL.—Clause (ii) of section BUSINESS MACHINERY AND EQUIP- TAIN FILM AND TELEVISION PRO- 897(h)(4)(A) is amended by striking ‘‘Decem- MENT. DUCTIONS. ber 31, 2009’’ and inserting ‘‘December 31, (a) IN GENERAL.—Clause (vii) of section (a) IN GENERAL.—Subsection (f) of section 2010’’. 168(e)(3)(B) is amended by striking ‘‘January 181 is amended by striking ‘‘December 31, (b) EFFECTIVE DATE.— 1, 2010’’ and inserting ‘‘January 1, 2011’’. 2009’’ and inserting ‘‘December 31, 2010’’. (1) IN GENERAL.—The amendment made by (b) EFFECTIVE DATE.—The amendment (b) EFFECTIVE DATE.—The amendment subsection (a) shall take effect on January 1, made by this section shall apply to property made by this section shall apply to produc- 2010. Notwithstanding the preceding sen- placed in service after December 31, 2009. tions commencing after December 31, 2009. tence, such amendment shall not apply with

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respect to the withholding requirement (2) by striking ‘‘2014’’ in the heading and in- (B) by striking ‘‘2014’’ in the heading and in- under section 1445 of the Internal Revenue serting ‘‘2015’’. serting ‘‘2015’’. Code of 1986 for any payment made before (c) TREATMENT OF CERTAIN TERMINATION (3) CLERICAL AMENDMENT.—Subsection (d) the date of the enactment of this Act. DATES SPECIFIED IN NOMINATIONS.—In the of section 1400F is amended by striking ‘‘and (2) AMOUNTS WITHHELD ON OR BEFORE DATE case of a designation of an empowerment ‘December 31, 2014’ for ‘December 31, 2014’ ’’. OF ENACTMENT.—In the case of a regulated in- zone the nomination for which included a (c) COMMERCIAL REVITALIZATION DEDUC- vestment company— termination date which is contemporaneous TION.— (A) which makes a distribution after De- with the date specified in subparagraph (1) IN GENERAL.—Subsection (g) of section cember 31, 2009, and before the date of the en- (A)(i) of section 1391(d)(1) of the Internal 1400I is amended by striking ‘‘December 31, actment of this Act, and Revenue Code of 1986 (as in effect before the 2009’’ and inserting ‘‘December 31, 2010’’. (B) which would (but for the second sen- enactment of this Act), subparagraph (B) of (2) CONFORMING AMENDMENT.—Subpara- tence of paragraph (1)) have been required to such section shall not apply with respect to graph (A) of section 1400I(d)(2) is amended by withhold with respect to such distribution such designation unless, after the date of the striking ‘‘after 2001 and before 2010’’ and in- under section 1445 of such Code, enactment of this section, the entity which serting ‘‘which begins after 2001 and before such investment company shall not be liable made such nomination reconfirms such ter- the date referred to in subsection (g)’’. (d) INCREASED EXPENSING UNDER SECTION to any person to whom such distribution was mination date, or amends the nomination to 179.—Subparagraph (A) of section 1400J(b)(1) made for any amount so withheld and paid provide for a new termination date, in such is amended by striking ‘‘January 1, 2010’’ and over to the Secretary of the Treasury. manner as the Secretary of the Treasury (or inserting ‘‘January 1, 2011’’. SEC. 153. EXCEPTIONS FOR ACTIVE FINANCING the Secretary’s designee) may provide. (e) TREATMENT OF CERTAIN TERMINATION INCOME. (d) EFFECTIVE DATE.—The amendments DATES SPECIFIED IN NOMINATIONS.—In the (a) IN GENERAL.—Sections 953(e)(10) and made by this section shall apply to periods case of a designation of a renewal commu- 954(h)(9) are each amended by striking ‘‘Jan- after December 31, 2009. nity the nomination for which included a uary 1, 2010’’ and inserting ‘‘January 1, 2011’’. SEC. 158. TAX INCENTIVES FOR INVESTMENT IN termination date which is contemporaneous (b) CONFORMING AMENDMENT.—Section THE DISTRICT OF COLUMBIA. with the date specified in subparagraph (A) 953(e)(10) is amended by striking ‘‘December (a) IN GENERAL.—Subsection (f) of section of section 1400E(b)(1) of the Internal Revenue 31, 2009’’ and inserting ‘‘December 31, 2010’’. 1400 is amended by striking ‘‘December 31, Code of 1986 (as in effect before the enact- (c) EFFECTIVE DATE.—The amendments 2009’’ each place it appears and inserting made by this section shall apply to taxable ‘‘December 31, 2010’’. ment of this Act), subparagraph (B) of such section shall not apply with respect to such years of foreign corporations beginning after (b) TAX-EXEMPT DC EMPOWERMENT ZONE designation unless, after the date of the en- December 31, 2009, and to taxable years of BONDS.—Subsection (b) of section 1400A is United States shareholders with or within amended by striking ‘‘December 31, 2009’’ and actment of this section, the entity which which any such taxable year of such foreign inserting ‘‘December 31, 2010’’. made such nomination reconfirms such ter- mination date, or amends the nomination to corporation ends. (c) ZERO-PERCENT CAPITAL GAINS RATE.— provide for a new termination date, in such SEC. 154. LOOK-THRU TREATMENT OF PAYMENTS (1) ACQUISITION DATE.—Paragraphs (2)(A)(i), BETWEEN RELATED CONTROLLED (3)(A), (4)(A)(i), and (4)(B)(i)(I) of section manner as the Secretary of the Treasury (or FOREIGN CORPORATIONS UNDER 1400B(b) are each amended by striking ‘‘Jan- the Secretary’s designee) may provide. (f) EFFECTIVE DATES.— FOREIGN PERSONAL HOLDING COM- uary 1, 2010’’ and inserting ‘‘January 1, 2011’’. PANY RULES. (1) IN GENERAL.—Except as otherwise pro- (2) LIMITATION ON PERIOD OF GAINS.— (a) IN GENERAL.—Subparagraph (C) of sec- vided in this subsection, the amendments (A) IN GENERAL.—Paragraph (2) of section tion 954(c)(6) is amended by striking ‘‘Janu- made by this section shall apply to periods 1400B(e) is amended— ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. after December 31, 2009. (i) by striking ‘‘December 31, 2014’’ and in- (b) EFFECTIVE DATE.—The amendment (2) ACQUISITIONS.—The amendments made serting ‘‘December 31, 2015’’, and made by this section shall apply to taxable by subsections (b)(1) and (d) shall apply to (ii) by striking ‘‘2014’’ in the heading and years of foreign corporations beginning after acquisitions after December 31, 2009. inserting ‘‘2015’’. December 31, 2009, and to taxable years of (3) COMMERCIAL REVITALIZATION DEDUC- (B) PARTNERSHIPS AND S-CORPS.—Paragraph United States shareholders with or within TION.— (2) of section 1400B(g) is amended by striking which any such taxable year of such foreign (A) IN GENERAL.—The amendment made by ‘‘December 31, 2014’’ and inserting ‘‘Decem- corporation ends. subsection (c)(1) shall apply to buildings ber 31, 2015’’. SEC. 155. REDUCTION IN CORPORATE RATE FOR placed in service after December 31, 2009. (d) FIRST-TIME HOMEBUYER CREDIT.—Sub- QUALIFIED TIMBER GAIN. (B) CONFORMING AMENDMENT.—The amend- section (i) of section 1400C is amended by (a) IN GENERAL.—Paragraph (1) of section ment made by subsection (c)(2) shall apply to striking ‘‘January 1, 2010’’ and inserting 1201(b) is amended by striking ‘‘ending’’ and calendar years beginning after December 31, ‘‘January 1, 2011’’. all that follows through ‘‘such date’’. 2009. (e) EFFECTIVE DATES.— (b) CONFORMING AMENDMENT.—Paragraph SEC. 160. TEMPORARY INCREASE IN LIMIT ON (1) IN GENERAL.—Except as otherwise pro- (3) of section 1201(b) is amended to read as COVER OVER OF RUM EXCISE TAXES follows: vided in this subsection, the amendments TO PUERTO RICO AND THE VIRGIN made by this section shall apply to periods ‘‘(3) APPLICATION OF SUBSECTION.—The ISLANDS. qualified timber gain for any taxable year after December 31, 2009. (a) IN GENERAL.—Paragraph (1) of section shall not exceed the qualified timber gain (2) TAX-EXEMPT DC EMPOWERMENT ZONE 7652(f) is amended by striking ‘‘January 1, which would be determined by not taking BONDS.—The amendment made by subsection 2010’’ and inserting ‘‘January 1, 2011’’. into account any portion of such taxable (b) shall apply to bonds issued after Decem- (b) EFFECTIVE DATE.—The amendment year after December 31, 2010.’’. ber 31, 2009. made by this section shall apply to distilled (c) EFFECTIVE DATE.—The amendments (3) ACQUISITION DATES FOR ZERO-PERCENT spirits brought into the United States after made by this section shall apply to taxable CAPITAL GAINS RATE.—The amendments made December 31, 2009. years ending after May 22, 2009. by subsection (c) shall apply to property ac- SEC. 161. AMERICAN SAMOA ECONOMIC DEVEL- OPMENT CREDIT. SEC. 156. BASIS ADJUSTMENT TO STOCK OF S quired or substantially improved after De- CORPS MAKING CHARITABLE CON- cember 31, 2009. (a) IN GENERAL.—Subsection (d) of section TRIBUTIONS OF PROPERTY. (4) HOMEBUYER CREDIT.—The amendment 119 of division A of the Tax Relief and Health (a) IN GENERAL.—Paragraph (2) of section made by subsection (d) shall apply to homes Care Act of 2006 is amended— 1367(a) is amended by striking ‘‘December 31, purchased after December 31, 2009. (1) by striking ‘‘first 4 taxable years’’ and 2009’’ and inserting ‘‘December 31, 2010’’. SEC. 159. RENEWAL COMMUNITY TAX INCEN- inserting ‘‘first 5 taxable years’’, and (b) EFFECTIVE DATE.—The amendment TIVES. (2) by striking ‘‘January 1, 2010’’ and in- made by this section shall apply to contribu- (a) IN GENERAL.—Subsection (b) of section serting ‘‘January 1, 2011’’. tions made in taxable years beginning after 1400E is amended— (b) EFFECTIVE DATE.—The amendments December 31, 2009. (1) by striking ‘‘December 31, 2009’’ in para- made by this section shall apply to taxable SEC. 157. EMPOWERMENT ZONE TAX INCENTIVES. graphs (1)(A) and (3) and inserting ‘‘Decem- years beginning after December 31, 2009. (a) IN GENERAL.—Section 1391 is amended— ber 31, 2010’’, and Subtitle D—Temporary Disaster Relief (1) by striking ‘‘December 31, 2009’’ in sub- (2) by striking ‘‘January 1, 2010’’ in para- Provisions section (d)(1)(A)(i) and inserting ‘‘December graph (3) and inserting ‘‘January 1, 2011’’. PART I—NATIONAL DISASTER RELIEF 31, 2010’’, and (b) ZERO-PERCENT CAPITAL GAINS RATE.— SEC. 171. WAIVER OF CERTAIN MORTGAGE REV- (2) by striking the last sentence of sub- (1) ACQUISITION DATE.—Paragraphs (2)(A)(i), ENUE BOND REQUIREMENTS. section (h)(2). (3)(A), (4)(A)(i), and (4)(B)(i) of section (a) IN GENERAL.—Paragraph (11) of section (b) INCREASED EXCLUSION OF GAIN ON STOCK 1400F(b) are each amended by striking ‘‘Jan- 143(k) is amended by striking ‘‘January 1, OF EMPOWERMENT ZONE BUSINESSES.—Sub- uary 1, 2010’’ and inserting ‘‘January 1, 2011’’. 2010’’ and inserting ‘‘January 1, 2011’’. paragraph (C) of section 1202(a)(2) is amend- (2) LIMITATION ON PERIOD OF GAINS.—Para- (b) SPECIAL RULE FOR RESIDENCES DE- ed— graph (2) of section 1400F(c) is amended— STROYED IN FEDERALLY DECLARED DISAS- (1) by striking ‘‘December 31, 2014’’ and in- (A) by striking ‘‘December 31, 2014’’ and in- TERS.—Paragraph (13) of section 143(k), as re- serting ‘‘December 31, 2015’’, and serting ‘‘December 31, 2015’’, and designated by subsection (c), is amended by

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00040 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.037 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S865 striking ‘‘January 1, 2010’’ in subparagraphs Subpart B—GO Zone Act, as contained in Public Law 111–5 (26 (A)(i) and (B)(i) and inserting ‘‘January 1, SEC. 183. SPECIAL DEPRECIATION ALLOWANCE. U.S.C. 3304 note; 123 Stat. 444), is amended— 2011’’. (a) IN GENERAL.—Paragraph (6) of section (A) by striking ‘‘February 28, 2010’’ each (c) TECHNICAL AMENDMENT.—Subsection (k) 1400N(d)(6) is amended by striking subpara- place it appears and inserting ‘‘January 1, of section 143 is amended by redesignating graph (D). 2011’’; and the second paragraph (12) (relating to special (b) EFFECTIVE DATE.—The amendment (B) in subsection (c), by striking ‘‘July 31, rules for residences destroyed in federally made by this section shall apply to property 2010’’ and inserting ‘‘June 1, 2011’’. declared disasters) as paragraph (13). placed in service after December 31, 2009. (4) Section 5 of the Unemployment Com- (d) EFFECTIVE DATES.— pensation Extension Act of 2008 (Public Law SEC. 184. INCREASE IN REHABILITATION CREDIT. (1) IN GENERAL.—Except as otherwise pro- 110–449; 26 U.S.C. 3304 note) is amended by (a) IN GENERAL.—Subsection (h) of section vided in this subsection, the amendment striking ‘‘July 31, 2010’’ and inserting ‘‘May 1400N is amended by striking ‘‘December 31, made by this section shall apply to bonds 31, 2011’’. 2009’’ and inserting ‘‘December 31, 2010’’. issued after December 31, 2009. (b) FUNDING.—Section 4004(e)(1) of the Sup- (b) EFFECTIVE DATE.—The amendment (2) RESIDENCES DESTROYED IN FEDERALLY plemental Appropriations Act, 2008 (Public made by this section shall apply to amounts DECLARED DISASTERS.—The amendments Law 110–252; 26 U.S.C. 3304 note) is amended— paid or incurred after December 31, 2009. made by subsection (b) shall apply with re- (1) in subparagraph (B), by striking ‘‘and’’ spect to disasters occurring after December SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH at the end; 31, 2009. RESPECT TO CERTAIN INDIVIDUALS (2) in subparagraph (C), by striking ‘‘1009’’ AFFECTED BY HURRICANE KATRINA (3) TECHNICAL AMENDMENT.—The amend- FOR EMPLOYERS INSIDE DISASTER and inserting ‘‘1009(a)(1)’’; and ment made by subsection (c) shall take ef- AREAS. (3) by inserting after subparagraph (C) the fect as if included in section 709 of the Tax (a) IN GENERAL.—Paragraph (1) of section following new subparagraph: Extenders and Alternative Minimum Tax Re- 201(b) of the Katrina Emergency Tax Relief ‘‘(D) the amendments made by section lief Act of 2008. Act of 2005 is amended by striking ‘‘4-year’’ 201(a)(1) of the American Workers, State, and SEC. 172. LOSSES ATTRIBUTABLE TO FEDERALLY and inserting ‘‘5-year’’. Business Relief Act of 2010; and’’. DECLARED DISASTERS. (b) EFFECTIVE DATE.—The amendment (c) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Subclause (I) of section made by subsection (a) shall apply to indi- made by this section shall take effect as if 165(h)(3)(B)(i) is amended by striking ‘‘Janu- viduals hired after August 27, 2009. included in the enactment of the Department ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. of Defense Appropriations Act, 2010 (Public Subpart C—Midwestern Disaster Areas (b) $500 LIMITATION.—Paragraph (1) of sec- Law 111–118). SEC. 191. SPECIAL RULES FOR USE OF RETIRE- tion 165(h) is amended by striking ‘‘Decem- Subtitle B—Health Provisions ber 31, 2009’’ and inserting ‘‘December 31, MENT FUNDS. SEC. 211. EXTENSION AND IMPROVEMENT OF 2010’’. (a) IN GENERAL.—Section 702(d)(10) of the Heartland Disaster Tax Relief Act of 2008 PREMIUM ASSISTANCE FOR COBRA (c) EFFECTIVE DATE.— BENEFITS. (1) IN GENERAL.—The amendment made by (Public Law 110–343; 122 Stat. 3918) is amend- ed— (a) EXTENSION OF ELIGIBILITY PERIOD.— subsection (a) shall apply to federally de- Subsection (a)(3)(A) of section 3001 of divi- clared disasters occurring after December 31, (1) by striking ‘‘January 1, 2010’’ both places it appears and inserting ‘‘January 1, sion B of the American Recovery and Rein- 2009. vestment Act of 2009 (Public Law 111–5) is (2) $500 LIMITATION.—The amendment made 2011’’, and (2) by striking ‘‘December 31, 2009’’ both amended by striking ‘‘February 28, 2010’’ and by subsection (b) shall apply to taxable years inserting ‘‘December 31, 2010’’. beginning after December 31, 2009. places it appears and inserting ‘‘December 31, 2010’’. (b) CLARIFICATIONS RELATING TO SECTION SEC. 173. SPECIAL DEPRECIATION ALLOWANCE 3001 OF ARRA.— FOR QUALIFIED DISASTER PROP- (b) EFFECTIVE DATE.—The amendments (1) CLARIFICATION REGARDING COBRA CON- ERTY. made by this section shall take effect as if TINUATION RESULTING FROM REDUCTIONS IN (a) IN GENERAL.—Subclause (I) of section included in section 702(d)(10) of the Heart- land Disaster Tax Relief Act of 2008. HOURS.—Subsection (a) of section 3001 of divi- 168(n)(2)(A)(ii) is amended by striking ‘‘Janu- sion B of the American Recovery and Rein- SEC. 192. EXCLUSION OF CANCELLATION OF ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. vestment Act of 2009 (Public Law 111–5) is (b) EFFECTIVE DATE.—The amendment MORTGAGE INDEBTEDNESS. amended— made by this section shall apply to disasters (a) IN GENERAL.—Section 702(e)(4)(C) of the (A) in paragraph (3)(C), by inserting before occurring after December 31, 2009. Heartland Disaster Tax Relief Act of 2008 the period at the end the following: ‘‘or con- SEC. 174. NET OPERATING LOSSES ATTRIB- (Public Law 110–343; 122 Stat. 3918) is amend- ed by striking ‘‘January 1, 2010’’ and insert- sists of a reduction of hours followed by such UTABLE TO FEDERALLY DECLARED an involuntary termination of employment DISASTERS. ing ‘‘January 1, 2011’’. during such period’’; (a) IN GENERAL.—Subclause (I) of section (b) EFFECTIVE DATE.—The amendments (B) in paragraph (16)— 172(j)(1)(A)(i) is amended by striking ‘‘Janu- made by this section shall apply to dis- (i) by striking clause (ii) of subparagraph ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. charges of indebtedness after December 31, (A), and inserting the following: (b) EFFECTIVE DATE.—The amendment 2009. made by this section shall apply to losses at- ‘‘(ii) such individual pays, by the latest of TITLE II—UNEMPLOYMENT INSURANCE, 60 days after the date of the enactment of tributable to disasters occurring after De- HEALTH, AND OTHER PROVISIONS cember 31, 2009. this paragraph, 30 days after the date of pro- Subtitle A—Unemployment Insurance vision of the notification required under sub- SEC. 175. EXPENSING OF QUALIFIED DISASTER paragraph (D)(ii), or the period described in EXPENSES. SEC. 201. EXTENSION OF UNEMPLOYMENT INSUR- ANCE PROVISIONS. section 4980B(f)(2)(B)(iii) of the Internal Rev- (a) IN GENERAL.—Subparagraph (A) of sec- (a) IN GENERAL.—(1) Section 4007 of the enue Code of 1986, the amount of such pre- tion 198A(b)(2) is amended by striking ‘‘Janu- Supplemental Appropriations Act, 2008 (Pub- mium, after the application of paragraph ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. lic Law 110–252; 26 U.S.C. 3304 note) is amend- (1)(A).’’; and (b) EFFECTIVE DATE.—The amendment made by this section shall apply to expendi- ed— (ii) by striking subclause (I) of subpara- tures on account of disasters occurring after (A) by striking ‘‘February 28, 2010’’ each graph (C)(i), and inserting the following: December 31, 2009. place it appears and inserting ‘‘December 31, ‘‘(I) such assistance eligible individual ex- 2010’’; perienced an involuntary termination that PART II—REGIONAL PROVISIONS (B) in the heading for subsection (b)(2), by was a qualifying event prior to the date of Subpart A—New York Liberty Zone striking ‘‘FEBRUARY 28, 2010’’ and inserting enactment of the Department of Defense Ap- SEC. 181. SPECIAL DEPRECIATION ALLOWANCE ‘‘DECEMBER 31, 2010’’; and propriations Act, 2010; and’’; and FOR NONRESIDENTIAL AND RESI- (C) in subsection (b)(3), by striking ‘‘July (C) by adding at the end the following: DENTIAL REAL PROPERTY. 31, 2010’’ and inserting ‘‘May 31, 2011’’. ‘‘(17) SPECIAL RULES IN CASE OF INDIVIDUALS (a) IN GENERAL.—Subparagraph (A) of sec- (2) Section 2002(e) of the Assistance for Un- LOSING COVERAGE BECAUSE OF A REDUCTION OF tion 1400L(b)(2) is amended by striking ‘‘De- employed Workers and Struggling Families HOURS.— cember 31, 2009’’ and inserting ‘‘December 31, Act, as contained in Public Law 111–5 (26 ‘‘(A) NEW ELECTION PERIOD.— 2010’’. U.S.C. 3304 note; 123 Stat. 438), is amended— ‘‘(i) IN GENERAL.—For purposes of the (b) EFFECTIVE DATE.—The amendment (A) in paragraph (1)(B), by striking ‘‘Feb- COBRA continuation provisions, in the case made by this section shall apply to property ruary 28, 2010’’ and inserting ‘‘December 31, of an individual described in subparagraph placed in service after December 31, 2009. 2010’’; (C) who did not make (or who made and dis- SEC. 182. TAX-EXEMPT BOND FINANCING. (B) in the heading for paragraph (2), by continued) an election of COBRA continu- (a) IN GENERAL.—Subparagraph (D) of sec- striking ‘‘FEBRUARY 28, 2010’’ and inserting ation coverage on the basis of the reduction tion 1400L(d)(2) is amended by striking ‘‘Jan- ‘‘DECEMBER 31, 2010’’; and of hours of employment, the involuntary ter- uary 1, 2010’’ and inserting ‘‘January 1, 2011’’. (C) in paragraph (3), by striking ‘‘August mination of employment of such individual (b) EFFECTIVE DATE.—The amendment 31, 2010’’ and inserting ‘‘June 30, 2011’’. after the date of the enactment of the Amer- made by this section shall apply to bonds (3) Section 2005 of the Assistance for Unem- ican Workers, State, and Business Relief Act issued after December 31, 2009. ployed Workers and Struggling Families of 2010 shall be treated as a qualifying event.

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00041 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.037 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S866 CONGRESSIONAL RECORD — SENATE March 1, 2010

‘‘(ii) COUNTING COBRA DURATION PERIOD inserting after subsection (d) the following any failure to timely pay the applicable pre- FROM PREVIOUS QUALIFYING EVENT.—In any new subsection:. mium (other than pursuant to subparagraph case of an individual referred to in clause (i), ‘‘(e) EMPLOYER DETERMINATION OF QUALI- (A)) for such period. the period of such individual’s continuation FYING EVENT AS INVOLUNTARY TERMI- ‘‘(D) NOTIFICATION.—Notification provi- coverage shall be determined as though the NATION.—For purposes of this section, in any sions similar to the provisions of paragraph qualifying event were the reduction of hours case in which— (16)(E) shall apply for purposes of this para- of employment. ‘‘(1) based on a reasonable interpretation of graph.’’. ‘‘(iii) CONSTRUCTION.—Nothing in this para- section 3001(a)(3)(C) of division B of the (d) EFFECTIVE DATE.—The amendments graph shall be construed as requiring an in- American Recovery and Reinvestment Act of made by this section shall take effect as if dividual referred to in clause (i) to make a 2009 and administrative guidance thereunder, included in the provisions of section 3001 of payment for COBRA continuation coverage an employer determines that the qualifying division B of the American Recovery and Re- between the reduction of hours and the in- event with respect to COBRA continuation investment Act of 2009 to which they relate, voluntary termination of employment. coverage for an individual was involuntary except that— ‘‘(iv) PREEXISTING CONDITIONS.—With re- termination of a covered employee’s employ- (1) the amendments made by subsections spect to an individual referred to in clause ment, and (b)(1) shall apply to periods of coverage be- (i) who elects COBRA continuation coverage ‘‘(2) the employer maintains supporting ginning after the date of the enactment of pursuant to such clause, rules similar to the documentation of the determination, includ- this Act; and rules in paragraph (4)(C) shall apply. ing an attestation by the employer of invol- (2) the amendments made by paragraphs (2) ‘‘(B) NOTICES.—In the case of an individual untary termination with respect to the cov- and (3) of subsection (b) shall take effect on described in subparagraph (C), the adminis- ered employee, the date of the enactment of this Act. trator of the group health plan (or other en- SEC. 212. EXTENSION OF THERAPY CAPS EXCEP- the qualifying event for the individual shall tity) involved shall provide, during the 60- TIONS PROCESS. be deemed to be involuntary termination of day period beginning on the date of such in- Section 1833(g)(5) of the Social Security the covered employee’s employment.’’. dividual’s involuntary termination of em- Act (42 U.S.C. 1395l(g)(5)) is amended by (D) Subsection (a) of section 6720C is ployment, an additional notification de- striking ‘‘December 31, 2009’’ and inserting scribed in paragraph (7)(A), including infor- amended by striking ‘‘section 3002(a)(2)(C) of ‘‘December 31, 2010’’. mation on the provisions of this paragraph. the Health Insurance Assistance for the Un- SEC. 213. TREATMENT OF PHARMACIES UNDER Rules similar to the rules of paragraph (7) employed Act of 2009’’ and inserting ‘‘section DURABLE MEDICAL EQUIPMENT AC- shall apply with respect to such notification. 3001(a)(2)(C) of title III of division B of the CREDITATION REQUIREMENTS. American Recovery and Reinvestment Act of (a) IN GENERAL.—Section 1834(a)(20) of the ‘‘(C) INDIVIDUALS DESCRIBED.—Individuals described in this subparagraph are individ- 2009’’. Social Security Act (42 U.S.C. 1395m(a)(20)) is uals who are assistance eligible individuals (c) RULES RELATING TO 2010 EXTENSION.— amended— on the basis of a qualifying event consisting Subsection (a) of section 3001 of division B of (1) in subparagraph (F)— of a reduction of hours occurring during the the American Recovery and Reinvestment (A) in clause (i)— period described in paragraph (3)(A) followed Act of 2009 (Public Law 111–5), as amended by (i) by striking ‘‘clause (ii)’’ and inserting by an involuntary termination of employ- subsection (b)(1)(C), is further amended by ‘‘clauses (ii) and (iii)’’; ment insofar as such involuntary termi- adding at the end the following: (ii) by striking ‘‘January 1, 2010’’ and in- nation of employment occurred after the ‘‘(18) RULES RELATED TO 2010 EXTENSION.— serting ‘‘January 1, 2011’’; and date of the enactment of the American ‘‘(A) ELECTION TO PAY PREMIUMS RETRO- (iii) by striking ‘‘and’’ at the end; Workers, State, and Business Relief Act of ACTIVELY AND MAINTAIN COBRA COVERAGE.—In (B) in clause (ii)(II), by striking the period 2010.’’. the case of any premium for a period of cov- at the end and inserting ‘‘; and’’; (C) by inserting after clause (ii)(II) the fol- (2) CLARIFICATION OF PERIOD OF ASSIST- erage during an assistance eligible individ- lowing new clause: ANCE.—Subsection (a)(2)(A)(ii)(I) of such sec- ual’s 2010 transition period, such individual tion is amended by striking ‘‘of the first shall be treated for purposes of any COBRA ‘‘(iii)(I) subject to subclause (II), with re- month’’. continuation provision as having timely paid spect to items and services furnished on or after January 1, 2011, the accreditation re- (3) ENFORCEMENT.—Subsection (a)(5) of the amount of such premium if— such section is amended by adding at the end ‘‘(i) such individual’s qualifying event was quirement of clause (i) shall not apply to a the following: ‘‘In addition to civil actions on or after March 1, 2010 and prior to the pharmacy described in subparagraph (G); and that may be brought to enforce applicable date of enactment of this paragraph, and ‘‘(II) effective with respect to items and provisions of such Act or other laws, the ap- ‘‘(ii) such individual pays, by the latest of services furnished on or after the date of the propriate Secretary or an affected individual 60 days after the date of the enactment of enactment of this subparagraph, the Sec- may bring a civil action to enforce such de- this paragraph, 30 days after the date of pro- retary may apply to pharmacies quality terminations and for appropriate relief. In vision of the notification required under standards and an accreditation requirement addition, such Secretary may assess a pen- paragraph (16)(D)(ii) (as applied by subpara- established by the Secretary that are an al- alty against a plan sponsor or health insur- graph (D) of this paragraph), or the period ternative to the quality standards and ac- ance issuer of not more than $110 per day for described in section 4980B(f)(2)(B)(iii) of the creditation requirement otherwise applicable each failure to comply with such determina- Internal Revenue Code of 1986, the amount of under this paragraph if the Secretary deter- tion of such Secretary after 10 days after the such premium, after the application of para- mines such alternative quality standards and date of the plan sponsor’s or issuer’s receipt graph (1)(A). accreditation requirement are appropriate of the determination.’’. ‘‘(B) REFUNDS AND CREDITS FOR RETRO- for pharmacies.’’; and (4) AMENDMENTS RELATING TO SECTION 3001 ACTIVE PREMIUM ASSISTANCE ELIGIBILITY.—In (D) by adding at the end the following OF ARRA.— the case of an assistance eligible individual flush sentence: (A) Subsection (g) of section 35 is amended who pays, with respect to any period of ‘‘If determined appropriate by the Secretary, by striking ‘‘section 3002(a) of the Health In- COBRA continuation coverage during such any alternative quality standards and ac- surance Assistance for the Unemployed Act individual’s 2010 transition period, the pre- creditation requirement established under of 2009’’ and inserting ‘‘section 3001(a) of title mium amount for such coverage without re- clause (iii)(II) may differ for categories of III of division B of the American Recovery gard to paragraph (1)(A), rules similar to the pharmacies established by the Secretary and Reinvestment Act of 2009’’. rules of paragraph (12)(E) shall apply. (such as pharmacies described in subpara- (B) Section 139C is amended by striking ‘‘(C) 2101 TRANSITION PERIOD.— graph (G)).’’; and ‘‘section 3002 of the Health Insurance Assist- ‘‘(i) IN GENERAL.—For purposes of this (2) by adding at the end the following new ance for the Unemployed Act of 2009’’ and in- paragraph, the term ‘transition period’ subparagraph: serting ‘‘section 3001 of title III of division B means, with respect to any assistance eligi- ‘‘(G) PHARMACY DESCRIBED.—A pharmacy of the American Recovery and Reinvestment ble individual, any period of coverage if— described in this subparagraph is a pharmacy Act of 2009’’. ‘‘(I) such assistance eligible individual ex- that meets each of the following criteria: (C) Section 6432 is amended— perienced an involuntary termination that ‘‘(i) The total billings by the pharmacy for (i) in subsection (a), by striking ‘‘section was a qualifying event prior to the date of such items and services under this title are 3002(a) of the Health Insurance Assistance enactment of the American Workers, State, less than 5 percent of total pharmacy sales for the Unemployed Act of 2009’’ and insert- and Business Relief Act of 2010, and for a previous period (of not less than 24 ing ‘‘section 3001(a) of title III of division B ‘‘(II) paragraph (1)(A) applies to such pe- months) specified by the Secretary. of the American Recovery and Reinvestment riod by reason of the amendments made by ‘‘(ii) The pharmacy has been enrolled under Act of 2009’’; section 211 of the American Workers, State, section 1866(j) as a supplier of durable med- (ii) in subsection (c)(3), by striking ‘‘sec- and Business Relief Act of 2010. ical equipment, prosthetics, orthotics, and tion 3002(a)(1)(A) of such Act’’ in subsection ‘‘(ii) CONSTRUCTION.—Any period during the supplies, has been issued (which may include (c)(3) and inserting ‘‘section 3001(a)(1)(A) of period described in subclauses (I) and (II) of the renewal of) a provider number for at title III of division B of the American Recov- clause (i) for which the applicable premium least 2 years, and for which a final adverse ery and Reinvestment Act of 2009’’; and has been paid pursuant to subparagraph (A) action (as defined in section 424.57(a) of title (iii) by redesignating subsections (e) and (f) shall be treated as a period of coverage re- 42, Code of Federal Regulations) has not been as subsections (f) and (g), respectively, and ferred to in such paragraph, irrespective of imposed in the past 2 years.

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00042 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.038 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S867 ‘‘(iii) The pharmacy submits to the Sec- (1) in the first sentence, by striking ‘‘2010’’ striking ‘‘5-year period’’ and inserting ‘‘6- retary an attestation, in a form and manner, and inserting ‘‘2011’’; and year period’’. and at a time, specified by the Secretary, (2) by adding at the end the following new SEC. 221. EXTENSION OF CERTAIN PAYMENT that the pharmacy meets the criteria de- sentence: ‘‘For purposes of applying this sub- RULES FOR LONG-TERM CARE HOS- scribed in clauses (i) and (ii). paragraph for ground ambulance services PITAL SERVICES AND OF MORATO- ‘‘(iv) The pharmacy agrees to submit mate- furnished on or after January 1, 2010, and be- RIUM ON THE ESTABLISHMENT OF rials as requested by the Secretary, or dur- fore January 1, 2011, the Secretary shall use CERTAIN HOSPITALS AND FACILI- TIES. ing the course of an audit conducted on a the percent increase that was applicable (a) EXTENSION OF CERTAIN PAYMENT random sample of pharmacies selected annu- under this subparagraph to ground ambu- RULES.—Section 114(c) of the Medicare, Med- ally, to verify that the pharmacy meets the lance services furnished during 2009.’’. criteria described in clauses (i) and (ii). Ma- icaid, and SCHIP Extension Act of 2007 (42 SEC. 216. EXTENSION OF GEOGRAPHIC FLOOR U.S.C. 1395ww note), as amended by section terials submitted under the preceding sen- FOR WORK. tence shall include a certification by an 4302(a) of the American Recovery and Rein- Section 1848(e)(1)(E) of the Social Security vestment Act (Public Law 111–5), is amended independent accountant on behalf of the Act (42 U.S.C. 1395w–4(e)(1)(E)) is amended by pharmacy or the submission of tax returns by striking ‘‘3-year period’’ each place it ap- striking ‘‘before January 1, 2010’’ and insert- pears and inserting ‘‘4-year period’’. filed by the pharmacy during the relevant ing ‘‘before January 1, 2011’’. periods, as requested by the Secretary.’’. (b) EXTENSION OF MORATORIUM.—Section SEC. 217. EXTENSION OF PAYMENT FOR TECH- (b) CONFORMING AMENDMENTS.—Section 114(d)(1) of such Act (42 U.S.C. 1395ww note), NICAL COMPONENT OF CERTAIN as amended by section 4302(b) of the Amer- 1834(a)(20)(E) of the Social Security Act (42 PHYSICIAN PATHOLOGY SERVICES. U.S.C. 1395m(a)(20)(E)) is amended— ican Recovery and Reinvestment Act (Public Section 542(c) of the Medicare, Medicaid, Law 111–5), in the matter preceding subpara- (1) in the first sentence, by striking ‘‘The’’ and SCHIP Benefits Improvement and Pro- and inserting ‘‘Except as provided in the graph (A), is amended by striking ‘‘3-year pe- tection Act of 2000 (as enacted into law by riod’’ and inserting ‘‘4-year period’’. third sentence, the’’; and section 1(a)(6) of Public Law 106–554), as SEC. 222. EXTENSION OF THE MEDICARE RURAL (2) by adding at the end the following new amended by section 732 of the Medicare Pre- sentences: ‘‘Notwithstanding the preceding HOSPITAL FLEXIBILITY PROGRAM. scription Drug, Improvement, and Mod- Section 1820(j) of the Social Security Act sentences, any alternative quality standards ernization Act of 2003 (42 U.S.C. 1395w–4 and accreditation requirement established (42 U.S.C. 1395i–4(j)) is amended— note), section 104 of division B of the Tax Re- (1) by striking ‘‘2010, and for’’ and inserting under subparagraph (F)(iii)(II) shall be estab- lief and Health Care Act of 2006 (42 U.S.C. lished through notice and comment rule- ‘‘2010, for’’; and 1395w–4 note), section 104 of the Medicare, (2) by inserting ‘‘and for making grants to making. The Secretary may implement by Medicaid, and SCHIP Extension Act of 2007 program instruction or otherwise subpara- all States under subsection (g), such sums as (Public Law 110–173), and section 136 of the may be necessary in fiscal year 2011, to re- graph (G) after consultation with representa- Medicare Improvements for Patients and tives of relevant parties. The specifications main available until expended’’ before the Providers Act of 2008 (Public Law 110–275), is period at the end. developed by the Secretary in order to im- amended by striking ‘‘and 2009’’ and insert- plement subparagraph (G) shall be posted on ing ‘‘2009, and 2010’’. SEC. 223. EXTENSION OF SECTION 508 HOSPITAL the Internet website of the Centers for Medi- RECLASSIFICATIONS. care & Medicaid Services.’’. SEC. 218. EXTENSION OF OUTPATIENT HOLD (a) IN GENERAL.—Subsection (a) of section HARMLESS PROVISION. (c) ADMINISTRATION.—Chapter 35 of title 44, 106 of division B of the Tax Relief and Health United States Code, shall not apply to this (a) IN GENERAL.—Section 1833(t)(7)(D)(i) of Care Act of 2006 (42 U.S.C. 1395 note), as section. the Social Security Act (42 U.S.C. amended by section 117 of the Medicare, (d) RULE OF CONSTRUCTION.—Nothing in the 1395l(t)(7)(D)(i)) is amended— Medicaid, and SCHIP Extension Act of 2007 provisions of, or amendments made by, this (1) in subclause (II)— (Public Law 110–173) and section 124 of the section shall be construed as affecting the (A) in the first sentence, by striking Medicare Improvements for Patients and application of an accreditation requirement ‘‘2010’’and inserting ‘‘2011’’; and Providers Act of 2008 (Public Law 110–275), is for pharmacies to qualify for bidding in a (B) in the second sentence, by striking ‘‘or amended by striking ‘‘September 30, 2009’’ competitive acquisition area under section 2009’’ and inserting ‘‘, 2009, or 2010’’; and and inserting ‘‘September 30, 2010’’. 1847 of the Social Security Act (42 U.S.C. (2) in subclause (III), by striking ‘‘January (b) SPECIAL RULE FOR FISCAL YEAR 2010.— 1395w–3). 1, 2010’’ and inserting ‘‘January 1, 2011’’. For purposes of implementation of the (e) WAIVER OF 1-YEAR REENROLLMENT (b) PERMITTING ALL SOLE COMMUNITY HOS- amendment made by subsection (a), includ- BAR.—In the case of a pharmacy described in PITALS TO BE ELIGIBLE FOR HOLD HARM- ing (notwithstanding paragraph (3) of section subparagraph (G) of section 1834(a)(20) of the LESS.—Section 1833(t)(7)(D)(i)(III) of the So- 117(a) of the Medicare, Medicaid, and SCHIP Social Security Act, as added by subsection cial Security Act (42 U.S.C. Extension Act of 2007 (Public Law 110–173), as (a), whose billing privileges were revoked 1395l(t)(7)(D)(i)(III)) is amended by adding at amended by section 124(b) of the Medicare prior to January 1, 2011, by reason of non- the end the following new sentence: ‘‘In the Improvements for Patients and Providers compliance with subparagraph (F)(i) of such case of covered OPD services furnished on or Act of 2008 (Public Law 110–275)) for purposes section, the Secretary of Health and Human after January 1, 2010, and before January 1, of the implementation of paragraph (2) of Services shall waive any reenrollment bar 2011, the preceding sentence shall be applied such section 117(a), during fiscal year 2010, imposed pursuant to section 424.535(d) of without regard to the 100-bed limitation.’’. title 42, Code of Federal Regulations (as in the Secretary of Health and Human Services SEC. 219. EHR CLARIFICATION. effect on the date of the enactment of this (in this subsection referred to as the ‘‘Sec- (a) QUALIFICATION FOR CLINIC-BASED PHYSI- Act) for such pharmacy to reapply for such retary’’) shall use the hospital wage index privileges. CIANS.— that was promulgated by the Secretary in (1) MEDICARE.—Section 1848(o)(1)(C)(ii) of SEC. 214. ENHANCED PAYMENT FOR MENTAL the Federal Register on August 27, 2009 (74 HEALTH SERVICES. the Social Security Act (42 U.S.C. 1395w– Fed. Reg. 43754), and any subsequent correc- Section 138(a)(1) of the Medicare Improve- 4(o)(1)(C)(ii)) is amended by striking ‘‘setting tions. ments for Patients and Providers Act of 2008 (whether inpatient or outpatient)’’ and in- SEC. 224. TECHNICAL CORRECTION RELATED TO (Public Law 110–275) is amended by striking serting ‘‘inpatient or emergency room set- CRITICAL ACCESS HOSPITAL SERV- ‘‘December 31, 2009’’ and inserting ‘‘Decem- ting’’. ICES. ber 31, 2010’’. (2) MEDICAID.—Section 1903(t)(3)(D) of the (a) IN GENERAL.—Subsections (g)(2)(A) and SEC. 215. EXTENSION OF AMBULANCE ADD-ONS. Social Security Act (42 U.S.C. 1396b(t)(3)(D)) (l)(8) of section 1834 of the Social Security (a) IN GENERAL.—Section 1834(l)(13) of the is amended by striking ‘‘setting (whether in- Act (42 U.S.C. 1395m) are each amended by Social Security Act (42 U.S.C. 1395m(l)(13)) is patient or outpatient)’’ and inserting ‘‘inpa- inserting ‘‘101 percent of’’ before ‘‘the rea- amended— tient or emergency room setting’’. sonable costs’’. (1) in subparagraph (A)— (b) EFFECTIVE DATE.—The amendments (b) EFFECTIVE DATE.—The amendments (A) in the matter preceding clause (i), by made by subsection (a) shall be effective as if made by subsection (a) shall take effect as if striking ‘‘before January 1, 2010’’ and insert- included in the enactment of the HITECH included in the enactment of section 405(a) of ing ‘‘before January 1, 2011’’; and Act (included in the American Recovery and the Medicare Prescription Drug, Improve- (B) in each of clauses (i) and (ii), by strik- Reinvestment Act of 2009 (Public Law 111–5)). ment, and Modernization Act of 2003 (Public ing ‘‘before January 1, 2010’’ and inserting (c) IMPLEMENTATION.—Notwithstanding Law 108–173; 117 Stat. 2266). ‘‘before January 1, 2011’’. any other provision of law, the Secretary SEC. 225. EXTENSION FOR SPECIALIZED MA (b) AIR AMBULANCE IMPROVEMENTS.—Sec- may implement the amendments made by PLANS FOR SPECIAL NEEDS INDI- tion 146(b)(1) of the Medicare Improvements this section by program instruction or other- VIDUALS. for Patients and Providers Act of 2008 (Pub- wise. (a) IN GENERAL.—Section 1859(f)(1) of the lic Law 110–275) is amended by striking ‘‘end- SEC. 220. EXTENSION OF REIMBURSEMENT FOR Social Security Act (42 U.S.C. 1395w–28(f)(1)) ing on December 31, 2009’’ and inserting ALL MEDICARE PART B SERVICES is amended by striking ‘‘2011’’ and inserting ‘‘ending on December 31, 2010’’. FURNISHED BY CERTAIN INDIAN ‘‘2012’’. (c) SUPER RURAL AMBULANCE.—Section HOSPITALS AND CLINICS. (b) TEMPORARY EXTENSION OF AUTHORITY 1834(l)(12)(A) of the Social Security Act (42 Section 1880(e)(1)(A) of the Social Security TO OPERATE BUT NO SERVICE AREA EXPAN- U.S.C. 1395m(l)(12)(A)) is amended— Act (42 U.S.C. 1395qq(e)(1)(A)) is amended by SION FOR DUAL SPECIAL NEEDS PLANS THAT

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DO NOT MEET CERTAIN REQUIREMENTS.—Sec- (d)(2) of such section 119 is amended by strik- (b) FUNDING.— tion 164(c)(2) of the Medicare Improvements ing ‘‘(42 U.S.C. 1395w–23(f))’’ and all that fol- (1) IN GENERAL.—Subsection (f)(1) of such for Patients and Providers Act of 2008 (Pub- lows through the period at the end and in- section is amended by inserting ‘‘and for fis- lic Law 110–275) is amended by striking ‘‘De- serting ‘‘(42 U.S.C. 1395w–23(f)), to the Ad- cal year 2010, $1,600,000,’’ after ‘‘$6,000,000,’’. cember 31, 2010’’ and inserting ‘‘December 31, ministration on Aging— (2) AVAILABILITY.—Subsection (f)(2) of such 2011’’. ‘‘(i) for fiscal year 2009, of $5,000,000; and section is amended by striking ‘‘2010’’ and in- SEC. 226. EXTENSION OF REASONABLE COST ‘‘(ii) for fiscal year 2010, of $2,000,000. serting ‘‘2014 or until expended’’. CONTRACTS. Amounts appropriated under this subpara- (c) REPORTS.— Section 1876(h)(5)(C)(ii) of the Social Secu- graph shall remain available until ex- (1) QUALITY IMPROVEMENT AND SAVINGS.— rity Act (42 U.S.C. 1395mm(h)(5)(C)(ii)) is pended.’’. Subsection (e)(3) of such section is amended amended, in the matter preceding subclause SEC. 230. FAMILY-TO-FAMILY HEALTH INFORMA- by striking ‘‘December 1, 2008’’ and inserting (I), by striking ‘‘January 1, 2010’’ and insert- TION CENTERS. ‘‘18 months after the date of the enactment ing ‘‘January 1, 2011’’. Section 501(c)(1)(A)(iii) of the Social Secu- of the American Workers, State, and Busi- SEC. 227. EXTENSION OF PARTICULAR WAIVER rity Act (42 U.S.C. 701(c)(1)(A)(iii)) is amend- ness Relief Act of 2010’’. POLICY FOR EMPLOYER GROUP ed by striking ‘‘fiscal year 2009’’ and insert- (2) FINAL REPORT.—Subsection (e)(4) of PLANS. ing ‘‘each of fiscal years 2009 through 2011’’. such section is amended by striking ‘‘May 1, For plan year 2011 and subsequent plan SEC. 231. IMPLEMENTATION FUNDING. 2010’’ and inserting ‘‘42 months after the date years, to the extent that the Secretary of For purposes of carrying out the provisions of the enactment of the American Workers, Health and Human Services is applying the of, and amendments made by, this title that State, and Business Relief Act of 2010’’. 2008 service area extension waiver policy (as relate to titles XVIII and XIX of the Social Subtitle C—Other Provisions modified in the April 11, 2008, Centers for Security Act, there are appropriated to the Medicare & Medicaid Services’ memorandum SEC. 241. EXTENSION OF USE OF 2009 POVERTY Secretary of Health and Human Services for GUIDELINES. with the subject ‘‘2009 Employer Group Waiv- the Centers for Medicare & Medicaid Serv- Section 1012 of the Department of Defense er-Modification of the 2008 Service Area Ex- ices Program Management Account, from Appropriations Act, 2010 (Public Law 111–118) tension Waiver Granted to Certain MA Local amounts in the general fund of the Treasury is amended— Coordinated Care Plans’’) to Medicare Ad- not otherwise appropriated, $100,000,000. (1) by striking ‘‘before March 1, 2010’’; and vantage coordinated care plans, the Sec- Amounts appropriated under the preceding (2) by inserting ‘‘for 2011’’ after ‘‘until up- retary shall extend the application of such sentence shall remain available until ex- dated poverty guidelines’’. waiver policy to employers who contract di- pended. SEC. 242. REFUNDS DISREGARDED IN THE AD- rectly with the Secretary as a Medicare Ad- SEC. 232. EXTENSION OF ARRA INCREASE IN MINISTRATION OF FEDERAL PRO- FMAP. vantage private fee-for-service plan under GRAMS AND FEDERALLY ASSISTED section 1857(i)(2) of the Social Security Act Section 5001 of the American Recovery and PROGRAMS. Reinvestment Act of 2009 (Public Law 111–5) (42 U.S.C. 1395w–27(i)(2)) and that had enroll- (a) IN GENERAL.—Subchapter A of chapter ment as of January 1, 2010. is amended— 65 is amended by adding at the end the fol- (1) in subsection (a)(3), by striking ‘‘first SEC. 228. EXTENSION OF CONTINUING CARE RE- lowing new section: TIREMENT COMMUNITY PROGRAM. calendar quarter’’ and inserting ‘‘first 3 cal- endar quarters’’; ‘‘SEC. 6409. REFUNDS DISREGARDED IN THE AD- Notwithstanding any other provision of MINISTRATION OF FEDERAL PRO- law, the Secretary of Health and Human (2) in subsection (c)— GRAMS AND FEDERALLY ASSISTED Services shall continue to conduct the (A) in paragraph (2)(B), by striking ‘‘July PROGRAMS. Erickson Advantage Continuing Care Retire- 1, 2010’’ and inserting ‘‘January 1, 2011’’; ‘‘(a) IN GENERAL.—Notwithstanding any ment Community (CCRC) program under (B) in paragraph (3)(B)(i), by striking ‘‘July other provision of law, any refund (or ad- part C of title XVIII of the Social Security 1, 2010’’ each place it appears and inserting vance payment with respect to a refundable Act through December 31, 2011. ‘‘January 1, 2011’’; and credit) made to any individual under this SEC. 229. FUNDING OUTREACH AND ASSISTANCE (C) in paragraph (4)(C)(ii), by striking ‘‘the title shall not be taken into account as in- FOR LOW-INCOME PROGRAMS. 3-consecutive-month period beginning with come, and shall not be taken into account as (a) ADDITIONAL FUNDING FOR STATE HEALTH January 2010’’ and inserting ‘‘any 3-consecu- resources for a period of 12 months from re- INSURANCE PROGRAMS.—Subsection (a)(1)(B) tive-month period that begins after Decem- ceipt, for purposes of determining the eligi- of section 119 of the Medicare Improvements ber 2009 and ends before January 2011’’; bility of such individual (or any other indi- for Patients and Providers Act of 2008 (42 (3) in subsection (g)— vidual) for benefits or assistance (or the U.S.C. 1395b–3 note) is amended by striking (A) in paragraph (1), by striking ‘‘Sep- amount or extent of benefits or assistance) ‘‘(42 U.S.C. 1395w–23(f))’’ and all that follows tember 30, 2011’’ and inserting ‘‘March 31, under any Federal program or under any through the period at the end and inserting 2012’’; State or local program financed in whole or ‘‘(42 U.S.C. 1395w–23(f)), to the Centers for (B) in paragraph (2)— in part with Federal funds. Medicare & Medicaid Services Program Man- (i) by inserting ‘‘of such Act’’ after ‘‘1923’’; ‘‘(b) TERMINATION.—Subsection (a) shall agement Account— and not apply to any amount received after De- ‘‘(i) for fiscal year 2009, of $7,500,000; and (ii) by adding at the end the following new cember 31, 2010.’’. ‘‘(ii) for fiscal year 2010, of $6,000,000. sentence: ‘‘Voluntary contributions by a po- (b) CLERICAL AMENDMENT.—The table of litical subdivision to the non-Federal share Amounts appropriated under this subpara- sections for such subchapter is amended by of expenditures under the State Medicaid graph shall remain available until ex- adding at the end the following new item: plan or to the non-Federal share of payments pended.’’. ‘‘Sec. 6409. Refunds disregarded in the ad- under section 1923 of the Social Security Act (b) ADDITIONAL FUNDING FOR AREA AGEN- ministration of Federal pro- shall not be considered to be required con- CIES ON AGING.—Subsection (b)(1)(B) of such grams and federally assisted section 119 is amended by striking ‘‘(42 tributions for purposes of this section.’’; and programs.’’. (C) by adding at the end the following: U.S.C. 1395w–23(f))’’ and all that follows (c) EFFECTIVE DATE.—The amendments ‘‘(3) CERTIFICATION BY CHIEF EXECUTIVE OF- through the period at the end and inserting made by this section shall apply to amounts FICER.—No additional Federal funds shall be ‘‘(42 U.S.C. 1395w–23(f)), to the Administra- received after December 31, 2009. tion on Aging— paid to a State as a result of this section with respect to a calendar quarter occurring SEC. 243. STATE COURT IMPROVEMENT PRO- ‘‘(i) for fiscal year 2009, of $7,500,000; and GRAM. ‘‘(ii) for fiscal year 2010, of $6,000,000. during the period beginning on January 1, 2011, and ending on June 30, 2011, unless, not Section 438 of the Social Security Act (42 Amounts appropriated under this subpara- later than 45 days after the date of enact- U.S.C. 629h) is amended— graph shall remain available until ex- ment of this paragraph, the chief executive (1) in subsection (c)(2)(A), by striking pended.’’. officer of the State certifies that the State ‘‘2010’’ and inserting ‘‘2011’’; and (c) ADDITIONAL FUNDING FOR AGING AND will request and use such additional Federal (2) in subsection (e), by striking ‘‘2010’’ and DISABILITY RESOURCE CENTERS.—Subsection funds.’’; and inserting ‘‘2011’’. (c)(1)(B) of such section 119 is amended by (4) in subsection (h)(3), by striking ‘‘De- SEC. 244. EXTENSION OF NATIONAL FLOOD IN- striking ‘‘(42 U.S.C. 1395w–23(f))’’ and all that cember 31, 2010’’ and inserting ‘‘June 30, SURANCE PROGRAM. follows through the period at the end and in- 2011’’. Section 129 of the Continuing Appropria- serting ‘‘(42 U.S.C. 1395w–23(f)), to the Ad- tions Resolution, 2010 (Public Law 111–68), as SEC. 233. EXTENSION OF GAINSHARING DEM- ministration on Aging— ONSTRATION. amended by section 1005 of Public Law 111– ‘‘(i) for fiscal year 2009, of $5,000,000; and (a) IN GENERAL.—Subsection (d)(3) of sec- 118, is further amended by striking ‘‘by sub- ‘‘(ii) for fiscal year 2010, of $6,000,000. tion 5007 of the Deficit Reduction Act of 2005 stituting’’ and all that follows through the Amounts appropriated under this subpara- (Public Law 109–171) is amended by inserting period at the end, and inserting ‘‘by sub- graph shall remain available until ex- ‘‘(or 21 months after the date of the enact- stituting December 31, 2010, for the date pended.’’. ment of the American Workers, State, and specified in each such section.’’. (d) ADDITIONAL FUNDING FOR CONTRACT Business Relief Act of 2010, in the case of a SEC. 245. EMERGENCY DISASTER ASSISTANCE. WITH THE NATIONAL CENTER FOR BENEFITS demonstration project in operation as of Oc- (a) DEFINITIONS.—Except as otherwise pro- AND OUTREACH ENROLLMENT.—Subsection tober 1, 2008)’’ after ‘‘December 31, 2009’’. vided in this section, in this section:

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(1) DISASTER COUNTY.— (B) in the case of a noninsurable com- (2) GENERAL TERMS.—Except as otherwise (A) IN GENERAL.—The term ‘‘disaster coun- modity, did not file the required paperwork, provided in this subsection, the Secretary ty’’ means a county included in the geo- and pay the administrative fee by the appli- shall provide disaster assistance under this graphic area covered by a qualifying natural cable State filing deadline, for the noninsur- subsection under the same terms and condi- disaster declaration for the 2009 crop year. able commodity under section 196 of the Fed- tions as assistance provided under section (B) EXCLUSION.—The term ‘‘disaster coun- eral Agriculture Improvement and Reform 3015 of the Emergency Agricultural Disaster ty’’ does not include a contiguous county. Act of 1996 (7 U.S.C. 7333) for each crop of Assistance Act of 2006 (title III of Public Law (2) ELIGIBLE AQUACULTURE PRODUCER.—The economic significance (other than crops in- 109–234; 120 Stat. 477). term ‘‘eligible aquaculture producer’’ means tended for grazing), shall obtain such cov- (3) DISTRIBUTION OF ASSISTANCE.—The Sec- an aquaculture producer that during the 2009 erage for those crops for the next available retary shall distribute assistance to first calendar year, as determined by the Sec- crop year, as determined by the Secretary. handlers for the benefit of eligible producers retary— (4) RELATIONSHIP TO OTHER LAW.—Assist- in a disaster county in an amount equal to (A) produced an aquaculture species for ance received under this subsection shall be the product obtained by multiplying— which feed costs represented a substantial included in the calculation of farm revenue (A) the payment rate, as determined under percentage of the input costs of the aqua- for the 2009 crop year under section paragraph (4); and culture operation; and 531(b)(4)(A) of the Federal Crop Insurance (B) the county-eligible production, as de- (B) experienced a substantial price in- Act (7 U.S.C. 1531(b)(4)(A)) and section termined under paragraph (5). crease of feed costs above the previous 5-year 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. (4) PAYMENT RATE.—The payment rate average. 2497(b)(4)(A)). shall be equal to the quotient obtained by di- (3) ELIGIBLE PRODUCER.—The term ‘‘eligible (c) SPECIALTY CROP ASSISTANCE.— viding— producer’’ means an agricultural producer in (1) IN GENERAL.—Of the funds of the Com- (A) the sum of the county-eligible produc- a disaster county. modity Credit Corporation, the Secretary tion, as determined under paragraph (5); by (4) ELIGIBLE SPECIALTY CROP PRODUCER.— shall use not more than $150,000,000, to re- (B) the total funds made available to carry The term ‘‘eligible specialty crop producer’’ main available until September 30, 2011, to out this subsection. means an agricultural producer that, for the carry out a program of grants to States to (5) COUNTY-ELIGIBLE PRODUCTION.—The 2009 crop year, as determined by the Sec- assist eligible specialty crop producers for county-eligible production shall be equal to retary— losses due to excessive rainfall and related the product obtained by multiplying— (A) produced, or was prevented from plant- conditions affecting the 2009 crops. (A) the number of acres planted to cotton ing, a specialty crop; and (2) NOTIFICATION.—Not later than 60 days in the disaster county, as reported to the (B) experienced crop losses in a disaster after the date of enactment of this Act, the Secretary by first-handlers; county due to excessive rainfall or related Secretary shall notify the State department (B) the expected cotton lint yield for the condition. of agriculture (or similar entity) in each disaster county, as determined by the Sec- (5) QUALIFYING NATURAL DISASTER DECLARA- State of the availability of funds to assist el- retary based on the best available informa- TION.—The term ‘‘qualifying natural disaster igible specialty crop producers, including tion; and declaration’’ means a natural disaster de- such terms as are determined by the Sec- (C) the national average seed-to-lint ratio, clared by the Secretary for production losses retary to be necessary for the equitable as determined by the Secretary based on the under section 321(a) of the Consolidated treatment of eligible specialty crop pro- best available information for the 5 crop Farm and Rural Development Act (7 U.S.C. ducers. years immediately preceding the 2009 crop, 1961(a)). (3) PROVISION OF GRANTS.— excluding the year in which the average (6) SECRETARY.—The term ‘‘Secretary’’ (A) IN GENERAL.—The Secretary shall make ratio was the highest and the year in which means the Secretary of Agriculture. grants to States for disaster counties with the average ratio was the lowest in such pe- (7) SPECIALTY CROP.—The term ‘‘specialty excessive rainfall and related conditions on a riod. crop’’ has the meaning given the term in sec- pro rata basis based on the value of specialty (e) AQUACULTURE ASSISTANCE.— tion 3 of the Specialty Crops Competitive- crop losses in those counties during the 2008 (1) GRANT PROGRAM.— ness Act of 2004 (Public Law 108–465; 7 U.S.C. calendar year, as determined by the Sec- (A) IN GENERAL.—Of the funds of the Com- 1621 note). retary. modity Credit Corporation, the Secretary (b) SUPPLEMENTAL DIRECT PAYMENT.— (B) TIMING.—Not later than 120 days after shall use not more than $25,000,000, to remain (1) IN GENERAL.—Of the funds of the Com- the date of enactment of this Act, the Sec- available until September 30, 2011, to carry modity Credit Corporation, the Secretary retary shall make grants to States to pro- out a program of grants to States to assist shall use such sums as are necessary to make vide assistance under this subsection. eligible aquaculture producers for losses as- supplemental payments under sections 1103 (C) MAXIMUM GRANT.—The maximum sociated with high feed input costs during and 1303 of the Food, Conservation, and En- amount of a grant made to a State under the 2009 calendar year. ergy Act of 2008 (7 U.S.C. 8713, 8753) to eligi- this subsection may not exceed $40,000,000. (B) NOTIFICATION.—Not later than 60 days ble producers on farms located in disaster (4) REQUIREMENTS.—The Secretary shall after the date of enactment of this Act, the counties that had at least 1 crop of economic make grants under this subsection only to Secretary shall notify the State department significance (other than crops intended for States that demonstrate to the satisfaction of agriculture (or similar entity) in each grazing) suffer at least a 5-percent crop loss of the Secretary that the State will— State of the availability of funds to assist el- due to a natural disaster, including quality (A) use grant funds to assist eligible spe- igible aquaculture producers, including such losses, as determined by the Secretary, in an cialty crop producers; terms as are determined by the Secretary to amount equal to 90 percent of the direct pay- (B) provide assistance to eligible specialty be necessary for the equitable treatment of ment the eligible producers received for the crop producers not later than 90 days after eligible aquaculture producers. 2009 crop year on the farm. the date on which the State receives grant (C) PROVISION OF GRANTS.— (2) ACRE PROGRAM.—Eligible producers funds; and (i) IN GENERAL.—The Secretary shall make that received payments under section 1105 of (C) not later than 30 days after the date on grants to States under this subsection on a the Food, Conservation, and Energy Act of which the State provides assistance to eligi- pro rata basis based on the amount of aqua- 2008 (7 U.S.C. 8715) for the 2009 crop year and ble specialty crop producers, submit to the culture feed used in each State during the that otherwise meet the requirements of Secretary a report that describes— 2008 calendar year, as determined by the Sec- paragraph (1) shall be eligible to receive sup- (i) the manner in which the State provided retary. plemental payments under that paragraph in assistance; (ii) TIMING.—Not later than 120 days after an amount equal to 90 percent of the reduced (ii) the amounts of assistance provided by the date of enactment of this Act, the Sec- direct payment the eligible producers re- type of specialty crop; and retary shall make grants to States to pro- ceived for the 2009 crop year under section (iii) the process by which the State deter- vide assistance under this subsection. 1103 or 1303 of the Food, Conservation, and mined the levels of assistance to eligible spe- (D) REQUIREMENTS.—The Secretary shall Energy Act of 2008 (7 U.S.C. 8713, 8753). cialty crop producers. make grants under this subsection only to (3) INSURANCE REQUIREMENT.—As a condi- (5) RELATION TO OTHER LAW.—Assistance re- States that demonstrate to the satisfaction tion of receiving assistance under this sub- ceived under this subsection shall be in- of the Secretary that the State will— section, eligible producers on a farm that— cluded in the calculation of farm revenue for (i) use grant funds to assist eligible aqua- (A) in the case of an insurable commodity, the 2009 crop year under section 531(b)(4)(A) culture producers; did not obtain a policy or plan of insurance of the Federal Crop Insurance Act (7 U.S.C. (ii) provide assistance to eligible aqua- for the insurable commodity under the Fed- 1531(b)(4)(A)) and section 901(b)(4)(A) of the culture producers not later than 60 days eral Crop Insurance Act (7 U.S.C. 1501 et seq.) Trade Act of 1974 (19 U.S.C. 2497(b)(4)(A)). after the date on which the State receives (other than for a crop insurance pilot pro- (d) COTTONSEED ASSISTANCE.— grant funds; and gram under that Act) for each crop of eco- (1) IN GENERAL.—Of the funds of the Com- (iii) not later than 30 days after the date nomic significance (other than crops in- modity Credit Corporation, the Secretary on which the State provides assistance to el- tended for grazing), shall obtain such a pol- shall use not more than $42,000,000 to provide igible aquaculture producers, submit to the icy or plan for those crops for the next avail- supplemental assistance to eligible pro- Secretary a report that describes— able crop year, as determined by the Sec- ducers and first-handlers of the 2009 crop of (I) the manner in which the State provided retary; or cottonseed in a disaster county. assistance;

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(II) the amounts of assistance provided per the Secretary announces the emergency loan (2) ADMINISTRATIVE COSTS.—Of the funds of species of aquaculture; and program under this subsection. the Commodity Credit Corporation, the Sec- (III) the process by which the State deter- (B) POULTRY INTEGRATOR.—The term ‘‘poul- retary may use up to $15,000,000 to pay ad- mined the levels of assistance to eligible try integrator’’ means a poultry integrator ministrative costs incurred by the Secretary aquaculture producers. that filed proceedings under chapter 11 of that are directly related to carrying out this (2) REDUCTION IN PAYMENTS.—An eligible title 11, United States Code, in United States Act. aquaculture producer that receives assist- Bankruptcy Court during the 30-day period (3) PROHIBITION.—None of the funds of the ance under this subsection shall not be eligi- beginning on December 1, 2008. Agricultural Disaster Relief Trust Fund es- ble to receive any other assistance under the (2) LOAN PROGRAM.— tablished under section 902 of the Trade Act supplemental agricultural disaster assist- (A) IN GENERAL.—Of the funds of the Com- of 1974 (19 U.S.C. 2497a) may be used to carry ance program established under section 531 modity Credit Corporation, the Secretary out this Act. of the Federal Crop Insurance Act (7 U.S.C. shall use not more than $75,000,000, to remain SEC. 246. SMALL BUSINESS LOAN GUARANTEE 1531) and section 901 of the Trade Act of 1974 available until expended, for the cost of ENHANCEMENT EXTENSIONS. (19 U.S.C. 2497) for any losses in 2009 relating making no-interest emergency loans avail- (a) APPROPRIATION.—There is appropriated, to the same species of aquaculture. able to poultry producers that meet the re- out of any funds in the Treasury not other- (3) REPORT TO CONGRESS.—Not later than quirements of this subsection. wise appropriated, for an additional amount 240 days after the date of enactment of this (B) TERMS AND CONDITIONS.—Except as oth- for ‘‘Small Business Administration – Busi- Act, the Secretary shall submit to the appro- erwise provided in this subsection, emer- ness Loans Program Account’’, $354,000,000, priate committees of Congress a report gency loans under this subsection shall be to remain available through December 31, that— subject to such terms and conditions as are 2010, for the cost of— (A) describes in detail the manner in which determined by the Secretary. (1) fee reductions and eliminations under this subsection has been carried out; and (3) LOANS.— section 501 of division A of the American Re- (B) includes the information reported to (A) IN GENERAL.—An emergency loan made covery and Reinvestment Act of 2009 (Public the Secretary under paragraph (1)(D)(iii). to a poultry producer under this subsection Law 111–5; 123 Stat. 151), as amended by this (f) HAWAII TRANSPORTATION COOPERATIVE.— shall be for the purpose of providing financ- section, for loans guaranteed under section Notwithstanding any other provision of law, ing to the poultry producer in response to fi- 7(a) of the Small Business Act (15 U.S.C. the Secretary shall use $21,000,000 of funds of nancial losses associated with the termi- 636(a)), title V of the Small Business Invest- the Commodity Credit Corporation to make nation or nonrenewal of any contract be- ment Act of 1958 (15 U.S.C. 695 et seq.), or a payment to an agricultural transportation tween the poultry producer and a poultry in- section 502 of division A of the American Re- cooperative in the State of Hawaii, the mem- tegrator. covery and Reinvestment Act of 2009 (Public bers of which are eligible to participate in (B) ELIGIBILITY.— Law 111–5; 123 Stat. 152), as amended by this the commodity loan program of the Farm (i) IN GENERAL.—To be eligible for an emer- section; and Service Agency, for assistance to maintain gency loan under this subsection, not later (2) loan guarantees under section 502 of di- and develop employment. than 90 days after the announcement date, a vision A of the American Recovery and Rein- (g) LIVESTOCK FORAGE DISASTER PRO- poultry producer shall submit to the Sec- vestment Act of 2009 (Public Law 111–5; 123 GRAM.— retary evidence that— Stat. 152), as amended by this section, (1) DEFINITION OF DISASTER COUNTY.—In (I) the contract of the poultry producer de- Provided, That such costs, including the cost this subsection: scribed in subparagraph (A) was not contin- of modifying such loans, shall be as defined (A) IN GENERAL.—The term ‘‘disaster coun- ued; and in section 502 of the Congressional Budget ty’’ means a county included in the geo- (II) no similar contract has been awarded Act of 1974. graphic area covered by a qualifying natural subsequently to the poultry producer. (b) EXTENSION OF PROGRAMS.— disaster declaration announced by the Sec- (ii) REQUIREMENT TO OFFER LOANS.—Not- (1) FEES.—Section 501 of division A of the retary in calendar year 2009. withstanding any other provision of law, if a American Recovery and Reinvestment Act of (B) INCLUSION.—The term ‘‘disaster coun- poultry producer meets the eligibility re- 2009 (Public Law 111–5; 123 Stat. 151) is ty’’ includes a contiguous county. quirements described in clause (i), subject to amended by striking ‘‘September 30, 2010’’ (2) PAYMENTS.—Of the funds of the Com- the availability of funds under paragraph each place it appears and inserting ‘‘Decem- modity Credit Corporation, the Secretary (2)(A), the Secretary shall offer to make a ber 31, 2010’’. shall use not more than $50,000,000 to carry loan under this subsection to the poultry (2) LOAN GUARANTEES.—Section 502(f) of di- out a program to make payments to eligible producer with a minimum term of 2 years. vision A of the American Recovery and Rein- producers that had grazing losses in disaster (4) ADDITIONAL REQUIREMENTS.— vestment Act of 2009 (Public Law 111–5; 123 counties in calendar year 2009. (A) IN GENERAL.—A poultry producer that Stat. 153) is amended by striking ‘‘February (3) CRITERIA.— receives an emergency loan under this sub- 28, 2010’’ and inserting ‘‘December 31, 2010’’. (A) IN GENERAL.—Except as provided in section may use the emergency loan pro- TITLE III—PENSION FUNDING RELIEF subparagraph (B), assistance under this sub- ceeds only to repay the amount that the Subtitle A—Single Employer Plans section shall be determined under the same poultry producer owes to any lender. SEC. 301. EXTENDED PERIOD FOR SINGLE-EM- criteria as are used to carry out the pro- (B) CONVERSION OF THE LOAN.—A poultry PLOYER DEFINED BENEFIT PLANS grams under section 531(d) of the Federal producer that receives an emergency loan TO AMORTIZE CERTAIN SHORTFALL Crop Insurance Act (7 U.S.C. 1531(d)) and sec- under this subsection shall be eligible to AMORTIZATION BASES. tion 901(d) of the Trade Act of 1974 (19 U.S.C. have the balance of the emergency loan con- (a) AMENDMENTS TO ERISA.— 2497(d)). verted, but not refinanced, to a loan that has (1) IN GENERAL.—Paragraph (2) of section (B) DROUGHT INTENSITY.—For purposes of the same terms and conditions as an oper- 303(c) of the Employee Retirement Income this subsection, an eligible producer shall ating loan under subtitle B of the Consoli- Security Act of 1974 (29 U.S.C. 1083(c)) is not be required to meet the drought inten- dated Farm and Rural Development Act (7 amended by adding at the end the following sity requirements of section 531(d)(3)(D)(ii) of U.S.C. 1941 et seq.). subparagraph: the Federal Crop Insurance Act (7 U.S.C. (i) ADMINISTRATION.— ‘‘(D) SPECIAL ELECTION FOR ELIGIBLE PLAN 1531(d)(3)(D)(ii)) and section 901(d)(3)(D)(ii) of (1) REGULATIONS.— YEARS.— the Trade Act of 1974 (19 U.S.C. (A) IN GENERAL.—As soon as practicable ‘‘(i) IN GENERAL.—If a plan sponsor elects 2497(d)(3)(D)(ii)). after the date of enactment of this Act, the to apply this subparagraph with respect to (4) AMOUNT.—Assistance under this sub- Secretary shall promulgate such regulations the shortfall amortization base of a plan for section shall be in an amount equal to 1 as are necessary to implement this section. any eligible plan year (in this subparagraph monthly payment using the monthly pay- (B) PROCEDURE.—The promulgation of the and paragraph (7) referred to as an ‘election ment rate under section 531(d)(3)(B) of the regulations and administration of this sec- year’), then, notwithstanding subparagraphs Federal Crop Insurance Act (7 U.S.C. tion shall be made without regard to— (A) and (B)— 1531(d)(3)(B)) and section 901(d)(3)(B) of the (i) the notice and comment provisions of ‘‘(I) the shortfall amortization install- Trade Act of 1974 (19 U.S.C. 2497(d)(3)(B)). section 553 of title 5, United States Code; ments with respect to such base shall be de- (5) RELATION TO OTHER LAW.—An eligible (ii) the Statement of Policy of the Sec- termined under clause (ii) or (iii), whichever producer that receives assistance under this retary of Agriculture effective July 24, 1971 is specified in the election, and subsection shall be ineligible to receive as- (36 Fed. Reg. 13804), relating to notices of ‘‘(II) the shortfall amortization install- sistance for 2009 grazing losses under the pro- proposed rulemaking and public participa- ment for any plan year in the 9-plan-year pe- gram carried out under section 531(d) of the tion in rulemaking; and riod described in clause (ii) or the 15-plan- Federal Crop Insurance Act (7 U.S.C. 1531(d)) (iii) chapter 35 of title 44, United States year period described in clause (iii), respec- and section 901(d) of the Trade Act of 1974 (19 Code (commonly known as the ‘‘Paperwork tively, with respect to such shortfall amorti- U.S.C. 2497(d)) . Reduction Act’’). zation base is the annual installment deter- (h) EMERGENCY LOANS FOR POULTRY PRO- (C) CONGRESSIONAL REVIEW OF AGENCY mined under the applicable clause for that DUCERS.— RULEMAKING.—In carrying out this para- year for that base. (1) DEFINITIONS.—In this subsection: graph, the Secretary shall use the authority ‘‘(ii) 2 PLUS 7 AMORTIZATION SCHEDULE.—The (A) ANNOUNCEMENT DATE.—The term ‘‘an- provided under section 808 of title 5, United shortfall amortization installments deter- nouncement date’’ means the date on which States Code. mined under this clause are—

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00046 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.038 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S871 ‘‘(I) in the case of the first 2 plan years in payable under such paragraph for such plan clause) shall be applied first against the lim- the 9-plan-year period beginning with the year shall, subject to the limitation under itation under clause (ii) and then carryovers election year, interest on the shortfall amor- subparagraph (B), be increased by such to such plan year shall be applied against tization base of the plan for the election year amount. such limitation on a first-in, first-out basis. (determined using the effective interest rate ‘‘(B) TOTAL INSTALLMENTS LIMITED TO ‘‘(D) EXCESS EMPLOYEE COMPENSATION.—For for the plan for the election year), and SHORTFALL BASE.—Subject to rules pre- purposes of this paragraph— ‘‘(II) in the case of the last 7 plan years in scribed by the Secretary of the Treasury, if ‘‘(i) IN GENERAL.—The term ‘excess em- such 9-plan-year period, the amounts nec- a shortfall amortization installment with re- ployee compensation’ means, with respect to essary to amortize the remaining balance of spect to any shortfall amortization base for any employee for any plan year, the excess the shortfall amortization base of the plan an election year is required to be increased (if any) of— for the election year in level annual install- for any plan year under subparagraph (A)— ‘‘(I) the aggregate amount includible in in- ments over such last 7 plan years (using the ‘‘(i) such increase shall not result in the come under chapter 1 of the Internal Rev- segment rates under subparagraph (C) for the amount of such installment exceeding the enue Code of 1986 for remuneration during election year). present value of such installment and all the calendar year in which such plan year ‘‘(iii) 15-YEAR AMORTIZATION.—The shortfall succeeding installments with respect to such begins for services performed by the em- amortization installments determined under base (determined without regard to such in- ployee for the plan sponsor (whether or not this subparagraph are the amounts necessary crease but after application of clause (ii)), performed during such calendar year), over to amortize the shortfall amortization base and ‘‘(II) $1,000,000. of the plan for the election year in level an- ‘‘(ii) subsequent shortfall amortization in- ‘‘(ii) AMOUNTS SET ASIDE FOR NONQUALIFIED nual installments over the 15-plan-year pe- stallments with respect to such base shall, in DEFERRED COMPENSATION.—If during any cal- riod beginning with the election year (using reverse order of the otherwise required in- endar year assets are set aside or reserved the segment rates under subparagraph (C) for stallments, be reduced to the extent nec- (directly or indirectly) in a trust (or other the election year). essary to limit the present value of such sub- arrangement as determined by the Secretary ‘‘(iv) ELECTION.— sequent shortfall amortization installments of the Treasury), or transferred to such a ‘‘(I) IN GENERAL.—The plan sponsor of a (after application of this paragraph) to the trust or other arrangement, by a plan spon- plan may elect to have this subparagraph present value of the remaining unamortized apply to not more than 2 eligible plan years shortfall amortization base. sor for purposes of paying deferred com- pensation of an employee under a non- with respect to the plan, except that in the ‘‘(C) INSTALLMENT ACCELERATION AMOUNT.— case of a plan described in section 106 of the For purposes of this paragraph— qualified deferred compensation plan (as de- fined in section 409A of such Code) of the Pension Protection Act of 2006, the plan ‘‘(i) IN GENERAL.—The term ‘installment sponsor may only elect to have this subpara- acceleration amount’ means, with respect to plan sponsor, then, for purposes of clause (i), graph apply to a plan year beginning in 2011. any plan year in a restriction period with re- the amount of such assets shall be treated as ‘‘(II) AMORTIZATION SCHEDULE.—Such elec- spect to an election year, the sum of— remuneration of the employee includible in tion shall specify whether the amortization ‘‘(I) the aggregate amount of excess em- income for the calendar year unless such schedule under clause (ii) or (iii) shall apply ployee compensation determined under sub- amount is otherwise includible in income for to an election year, except that if a plan paragraph (D) with respect to all employees such year. An amount to which the pre- sponsor elects to have this subparagraph for the plan year, plus ceding sentence applies shall not be taken apply to 2 eligible plan years, the plan spon- ‘‘(II) the aggregate amount of extraor- into account under this paragraph for any sor must elect the same schedule for both dinary dividends and redemptions deter- subsequent calendar year. years. mined under subparagraph (E) for the plan ‘‘(iii) ONLY REMUNERATION FOR CERTAIN ‘‘(III) OTHER RULES.—Such election shall be year. POST-2009 SERVICES COUNTED.—Remuneration made at such time, and in such form and ‘‘(ii) LIMITATION TO AGGREGATE REDUCED shall be taken into account under clause (i) manner, as shall be prescribed by the Sec- REQUIRED CONTRIBUTIONS.—The installment only to the extent attributable to services retary of the Treasury, and may be revoked acceleration amount for any plan year shall performed by the employee for the plan spon- only with the consent of the Secretary of the not exceed the excess (if any) of— sor after February 4, 2010. Treasury. The Secretary of the Treasury ‘‘(I) the sum of the shortfall amortization ‘‘(iv) EXCEPTION FOR CERTAIN EQUITY PAY- shall, before granting a revocation request, installments for the plan year and all pre- MENTS.— provide the Pension Benefit Guaranty Cor- ceding plan years in the amortization period ‘‘(I) IN GENERAL.—There shall not be taken poration an opportunity to comment on the elected under paragraph (2)(D) with respect into account under clause (i)(I) any amount conditions applicable to the treatment of to the shortfall amortization base with re- includible in income with respect to the any portion of the election year shortfall spect to an election year, determined with- granting on or after February 4, 2010, of serv- amortization base that remains unamortized out regard to paragraph (2)(D) and this para- ice recipient stock (within the meaning of as of the revocation date. graph, over section 409A of the Internal Revenue Code of ‘‘(v) ELIGIBLE PLAN YEAR.—For purposes of ‘‘(II) the sum of the shortfall amortization 1986) that, upon such grant, is subject to a this subparagraph, the term ‘eligible plan installments for such plan year and all such substantial risk of forfeiture (as defined year’ means any plan year beginning in 2008, preceding plan years, determined after appli- under section 83(c)(1) of such Code) for at 2009, 2010, or 2011, except that a plan year cation of paragraph (2)(D) (and in the case of least 5 years from the date of such grant. shall only be treated as an eligible plan year any preceding plan year, after application of ‘‘(II) SECRETARIAL AUTHORITY.—The Sec- if the due date under subsection (j)(1) for the this paragraph). retary of the Treasury may by regulation payment of the minimum required contribu- ‘‘(iii) CARRYOVER OF EXCESS INSTALLMENT provide for the application of this clause in tion for such plan year occurs on or after the ACCELERATION AMOUNTS.— the case of a person other than a corpora- date of the enactment of this subparagraph. ‘‘(I) IN GENERAL.—If the installment accel- tion. ‘‘(vi) REPORTING.—A plan sponsor of a plan eration amount for any plan year (deter- ‘‘(v) OTHER EXCEPTIONS.—The following who makes an election under clause (i) shall mined without regard to clause(ii)) exceeds amounts includible in income shall not be inform the Pension Benefit Guaranty Cor- the limitation under clause (ii), then, subject taken into account under clause (i)(I): poration of such election in such form and to subclause (II), such excess shall be treated ‘‘(I) COMMISSIONS.—Any remuneration pay- manner as the Director of the Pension Ben- as an installment acceleration amount with able on a commission basis solely on account efit Guaranty Corporation may prescribe. respect to the succeeding plan year (without of income directly generated by the indi- ‘‘(vii) INCREASES IN REQUIRED INSTALLMENTS regard to whether such succeeding plan year vidual performance of the individual to IN CERTAIN CASES.—For increases in required is in the restriction period). whom such remuneration is payable. contributions in cases of excess compensa- ‘‘(II) CAP TO APPLY.—If any amount treated ‘‘(II) CERTAIN PAYMENTS UNDER EXISTING tion or extraordinary dividends or stock re- as an installment acceleration amount under CONTRACTS.—Any remuneration consisting of demptions, see paragraph (7).’’. subclause (I) or this subclause with respect nonqualified deferred compensation, re- (2) INCREASES IN REQUIRED INSTALLMENTS IN any succeeding plan year, when added to stricted stock, stock options, or stock appre- CERTAIN CASES.—Section 303(c) of the Em- other installment acceleration amounts (de- ciation rights payable or granted under a ployee Retirement Income Security Act of termined without regard to clause (ii)) with written binding contract that was in effect 1974 (29 U.S.C. 1083(c)) is amended by adding respect to the plan year, exceeds the limita- on February 4, 2010, and which was not modi- at the end the following paragraph: tion under clause (ii), the portion of such fied in any material respect before such re- ‘‘(7) INCREASES IN ALTERNATE REQUIRED IN- amount representing such excess shall be muneration is paid. STALLMENTS IN CASES OF EXCESS COMPENSA- treated as an installment acceleration ‘‘(vi) SELF-EMPLOYED INDIVIDUAL TREATED TION OR EXTRAORDINARY DIVIDENDS OR STOCK amount with respect to the next succeeding AS EMPLOYEE.—The term ‘employee’ in- REDEMPTIONS.— plan year (without regard to whether such cludes, with respect to a calendar year, a ‘‘(A) IN GENERAL.—If there is an install- succeeding plan year is in the restriction pe- self-employed individual who is treated as an ment acceleration amount with respect to a riod). employee under section 401(c) of such Code plan for any plan year in the restriction pe- ‘‘(III) ORDERING RULES.—For purposes of for the taxable year ending during such cal- riod with respect to an election year under applying subclause (II), installment accelera- endar year, and the term ‘compensation’ paragraph (2)(D), then the shortfall amorti- tion amounts for the plan year (determined shall include earned income of such indi- zation installment otherwise determined and without regard to any carryover under this vidual with respect to such self-employment.

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‘‘(vii) INDEXING OF AMOUNT.—In the case of regard to any increase under subsection if the due date under subsection (j)(1) for the any calendar year beginning after 2010, the (c)(7).’’. payment of the minimum required contribu- dollar amount under clause (i)(II) shall be in- (b) AMENDMENTS TO INTERNAL REVENUE tion for such plan year occurs on or after the creased by an amount equal to— CODE OF 1986.— date of the enactment of this subparagraph. ‘‘(I) such dollar amount, multiplied by (1) IN GENERAL.—Paragraph (2) of section ‘‘(vi) REPORTING.—A plan sponsor of a plan ‘‘(II) the cost-of-living adjustment deter- 430(c) is amended by adding at the end the who makes an election under clause (i) shall mined under section 1(f)(3) of such Code for following subparagraph: inform the Pension Benefit Guaranty Cor- the calendar year, determined by sub- ‘‘(D) SPECIAL ELECTION FOR ELIGIBLE PLAN poration of such election in such form and stituting ‘calendar year 2009’ for ‘calendar YEARS.— manner as the Director of the Pension Ben- year 1992’ in subparagraph (B) thereof. ‘‘(i) IN GENERAL.—If a plan sponsor elects efit Guaranty Corporation may prescribe. If the amount of any increase under clause to apply this subparagraph with respect to ‘‘(vii) INCREASES IN REQUIRED INSTALLMENTS (i) is not a multiple of $1,000, such increase the shortfall amortization base of a plan for IN CERTAIN CASES.—For increases in required shall be rounded to the next lowest multiple any eligible plan year (in this subparagraph contributions in cases of excess compensa- of $1,000. and paragraph (7) referred to as an ‘election tion or extraordinary dividends or stock re- year’), then, notwithstanding subparagraphs ‘‘(E) EXTRAORDINARY DIVIDENDS AND RE- demptions, see paragraph (7).’’. (A) and (B)— (2) INCREASES IN REQUIRED CONTRIBUTIONS IF DEMPTIONS.— ‘‘(I) the shortfall amortization install- EXCESS COMPENSATION PAID.—Section 430(c) is ‘‘(i) IN GENERAL.—The amount determined ments with respect to such base shall be de- under this subparagraph for any plan year is amended by adding at the end the following termined under clause (ii) or (iii), whichever paragraph: the excess (if any) of— is specified in the election, and ‘‘(7) INCREASES IN ALTERNATE REQUIRED IN- ‘‘(I) the sum of the dividends declared dur- ‘‘(II) the shortfall amortization install- STALLMENTS IN CASES OF EXCESS COMPENSA- ing the plan year by the plan sponsor plus ment for any plan year in the 9-plan-year pe- TION OR EXTRAORDINARY DIVIDENDS OR STOCK the aggregate fair market value of the stock riod described in clause (ii) or the 15-plan- REDEMPTIONS.— of the plan sponsor redeemed during the plan year period described in clause (iii), respec- ‘‘(A) IN GENERAL.—If there is an install- year, over tively, with respect to such shortfall amorti- ment acceleration amount with respect to a ‘‘(II) the adjusted net income (within the zation base is the annual installment deter- plan for any plan year in the restriction pe- meaning of section 4043) of the plan sponsor mined under the applicable clause for that riod with respect to an election year under for the preceding plan year. year for that base. paragraph (2)(D), then the shortfall amorti- ‘‘(ii) ONLY CERTAIN POST-2009 DIVIDENDS AND ‘‘(ii) 2 PLUS 7 AMORTIZATION SCHEDULE.—The zation installment otherwise determined and REDEMPTIONS COUNTED.—For purposes of shortfall amortization installments deter- payable under such paragraph for such plan clause (i), there shall only be taken into ac- mined under this clause are— year shall, subject to the limitation under count dividends declared, and redemptions ‘‘(I) in the case of the first 2 plan years in subparagraph (B), be increased by such occurring, after February 4, 2010. the 9-plan-year period beginning with the amount. ‘‘(iii) EXCEPTION FOR INTRA-GROUP DIVI- election year, interest on the shortfall amor- ‘‘(B) TOTAL INSTALLMENTS LIMITED TO DENDS.—Dividends paid by one member of a tization base of the plan for the election year SHORTFALL BASE.—Subject to rules pre- controlled group (as defined in section (determined using the effective interest rate scribed by the Secretary, if a shortfall amor- 302(d)(3)) to another member of such group for the plan for the election year), and tization installment with respect to any shall not be taken into account under clause ‘‘(II) in the case of the last 7 plan years in shortfall amortization base for an election (i). such 9-plan-year period, the amounts nec- year is required to be increased for any plan ‘‘(F) OTHER DEFINITIONS AND RULES.—For essary to amortize the remaining balance of year under subparagraph (A)— purposes of this paragraph— the shortfall amortization base of the plan ‘‘(i) such increase shall not result in the ‘‘(i) PLAN SPONSOR.—The term ‘ plan spon- for the election year in level annual install- amount of such installment exceeding the sor’ includes any member of the plan spon- ments over such last 7 plan years (using the present value of such installment and all sor’s controlled group (as defined in section segment rates under subparagraph (C) for the succeeding installments with respect to such 302(d)(3)). election year). base (determined without regard to such in- ‘‘(ii) RESTRICTION PERIOD.—The term ‘re- ‘‘(iii) 15-YEAR AMORTIZATION.—The shortfall crease but after application of clause (ii)), striction period’ means, with respect to any amortization installments determined under and election year— this subparagraph are the amounts necessary ‘‘(ii) subsequent shortfall amortization in- ‘‘(I) except as provided in subclause (II), to amortize the shortfall amortization base stallments with respect to such base shall, in the 4-year period beginning with the election of the plan for the election year in level an- reverse order of the otherwise required in- year, and nual installments over the 15-plan-year pe- stallments, be reduced to the extent nec- ‘‘(II) if the plan sponsor elects 15-year am- riod beginning with the election year (using essary to limit the present value of such sub- ortization for the shortfall amortization base the segment rates under subparagraph (C) for sequent shortfall amortization installments for the election year, the 7-year period begin- the election year). (after application of this paragraph) to the ning with the election year. ‘‘(iv) ELECTION.— present value of the remaining unamortized ‘‘(iii) ELECTIONS FOR MULTIPLE PLANS.—If a ‘‘(I) IN GENERAL.—The plan sponsor of a shortfall amortization base. plan sponsor makes elections under para- plan may elect to have this subparagraph ‘‘(C) INSTALLMENT ACCELERATION AMOUNT.— graph (2)(D) with respect to 2 or more plans, apply to not more than 2 eligible plan years For purposes of this paragraph— the Secretary of the Treasury shall provide with respect to the plan, except that in the ‘‘(i) IN GENERAL.—The term ‘installment rules for the application of this paragraph to case of a plan described in section 106 of the acceleration amount’ means, with respect to such plans, including rules for the ratable al- Pension Protection Act of 2006, the plan any plan year in a restriction period with re- location of any installment acceleration sponsor may only elect to have this subpara- spect to an election year, the sum of— amount among such plans on the basis of graph apply to a plan year beginning in 2011. ‘‘(I) the aggregate amount of excess em- each plan’s relative reduction in the plan’s ‘‘(II) AMORTIZATION SCHEDULE.—Such elec- ployee compensation determined under sub- shortfall amortization installment for the tion shall specify whether the amortization paragraph (D) with respect to all employees first plan year in the amortization period de- schedule under clause (ii) or (iii) shall apply for the plan year, plus scribed in subparagraph (A) (determined to an election year, except that if a plan ‘‘(II) the aggregate amount of extraor- without regard to this paragraph). sponsor elects to have this subparagraph dinary dividends and redemptions deter- ‘‘(iv) MERGERS AND ACQUISITIONS.—The Sec- apply to 2 eligible plan years, the plan spon- mined under subparagraph (E) for the plan retary of the Treasury shall prescribe rules sor must elect the same schedule for both year. for the application of paragraph (2)(D) and years. ‘‘(ii) LIMITATION TO AGGREGATE REDUCED this paragraph in any case where there is a ‘‘(III) OTHER RULES.—Such election shall be REQUIRED CONTRIBUTIONS.—The installment merger or acquisition involving a plan spon- made at such time, and in such form and acceleration amount for any plan year shall sor making the election under paragraph manner, as shall be prescribed by the Sec- not exceed the excess (if any) of— (2)(D).’’. retary, and may be revoked only with the ‘‘(I) the sum of the shortfall amortization (3) CONFORMING AMENDMENTS.—Section 303 consent of the Secretary. The Secretary installments for the plan year and all pre- of such Act (29 U.S.C. 1083) is amended— shall, before granting a revocation request, ceding plan years in the amortization period (A) in subsection (c)(1), by striking ‘‘the provide the Pension Benefit Guaranty Cor- elected under paragraph (2)(D) with respect shortfall amortization bases for such plan poration an opportunity to comment on the to the shortfall amortization base with re- year and each of the 6 preceding plan years’’ conditions applicable to the treatment of spect to an election year, determined with- and inserting ‘‘any shortfall amortization any portion of the election year shortfall out regard to paragraph (2)(D) and this para- base which has not been fully amortized amortization base that remains unamortized graph, over under this subsection’’, and as of the revocation date. ‘‘(II) the sum of the shortfall amortization (B) in subsection (j)(3), by adding at the ‘‘(v) ELIGIBLE PLAN YEAR.—For purposes of installments for such plan year and all such end the following: this subparagraph, the term ‘eligible plan preceding plan years, determined after appli- ‘‘(F) QUARTERLY CONTRIBUTIONS NOT TO IN- year’ means any plan year beginning in 2008, cation of paragraph (2)(D) (and in the case of CLUDE CERTAIN INCREASED CONTRIBUTIONS.— 2009, 2010, or 2011, except that a plan year any preceding plan year, after application of Subparagraph (D) shall be applied without shall only be treated as an eligible plan year this paragraph).

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‘‘(iii) CARRYOVER OF EXCESS INSTALLMENT ‘‘(v) OTHER EXCEPTIONS.—The following such plans on the basis of each plan’s rel- ACCELERATION AMOUNTS.— amounts includible in income shall not be ative reduction in the plan’s shortfall amor- ‘‘(I) IN GENERAL.—If the installment accel- taken into account under clause (i)(I): tization installment for the first plan year in eration amount for any plan year (deter- ‘‘(I) COMMISSIONS.—Any remuneration pay- the amortization period described in sub- mined without regard to clause(ii)) exceeds able on a commission basis solely on account paragraph (A) (determined without regard to the limitation under clause (ii), then, subject of income directly generated by the indi- this paragraph). to subclause (II), such excess shall be treated vidual performance of the individual to ‘‘(iv) MERGERS AND ACQUISITIONS.—The Sec- as an installment acceleration amount with whom such remuneration is payable. retary shall prescribe rules for the applica- respect to the succeeding plan year (without ‘‘(II) CERTAIN PAYMENTS UNDER EXISTING tion of paragraph (2)(D) and this paragraph regard to whether such succeeding plan year CONTRACTS.—Any remuneration consisting of in any case where there is a merger or acqui- is in the restriction period). nonqualified deferred compensation, re- sition involving a plan sponsor making the ‘‘(II) CAP TO APPLY.—If any amount treated stricted stock, stock options, or stock appre- election under paragraph (2)(D).’’. as an installment acceleration amount under ciation rights payable or granted under a (3) CONFORMING AMENDMENTS.—Section 430 subclause (I) or this subclause with respect written binding contract that was in effect is amended— any succeeding plan year, when added to on February 4, 2010, and which was not modi- (A) in subsection (c)(1), by striking ‘‘the other installment acceleration amounts (de- fied in any material respect before such re- shortfall amortization bases for such plan termined without regard to clause (ii)) with muneration is paid. year and each of the 6 preceding plan years’’ respect to the plan year, exceeds the limita- ‘‘(vi) SELF-EMPLOYED INDIVIDUAL TREATED and inserting ‘‘any shortfall amortization AS EMPLOYEE.—The term ‘employee’ in- tion under clause (ii), the portion of such base which has not been fully amortized cludes, with respect to a calendar year, a amount representing such excess shall be under this subsection’’, and self-employed individual who is treated as an treated as an installment acceleration (B) in subsection (j)(3), by adding at the employee under section 401(c) for the taxable amount with respect to the next succeeding end the following: year ending during such calendar year, and plan year (without regard to whether such ‘‘(F) QUARTERLY CONTRIBUTIONS NOT TO IN- the term ‘compensation’ shall include earned succeeding plan year is in the restriction pe- CLUDE CERTAIN INCREASED CONTRIBUTIONS.— income of such individual with respect to Subparagraph (D) shall be applied without riod). such self-employment. ‘‘(III) ORDERING RULES.—For purposes of regard to any increase under subsection ‘‘(vii) INDEXING OF AMOUNT.—In the case of (c)(7).’’. applying subclause (II), installment accelera- any calendar year beginning after 2010, the tion amounts for the plan year (determined (c) EFFECTIVE DATE.—The amendments dollar amount under clause (i)(II) shall be in- made by this section shall apply to plan without regard to any carryover under this creased by an amount equal to— clause) shall be applied first against the lim- years beginning after December 31, 2007. ‘‘(I) such dollar amount, multiplied by SEC. 302. APPLICATION OF EXTENDED AMORTI- itation under clause (ii) and then carryovers ‘‘(II) the cost-of-living adjustment deter- to such plan year shall be applied against ZATION PERIOD TO PLANS SUBJECT mined under section 1(f)(3) for the calendar TO PRIOR LAW FUNDING RULES. such limitation on a first-in, first-out basis. year, determined by substituting ‘calendar (a) IN GENERAL.—Title I of the Pension ‘‘(D) EXCESS EMPLOYEE COMPENSATION.—For year 2009’ for ‘calendar year 1992’ in subpara- Protection Act of 2006 is amended by redesig- purposes of this paragraph— graph (B) thereof. nating section 107 as section 108 and by in- ‘‘(i) IN GENERAL.—The term ‘excess em- If the amount of any increase under clause serting the following after section 106: ployee compensation’ means, with respect to (i) is not a multiple of $1,000, such increase ‘‘SEC. 107. APPLICATION OF EXTENDED AMORTI- any employee for any plan year, the excess shall be rounded to the next lowest multiple ZATION PERIODS TO PLANS WITH (if any) of— of $1,000. DELAYED EFFECTIVE DATE. ‘‘(I) the aggregate amount includible in in- ‘‘(E) EXTRAORDINARY DIVIDENDS AND RE- ‘‘(a) IN GENERAL.—If the plan sponsor of a come under this chapter for remuneration DEMPTIONS.— plan to which section 104, 105, or 106 of this during the calendar year in which such plan ‘‘(i) IN GENERAL.—The amount determined Act applies elects to have this section apply year begins for services performed by the under this subparagraph for any plan year is for any eligible plan year (in this section re- employee for the plan sponsor (whether or the excess (if any) of— ferred to as an ‘election year’), section 302 of not performed during such calendar year), ‘‘(I) the sum of the dividends declared dur- the Employee Retirement Income Security over ing the plan year by the plan sponsor plus Act of 1974 and section 412 of the Internal ‘‘(II) $1,000,000. the aggregate fair market value of the stock Revenue Code of 1986 (as in effect before the ‘‘(ii) AMOUNTS SET ASIDE FOR NONQUALIFIED of the plan sponsor redeemed during the plan amendments made by this subtitle and sub- DEFERRED COMPENSATION.—If during any cal- year, over title B) shall apply to such year in the man- endar year assets are set aside or reserved ‘‘(II) the adjusted net income (within the ner described in subsection (b) or (c), which- (directly or indirectly) in a trust (or other meaning of section 4043 of the Employee Re- ever is specified in the election. All ref- arrangement as determined by the Sec- tirement Income Security Act of 1974) of the erences in this section to ‘such Act’ or ‘such retary), or transferred to such a trust or plan sponsor for the preceding plan year. Code’ shall be to such Act or such Code as in other arrangement, by a plan sponsor for ‘‘(ii) ONLY CERTAIN POST-2009 DIVIDENDS AND effect before the amendments made by this purposes of paying deferred compensation of REDEMPTIONS COUNTED.—For purposes of subtitle and subtitle B. an employee under a nonqualified deferred clause (i), there shall only be taken into ac- ‘‘(b) APPLICATION OF 2 AND 7 RULE.—In the compensation plan (as defined in section count dividends declared, and redemptions case of an election year to which this sub- 409A) of the plan sponsor, then, for purposes occurring, after February 4, 2010. section applies— of clause (i), the amount of such assets shall ‘‘(iii) EXCEPTION FOR INTRA-GROUP DIVI- ‘‘(1) 2-YEAR LOOKBACK FOR DETERMINING be treated as remuneration of the employee DENDS.—Dividends paid by one member of a DEFICIT REDUCTION CONTRIBUTIONS FOR CER- includible in income for the calendar year controlled group (as defined in section TAIN PLANS.—For purposes of applying sec- unless such amount is otherwise includible 412(d)(3)) to another member of such group tion 302(d)(9) of such Act and section 412(l)(9) in income for such year. An amount to which shall not be taken into account under clause of such Code, the funded current liability the preceding sentence applies shall not be (i). percentage (as defined in subparagraph (C) taken into account under this paragraph for ‘‘(F) OTHER DEFINITIONS AND RULES.—For thereof) for such plan for such plan year any subsequent calendar year. purposes of this paragraph— shall be such funded current liability per- ‘‘(iii) ONLY REMUNERATION FOR CERTAIN ‘‘(i) PLAN SPONSOR.—The term ‘ plan spon- centage of such plan for the second plan year POST-2009 SERVICES COUNTED.—Remuneration sor’ includes any member of the plan spon- preceding the first election year of such shall be taken into account under clause (i) sor’s controlled group (as defined in section plan. only to the extent attributable to services 412(d)(3)). ‘‘(2) CALCULATION OF DEFICIT REDUCTION performed by the employee for the plan spon- ‘‘(ii) RESTRICTION PERIOD.—The term ‘re- CONTRIBUTION.—For purposes of applying sec- sor after February 4, 2010. striction period’ means, with respect to any tion 302(d) of such Act and section 412(l) of ‘‘(iv) EXCEPTION FOR CERTAIN EQUITY PAY- election year— such Code to a plan to which such sections MENTS.— ‘‘(I) except as provided in subclause (II), apply (after taking into account paragraph ‘‘(I) IN GENERAL.—There shall not be taken the 4-year period beginning with the election (1))— into account under clause (i)(I) any amount year, and ‘‘(A) in the case of the increased unfunded includible in income with respect to the ‘‘(II) if the plan sponsor elects 15-year am- new liability of the plan, the applicable per- granting on or after February 4, 2010, of serv- ortization for the shortfall amortization base centage described in section 302(d)(4)(C) of ice recipient stock (within the meaning of for the election year, the 7-year period begin- such Act and section 412(l)(4)(C) of such Code section 409A) that, upon such grant, is sub- ning with the election year. shall be the third segment rate described in ject to a substantial risk of forfeiture (as de- ‘‘(iii) ELECTIONS FOR MULTIPLE PLANS.—If a sections 104(b), 105(b), and 106(b) of this Act, fined under section 83(c)(1)) for at least 5 plan sponsor makes elections under para- and years from the date of such grant. graph (2)(D) with respect to 2 or more plans, ‘‘(B) in the case of the excess of the un- ‘‘(II) SECRETARIAL AUTHORITY.—The Sec- the Secretary shall provide rules for the ap- funded new liability over the increased un- retary may by regulation provide for the ap- plication of this paragraph to such plans, in- funded new liability, such applicable per- plication of this clause in the case of a per- cluding rules for the ratable allocation of centage shall be determined without regard son other than a corporation. any installment acceleration amount among to this section.

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‘‘(c) APPLICATION OF 15-YEAR AMORTIZA- (1) by striking ‘‘eligible cooperative plan’’ ‘‘(i) such percentage, as determined with- TION.—In the case of an election year to wherever it appears in subsections (a) and (b) out regard to this paragraph, or which this subsection applies, for purposes of and inserting ‘‘eligible cooperative plan or ‘‘(ii) the adjusted funding target attain- applying section 302(d) of such Act and sec- an eligible charity plan’’, and ment percentage for such plan for the plan tion 412(l) of such Code— (2) by adding at the end the following new year beginning after October 1, 2007, and be- ‘‘(1) in the case of the increased unfunded subsection: fore October 1, 2008, as determined under new liability of the plan, the applicable per- ‘‘(d) ELIGIBLE CHARITY PLAN DEFINED.—For rules prescribed by the Secretary. centage described in section 302(d)(4)(C) of purposes of this section, a plan shall be ‘‘(B) SPECIAL RULE.—In the case of a plan such Act and section 412(l)(4)(C) of such Code treated as an eligible charity plan for a plan for which the valuation date is not the first for any pre-effective date plan year begin- year if the plan is maintained by more than day of the plan year— ning with or after the first election year one employer and 100 percent of the employ- ‘‘(i) subparagraph (A) shall apply to plan shall be the ratio of— ers are described in section 501(c)(3) of such years beginning after December 31, 2007, and ‘‘(A) the annual installments payable in Code.’’. before January 1, 2010, and each year if the increased unfunded new li- (c) EFFECTIVE DATE.— ‘‘(ii) subparagraph (A)(ii) shall apply based ability for such plan year were amortized (1) IN GENERAL.—The amendment made by on the last plan year beginning before No- subsection (a) shall take effect as if included over 15 years, using an interest rate equal to vember 1, 2007, as determined under rules in the Pension Protection Act of 2006. the third segment rate described in sections prescribed by the Secretary. (2) ELIGIBLE CHARITY PLAN.—The amend- 104(b), 105(b), and 106(b) of this Act, to ‘‘(C) APPLICABLE PROVISION.—For purposes ments made by subsection (b) shall apply to ‘‘(B) the increased unfunded new liability of this paragraph, the term ‘applicable provi- plan years beginning after December 31, 2007, for such plan year, and sion’ means— except that a plan sponsor may elect to ‘‘(2) in the case of the excess of the un- ‘‘(i) subsection (d), but only for purposes of apply such amendments to plan years begin- funded new liability over the increased un- applying such paragraph to a payment ning after December 31, 2008. Any such elec- funded new liability, such applicable per- which, as determined under rules prescribed tion shall be made at such time, and in such centage shall be determined without regard by the Secretary, is a payment under a so- form and manner, as shall be prescribed by to this section. the Secretary of the Treasury, and may be cial security leveling option which acceler- ‘‘(d) ELECTION.— revoked only with the consent of the Sec- ates payments under the plan before, and re- ‘‘(1) IN GENERAL.—The plan sponsor of a retary of the Treasury. duces payments after, a participant starts receiving social security benefits in order to plan may elect to have this section apply to SEC. 303. LOOKBACK FOR CERTAIN BENEFIT RE- not more than 2 eligible plan years with re- STRICTIONS. provide substantially similar aggregate pay- spect to the plan, except that in the case of (a) IN GENERAL.— ments both before and after such benefits are a plan to which section 106 of this Act ap- (1) AMENDMENT TO ERISA.—Section 206(g)(9) received, and plies, the plan sponsor may only elect to of the Employee Retirement Income Secu- ‘‘(ii) subsection (e).’’. have this section apply to 1 eligible plan rity Act of 1974 is amended by adding at the (b) INTERACTION WITH WRERA RULE.—Sec- year. end the following: tion 203 of the Worker, Retiree, and Em- ‘‘(2) AMORTIZATION SCHEDULE.—Such elec- ‘‘(D) SPECIAL RULE FOR CERTAIN YEARS.— ployer Recovery Act of 2008 shall apply to a tion shall specify whether the rules under Solely for purposes of any applicable provi- plan for any plan year in lieu of the amend- subsection (b) or (c) shall apply to an elec- sion— ments made by this section applying to sec- tion year, except that if a plan sponsor elects ‘‘(i) IN GENERAL.—For plan years beginning tions 206(g)(4) of the Employee Retirement to have this section apply to 2 eligible plan on or after October 1, 2008, and before Octo- Income Security Act of 1974 and 436(e) of the years, the plan sponsor must elect the same ber 1, 2010, the adjusted funding target at- Internal Revenue Code of 1986 only to the ex- rule for both years. tainment percentage of a plan shall be the tent that such section produces a higher ad- ‘‘(3) OTHER RULES.—Such election shall be greater of— justed funding target attainment percentage made at such time, and in such form and ‘‘(I) such percentage, as determined with- for such plan for such year. manner, as shall be prescribed by the Sec- out regard to this subparagraph, or (c) EFFECTIVE DATE.— retary of the Treasury, and may be revoked ‘‘(II) the adjusted funding target attain- (1) IN GENERAL.—Except as provided in only with the consent of the Secretary of the ment percentage for such plan for the plan paragraph (2), the amendments made by this Treasury. year beginning after October 1, 2007, and be- section shall apply to plan years beginning ‘‘(e) DEFINITIONS.—For purposes of this sec- fore October 1, 2008, as determined under on or after October 1, 2008. tion— rules prescribed by the Secretary of the (2) SPECIAL RULE.—In the case of a plan for ‘‘(1) ELIGIBLE PLAN YEAR.—For purposes of Treasury. which the valuation date is not the first day this subparagraph, the term ‘eligible plan ‘‘(ii) SPECIAL RULE.—In the case of a plan of the plan year, the amendments made by year’ means any plan year beginning in 2008, for which the valuation date is not the first this section shall apply to plan years begin- 2009, 2010, or 2011, except that a plan year be- day of the plan year— ning after December 31, 2007. ginning in 2008 shall only be treated as an el- ‘‘(I) clause (i) shall apply to plan years be- Subtitle B—Multiemployer Plans igible plan year if the due date for the pay- ginning after December 31, 2007, and before SEC. 311. ADJUSTMENTS TO FUNDING STANDARD ment of the minimum required contribution January 1, 2010, and ACCOUNT RULES. for such plan year occurs on or after the date ‘‘(II) clause (i)(II) shall apply based on the (a) ADJUSTMENTS.— of the enactment of this clause. last plan year beginning before November 1, (1) AMENDMENT TO ERISA.—Section 304(b) of ‘‘(2) PRE-EFFECTIVE DATE PLAN YEAR.—The 2007, as determined under rules prescribed by the Employee Retirement Income Security term ‘pre-effective date plan year’ means, the Secretary of the Treasury. Act of 1974 (29 U.S.C. 1084(b)) is amended by with respect to a plan, any plan year prior to ‘‘(iii) APPLICABLE PROVISION.—For purposes adding at the end the following new para- the first year in which the amendments of this subparagraph, the term ‘applicable graph: made by this subtitle and subtitle B apply to provision’ means— ‘‘(8) SPECIAL RELIEF RULES.—Notwith- the plan. ‘‘(I) paragraph (3), but only for purposes of standing any other provision of this sub- ‘‘(3) INCREASED UNFUNDED NEW LIABILITY.— applying such paragraph to a payment section— The term ‘increased unfunded new liability’ which, as determined under rules prescribed ‘‘(A) AMORTIZATION OF NET INVESTMENT means, with respect to a year, the excess (if by the Secretary of the Treasury, is a pay- LOSSES.— any) of the unfunded new liability over the ment under a social security leveling option ‘‘(i) IN GENERAL.—A multiemployer plan amount of unfunded new liability deter- which accelerates payments under the plan with respect to which the solvency test mined as if the value of the plan’s assets de- before, and reduces payments after, a partic- under subparagraph (C) is met may treat the termined under subsection 302(c)(2) of such ipant starts receiving social security bene- portion of its experience loss attributable to Act and section 412(c)(2) of such Code equaled fits in order to provide substantially similar the net investment losses (if any) incurred in the product of the current liability of the aggregate payments both before and after either or both of the first two plan years plan for the year multiplied by the funded such benefits are received, and ending after August 31, 2008, as an item sepa- current liability percentage (as defined in ‘‘(II) paragraph (4).’’. rate from other experience losses, to be am- section 302(d)(8)(B) of such Act and (2) AMENDMENT TO INTERNAL REVENUE CODE ortized in equal annual installments (until 412(l)(8)(B) of such Code) of the plan for the OF 1986.—Section 436(j) of the Internal Rev- fully amortized) over a period of 30 plan second plan year preceding the first election enue Code of 1986 is amended by adding at years. year of such plan. the end the following: ‘‘(ii) COORDINATION WITH EXTENSIONS.—If ‘‘(4) OTHER DEFINITIONS.—The terms ‘un- ‘‘(3) SPECIAL RULE FOR CERTAIN YEARS.— this subparagraph applies for any plan year— funded new liability’ and ‘current liability’ Solely for purposes of any applicable provi- ‘‘(I) no extension of the amortization pe- shall have the meanings set forth in section sion— riod under clause (i) shall be allowed under 302(d) of such Act and section 412(l) of such ‘‘(A) IN GENERAL.—For plan years begin- subsection (d), and Code.’’. ning on or after October 1, 2008, and before ‘‘(II) if an extension was granted under (b) ELIGIBLE CHARITY PLANS.—Section 104 October 1, 2010, the adjusted funding target subsection (d) for any plan year before the of the Pension Protection Act of 2006 is attainment percentage of a plan shall be the election to have this subparagraph apply to amended— greater of— the plan year, such extension shall not result

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00050 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.040 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S875 in such amortization period exceeding 30 enue Code of 1986 or to comply with other ap- graph as a separate experience amortization years. plicable law. base, to be amortized in equal annual install- ‘‘(iii) NET INVESTMENT LOSSES.—For pur- ‘‘(E) REPORTING.—A plan sponsor of a plan ments (until fully amortized) over a period poses of this subparagraph— to which this paragraph applies shall inform of 30 plan years rather than the period such ‘‘(I) IN GENERAL.—Net investment losses the Pension Benefit Guaranty Corporation of liability would otherwise be amortized over. shall be determined in the manner prescribed such application in such form and manner as ‘‘(C) SOLVENCY TEST.—The solvency test by the Secretary of the Treasury on the basis the Director of the Pension Benefit Guar- under this paragraph is met only if the plan of the difference between actual and ex- anty Corporation may prescribe.’’. actuary certifies that the plan is projected pected returns (including any difference at- (2) AMENDMENT TO INTERNAL REVENUE CODE to have sufficient assets to timely pay ex- tributable to any criminally fraudulent in- OF 1986.—Section 431(b) is amended by adding pected benefits and anticipated expenditures vestment arrangement). at the end the following new paragraph: over the amortization period, taking into ac- ‘‘(II) CRIMINALLY FRAUDULENT INVESTMENT ‘‘(8) SPECIAL RELIEF RULES.—Notwith- count the changes in the funding standard ARRANGEMENTS.—The determination as to standing any other provision of this sub- account under this paragraph. whether an arrangement is a criminally section— ‘‘(D) RESTRICTION ON BENEFIT INCREASES.— fraudulent investment arrangement shall be ‘‘(A) AMORTIZATION OF NET INVESTMENT If subparagraph (A) or (B) apply to a multi- made under rules substantially similar to LOSSES.— employer plan for any plan year, then, in ad- the rules prescribed by the Secretary of the ‘‘(i) IN GENERAL.—A multiemployer plan dition to any other applicable restrictions on Treasury for purposes of section 165 of the with respect to which the solvency test benefit increases, a plan amendment increas- Internal Revenue Code of 1986. under subparagraph (C) is met may treat the ing benefits may not go into effect during ei- ‘‘(B) EXPANDED SMOOTHING PERIOD.— portion of its experience loss attributable to ther of the 2 plan years immediately fol- ‘‘(i) IN GENERAL.—A multiemployer plan the net investment losses (if any) incurred in lowing such plan year unless— with respect to which the solvency test either or both of the first two plan years ‘‘(i) the plan actuary certifies that— under subparagraph (C) is met may change ending after August 31, 2008, as an item sepa- ‘‘(I) any such increase is paid for out of ad- its asset valuation method in a manner rate from other experience losses, to be am- ditional contributions not allocated to the which— ortized in equal annual installments (until plan immediately before the application of ‘‘(I) spreads the difference between ex- fully amortized) over a period of 30 plan this paragraph to the plan, and pected and actual returns for either or both years. ‘‘(II) the plan’s funded percentage and pro- of the first 2 plan years ending after August ‘‘(ii) COORDINATION WITH EXTENSIONS.—If jected credit balances for such 2 plan years 31, 2008, over a period of not more than 10 this subparagraph applies for any plan year— are reasonably expected to be at least as years, ‘‘(I) no extension of the amortization pe- high as such percentage and balances would ‘‘(II) provides that for either or both of riod under clause (i) shall be allowed under have been if the benefit increase had not such 2 plan years the value of plan assets at subsection (d), and been adopted, or any time shall not be less than 80 percent or ‘‘(II) if an extension was granted under ‘‘(ii) the amendment is required as a condi- greater than 130 percent of the fair market subsection (d) for any plan year before the tion of qualification under part I of sub- value of such assets at such time, or election to have this subparagraph apply to chapter D or to comply with other applicable ‘‘(III) makes both changes described in sub- the plan year, such extension shall not result law. clauses (I) and (II) to such method. in such amortization period exceeding 30 ‘‘(E) REPORTING.—A plan sponsor of a plan ‘‘(ii) ASSET VALUATION METHODS.—If this years. to which this paragraph applies shall inform subparagraph applies for any plan year— ‘‘(iii) NET INVESTMENT LOSSES.—For pur- the Pension Benefit Guaranty Corporation of ‘‘(I) the Secretary of the Treasury shall poses of this subparagraph— such application in such form and manner as not treat the asset valuation method of the ‘‘(I) IN GENERAL.—Net investment losses the Director of the Pension Benefit Guar- plan as unreasonable solely because of the shall be determined in the manner prescribed anty Corporation may prescribe.’’. changes in such method described in clause by the Secretary on the basis of the dif- (b) EFFECTIVE DATES.— (i), and ference between actual and expected returns (1) IN GENERAL.—The amendments made by ‘‘(II) such changes shall be deemed ap- (including any difference attributable to any this section shall take effect as of the first proved by such Secretary under section criminally fraudulent investment arrange- day of the first plan year ending after Au- 302(d)(1) and section 412(d)(1) of such Code. ment). gust 31, 2008, except that any election a plan ‘‘(iii) AMORTIZATION OF REDUCTION IN UN- ‘‘(II) CRIMINALLY FRAUDULENT INVESTMENT makes pursuant to this section that affects FUNDED ACCRUED LIABILITY.—If this subpara- ARRANGEMENTS.—The determination as to the plan’s funding standard account for the graph and subparagraph (A) both apply for whether an arrangement is a criminally first plan year ending after August 31, 2008, any plan year, the plan shall treat any re- fraudulent investment arrangement shall be shall be disregarded for purposes of applying duction in unfunded accrued liability result- made under rules substantially similar to the provisions of section 305 of the Employee ing from the application of this subpara- the rules prescribed by the Secretary for pur- Retirement Income Security Act of 1974 and graph as a separate experience amortization poses of section 165. section 432 of the Internal Revenue Code of base, to be amortized in equal annual install- ‘‘(B) EXPANDED SMOOTHING PERIOD.— 1986 to such plan year. ments (until fully amortized) over a period ‘‘(i) IN GENERAL.—A multiemployer plan (2) RESTRICTIONS ON BENEFIT INCREASES.— of 30 plan years rather than the period such with respect to which the solvency test Notwithstanding paragraph (1), the restric- liability would otherwise be amortized over. under subparagraph (C) is met may change tions on plan amendments increasing bene- ‘‘(C) SOLVENCY TEST.—The solvency test its asset valuation method in a manner fits in sections 304(b)(8)(D) of such Act and under this paragraph is met only if the plan which— 431(b)(8)(D) of such Code, as added by this actuary certifies that the plan is projected ‘‘(I) spreads the difference between ex- section, shall take effect on the date of en- to have sufficient assets to timely pay ex- pected and actual returns for either or both actment of this Act. pected benefits and anticipated expenditures of the first 2 plan years ending after August TITLE IV—OFFSET PROVISIONS over the amortization period, taking into ac- 31, 2008, over a period of not more than 10 count the changes in the funding standard years, Subtitle A—Black Liquor account under this paragraph. ‘‘(II) provides that for either or both of SEC. 401. EXCLUSION OF UNPROCESSED FUELS ‘‘(D) RESTRICTION ON BENEFIT INCREASES.— such 2 plan years the value of plan assets at FROM THE CELLULOSIC BIOFUEL If subparagraph (A) or (B) apply to a multi- any time shall not be less than 80 percent or PRODUCER CREDIT. employer plan for any plan year, then, in ad- greater than 130 percent of the fair market (a) IN GENERAL.—Subparagraph (E) of sec- tion 40(b)(6) is amended by adding at the end dition to any other applicable restrictions on value of such assets at such time, or the following new clause: benefit increases, a plan amendment increas- ‘‘(III) makes both changes described in sub- ‘‘(iii) EXCLUSION OF UNPROCESSED FUELS.— ing benefits may not go into effect during ei- clauses (I) and (II) to such method. The term ‘cellulosic biofuel’ shall not in- ther of the 2 plan years immediately fol- ‘‘(ii) ASSET VALUATION METHODS.—If this clude any fuel if— lowing such plan year unless— subparagraph applies for any plan year— ‘‘(I) more than 4 percent of such fuel (de- ‘‘(i) the plan actuary certifies that— ‘‘(I) the Secretary shall not treat the asset termined by weight) is any combination of ‘‘(I) any such increase is paid for out of ad- valuation method of the plan as unreason- water and sediment, or ditional contributions not allocated to the able solely because of the changes in such ‘‘(II) the ash content of such fuel is more plan immediately before the application of method described in clause (i), and than 1 percent (determined by weight).’’. this paragraph to the plan, and ‘‘(II) such changes shall be deemed ap- (b) EFFECTIVE DATE.—The amendment ‘‘(II) the plan’s funded percentage and pro- proved by the Secretary under section made by this section shall apply to fuels sold jected credit balances for such 2 plan years 302(d)(1) of the Employee Retirement Income or used after the date of the enactment of are reasonably expected to be at least as Security Act of 1974 and section 412(d)(1). this Act. high as such percentage and balances would ‘‘(iii) AMORTIZATION OF REDUCTION IN UN- SEC. 402. PROHIBITION ON ALTERNATIVE FUEL have been if the benefit increase had not FUNDED ACCRUED LIABILITY.—If this subpara- CREDIT AND ALTERNATIVE FUEL been adopted, or graph and subparagraph (A) both apply for MIXTURE CREDIT FOR BLACK LIQ- ‘‘(ii) the amendment is required as a condi- any plan year, the plan shall treat any re- UOR. tion of qualification under part I of sub- duction in unfunded accrued liability result- (a) IN GENERAL.—The last sentence of sec- chapter D of chapter 1 of the Internal Rev- ing from the application of this subpara- tion 6426(d)(2) is amended by striking ‘‘or

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00051 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.040 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S876 CONGRESSIONAL RECORD — SENATE March 1, 2010 biodiesel’’ and inserting ‘‘biodiesel, or any of the expected net tax benefits that would fecting the tax treatment are not adequately fuel (including lignin, wood residues, or be allowed if the transaction were respected. disclosed in the return nor in a statement at- spent pulping liquors) derived from the pro- ‘‘(B) TREATMENT OF FEES AND FOREIGN tached to the return. duction of paper or pulp’’. TAXES.—Fees and other transaction expenses ‘‘(3) SPECIAL RULE FOR AMENDED RETURNS.— (b) EFFECTIVE DATE.—The amendment shall be taken into account as expenses in Except as provided in regulations, in no made by this section shall apply to fuel sold determining pre-tax profit under subpara- event shall any amendment or supplement to or used after December 31, 2009. graph (A). The Secretary may issue regula- a return of tax be taken into account for Subtitle B—Homebuyer Credit tions requiring foreign taxes to be treated as purposes of this subsection if the amendment expenses in determining pre-tax profit in ap- SEC. 411. TECHNICAL MODIFICATIONS TO HOME- or supplement is filed after the earlier of the BUYER CREDIT. propriate cases. date the taxpayer is first contacted by the (a) EXPANDED DOCUMENTATION REQUIRE- ‘‘(3) STATE AND LOCAL TAX BENEFITS.—For Secretary regarding the examination of the MENT.—Subsection (d) of section 36, as purposes of paragraph (1), any State or local return or such other date as is specified by amended by the Worker, Homeownership, income tax effect which is related to a Fed- the Secretary.’’. and Business Assistance Act of 2009, is eral income tax effect shall be treated in the (3) CONFORMING AMENDMENT.—Subpara- amended— same manner as a Federal income tax effect. graph (B) of section 6662A(e)(2) is amended— (1) by striking ‘‘or’’ at the end of paragraph ‘‘(4) FINANCIAL ACCOUNTING BENEFITS.—For (A) by striking ‘‘section 6662(h)’’ and in- (3), purposes of paragraph (1)(B), achieving a fi- serting ‘‘subsections (h) or (i) of section (2) by striking the period at the end of nancial accounting benefit shall not be 6662’’; and paragraph (4) and inserting a comma, and taken into account as a purpose for entering (B) by striking ‘‘GROSS VALUATION into a transaction if the origin of such finan- (3) by adding at the end the following new MISSTATEMENT PENALTY’’ in the heading and cial accounting benefit is a reduction of Fed- paragraphs: inserting ‘‘CERTAIN INCREASED UNDER- eral income tax. ‘‘(5) in the case of a taxpayer to whom such PAYMENT PENALTIES’’. ‘‘(5) DEFINITIONS AND SPECIAL RULES.—For a credit would be allowed (but for this para- purposes of this subsection— (c) REASONABLE CAUSE EXCEPTION NOT AP- graph) by reason of subsection (c)(6), the tax- PLICABLE TO NONECONOMIC SUBSTANCE TRANS- ‘‘(A) ECONOMIC SUBSTANCE DOCTRINE.—The payer fails to attach to the return of tax for term ‘economic substance doctrine’ means ACTIONS.— such taxable year a copy of such property the common law doctrine under which tax (1) REASONABLE CAUSE EXCEPTION FOR UN- tax bills or other documentation as are re- benefits under subtitle A with respect to a DERPAYMENTS.—Subsection (c) of section 6664 quired by the Secretary to demonstrate com- transaction are not allowable if the trans- is amended— pliance with the requirements of subsection action does not have economic substance or (A) by redesignating paragraphs (2) and (3) (c)(6), or lacks a business purpose. as paragraphs (3) and (4), respectively; ‘‘(6) in the case of a taxpayer to whom such ‘‘(B) EXCEPTION FOR PERSONAL TRANS- (B) by striking ‘‘paragraph (2)’’ in para- a credit would be allowed (but for this para- ACTIONS OF INDIVIDUALS.—In the case of an graph (4)(A), as so redesignated, and insert- graph) by reason of subsection (h)(2), the tax- individual, paragraph (1) shall apply only to ing ‘‘paragraph (3)’’; and payer fails to attach to the return of tax for transactions entered into in connection with (C) by inserting after paragraph (1) the fol- such taxable year a copy of the binding con- a trade or business or an activity engaged in lowing new paragraph: tract which meets the requirements of sub- for the production of income. ‘‘(2) EXCEPTION.—Paragraph (1) shall not section (h)(2).’’. ‘‘(C) OTHER COMMON LAW DOCTRINES NOT AF- apply to any portion of an underpayment (b) MODIFICATION OF EFFECTIVE DATE OF FECTED.—Except as specifically provided in which is attributable to one or more trans- DOCUMENTATION REQUIREMENTS.—Paragraph this subsection, the provisions of this sub- actions described in section 6662(b)(6).’’. (2) of section 12(e) of the Worker, Homeown- section shall not be construed as altering or (2) REASONABLE CAUSE EXCEPTION FOR RE- ership, and Business Assistance Act of 2009 is supplanting any other rule of law, and the PORTABLE TRANSACTION UNDERSTATEMENTS.— amended by striking ‘‘returns for taxable requirements of this subsection shall be con- Subsection (d) of section 6664 is amended— years ending after the date of the enactment strued as being in addition to any such other (A) by redesignating paragraphs (2) and (3) of this Act’’ and inserting ‘‘returns filed rule of law. as paragraphs (3) and (4), respectively; after the date of the enactment of this Act’’. ‘‘(D) DETERMINATION OF APPLICATION OF (B) by striking ‘‘paragraph (2)(C)’’ in para- (c) EFFECTIVE DATES.— DOCTRINE NOT AFFECTED.—The determination graph (4), as so redesignated, and inserting (1) DOCUMENTATION REQUIREMENTS.—The of whether the economic substance doctrine ‘‘paragraph (3)(C)’’; and amendments made by subsection (a) shall is relevant to a transaction shall be made in (C) by inserting after paragraph (1) the fol- apply to purchases on or after the date of the the same manner as if this subsection had lowing new paragraph: enactment of this Act. never been enacted. ‘‘(2) EXCEPTION.—Paragraph (1) shall not (2) EFFECTIVE DATE OF WORKER, HOMEOWN- ‘‘(E) TRANSACTION.—The term ‘transaction’ apply to any portion of a reportable trans- ERSHIP, AND BUSINESS ASSISTANCE ACT.—The includes a series of transactions. action understatement which is attributable amendment made by subsection (b) shall ‘‘(6) REGULATIONS.—The Secretary shall to one or more transactions described in sec- apply to purchases of a principal residence prescribe such regulations as may be nec- tion 6662(b)(6).’’. on or after the date of the enactment of the essary or appropriate to carry out the pur- Worker, Homeownership, and Business As- (d) APPLICATION OF PENALTY FOR ERRO- poses of this subsection.’’. sistance Act of 2009. NEOUS CLAIM FOR REFUND OR CREDIT TO NON- (b) PENALTY FOR UNDERPAYMENTS ATTRIB- ECONOMIC SUBSTANCE TRANSACTIONS.—Sec- Subtitle C—Economic Substance UTABLE TO TRANSACTIONS LACKING ECONOMIC tion 6676 is amended by redesignating sub- SEC. 421. CODIFICATION OF ECONOMIC SUB- SUBSTANCE.— section (c) as subsection (d) and inserting STANCE DOCTRINE; PENALTIES. (1) IN GENERAL.—Subsection (b) of section after subsection (b) the following new sub- (a) IN GENERAL.—Section 7701 is amended 6662 is amended by inserting after paragraph section: by redesignating subsection (o) as subsection (5) the following new paragraph: ‘‘(c) NONECONOMIC SUBSTANCE TRANS- (p) and by inserting after subsection (n) the ‘‘(6) Any disallowance of claimed tax bene- ACTIONS TREATED AS LACKING REASONABLE following new subsection: fits by reason of a transaction lacking eco- BASIS.—For purposes of this section, any ex- ‘‘(o) CLARIFICATION OF ECONOMIC SUBSTANCE nomic substance (within the meaning of sec- cessive amount which is attributable to any DOCTRINE.— tion 7701(o)) or failing to meet the require- transaction described in section 6662(b)(6) ‘‘(1) APPLICATION OF DOCTRINE.—In the case ments of any similar rule of law.’’. shall not be treated as having a reasonable of any transaction to which the economic (2) INCREASED PENALTY FOR NONDISCLOSED basis.’’. substance doctrine is relevant, such trans- TRANSACTIONS.—Section 6662 is amended by action shall be treated as having economic adding at the end the following new sub- (e) EFFECTIVE DATE.— substance only if— section: (1) IN GENERAL.—Except as otherwise pro- ‘‘(A) the transaction changes in a meaning- ‘‘(i) INCREASE IN PENALTY IN CASE OF NON- vided in this subsection, the amendments ful way (apart from Federal income tax ef- DISCLOSED NONECONOMIC SUBSTANCE TRANS- made by this section shall apply to trans- fects) the taxpayer’s economic position, and ACTIONS.— actions entered into after the date of the en- ‘‘(B) the taxpayer has a substantial pur- ‘‘(1) IN GENERAL.—In the case of any por- actment of this Act. pose (apart from Federal income tax effects) tion of an underpayment which is attrib- (2) UNDERPAYMENTS.—The amendments for entering into such transaction. utable to one or more nondisclosed non- made by subsections (b) and (c)(1) shall apply ‘‘(2) SPECIAL RULE WHERE TAXPAYER RELIES economic substance transactions, subsection to underpayments attributable to trans- ON PROFIT POTENTIAL.— (a) shall be applied with respect to such por- actions entered into after the date of the en- ‘‘(A) IN GENERAL.—The potential for profit tion by substituting ‘40 percent’ for ‘20 per- actment of this Act. of a transaction shall be taken into account cent’. (3) UNDERSTATEMENTS.—The amendments in determining whether the requirements of ‘‘(2) NONDISCLOSED NONECONOMIC SUBSTANCE made by subsection (c)(2) shall apply to un- subparagraphs (A) and (B) of paragraph (1) TRANSACTIONS.—For purposes of this sub- derstatements attributable to transactions are met with respect to the transaction only section, the term ‘nondisclosed noneconomic entered into after the date of the enactment if the present value of the reasonably ex- substance transaction’ means any portion of of this Act. pected pre-tax profit from the transaction is a transaction described in subsection (b)(6) (4) REFUNDS AND CREDITS.—The amendment substantial in relation to the present value with respect to which the relevant facts af- made by subsection (d) shall apply to refunds

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00052 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.040 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S877 and credits attributable to transactions en- (1) in subparagraph (A), by striking ‘‘and’’ (E)’’ and inserting ‘‘a proceeding under sub- tered into after the date of the enactment of after the semicolon at the end; paragraph (F)’’; this Act. (2) in subparagraph (B), by striking the pe- (III) in subclause (II), by striking ‘‘(II) Subtitle D—Additional Provisions riod and inserting ‘‘; and’’; and Upon receiving a request under subclause (I), the Librarian of Congress’’ and inserting the SEC. 431. REVISION TO THE MEDICARE IMPROVE- (3) by adding at the end the following: MENT FUND. ‘‘(C) a filing fee, as determined by the Reg- following: Section 1898(b)(1)(A) of the Social Security ister of Copyrights pursuant to section ‘‘(II) PUBLIC NOTICE OF FEES.—Upon receiv- Act (42 U.S.C. 1395iii(b)(1)(A)), as amended by 708(a).’’. ing a request under subclause (I), the Copy- section 1011(b) of the Department of Defense (d) DEPOSIT OF STATEMENTS AND FEES; right Royalty Judges’’; and Appropriations Act, 2010 (Public Law 111– VERIFICATION PROCEDURES.—Section 119(b) is (IV) in subclause (III)— 118), is amended by striking ‘‘$20,740,000,000’’ amended— (aa) by striking ‘‘(III) The Librarian’’ and and inserting ‘‘$12,740,000,000’’. (1) by amending the subsection heading to inserting the following: read as follows: ‘‘(b) DEPOSIT OF STATEMENTS ‘‘(III) ADOPTION OF FEES.—The Copyright TITLE V—SATELLITE TELEVISION Royalty Judges’’; EXTENSION AND FEES; VERIFICATION PROCEDURES.—’’; (2) in paragraph (1), by striking subpara- (bb) by striking ‘‘an arbitration pro- SEC. 501. SHORT TITLE. graph (B) and inserting the following: ceeding’’ and inserting ‘‘the proceeding This title may be cited as the ‘‘Satellite ‘‘(B) a royalty fee payable to copyright under subparagraph (F)’’; and Television Extension and Localism Act of owners pursuant to paragraph (4) for that 6- (cc) by striking ‘‘the arbitration pro- 2010’’. month period, computed by multiplying the ceeding’’ and inserting ‘‘that proceeding’’; Subtitle A—Statutory Licenses total number of subscribers receiving each (F) in subparagraph (E)— SEC. 501. REFERENCE. secondary transmission of a primary stream (i) by striking ‘‘Copyright Office’’ and in- Except as otherwise provided, whenever in or multicast stream of each non-network serting ‘‘Copyright Royalty Judges’’; and this subtitle an amendment is made to a sec- station or network station during each cal- (ii) by striking ‘‘February 28, 2010’’ and in- tion or other provision, the reference shall endar year month by the appropriate rate in serting ‘‘December 31, 2014’’; and be considered to be made to such section or effect under this subsection; and’’; (G) in subparagraph (F)— (i) in the heading, by striking ‘‘COMPUL- provision of title 17, United States Code. (3) by redesignating paragraphs (2), (3), and SORY ARBITRATION’’ and inserting ‘‘COPYRIGHT SEC. 502. MODIFICATIONS TO STATUTORY LI- (4) as paragraphs (3), (4), and (5), respec- ROYALTY JUDGES PROCEEDING’’; CENSE FOR SATELLITE CARRIERS. tively; (ii) in clause (i)— (a) HEADING RENAMED.— (4) by inserting after paragraph (1) the fol- (I) in the heading, by striking ‘‘PRO- (1) IN GENERAL.—The heading of section 119 lowing: CEEDINGS’’ and inserting ‘‘THE PROCEEDING’’; is amended by striking ‘‘superstations and ‘‘(2) VERIFICATION OF ACCOUNTS AND FEE (II) in the matter preceding subclause (I)— network stations for private home viewing’’ PAYMENTS.—The Register of Copyrights shall (aa) by striking ‘‘May 1, 2005, the Librarian and inserting ‘‘distant television program- issue regulations to permit interested par- of Congress’’ and inserting ‘‘May 3, 2010, the ming by satellite’’. ties to verify and audit the statements of ac- Copyright Royalty Judges’’; (2) TABLE OF CONTENTS.—The table of con- count and royalty fees submitted by satellite tents for chapter 1 is amended by striking (bb) by striking ‘‘arbitration proceedings’’ carriers under this subsection.’’; and inserting ‘‘a proceeding’’; the item relating to section 119 and inserting (5) in paragraph (3), as redesignated, in the the following: (cc) by striking ‘‘fee to be paid’’ and insert- first sentence— ing ‘‘fees to be paid’’; ‘‘119. Limitations on exclusive rights: Sec- (A) by inserting ‘‘(including the filing fee (dd) by striking ‘‘primary analog trans- ondary transmissions of distant specified in paragraph (1)(C))’’ after ‘‘shall mission’’ and inserting ‘‘the primary trans- television programming by sat- receive all fees’’; and missions’’; and ellite.’’. (B) by striking ‘‘paragraph (4)’’ and insert- (ee) by striking ‘‘distributors’’ and insert- (b) UNSERVED HOUSEHOLD DEFINED.— ing ‘‘paragraph (5)’’; ing ‘‘distributors—’’; (1) IN GENERAL.—Section 119(d)(10) is (6) in paragraph (4), as redesignated— (III) in subclause (II)— amended— (A) by striking ‘‘paragraph (2)’’ and insert- (aa) by striking ‘‘Librarian of Congress’’ (A) by striking subparagraph (A) and in- ing ‘‘paragraph (3)’’; and and inserting ‘‘Copyright Royalty Judges’’; serting the following: (B) by striking ‘‘paragraph (4)’’ each place and ‘‘(A) cannot receive, through the use of an it appears and inserting ‘‘paragraph (5)’’; and (bb) by striking ‘‘arbitration’’; and antenna, an over-the-air signal containing (7) in paragraph (5), as redesignated, by (IV) by amending the last sentence to read the primary stream, or, on or after the quali- striking ‘‘paragraph (2)’’ and inserting as follows: ‘‘Such proceeding shall be con- fying date, the multicast stream, originating ‘‘paragraph (3)’’. ducted under chapter 8.’’; in that household’s local market and affili- (e) ADJUSTMENT OF ROYALTY FEES.—Sec- (iii) in clause (ii), by amending the matter ated with that network of— tion 119(c) is amended as follows: preceding subclause (I) to read as follows: ‘‘(i) if the signal originates as an analog (1) Paragraph (1) is amended— ‘‘(ii) ESTABLISHMENT OF ROYALTY FEES.—In signal, Grade B intensity as defined by the (A) in the heading for such paragraph, by determining royalty fees under this subpara- Federal Communications Commission in sec- striking ‘‘ANALOG’’; graph, the Copyright Royalty Judges shall tion 73.683(a) of title 47, Code of Federal Reg- (B) in subparagraph (A)— establish fees for the secondary trans- ulations, as in effect on January 1, 1999; or (i) by striking ‘‘primary analog trans- missions of the primary transmissions of ‘‘(ii) if the signal originates as a digital missions’’ and inserting ‘‘primary trans- network stations and non-network stations signal, intensity defined in the values for the missions’’; and that most clearly represent the fair market digital television noise-limited service con- (ii) by striking ‘‘July 1, 2004’’ and inserting value of secondary transmissions, except tour, as defined in regulations issued by the ‘‘July 1, 2009’’; that the Copyright Royalty Judges shall ad- Federal Communications Commission (sec- (C) in subparagraph (B)— just royalty fees to account for the obliga- tion 73.622(e) of title 47, Code of Federal Reg- (i) by striking ‘‘January 2, 2005, the Librar- tions of the parties under any applicable vol- ulations), as such regulations may be amend- ian of Congress’’ and inserting ‘‘March 1, untary agreement filed with the Copyright ed from time to time;’’; 2010, the Copyright Royalty Judges’’; and Royalty Judges in accordance with subpara- (B) in subparagraph (B)— (ii) by striking ‘‘primary analog trans- graph (D). In determining the fair market (i) by striking ‘‘subsection (a)(14)’’ and in- mission’’ and inserting ‘‘primary trans- value, the Judges shall base their decision on serting ‘‘subsection (a)(13),’’; and missions’’; economic, competitive, and programming in- (ii) by striking ‘‘Satellite Home Viewer Ex- (D) in subparagraph (C), by striking ‘‘Li- formation presented by the parties, includ- tension and Reauthorization Act of 2004’’ and brarian of Congress’’ and inserting ‘‘Copy- ing—’’; inserting ‘‘Satellite Television Extension right Royalty Judges’’; (iv) by amending clause (iii) to read as fol- and Localism Act of 2010’’; and (E) in subparagraph (D)— lows: (C) in subparagraph (D), by striking (i) in clause (i)— ‘‘(iii) EFFECTIVE DATE FOR DECISION OF ‘‘(a)(12)’’ and inserting ‘‘(a)(11)’’. (I) by striking ‘‘(i) Voluntary agreements’’ COPYRIGHT ROYALTY JUDGES.—The obligation (2) QUALIFYING DATE DEFINED.—Section and inserting the following: to pay the royalty fees established under a 119(d) is amended by adding at the end the ‘‘(i) VOLUNTARY AGREEMENTS; FILING.—Vol- determination that is made by the Copyright following: untary agreements’’; and Royalty Judges in a proceeding under this ‘‘(14) QUALIFYING DATE.—The term ‘quali- (II) by striking ‘‘that a parties’’ and insert- paragraph shall be effective as of January 1, fying date’, for purposes of paragraph (10)(A), ing ‘‘that are parties’’; and 2010.’’; and means— (ii) in clause (ii)— (v) in clause (iv)— ‘‘(A) July 1, 2010, for multicast streams (I) by striking ‘‘(ii)(I) Within’’ and insert- (I) in the heading, by striking ‘‘FEE’’ and that exist on December 31, 2009; and ing the following: inserting ‘‘FEES’’; and ‘‘(B) January 1, 2011, for all other multicast ‘‘(ii) PROCEDURE FOR ADOPTION OF FEES.— (II) by striking ‘‘fee referred to in (iii)’’ and streams.’’. ‘‘(I) PUBLICATION OF NOTICE.—Within’’; inserting ‘‘fees referred to in clause (iii)’’. (c) FILING FEE.—Section 119(b)(1) is amend- (II) in subclause (I), by striking ‘‘an arbi- (2) Paragraph (2) is amended to read as fol- ed— tration proceeding pursuant to subparagraph lows:

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‘‘(2) ANNUAL ROYALTY FEE ADJUSTMENT.— (B) by striking paragraph (3) and redesig- ‘‘(B) RULES FOR LAWFUL SUBSCRIBERS AS OF Effective January 1 of each year, the royalty nating paragraphs (4) through (14) as para- DATE OF ENACTMENT OF 2010 ACT.—In the case fee payable under subsection (b)(1)(B) for the graphs (3) through (13), respectively; and of a subscriber of a satellite carrier who, on secondary transmission of the primary (C) by striking paragraph (15) and redesig- the day before the date of the enactment of transmissions of network stations and non- nating paragraph (16) as paragraph (14). the Satellite Television Extension and Lo- network stations shall be adjusted by the (2) CONFORMING AMENDMENTS.—Section 119 calism Act of 2010, was lawfully receiving the Copyright Royalty Judges to reflect any is amended— secondary transmission of the primary changes occurring in the cost of living as de- (A) in subsection (a)— transmission of a network station under the termined by the most recent Consumer Price (i) in paragraph (1), by striking ‘‘(5), (6), statutory license under paragraph (2) (in this Index (for all consumers and for all items) and (8)’’ and inserting ‘‘(4), (5), and (7)’’; subparagraph referred to as the ‘distant sig- published by the Secretary of Labor before (ii) in paragraph (2)— nal’), other than subscribers to whom sub- December 1 of the preceding year. Notifica- (I) in subparagraph (A), by striking ‘‘sub- paragraph (A) applies, the statutory license tion of the adjusted fees shall be published in paragraphs (B) and (C) of this paragraph and under paragraph (2) shall apply to secondary the Federal Register at least 25 days before paragraphs (5), (6), (7), and (8)’’ and inserting transmissions by that satellite carrier to January 1.’’. ‘‘subparagraph (B) of this paragraph and that subscriber of the distant signal of a sta- (f) DEFINITIONS.— paragraphs (4), (5), (6), and (7)’’; tion affiliated with the same television net- (1) SUBSCRIBER.—Section 119(d)(8) is (II) in subparagraph (B)(i), by striking the work, and the subscriber’s household shall amended to read as follows: second sentence; and continue to be considered to be an unserved ‘‘(8) SUBSCRIBER; SUBSCRIBE.— (III) in subparagraph (C) (as redesignated), household with respect to such network, ‘‘(A) SUBSCRIBER.—The term ‘subscriber’ by striking clauses (i) and (ii) and inserting until such time as the subscriber elects to means a person or entity that receives a sec- the following: terminate such secondary transmissions, ondary transmission service from a satellite ‘‘(i) INITIAL LISTS.—A satellite carrier that whether or not the subscriber elects to sub- carrier and pays a fee for the service, di- makes secondary transmissions of a primary scribe to receive the secondary transmission rectly or indirectly, to the satellite carrier transmission made by a network station pur- of the primary transmission of a local net- or to a distributor. suant to subparagraph (A) shall, not later work station affiliated with the same net- ‘‘(B) SUBSCRIBE.—The term ‘subscribe’ than 90 days after commencing such sec- means to elect to become a subscriber.’’. ondary transmissions, submit to the network work pursuant to the statutory license under (2) LOCAL MARKET.—Section 119(d)(11) is that owns or is affiliated with the network section 122. amended to read as follows: station a list identifying (by name and ad- ‘‘(C) FUTURE APPLICABILITY.— ‘‘(11) LOCAL MARKET.—The term ‘local mar- dress, including street or rural route num- ‘‘(i) WHEN LOCAL SIGNAL AVAILABLE AT TIME ket’ has the meaning given such term under ber, city, State, and 9-digit zip code) all sub- OF SUBSCRIPTION.—The statutory license section 122(j).’’. scribers to which the satellite carrier makes under paragraph (2) shall not apply to the (3) LOW POWER TELEVISION STATION.—Sec- secondary transmissions of that primary secondary transmission by a satellite carrier tion 119(d) is amended by striking paragraph transmission to subscribers in unserved of the primary transmission of a network (12) and redesignating paragraphs (13) and households. station to a person who is not a subscriber (14) as paragraphs (12) and (13), respectively. ‘‘(ii) MONTHLY LISTS.—After the submission lawfully receiving such secondary trans- (4) MULTICAST STREAM.—Section 119(d), as of the initial lists under clause (i), the sat- mission as of the date of the enactment of amended by paragraph (3), is further amend- ellite carrier shall, not later than the 15th of the Satellite Television Extension and Lo- ed by adding at the end the following new each month, submit to the network a list, calism Act of 2010 and, at the time such per- paragraph: aggregated by designated market area, iden- son seeks to subscribe to receive such sec- ‘‘(14) MULTICAST STREAM.—The term tifying (by name and address, including ondary transmission, resides in a local mar- ‘multicast stream’ means a digital stream street or rural route number, city, State, ket where the satellite carrier makes avail- containing programming and program-re- and 9-digit zip code) any persons who have able to that person the secondary trans- lated material affiliated with a television been added or dropped as subscribers under mission of the primary transmission of a network, other than the primary stream.’’. clause (i) since the last submission under local network station affiliated with the (5) PRIMARY STREAM.—Section 119(d), as this subparagraph.’’; and same network pursuant to the statutory li- amended by paragraph (4), is further amend- (iii) in subparagraph (E) of paragraph (3) cense under section 122. ed by adding at the end the following new (as redesignated)— ‘‘(ii) WHEN LOCAL SIGNAL AVAILABLE AFTER paragraph: (I) by striking ‘‘under paragraph (3) or’’; SUBSCRIPTION.—In the case of a subscriber ‘‘(15) PRIMARY STREAM.—The term ‘primary and who lawfully subscribes to and receives the stream’ means— (II) by striking ‘‘paragraph (12)’’ and in- secondary transmission by a satellite carrier ‘‘(A) the single digital stream of program- serting ‘‘paragraph (11)’’; and of the primary transmission of a network ming as to which a television broadcast sta- (B) in subsection (b)(1), by striking the station under the statutory license under tion has the right to mandatory carriage final sentence. paragraph (2) (in this clause referred to as with a satellite carrier under the rules of the (i) MODIFICATIONS TO PROVISIONS FOR SEC- the ‘distant signal’) on or after the date of Federal Communications Commission in ef- ONDARY TRANSMISSIONS BY SATELLITE CAR- the enactment of the Satellite Television fect on July 1, 2009; or RIERS.— Extension and Localism Act of 2010, the stat- ‘‘(B) if there is no stream described in sub- (1) PREDICTIVE MODEL.—Section utory license under paragraph (2) shall apply paragraph (A), then either— 119(a)(2)(B)(ii) is amended by adding at the to secondary transmissions by that satellite ‘‘(i) the single digital stream of program- end the following: carrier to that subscriber of the distant sig- ming associated with the network last trans- ‘‘(III) ACCURATE PREDICTIVE MODEL WITH RE- nal of a station affiliated with the same tele- mitted by the station as an analog signal; or SPECT TO DIGITAL SIGNALS.—Notwithstanding vision network, and the subscriber’s house- ‘‘(ii) if there is no stream described in subclause (I), in determining presumptively hold shall continue to be considered to be an clause (i), then the single digital stream of whether a person resides in an unserved unserved household with respect to such net- programming affiliated with the network household under subsection (d)(10)(A) with work, until such time as the subscriber that, as of July 1, 2009, had been offered by respect to digital signals, a court shall rely elects to terminate such secondary trans- the television broadcast station for the long- on a predictive model set forth by the Fed- missions, but only if such subscriber sub- est period of time.’’. eral Communications Commission pursuant scribes to the secondary transmission of the (6) CLERICAL AMENDMENT.—Section 119(d) is to a rulemaking as provided in section primary transmission of a local network sta- amended in paragraphs (1), (2), and (5) by 339(c)(3) of the Communications Act of 1934 tion affiliated with the same network within striking ‘‘which’’ each place it appears and (47 U.S.C. 339(c)(3)), as that model may be 60 days after the satellite carrier makes inserting ‘‘that’’. amended by the Commission over time under available to the subscriber such secondary (g) SUPERSTATION REDESIGNATED AS NON- such section to increase the accuracy of that transmission of the primary transmission of NETWORK STATION.—Section 119 is amended— model. Until such time as the Commission such local network station.’’; (1) by striking ‘‘superstation’’ each place it sets forth such model, a court shall rely on (C) by redesignating subparagraphs (E), appears in a heading and each place it ap- the predictive model as recommended by the (F), and (G) as subparagraphs (D), (E), and pears in text and inserting ‘‘non-network Commission with respect to digital signals (F), respectively; station’’; and in its Report to Congress in ET Docket No. (D) in subparagraph (E) (as redesignated), (2) by striking ‘‘superstations’’ each place 05–182, FCC 05–199 (released December 9, by striking ‘‘(C) or (D)’’ and inserting ‘‘(B) or it appears in a heading and each place it ap- 2005).’’. (C)’’; and pears in text and inserting ‘‘non-network (2) MODIFICATIONS TO STATUTORY LICENSE (E) in subparagraph (F) (as redesignated), stations’’. WHERE RETRANSMISSIONS INTO LOCAL MARKET by inserting ‘‘9-digit’’ before ‘‘zip code’’. (h) REMOVAL OF CERTAIN PROVISIONS.— AVAILABLE.—Section 119(a)(3) (as redesig- (3) STATUTORY DAMAGES FOR TERRITORIAL (1) REMOVAL OF PROVISIONS.—Section 119(a) nated) is amended— RESTRICTIONS.—Section 119(a)(6) (as redesig- is amended— (A) by striking ‘‘analog’’ each place it ap- nated) is amended— (A) in paragraph (2), by striking subpara- pears in a heading and text; (A) in subparagraph (A)(ii), by striking graph (C) and redesignating subparagraph (B) by striking subparagraphs (B), (C), and ‘‘$5’’ and inserting ‘‘$250’’; (D) as subparagraph (C); (D), and inserting the following: (B) in subparagraph (B)——

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00054 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.040 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S879 (i) in clause (i), by striking ‘‘$250,000 for this paragraph if the secondary transmission tions of the Commission as in effect on such each 6-month period’’ and inserting is of the primary transmission of a network date (47 C.F.R. 76.51). ‘‘$2,500,000 for each 3-month period’’; and station or a non-network station to a sub- ‘‘(B) STATES WITH ALL NETWORK STATIONS (ii) in clause (ii), by striking ‘‘$250,000’’ and scriber who resides outside the station’s AND NON-NETWORK STATIONS IN SAME LOCAL inserting ‘‘$2,500,000’’; and local market but within a community in MARKET.—In a State in which all network (C) by adding at the end the following flush which the signal has been determined by the stations and non-network stations licensed sentences: Federal Communications Commission to be by the Federal Communications Commission ‘‘The court shall direct one half of any statu- significantly viewed in such community, within that State as of January 1, 1995, are tory damages ordered under clause (i) to be pursuant to the rules, regulations, and au- assigned to the same local market and that deposited with the Register of Copyrights for thorizations of the Federal Communications local market does not encompass all coun- distribution to copyright owners pursuant to Commission in effect on April 15, 1976, appli- ties of that State, the statutory license pro- subsection (b). The Copyright Royalty cable to determining with respect to a cable vided under this paragraph shall apply to the Judges shall issue regulations establishing system whether signals are significantly secondary transmission by a satellite carrier procedures for distributing such funds, on a viewed in a community. of the primary transmissions of such station proportional basis, to copyright owners ‘‘(B) WAIVER.—A subscriber who is denied to all subscribers in the State who reside in the secondary transmission of the primary whose works were included in the secondary a local market that is within the first 50 transmission of a network station or a non- transmissions that were the subject of the major television markets as listed in the network station under subparagraph (A) may statutory damages.’’. regulations of the Commission as in effect on request a waiver from such denial by submit- (4) TECHNICAL AMENDMENT.—Section such date (section 76.51 of title 47, Code of ting a request, through the subscriber’s sat- 119(a)(4) (as redesignated) is amended by Federal Regulations). ellite carrier, to the network station or non- striking ‘‘and 509’’. ‘‘(C) ADDITIONAL STATIONS.—In the case of network station in the local market affili- (5) CLERICAL AMENDMENT.—Section that State in which are located 4 counties ated with the same network or non-network 119(a)(2)(B)(iii)(II) is amended by striking ‘‘In that— where the subscriber is located. The network this clause’’ and inserting ‘‘In this clause,’’. ‘‘(i) on January 1, 2004, were in local mar- station or non-network station shall accept (j) MORATORIUM EXTENSION.—Section 119(e) kets principally comprised of counties in an- or reject the subscriber’s request for a waiv- is amended by striking ‘‘February 28, 2010’’ other State, and er within 30 days after receipt of the request. and inserting ‘‘December 31, 2014’’. ‘‘(ii) had a combined total of 41,340 tele- If the network station or non-network sta- (k) CLERICAL AMENDMENTS.—Section 119 is vision households, according to the U.S. Tel- tion fails to accept or reject the subscriber’s amended— evision Household Estimates by Nielsen request for a waiver within that 30-day pe- (1) by striking ‘‘of the Code of Federal Reg- Media Research for 2004, riod, that network station or non-network ulations’’ each place it appears and inserting station shall be deemed to agree to the waiv- the statutory license provided under this ‘‘, Code of Federal Regulations’’; and er request. paragraph shall apply to secondary trans- (2) in subsection (d)(6), by striking ‘‘or the ‘‘(3) SECONDARY TRANSMISSION OF LOW missions by a satellite carrier to subscribers Direct’’ and inserting ‘‘, or the Direct’’. POWER PROGRAMMING.— in any such county of the primary trans- SEC. 503. MODIFICATIONS TO STATUTORY LI- ‘‘(A) IN GENERAL.—Subject to subpara- missions of any network station located in CENSE FOR SATELLITE CARRIERS IN that State, if the satellite carrier was mak- LOCAL MARKETS. graphs (B) and (C), a secondary transmission of a performance or display of a work em- ing such secondary transmissions to any sub- (a) HEADING RENAMED.— bodied in a primary transmission of a tele- scribers in that county on January 1, 2004. (1) IN GENERAL.—The heading of section 122 vision broadcast station to subscribers who ‘‘(D) CERTAIN ADDITIONAL STATIONS.—If 2 is amended by striking ‘‘by satellite carriers receive secondary transmissions of primary adjacent counties in a single State are in a within local markets’’ and inserting ‘‘of local transmissions under paragraph (1) shall be local market comprised principally of coun- television programming by satellite’’. subject to statutory licensing under this ties located in another State, the statutory (2) TABLE OF CONTENTS.—The table of con- paragraph if the secondary transmission is of license provided for in this paragraph shall tents for chapter 1 is amended by striking the primary transmission of a television apply to the secondary transmission by a the item relating to section 122 and inserting broadcast station that is licensed as a low satellite carrier to subscribers in those 2 the following: power television station, to a subscriber who counties of the primary transmissions of any ‘‘122. Limitations on exclusive rights: Sec- resides within the same designated market network station located in the capital of the ondary transmissions of local area as the station that originates the trans- State in which such 2 counties are located, television programming by sat- mission. if— ellite.’’. ‘‘(B) NO APPLICABILITY TO REPEATERS AND ‘‘(i) the 2 counties are located in a local (b) STATUTORY LICENSE.—Section 122(a) is TRANSLATORS.—Secondary transmissions market that is in the top 100 markets for the amended to read as follows: provided for in subparagraph (A) shall not year 2003 according to Nielsen Media Re- ‘‘(a) SECONDARY TRANSMISSIONS INTO LOCAL apply to any low power television station search; and MARKETS.— that retransmits the programs and signals of ‘‘(ii) the total number of television house- ‘‘(1) SECONDARY TRANSMISSIONS OF TELE- another television station for more than 2 holds in the 2 counties combined did not ex- VISION BROADCAST STATIONS WITHIN A LOCAL hours each day. ceed 10,000 for the year 2003 according to MARKET.—A secondary transmission of a per- ‘‘(C) NO IMPACT ON OTHER SECONDARY Nielsen Media Research. formance or display of a work embodied in a TRANSMISSIONS OBLIGATIONS.—A satellite car- ‘‘(E) NETWORKS OF NONCOMMERCIAL EDU- primary transmission of a television broad- rier that makes secondary transmissions of a CATIONAL BROADCAST STATIONS.—In the case cast station into the station’s local market primary transmission of a low power tele- of a system of three or more noncommercial shall be subject to statutory licensing under vision station under a statutory license pro- educational broadcast stations licensed to a this section if— vided under this section is not required, by single State, public agency, or political, edu- ‘‘(A) the secondary transmission is made reason of such secondary transmissions, to cational, or special purpose subdivision of a by a satellite carrier to the public; make any other secondary transmissions. State, the statutory license provided for in ‘‘(B) with regard to secondary trans- ‘‘(4) SPECIAL EXCEPTIONS.—A secondary this paragraph shall apply to the secondary missions, the satellite carrier is in compli- transmission of a performance or display of a transmission of the primary transmission of ance with the rules, regulations, or author- work embodied in a primary transmission of such system to any subscriber in any county izations of the Federal Communications a television broadcast station to subscribers or county equivalent within such State, if Commission governing the carriage of tele- who receive secondary transmissions of pri- such subscriber is located in a designated vision broadcast station signals; and mary transmissions under paragraph (1) market area that is not otherwise eligible to ‘‘(C) the satellite carrier makes a direct or shall, if the secondary transmission is made receive the secondary transmission of the indirect charge for the secondary trans- by a satellite carrier that complies with the primary transmission of a noncommercial mission to— requirements of paragraph (1), be subject to educational broadcast station located within ‘‘(i) each subscriber receiving the sec- statutory licensing under this paragraph as the State pursuant to paragraph (1). ondary transmission; or follows: ‘‘(5) APPLICABILITY OF ROYALTY RATES AND ‘‘(ii) a distributor that has contracted with ‘‘(A) STATES WITH SINGLE FULL-POWER NET- PROCEDURES.—The royalty rates and proce- the satellite carrier for direct or indirect de- WORK STATION.—In a State in which there is dures under section 119(b) shall apply to the livery of the secondary transmission to the licensed by the Federal Communications secondary transmissions to which the statu- public. Commission a single full-power station that tory license under paragraph (4) applies.’’. ‘‘(2) SIGNIFICANTLY VIEWED STATIONS.— was a network station on January 1, 1995, the (c) REPORTING REQUIREMENTS.—Section ‘‘(A) IN GENERAL.—A secondary trans- statutory license provided for in this para- 122(b) is amended— mission of a performance or display of a graph shall apply to the secondary trans- (1) in paragraph (1), by striking ‘‘station a work embodied in a primary transmission of mission by a satellite carrier of the primary list’’ and all that follows through the end a television broadcast station to subscribers transmission of that station to any sub- and inserting the following: ‘‘station— who receive secondary transmissions of pri- scriber in a community that is located with- ‘‘(A) a list identifying (by name in alpha- mary transmissions under paragraph (1) in that State and that is not within the first betical order and street address, including shall be subject to statutory licensing under 50 television markets as listed in the regula- county and 9-digit zip code) all subscribers to

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00055 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.041 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S880 CONGRESSIONAL RECORD — SENATE March 1, 2010 which the satellite carrier makes secondary vision broadcast station that is a non- gross receipts shall be limited to those gross transmissions of that primary transmission commercial educational broadcast station as receipts derived from subscribers located under subsection (a); and defined in section 397 of the Communications outside of the local service area of such pri- ‘‘(B) a separate list, aggregated by des- Act of 1934, as in effect on the date of the en- mary transmitter; and ignated market area (by name and address, actment of the Satellite Television Exten- ‘‘(iii) if a cable system provides a sec- including street or rural route number, city, sion and Localism Act of 2010.’’; and ondary transmission of a primary trans- State, and 9-digit zip code), which shall indi- (6) by amending paragraph (6) (as redesig- mitter to some but not all communities cate those subscribers being served pursuant nated) to read as follows: served by that cable system— to paragraph (2) of subsection (a).’’; and ‘‘(6) SUBSCRIBER.—The term ‘subscriber’ ‘‘(I) the gross receipts and the distant sig- (2) in paragraph (2), by striking ‘‘network a means a person or entity that receives a sec- nal equivalent values for such secondary list’’ and all that follows through the end ondary transmission service from a satellite transmission shall be derived solely on the and inserting the following: ‘‘network— carrier and pays a fee for the service, di- basis of the subscribers in those commu- ‘‘(A) a list identifying (by name in alpha- rectly or indirectly, to the satellite carrier nities where the cable system provides such betical order and street address, including or to a distributor.’’. secondary transmission; and county and 9-digit zip code) any subscribers SEC. 504. MODIFICATIONS TO CABLE SYSTEM ‘‘(II) the total royalty fee for the period who have been added or dropped as sub- SECONDARY TRANSMISSION RIGHTS paid by such system shall not be less than scribers since the last submission under this UNDER SECTION 111. the royalty fee calculated under subpara- subsection; and (a) HEADING RENAMED.— graph (B)(i) multiplied by the gross receipts ‘‘(B) a separate list, aggregated by des- (1) IN GENERAL.—The heading of section 111 from all subscribers to the system. ignated market area (by name and street ad- is amended by inserting at the end the fol- ‘‘(D) A cable system that, on a statement dress, including street or rural route num- lowing: ‘‘of broadcast programming by submitted before the date of the enactment ber, city, State, and 9-digit zip code), identi- cable’’. of the Satellite Television Extension and Lo- fying those subscribers whose service pursu- (2) TABLE OF CONTENTS.—The table of con- calism Act of 2010, computed its royalty fee ant to paragraph (2) of subsection (a) has tents for chapter 1 is amended by striking consistent with the methodology under sub- been added or dropped since the last submis- the item relating to section 111 and inserting paragraph (C)(iii), or that amends a state- sion under this subsection.’’. the following: (d) NO ROYALTY FEE FOR CERTAIN SEC- ment filed before such date of enactment to ‘‘111. Limitations on exclusive rights: Sec- ONDARY TRANSMISSIONS.—Section 122(c) is compute the royalty fee due using such ondary transmissions of broad- amended— methodology, shall not be subject to an ac- cast programming by cable.’’. (1) in the heading, by inserting ‘‘FOR CER- tion for infringement, or eligible for any roy- TAIN SECONDARY TRANSMISSIONS’’ after ‘‘RE- (b) TECHNICAL AMENDMENT.—Section alty refund or offset, arising out of its use of QUIRED’’; and 111(a)(4) is amended by striking ‘‘; or’’ and such methodology on such statement. (2) by striking ‘‘subsection (a)’’ and insert- inserting ‘‘or section 122;’’. ‘‘(E) If the actual gross receipts paid by ing ‘‘paragraphs (1), (2), and (3) of subsection (c) STATUTORY LICENSE FOR SECONDARY subscribers to a cable system for the period (a)’’. TRANSMISSIONS BY CABLE SYSTEMS.—Section covered by the statement for the basic serv- (e) VIOLATIONS FOR TERRITORIAL RESTRIC- 111(d) is amended— ice of providing secondary transmissions of TIONS.— (1) in paragraph (1)— primary broadcast transmitters are $263,800 (1) MODIFICATION TO STATUTORY DAMAGES.— (A) in the matter preceding subparagraph or less— Section 122(f) is amended— (A)— ‘‘(i) gross receipts of the cable system for (A) in paragraph (1)(B), by striking ‘‘$5’’ (i) by striking ‘‘A cable system whose sec- the purpose of this paragraph shall be com- and inserting ‘‘$250’’; and ondary’’ and inserting the following: puted by subtracting from such actual gross (B) in paragraph (2), by striking ‘‘$250,000’’ ‘‘STATEMENT OF ACCOUNT AND ROYALTY receipts the amount by which $263,800 ex- each place it appears and inserting FEES.—Subject to paragraph (5), a cable sys- ceeds such actual gross receipts, except that ‘‘$2,500,000’’. tem whose secondary’’; and in no case shall a cable system’s gross re- (2) CONFORMING AMENDMENTS FOR ADDI- (ii) by striking ‘‘by regulation—’’ and in- ceipts be reduced to less than $10,400; and TIONAL STATIONS.—Section 122 is amended— serting ‘‘by regulation the following:’’; ‘‘(ii) the royalty fee payable under this (A) in subsection (f), by striking ‘‘section (B) in subparagraph (A)— paragraph to copyright owners pursuant to 119 or’’ each place it appears and inserting (i) by striking ‘‘a statement of account’’ paragraph (3) shall be 0.5 percent, regardless the following: ‘‘section 119, subject to statu- and inserting ‘‘A statement of account’’; and of the number of distant signal equivalents, tory licensing by reason of paragraph (2)(A), (ii) by striking ‘‘; and’’ and inserting a pe- if any. (3), or (4) of subsection (a), or subject to’’; riod; and ‘‘(F) If the actual gross receipts paid by and (C) by striking subparagraphs (B), (C), and subscribers to a cable system for the period (B) in subsection (g), by striking ‘‘section (D) and inserting the following: covered by the statement for the basic serv- 119 or’’ and inserting the following: ‘‘section ‘‘(B) Except in the case of a cable system ice of providing secondary transmissions of 119, paragraph (2)(A), (3), or (4) of subsection whose royalty fee is specified in subpara- primary broadcast transmitters are more (a), or’’. graph (E) or (F), a total royalty fee payable than $263,800 but less than $527,600, the roy- (f) DEFINITIONS.—Section 122(j) is amend- to copyright owners pursuant to paragraph alty fee payable under this paragraph to ed— (3) for the period covered by the statement, copyright owners pursuant to paragraph (3) (1) in paragraph (1), by striking ‘‘which computed on the basis of specified percent- shall be— contracts’’ and inserting ‘‘that contracts’’; ages of the gross receipts from subscribers to ‘‘(i) 0.5 percent of any gross receipts up to (2) by redesignating paragraphs (4) and (5) the cable service during such period for the $263,800, regardless of the number of distant as paragraphs (6) and (7), respectively; basic service of providing secondary trans- signal equivalents, if any; and (3) in paragraph (3)— missions of primary broadcast transmitters, ‘‘(ii) 1 percent of any gross receipts in ex- (A) by redesignating such paragraph as as follows: cess of $263,800, but less than $527,600, regard- paragraph (4); ‘‘(i) 1.064 percent of such gross receipts for less of the number of distant signal equiva- (B) in the heading of such paragraph, by in- the privilege of further transmitting, beyond lents, if any. serting ‘‘NON-NETWORK STATION;’’ after ‘‘NET- the local service area of such primary trans- ‘‘(G) A filing fee, as determined by the Reg- WORK STATION;’’; and mitter, any non-network programming of a ister of Copyrights pursuant to section (C) by inserting ‘‘ ‘non-network station’,’’ primary transmitter in whole or in part, 708(a).’’; after ‘‘ ‘network station’,’’; such amount to be applied against the fee, if (2) in paragraph (2), in the first sentence— (4) by inserting after paragraph (2) the fol- any, payable pursuant to clauses (ii) through (A) by striking ‘‘The Register of Copy- lowing: (iv); rights’’ and inserting the following ‘‘HAN- ‘‘(3) LOW POWER TELEVISION STATION.—The ‘‘(ii) 1.064 percent of such gross receipts for DLING OF FEES.—The Register of Copyrights’’; term ‘low power television station’ means a the first distant signal equivalent; and low power TV station as defined in section ‘‘(iii) 0.701 percent of such gross receipts (B) by inserting ‘‘(including the filing fee 74.701(f) of title 47, Code of Federal Regula- for each of the second, third, and fourth dis- specified in paragraph (1)(G))’’ after ‘‘shall tions, as in effect on June 1, 2004. For pur- tant signal equivalents; and receive all fees’’; poses of this paragraph, the term ‘low power ‘‘(iv) 0.330 percent of such gross receipts for (3) in paragraph (3)— television station’ includes a low power tele- the fifth distant signal equivalent and each (A) by striking ‘‘The royalty fees’’ and in- vision station that has been accorded pri- distant signal equivalent thereafter. serting the following: ‘‘DISTRIBUTION OF ROY- mary status as a Class A television licensee ‘‘(C) In computing amounts under clauses ALTY FEES TO COPYRIGHT OWNERS.—The roy- under section 73.6001(a) of title 47, Code of (ii) through (iv) of subparagraph (B)— alty fees’’; Federal Regulations.’’; ‘‘(i) any fraction of a distant signal equiva- (B) in subparagraph (A)— (5) by inserting after paragraph (4) (as re- lent shall be computed at its fractional (i) by striking ‘‘any such’’ and inserting designated) the following: value; ‘‘Any such’’; and ‘‘(5) NONCOMMERCIAL EDUCATIONAL BROAD- ‘‘(ii) in the case of any cable system lo- (ii) by striking ‘‘; and’’ and inserting a pe- CAST STATION.—The term ‘noncommercial cated partly within and partly outside of the riod; educational broadcast station’ means a tele- local service area of a primary transmitter, (C) in subparagraph (B)—

VerDate Nov 24 2008 03:11 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00056 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.041 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S881 (i) by striking ‘‘any such’’ and inserting Code, as amended by subsection (c)(1)(C) of such rules and regulations also permit the ‘‘Any such’’; and this section, shall take effect commencing substitution of another program embodying (ii) by striking the semicolon and inserting with the first accounting period occurring in a performance or display of a work in place a period; and 2010. of the omitted transmission, or where such (D) in subparagraph (C), by striking ‘‘any (e) DEFINITIONS.—Section 111(f) is amend- rules and regulations in effect on the date of such’’ and inserting ‘‘Any such’’; ed— the enactment of the Copyright Act of 1976 (4) in paragraph (4), by striking ‘‘The roy- (1) by striking the first undesignated para- permit a cable system, at its election, to ef- alty fees’’ and inserting the following: ‘‘PRO- graph and inserting the following: fect such omission and substitution of a CEDURES FOR ROYALTY FEE DISTRIBUTION.— ‘‘(1) PRIMARY TRANSMISSION.—A ‘primary nonlive program or to carry additional pro- The royalty fees’’; and transmission’ is a transmission made to the grams not transmitted by primary transmit- (5) by adding at the end the following new public by a transmitting facility whose sig- ters within whose local service area the paragraphs: nals are being received and further trans- cable system is located, no value shall be as- ‘‘(5) 3.75 PERCENT RATE AND SYNDICATED EX- mitted by a secondary transmission service, signed for the substituted or additional pro- CLUSIVITY SURCHARGE NOT APPLICABLE TO regardless of where or when the performance gram. MULTICAST STREAMS.—The royalty rates or display was first transmitted. In the case ‘‘(ii) Where the rules, regulations, or au- specified in sections 256.2(c) and 256.2(d) of of a television broadcast station, the pri- thorizations of the Federal Communications title 37, Code of Federal Regulations (com- mary stream and any multicast streams Commission in effect on the date of the en- monly referred to as the ‘3.75 percent rate’ transmitted by the station constitute pri- actment of the Copyright Act of 1976 permit and the ‘syndicated exclusivity surcharge’, mary transmissions.’’; a cable system, at its election, to omit the respectively), as in effect on the date of the (2) in the second undesignated paragraph— further transmission of a particular program enactment of the Satellite Television Exten- (A) by striking ‘‘A ‘secondary trans- and such rules, regulations, or authoriza- sion and Localism Act of 2010, as such rates mission’ ’’ and inserting the following: tions also permit the substitution of another may be adjusted, or such sections redesig- ‘‘(2) SECONDARY TRANSMISSION.—A ‘sec- program embodying a performance or dis- nated, thereafter by the Copyright Royalty ondary transmission’ ’’; and play of a work in place of the omitted trans- Judges, shall not apply to the secondary (B) by striking ‘‘ ‘cable system’ ’’ and in- mission, the value assigned for the sub- transmission of a multicast stream. serting ‘‘cable system’’; stituted or additional program shall be, in ‘‘(6) VERIFICATION OF ACCOUNTS AND FEE (3) in the third undesignated paragraph— the case of a live program, the value of one PAYMENTS.—The Register of Copyrights shall (A) by striking ‘‘A ‘cable system’ ’’ and in- full distant signal equivalent multiplied by a issue regulations to provide for the confiden- serting the following: fraction that has as its numerator the num- tial verification by copyright owners whose ‘‘(3) CABLE SYSTEM.—A ‘cable system’ ’’; ber of days in the year in which such substi- works were embodied in the secondary trans- and tution occurs and as its denominator the missions of primary transmissions pursuant (B) by striking ‘‘Territory, Trust Terri- number of days in the year. to this section of the information reported tory, or Possession’’ and inserting ‘‘terri- ‘‘(iii) In the case of the secondary trans- on the semiannual statements of account tory, trust territory, or possession of the mission of a primary transmitter that is a filed under this subsection on or after Janu- United States’’; television broadcast station pursuant to the ary 1, 2010, in order that the auditor des- (4) in the fourth undesignated paragraph, late-night or specialty programming rules of ignated under subparagraph (A) is able to in the first sentence— the Federal Communications Commission, or confirm the correctness of the calculations (A) by striking ‘‘The ‘local service area of the secondary transmission of a primary and royalty payments reported therein. The a primary transmitter’, in the case of a tele- transmitter that is a television broadcast regulations shall— vision broadcast station, comprises the area station on a part-time basis where full-time ‘‘(A) establish procedures for the designa- in which such station is entitled to insist’’ carriage is not possible because the cable tion of a qualified independent auditor— and inserting the following: system lacks the activated channel capacity ‘‘(i) with exclusive authority to request ‘‘(4) LOCAL SERVICE AREA OF A PRIMARY to retransmit on a full-time basis all signals verification of such a statement of account TRANSMITTER.—The ‘local service area of a that it is authorized to carry, the values for on behalf of all copyright owners whose primary transmitter’, in the case of both the independent, network, and noncommercial works were the subject of secondary trans- primary stream and any multicast streams educational stations set forth in subpara- missions of primary transmissions by the transmitted by a primary transmitter that is graph (A), as the case may be, shall be multi- cable system (that deposited the statement) a television broadcast station, comprises the plied by a fraction that is equal to the ratio during the accounting period covered by the area where such primary transmitter could of the broadcast hours of such primary statement; and have insisted’’; transmitter retransmitted by the cable sys- ‘‘(ii) who is not an officer, employee, or (B) by striking ‘‘76.59 of title 47 of the Code tem to the total broadcast hours of the pri- agent of any such copyright owner for any of Federal Regulations’’ and inserting the mary transmitter. purpose other than such audit; following: ‘‘76.59 of title 47, Code of Federal ‘‘(iv) No value shall be assigned for the sec- ‘‘(B) establish procedures for safeguarding Regulations, or within the noise-limited con- ondary transmission of the primary stream all non-public financial and business infor- tour as defined in 73.622(e)(1) of title 47, Code or any multicast streams of a primary trans- mation provided under this paragraph; of Federal Regulations’’; and mitter that is a television broadcast station ‘‘(C)(i) require a consultation period for (C) by striking ‘‘as defined by the rules and in any community that is within the local the independent auditor to review its conclu- regulations of the Federal Communications service area of the primary transmitter.’’; sions with a designee of the cable system; Commission,’’; (6) by striking the sixth undesignated para- ‘‘(ii) establish a mechanism for the cable (5) by amending the fifth undesignated graph and inserting the following: system to remedy any errors identified in paragraph to read as follows: ‘‘(6) NETWORK STATION.— the auditor’s report and to cure any under- ‘‘(5) DISTANT SIGNAL EQUIVALENT.— ‘‘(A) TREATMENT OF PRIMARY STREAM.—The payment identified; and ‘‘(A) IN GENERAL.—Except as provided term ‘network station’ shall be applied to a ‘‘(iii) provide an opportunity to remedy under subparagraph (B), a ‘distant signal primary stream of a television broadcast sta- any disputed facts or conclusions; equivalent’— tion that is owned or operated by, or affili- ‘‘(D) limit the frequency of requests for ‘‘(i) is the value assigned to the secondary ated with, one or more of the television net- verification for a particular cable system transmission of any non-network television works in the United States providing nation- and the number of audits that a multiple programming carried by a cable system in wide transmissions, and that transmits a system operator can be required to undergo whole or in part beyond the local service substantial part of the programming sup- in a single year; and area of the primary transmitter of such pro- plied by such networks for a substantial part ‘‘(E) permit requests for verification of a gramming; and of the primary stream’s typical broadcast statement of account to be made only within ‘‘(ii) is computed by assigning a value of day. 3 years after the last day of the year in one to each primary stream and to each ‘‘(B) TREATMENT OF MULTICAST STREAMS.— which the statement of account is filed. multicast stream (other than a simulcast) The term ‘network station’ shall be applied ‘‘(7) ACCEPTANCE OF ADDITIONAL DEPOSITS.— that is an independent station, and by as- to a multicast stream on which a television Any royalty fee payments received by the signing a value of one-quarter to each pri- broadcast station transmits all or substan- Copyright Office from cable systems for the mary stream and to each multicast stream tially all of the programming of an inter- secondary transmission of primary trans- (other than a simulcast) that is a network connected program service that— missions that are in addition to the pay- station or a noncommercial educational sta- ‘‘(i) is owned or operated by, or affiliated ments calculated and deposited in accord- tion. with, one or more of the television networks ance with this subsection shall be deemed to ‘‘(B) EXCEPTIONS.—The values for inde- described in subparagraph (A); and have been deposited for the particular ac- pendent, network, and noncommercial edu- ‘‘(ii) offers programming on a regular basis counting period for which they are received cational stations specified in subparagraph for 15 or more hours per week to at least 25 and shall be distributed as specified under (A) are subject to the following: of the affiliated television licensees of the this subsection.’’. ‘‘(i) Where the rules and regulations of the interconnected program service in 10 or more (d) EFFECTIVE DATE OF NEW ROYALTY FEE Federal Communications Commission re- States.’’; RATES.—The royalty fee rates established in quire a cable system to omit the further (7) by striking the seventh undesignated section 111(d)(1)(B) of title 17, United States transmission of a particular program and paragraph and inserting the following:

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‘‘(7) INDEPENDENT STATION.—The term (D) in paragraph (1)(D), by striking ‘‘and’’ ‘‘(2) LIMITED TEMPORARY WAIVER.— ‘independent station’ shall be applied to the at the end; and ‘‘(A) IN GENERAL.—Upon a request made by primary stream or a multicast stream of a (E) in paragraph (2)(A), by striking ‘‘and’’ a satellite carrier, a court that issued an in- television broadcast station that is not a at the end. junction against such carrier under sub- network station or a noncommercial edu- (5) REMOVAL OF VARIANT FORMS REF- section (a)(7)(B) before the date of the enact- cational station.’’; ERENCES.—Section 111 is amended— ment of this subsection shall waive such in- (8) by striking the eighth undesignated (A) in subsection (e)(4), by striking ‘‘, and junction with respect to the statutory li- paragraph and inserting the following: each of its variant forms,’’; and cense provided under subsection (a)(2) to the ‘‘(8) NONCOMMERCIAL EDUCATIONAL STA- (B) in subsection (f), by striking ‘‘and their extent necessary to allow such carrier to TION.—The term ‘noncommercial educational variant forms’’. make secondary transmissions of primary station’ shall be applied to the primary (6) CORRECTION TO TERRITORY REFERENCE.— transmissions made by a network station to stream or a multicast stream of a television Section 111(e)(2) is amended in the matter unserved households located in short mar- broadcast station that is a noncommercial preceding subparagraph (A) by striking kets in which such carrier was not providing educational broadcast station as defined in ‘‘three territories’’ and inserting ‘‘five enti- local service pursuant to the license under section 397 of the Communications Act of ties’’. section 122 as of December 31, 2009. (h) EFFECTIVE DATE WITH RESPECT TO 1934, as in effect on the date of the enact- ‘‘(B) EXPIRATION OF TEMPORARY WAIVER.—A MULTICAST STREAMS.— ment of the Satellite Television Extension temporary waiver of an injunction under (1) IN GENERAL.—Subject to paragraphs (2) and Localism Act of 2010.’’; and subparagraph (A) shall expire after the end and (3), the amendments made by this sec- (9) by adding at the end the following: of the 120-day period beginning on the date tion, to the extent such amendments assign ‘‘(9) PRIMARY STREAM.—A ‘primary stream’ such temporary waiver is issued unless ex- is— a distant signal equivalent value to the sec- ondary transmission of the multicast stream tended for good cause by the court making ‘‘(A) the single digital stream of program- the temporary waiver. ming that, before June 12, 2009, was substan- of a primary transmitter, shall take effect on the date of the enactment of this Act. ‘‘(C) FAILURE TO PROVIDE LOCAL-INTO-LOCAL tially duplicating the programming trans- SERVICE TO ALL DMAS.— (2) DELAYED APPLICABILITY.— mitted by the television broadcast station as ‘‘(i) FAILURE TO ACT REASONABLY AND IN (A) SECONDARY TRANSMISSIONS OF A an analog signal; or GOOD FAITH.—If the court issuing a tem- MULTICAST STREAM BEYOND THE LOCAL SERV- ‘‘(B) if there is no stream described in sub- porary waiver under subparagraph (A) deter- ICE AREA OF ITS PRIMARY TRANSMITTER BE- paragraph (A), then the single digital stream mines that the satellite carrier that made of programming transmitted by the tele- FORE 2010 ACT.—In any case in which a cable system was making secondary transmissions the request for such waiver has failed to act vision broadcast station for the longest pe- reasonably or has failed to make a good faith riod of time. of a multicast stream beyond the local serv- ice area of its primary transmitter before effort to provide local-into-local service to ‘‘(10) PRIMARY TRANSMITTER.—A ‘primary all DMAs, such failure— transmitter’ is a television or radio broad- the date of the enactment of this Act, a dis- tant signal equivalent value (referred to in ‘‘(I) is actionable as an act of infringement cast station licensed by the Federal Commu- under section 501 and the court may in its nications Commission, or by an appropriate paragraph (1)) shall not be assigned to sec- ondary transmissions of such multicast discretion impose the remedies provided for governmental authority of Canada or Mex- in sections 502 through 506 and subsection ico, that makes primary transmissions to stream that are made on or before June 30, 2010. (a)(6)(B) of this section; and the public. ‘‘(II) shall result in the termination of the (B) MULTICAST STREAMS SUBJECT TO PRE- ‘‘(11) MULTICAST STREAM.—A ‘multicast waiver issued under subparagraph (A). EXISTING WRITTEN AGREEMENTS FOR THE SEC- stream’ is a digital stream of programming ‘‘(ii) FAILURE TO PROVIDE LOCAL-INTO-LOCAL that is transmitted by a television broadcast ONDARY TRANSMISSION OF SUCH STREAMS.—In any case in which the secondary trans- SERVICE.—If the court issuing a temporary station and is not the station’s primary waiver under subparagraph (A) determines stream. mission of a multicast stream of a primary transmitter is the subject of a written agree- that the satellite carrier that made the re- ‘‘(12) SIMULCAST.—A ‘simulcast’ is a ment entered into on or before June 30, 2009, quest for such waiver has failed to provide multicast stream of a television broadcast local-into-local service to all DMAs, but de- station that duplicates the programming between a cable system or an association representing the cable system and a primary termines that the carrier acted reasonably transmitted by the primary stream or an- and in good faith, the court may in its dis- other multicast stream of such station. transmitter or an association representing the primary transmitter, a distant signal cretion impose financial penalties that re- ‘‘(13) SUBSCRIBER; SUBSCRIBE.— equivalent value (referred to in paragraph flect— ‘‘(A) SUBSCRIBER.—The term ‘subscriber’ (1)) shall not be assigned to secondary trans- ‘‘(I) the degree of control the carrier had means a person or entity that receives a sec- over the circumstances that resulted in the ondary transmission service from a cable missions of such multicast stream beyond the local service area of its primary trans- failure; system and pays a fee for the service, di- ‘‘(II) the quality of the carrier’s efforts to rectly or indirectly, to the cable system. mitter that are made on or before the date on which such written agreement expires. remedy the failure; and ‘‘(B) SUBSCRIBE.—The term ‘subscribe’ ‘‘(III) the severity and duration of any (C) NO REFUNDS OR OFFSETS FOR PRIOR means to elect to become a subscriber.’’. service interruption. STATEMENTS OF ACCOUNT.—A cable system (f) TIMING OF SECTION 111 PROCEEDINGS.— that has reported secondary transmissions of ‘‘(D) SINGLE TEMPORARY WAIVER AVAIL- Section 804(b)(1) is amended by striking a multicast stream beyond the local service ABLE.—An entity may only receive one tem- ‘‘2005’’ each place it appears and inserting area of its primary transmitter on a state- porary waiver under this paragraph. ‘‘2015’’. ment of account deposited under section 111 ‘‘(E) SHORT MARKET DEFINED.—For purposes (g) TECHNICAL AND CONFORMING AMEND- of title 17, United States Code, before the of this paragraph, the term ‘short market’ MENTS.— date of the enactment of this Act shall not means a local market in which programming (1) CORRECTIONS TO FIX LEVEL DESIGNA- be entitled to any refund, or offset, of roy- of one or more of the four most widely TIONS.—Section 111 is amended— alty fees paid on account of such secondary viewed television networks nationwide as (A) in subsections (a), (c), and (e), by strik- transmissions of such multicast stream. measured on the date of the enactment of ing ‘‘clause’’ each place it appears and in- this subsection is not offered on the primary (3) DEFINITIONS.—In this subsection, the serting ‘‘paragraph’’; terms ‘‘cable system’’, ‘‘secondary trans- stream transmitted by any local television (B) in subsection (c)(1), by striking mission’’, ‘‘multicast stream’’, and ‘‘local broadcast station. ‘‘clauses’’ and inserting ‘‘paragraphs’’; and service area of a primary transmitter’’ have ‘‘(3) ESTABLISHMENT OF QUALIFIED CARRIER (C) in subsection (e)(1)(F), by striking the meanings given those terms in section RECOGNITION.— ‘‘subclause’’ and inserting ‘‘subparagraph’’. 111(f) of title 17, United States Code, as ‘‘(A) STATEMENT OF ELIGIBILITY.—An entity (2) CONFORMING AMENDMENT TO HYPHENATE amended by this section. seeking to be recognized as a qualified car- NONNETWORK.—Section 111 is amended by rier under this subsection shall file a state- SEC. 505. CERTAIN WAIVERS GRANTED TO PRO- striking ‘‘nonnetwork’’ each place it appears VIDERS OF LOCAL-INTO-LOCAL ment of eligibility with the court that im- and inserting ‘‘non-network’’. SERVICE FOR ALL DMAS. posed the injunction. A statement of eligi- (3) PREVIOUSLY UNDESIGNATED PARA- Section 119 is amended by adding at the bility must include— GRAPH.—Section 111(e)(1) is amended by end the following new subsection: ‘‘(i) an affidavit that the entity is pro- striking ‘‘second paragraph of subsection (f)’’ ‘‘(g) CERTAIN WAIVERS GRANTED TO PRO- viding local-into-local service to all DMAs; and inserting ‘‘subsection (f)(2)’’. VIDERS OF LOCAL-INTO-LOCAL SERVICE TO ALL ‘‘(ii) a request for a waiver of the injunc- (4) REMOVAL OF SUPERFLUOUS ANDS.—Sec- DMAS.— tion; and tion 111(e) is amended— ‘‘(1) INJUNCTION WAIVER.—A court that ‘‘(iii) a certification issued pursuant to (A) in paragraph (1)(A), by striking ‘‘and’’ issued an injunction pursuant to subsection section 342(a) of Communications Act of 1934. at the end; (a)(7)(B) before the date of the enactment of ‘‘(B) GRANT OF RECOGNITION AS A QUALIFIED (B) in paragraph (1)(B), by striking ‘‘and’’ this subsection shall waive such injunction if CARRIER.—Upon receipt of a statement of eli- at the end; the court recognizes the entity against gibility, the court shall recognize the entity (C) in paragraph (1)(C), by striking ‘‘and’’ which the injunction was issued as a quali- as a qualified carrier and issue the waiver at the end; fied carrier. under paragraph (1).

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‘‘(C) VOLUNTARY TERMINATION.—At any clause (iii). The Comptroller General shall ondary transmission of a primary trans- time, an entity recognized as a qualified car- file a report on such examination with the mission made by a network station and em- rier may file a statement of voluntary termi- court referred to in paragraph (1) that issued bodying a performance or display of a work nation with the court certifying that it no the injunction, the Register of Copyrights, to a subscriber who is not eligible to receive longer wishes to be recognized as a qualified the Committees on the Judiciary and on En- the transmission under this section shall re- carrier. Upon receipt of such statement, the ergy and Commerce of the House of Rep- instate the injunction waived under para- court shall reinstate the injunction waived resentatives, and the Committees on the Ju- graph (1), and the court may order statutory under paragraph (1). diciary and on Commerce, Science, and damages of not more than $2,500,000. ‘‘(D) LOSS OF RECOGNITION PREVENTS FU- Transportation of the Senate. The report ‘‘(7) LOCAL-INTO-LOCAL SERVICE TO ALL TURE RECOGNITION.—No entity may be recog- shall include a statement described in clause DMAS DEFINED.—For purposes of this sub- nized as a qualified carrier if such entity had (iv), prepared in consultation with the Reg- section: previously been recognized as a qualified car- ister of Copyrights. ‘‘(A) IN GENERAL.—An entity provides rier and subsequently lost such recognition ‘‘(vi) COMPLIANCE.—Upon motion filed by ‘local-into-local service to all DMAs’ if the or voluntarily terminated such recognition an aggrieved copyright owner, the court rec- entity provides local service in all des- under subparagraph (C). ognizing an entity as a qualified carrier shall ignated market areas (as such term is de- ‘‘(4) QUALIFIED CARRIER OBLIGATIONS AND terminate such designation upon finding fined in section 122(j)(2)(C)) pursuant to the COMPLIANCE.— that the entity has failed to cooperate with license under section 122. ‘‘(A) CONTINUING OBLIGATIONS.— the examinations required by this subpara- ‘‘(B) HOUSEHOLD COVERAGE.—For purposes ‘‘(i) IN GENERAL.—An entity recognized as a graph. of subparagraph (A), an entity that makes qualified carrier shall continue to provide ‘‘(C) AFFIRMATION.—A qualified carrier available local-into-local service with a good local-into-local service to all DMAs. shall file an affidavit with the district court quality satellite signal to at least 90 percent ‘‘(ii) COOPERATION WITH GAO EXAMINATION.— and the Register of Copyrights 30 months of the households in a designated market An entity recognized as a qualified carrier after such status was granted stating that, area based on the most recent census data shall fully cooperate with the Comptroller to the best of the affiant’s knowledge, it is in released by the United States Census Bureau General in the examination required by sub- compliance with the requirements for a shall be considered to be providing local paragraph (B). qualified carrier. service to such designated market area. ‘‘(B) QUALIFIED CARRIER COMPLIANCE EXAM- ‘‘(D) COMPLIANCE DETERMINATION.—Upon ‘‘(C) GOOD QUALITY SATELLITE SIGNAL DE- INATION.— the motion of an aggrieved television broad- FINED.—The term ‘good quality signal’ has ‘‘(i) EXAMINATION AND REPORT.—The Comp- cast station, the court recognizing an entity the meaning given such term under section troller General shall conduct an examination as a qualified carrier may make a determina- 342(e)(2) of Communications Act of 1934.’’. and publish a report concerning the qualified tion of whether the entity is providing local- SEC. 506. COPYRIGHT OFFICE FEES. carrier’s compliance with the royalty pay- into-local service to all DMAs. Section 708(a) is amended— ment and household eligibility requirements ‘‘(E) PLEADING REQUIREMENT.—In any mo- (1) in paragraph (8), by striking ‘‘and’’ of the license under this section. The report tion brought under subparagraph (D), the shall address the qualified carrier’s conduct party making such motion shall specify one after the semicolon; during the period beginning on the date on or more designated market areas (as such (2) in paragraph (9), by striking the period which the qualified carrier is recognized as term is defined in section 122(j)(2)(C)) for and inserting a semicolon; such under paragraph (3)(B) and ending on which the failure to provide service is being (3) by inserting after paragraph (9) the fol- December 31, 2011. alleged, and, for each such designated mar- lowing: ‘‘(ii) RECORDS OF QUALIFIED CARRIER.—Be- ket area, shall plead with particularity the ‘‘(10) on filing a statement of account ginning on the date that is one year after the circumstances of the alleged failure. based on secondary transmissions of primary date on which the qualified carrier is recog- ‘‘(F) BURDEN OF PROOF.—In any proceeding transmissions pursuant to section 119 or 122; nized as such under paragraph (3)(B), but not to make a determination under subpara- and later than October 1, 2011, the qualified car- graph (D), and with respect to a designated ‘‘(11) on filing a statement of account rier shall provide the Comptroller General market area for which failure to provide based on secondary transmissions of primary with all records that the Comptroller Gen- service is alleged, the entity recognized as a transmissions pursuant to section 111.’’; and eral, in consultation with the Register of qualified carrier shall have the burden of (4) by adding at the end the following new Copyrights, considers to be directly perti- proving that the entity provided local-into- sentence: ‘‘Fees established under para- nent to the following requirements under local service with a good quality satellite graphs (10) and (11) shall be reasonable and this section: signal to at least 90 percent of the house- may not exceed one-half of the cost nec- ‘‘(I) Proper calculation and payment of holds in such designated market area (based essary to cover reasonable expenses incurred royalties under the statutory license under on the most recent census data released by by the Copyright Office for the collection this section. the United States Census Bureau) at the and administration of the statements of ac- ‘‘(II) Provision of service under this license time and place alleged. count and any royalty fees deposited with to eligible subscribers only. ‘‘(5) FAILURE TO PROVIDE SERVICE.— such statements.’’. ‘‘(iii) SUBMISSION OF REPORT.—The Comp- ‘‘(A) PENALTIES.—If the court recognizing SEC. 507. TERMINATION OF LICENSE. troller General shall file the report required an entity as a qualified carrier finds that Section 1003(a)(2)(A) of Public Law 111-118 by clause (i) not later than March 1, 2012, such entity has willfully failed to provide is amended by striking ‘‘February 28, 2010’’ with the court referred to in paragraph (1) local-into-local service to all DMAs, such and inserting ‘‘December 31, 2014’’. that issued the injunction, the Register of finding shall result in the loss of recognition SEC. 508. CONSTRUCTION. Copyrights, the Committees on the Judiciary of the entity as a qualified carrier and the Nothing in section 111, 119, or 122 of title and on Energy and Commerce of the House of termination of the waiver provided under 17, United States Code, including the amend- Representatives, and the Committees on the paragraph (1), and the court may, in its dis- ments made to such sections by this subtitle, Judiciary and on Commerce, Science, and cretion— shall be construed to affect the meaning of Transportation of the Senate. ‘‘(i) treat such failure as an act of infringe- any terms under the Communications Act of ‘‘(iv) EVIDENCE OF INFRINGEMENT.—The ment under section 501, and subject such in- 1934, except to the extent that such sections Comptroller General shall include in the re- fringement to the remedies provided for in are specifically cross-referenced in such Act port a statement of whether the examination sections 502 through 506 and subsection or the regulations issued thereunder. by the Comptroller General indicated that (a)(6)(B) of this section; and Subtitle B—Communications Provisions there is substantial evidence that a copy- ‘‘(ii) impose a fine of not less than $250,000 right holder could bring a successful action and not more than $5,000,000. SEC. 521. REFERENCE. under this section against the qualified car- ‘‘(B) EXCEPTION FOR NONWILLFUL VIOLA- Except as otherwise provided, whenever in rier for infringement. The Comptroller Gen- TION.—If the court determines that the fail- this subtitle an amendment is made to a sec- eral shall consult with the Register of Copy- ure to provide local-into-local service to all tion or other provision, the reference shall rights in preparing such statement. DMAs is nonwillful, the court may in its dis- be considered to be made to such section or ‘‘(v) SUBSEQUENT EXAMINATION.—If the re- cretion impose financial penalties for non- provision of the Communications Act of 1934 port includes the Comptroller General’s compliance that reflect— (47 U.S.C. 151 et seq.). statement that there is substantial evidence ‘‘(i) the degree of control the entity had SEC. 522. EXTENSION OF AUTHORITY. that a copyright holder could bring a suc- over the circumstances that resulted in the Section 325(b) is amended— cessful action under this section against the failure; (1) in paragraph (2)(C), by striking ‘‘Feb- qualified carrier for infringement, the Comp- ‘‘(ii) the quality of the entity’s efforts to ruary 28, 2010’’ and inserting ‘‘December 31, troller General shall, not later than 6 remedy the failure and restore service; and 2014’’; and months after the report under clause (i) is ‘‘(iii) the severity and duration of any serv- (2) in paragraph (3)(C), by striking ‘‘March published, initiate another examination of ice interruption. 1, 2010’’ each place it appears in clauses (ii) the qualified carrier’s compliance with the ‘‘(6) PENALTIES FOR VIOLATIONS OF LI- and (iii) and inserting ‘‘January 1, 2015’’. royalty payment and household eligibility CENSE.—A court that finds, under subsection SEC. 523. SIGNIFICANTLY VIEWED STATIONS. requirements of the license under this sec- (a)(6)(A), that an entity recognized as a (a) IN GENERAL.—Paragraphs (1) and (2) of tion since the last report was filed under qualified carrier has willfully made a sec- section 340(b) are amended to read as follows:

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‘‘(1) SERVICE LIMITED TO SUBSCRIBERS TAK- tion affiliated with the same television net- required under section 73.622(e)(1) or, in the ING LOCAL-INTO-LOCAL SERVICE.—This section work pursuant to section 338, the carrier case of a low-power station or translator sta- shall apply only to retransmissions to sub- may only provide the secondary trans- tion transmitting an analog signal, section scribers of a satellite carrier who receive re- missions of the distant signal of a station af- 73.683(a) of title 47, Code of Federal Regula- transmissions of a signal from that satellite filiated with the same network to that sub- tions, or a successor regulation; carrier pursuant to section 338. scriber if the subscriber’s satellite carrier, ‘‘(II) is determined, based on a test con- ‘‘(2) SERVICE LIMITATIONS.—A satellite car- not later than March 1, 2005, submits to that ducted in accordance with section 73.686(d) of rier may retransmit to a subscriber in high television network the list and statement re- title 47, Code of Federal Regulations, or any definition format the signal of a station de- quired by subparagraph (F)(i). successor regulation, not to be able to re- termined by the Commission to be signifi- ‘‘(II) In a case in which the satellite carrier ceive a signal that exceeds the signal inten- cantly viewed under subsection (a) only if does not make available to that subscriber, sity standard in section 73.622(e)(1) or, in the such carrier also retransmits in high defini- on January 1, 2005, the signal of a local net- case of a low-power station or translator sta- tion format the signal of a station located in work station pursuant to section 338, the tion transmitting an analog signal, section the local market of such subscriber and af- carrier may only provide the secondary 73.683(a) of such title, or a successor regula- filiated with the same network whenever transmissions of the distant signal of a sta- tion; or such format is available from such station.’’. tion affiliated with the same network to that (b) RULEMAKING REQUIRED.—Within 180 ‘‘(III) is in an unserved household, as deter- subscriber if— mined under section 119(d)(10)(A) of title 17, days after the date of the enactment of this ‘‘(aa) that subscriber seeks to subscribe to Act, the Federal Communications Commis- United States Code.’’; such distant signal before the date on which (V) in clause (ii)— sion shall take all actions necessary to pro- such carrier commences to carry pursuant to mulgate a rule to implement the amend- (aa) by striking ‘‘DIGITAL’’ in the heading; section 338 the signals of stations from the (bb) by striking ‘‘digital’’ the first two ments made by subsection (a). local market of such local network station; places such term appears; SEC. 524. DIGITAL TELEVISION TRANSITION CON- and FORMING AMENDMENTS. (cc) by striking ‘‘Satellite Home Viewer ‘‘(bb) the satellite carrier, within 60 days (a) SECTION 338.—Section 338 is amended— Extension and Reauthorization Act of 2004’’ after such date, submits to each television (1) in subsection (a), by striking ‘‘(3) EFFEC- and inserting ‘‘Satellite Television Exten- network the list and statement required by TIVE DATE.—No satellite’’ and all that fol- sion and Localism Act of 2010’’; and subparagraph (F)(ii). lows through ‘‘until January 1, 2002.’’; and (dd) by striking ‘‘, whether or not such sub- ‘‘(ii) SPECIAL CIRCUMSTANCES.—A sub- (2) by amending subsection (g) to read as scriber elects to subscribe to local digital scriber of a satellite carrier who was law- follows: signals’’; fully receiving the distant signal of a net- ‘‘(g) CARRIAGE OF LOCAL STATIONS ON A SIN- (VI) by inserting after clause (ii) the fol- work station on the day before the date of GLE RECEPTION ANTENNA.— lowing new clause: enactment of the Satellite Television Exten- ‘‘(1) SINGLE RECEPTION ANTENNA.—Each sat- ‘‘(iii) TIME-SHIFTING PROHIBITED.—In a case ellite carrier that retransmits the signals of sion and Localism Act of 2010 may receive both such distant signal and the local signal in which the satellite carrier makes avail- local television broadcast stations in a local able to an eligible subscriber under this sub- market shall retransmit such stations in of a network station affiliated with the same network until such subscriber chooses to no paragraph the signal of a local network sta- such market so that a subscriber may re- tion pursuant to section 338, the carrier may ceive such stations by means of a single re- longer receive such distant signal from such carrier, whether or not such subscriber only provide the distant signal of a station ception antenna and associated equipment. affiliated with the same network to that sub- ‘‘(2) ADDITIONAL RECEPTION ANTENNA.—If elects to subscribe to such local signal.’’; (iv) in subparagraph (C)— scriber if, in the case of any local market in the carrier retransmits the signals of local the 48 contiguous States of the United television broadcast stations in a local mar- (I) by striking ‘‘analog’’; (II) in clause (i), by striking ‘‘the Satellite States, the distant signal is the secondary ket in high definition format, the carrier transmission of a station whose prime time shall retransmit such signals in such market Home Viewer Extension and Reauthorization Act of 2004; and’’ and inserting the following: network programming is generally broadcast so that a subscriber may receive such signals simultaneously with, or later than, the ‘‘the Satellite Television Extension and Lo- by means of a single reception antenna and prime time network programming of the af- calism Act of 2010 and, at the time such per- associated equipment, but such antenna and filiate of the same network in the local mar- son seeks to subscribe to receive such sec- associated equipment may be separate from ket.’’; and ondary transmission, resides in a local mar- the single reception antenna and associated (VII) by redesignating clause (x) as clause ket where the satellite carrier makes avail- equipment used to comply with paragraph (iv); and (1).’’. able to that person the signal of a local net- (vi) in subparagraph (E), by striking ‘‘dis- (b) SECTION 339.—Section 339 is amended— work station affiliated with the same tele- tant analog signal or’’ and all that follows (1) in subsection (a)— vision network pursuant to section 338 (and (A) in paragraph (1)(B), by striking ‘‘Such the retransmission of such signal by such through ‘‘(B), or (D))’’ and inserting ‘‘distant two network stations’’ and all that follows carrier can reach such subscriber); or’’; and signal’’; through ‘‘more than two network stations.’’; (III) by amending clause (ii) to read as fol- (2) in subsection (c)— and lows: (A) by amending paragraph (3) to read as (B) in paragraph (2)— ‘‘(ii) lawfully subscribes to and receives a follows: (i) in the heading for subparagraph (A), by distant signal on or after the date of enact- ‘‘(3) ESTABLISHMENT OF IMPROVED PRE- striking ‘‘TO ANALOG SIGNALS’’; ment of the Satellite Television Extension DICTIVE MODEL AND ON-LOCATION TESTING RE- (ii) in subparagraph (A)— and Localism Act of 2010, and, subsequent to QUIRED.— (I) in the heading for clause (i), by striking such subscription, the satellite carrier ‘‘(A) PREDICTIVE MODEL.—Within 180 days ‘‘ANALOG’’; makes available to that subscriber the signal after the date of the enactment of the Sat- (II) in clause (i)— of a local network station affiliated with the ellite Television Extension and Localism Act (aa) by striking ‘‘analog’’ each place it ap- same network as the distant signal (and the of 2010, the Commission shall develop and pears; and retransmission of such signal by such carrier prescribe by rule a point-to-point predictive (bb) by striking ‘‘October 1, 2004’’ and in- can reach such subscriber), unless such per- model for reliably and presumptively deter- serting ‘‘October 1, 2009’’; son subscribes to the signal of the local net- mining the ability of individual locations, (III) in the heading for clause (ii), by strik- work station within 60 days after such signal through the use of an antenna, to receive ing ‘‘ANALOG’’; and is made available.’’; signals in accordance with the signal inten- (IV) in clause (ii)— (v) in subparagraph (D)— sity standard in section 73.622(e)(1) of title (aa) by striking ‘‘analog’’ each place it ap- (I) in the heading, by striking ‘‘DIGITAL’’; 47, Code of Federal Regulations, or a suc- pears; and (II) by striking clauses (i), (iii) through (v), cessor regulation, including to account for (bb) by striking ‘‘2004’’ and inserting (vii) through (ix), and (xi); the continuing operation of translator sta- ‘‘2009’’; (III) by redesignating clause (vi) as clause tions and low power television stations. In (iii) by amending subparagraph (B) to read (i) and transferring such clause to appear be- prescribing such model, the Commission as follows: fore clause (ii); shall rely on the Individual Location ‘‘(B) RULES FOR OTHER SUBSCRIBERS.— (IV) by amending such clause (i) (as so re- Longley-Rice model set forth by the Com- ‘‘(i) IN GENERAL.—In the case of a sub- designated) to read as follows: mission in CS Docket No. 98–201, as pre- scriber of a satellite carrier who is eligible ‘‘(i) ELIGIBILITY AND SIGNAL TESTING.—A viously revised with respect to analog sig- to receive the signal of a network station subscriber of a satellite carrier shall be eligi- nals, and as recommended by the Commis- under this section (in this subparagraph re- ble to receive a distant signal of a network sion with respect to digital signals in its Re- ferred to as a ‘distant signal’), other than station affiliated with the same network port to Congress in ET Docket No. 05–182, subscribers to whom subparagraph (A) ap- under this section if, with respect to a local FCC 05–199 (released December 9, 2005). The plies, the following shall apply: network station, such subscriber— Commission shall establish procedures for ‘‘(I) In a case in which the satellite carrier ‘‘(I) is a subscriber whose household is not the continued refinement in the application makes available to that subscriber, on Janu- predicted by the model specified in sub- of the model by the use of additional data as ary 1, 2005, the signal of a local network sta- section (c)(3) to receive the signal intensity it becomes available.

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‘‘(B) ON-LOCATION TESTING.—The Commis- SEC. 526. PROCESS FOR ISSUING QUALIFIED CAR- termine whether the Commission shall grant sion shall issue an order completing its rule- RIER CERTIFICATION. a certification under this section. making proceeding in ET Docket No. 06–94 Part I of title III is amended by adding at ‘‘(c) CERTIFICATION ISSUANCE.— within 180 days after the date of enactment the end the following new section: ‘‘(1) PUBLIC COMMENT.—The Commission of the Satellite Television Extension and Lo- ‘‘SEC. 342. PROCESS FOR ISSUING QUALIFIED shall provide 30 days for public comment on calism Act of 2010. In conducting such rule- CARRIER CERTIFICATION. a request for certification under this section. making, the Commission shall seek ways to ‘‘(a) CERTIFICATION.—The Commission shall ‘‘(2) DEADLINE FOR DECISION.—The Commis- minimize consumer burdens associated with issue a certification for the purposes of sec- sion shall grant or deny a request for certifi- on-location testing.’’; tion 119(g)(3)(A)(iii) of title 17, United States cation within 90 days after the date on which (B) by amending paragraph (4)(A) to read Code, if the Commission determines that— such request is filed. as follows: ‘‘(1) a satellite carrier is providing local ‘‘(d) SUBSEQUENT AFFIRMATION.—An entity ‘‘(A) IN GENERAL.—If a subscriber’s request service pursuant to the statutory license granted qualified carrier status pursuant to for a waiver under paragraph (2) is rejected under section 122 of such title in each des- section 119(g) of title 17, United States Code, and the subscriber submits to the sub- ignated market area; and shall file an affidavit with the Commission 30 months after such status was granted scriber’s satellite carrier a request for a test ‘‘(2) with respect to each designated mar- stating that, to the best of the affiant’s verifying the subscriber’s inability to receive ket area in which such satellite carrier was knowledge, it is in compliance with the re- a signal of the signal intensity referenced in not providing such local service as of the quirements for a qualified carrier. clause (i) of subsection (a)(2)(D), the satellite date of enactment of the Satellite Television carrier and the network station or stations ‘‘(e) DEFINITIONS.—For the purposes of this Extension and Localism Act of 2010— section: asserting that the retransmission is prohib- ‘‘(A) the satellite carrier’s satellite beams ited with respect to that subscriber shall se- ‘‘(1) DESIGNATED MARKET AREA.—The term are designed, and predicted by the satellite ‘designated market area’ has the meaning lect a qualified and independent person to manufacturer’s pre-launch test data, to pro- conduct the test referenced in such clause. given such term in section 122(j)(2)(C) of title vide a good quality satellite signal to at 17, United States Code. Such test shall be conducted within 30 days least 90 percent of the households in each ‘‘(2) GOOD QUALITY SATELLITE SIGNAL.— after the date the subscriber submits a re- such designated market area based on the ‘‘(A) IN GENERAL.—The term ‘‘good quality quest for the test. If the written findings and most recent census data released by the conclusions of a test conducted in accord- satellite signal’’ means— United States Census Bureau; and ‘‘(i) a satellite signal whose power level as ance with such clause demonstrate that the ‘‘(B) there is no material evidence that subscriber does not receive a signal that designed shall achieve reception and de- there has been a satellite or sub-system fail- modulation of the signal at an availability meets or exceeds the requisite signal inten- ure subsequent to the satellite’s launch that sity standard in such clause, the subscriber level of at least 99.7 percent using— precludes the ability of the satellite carrier ‘‘(I) models of satellite antennas normally shall not be denied the retransmission of a to satisfy the requirements of subparagraph signal of a network station under section used by the satellite carrier’s subscribers; (A). and 119(d)(10)(A) of title 17, United States Code.’’; ‘‘(b) INFORMATION REQUIRED.—Any entity (C) in paragraph (4)(B), by striking ‘‘the ‘‘(II) the same calculation methodology seeking the certification provided for in sub- used by the satellite carrier to determine signal intensity’’ and all that follows section (a) shall submit to the Commission through ‘‘United States Code’’ and inserting predicted signal availability in the top 100 the following information: designated market areas; and ‘‘such requisite signal intensity standard’’; ‘‘(1) An affidavit stating that, to the best and ‘‘(ii) taking into account whether a signal of the affiant’s knowledge, the satellite car- is in standard definition format or high defi- (D) in paragraph (4)(E), by striking ‘‘Grade rier provides local service in all designated B intensity’’. nition format, compression methodology, market areas pursuant to the statutory li- modulation, error correction, power level, (c) SECTION 340.—Section 340(i) is amended cense provided for in section 122 of title 17, by striking paragraph (4). and utilization of advances in technology United States Code, and listing those des- that do not circumvent the intent of this SEC. 525. APPLICATION PENDING COMPLETION ignated market areas in which local service section to provide for non-discriminatory OF RULEMAKINGS. was provided as of the date of enactment of treatment with respect to any comparable (a) IN GENERAL.—During the period begin- the Satellite Television Extension and Lo- television broadcast station signal, a video ning on the date of the enactment of this Act calism Act of 2010. signal transmitted by a satellite carrier such and ending on the date on which the Federal ‘‘(2) For each designated market area not that— Communications Commission adopts rules listed in paragraph (1): ‘‘(I) the satellite carrier treats all tele- pursuant to the amendments to the Commu- ‘‘(A) Identification of each such designated vision broadcast stations’ signals the same nications Act of 1934 made by section 523 and market area and the location of its local re- with respect to statistical multiplexer section 524 of this title, the Federal Commu- ceive facility. prioritization; and nications Commission shall follow its rules ‘‘(B) Data showing the number of house- ‘‘(II) the number of video signals in the rel- and regulations promulgated pursuant to holds, and maps showing the geographic dis- evant satellite transponder is not more than sections 338, 339, and 340 of the Communica- tribution thereof, in each such designated the then current greatest number of video tions Act of 1934 as in effect on the day be- market area based on the most recent census signals carried on any equivalent trans- fore the date of the enactment of this Act. data released by the United States Census ponder serving the top 100 designated market (b) TRANSLATOR STATIONS AND LOW POWER Bureau. areas. TELEVISION STATIONS.—Notwithstanding sub- ‘‘(C) Maps, with superimposed effective ‘‘(B) DETERMINATION.—For the purposes of section (a), for purposes of determining isotropically radiated power predictions ob- subparagraph (A), the top 100 designated whether a subscriber within the local market tained in the satellite manufacturer’s pre- market areas shall be as determined by served by a translator station or a low power launch tests, showing that the contours of Nielsen Media Research and published in the television station affiliated with a television the carrier’s satellite beams as designed and Nielsen Station Index Directory and Nielsen network is eligible to receive distant signals the geographic area that the carrier’s sat- Station Index United States Television under section 339 of the Communications Act ellite beams are designed to cover are pre- Household Estimates or any successor publi- of 1934, the rules and regulations of the Fed- dicted to provide a good quality satellite sig- cation as of the date of a satellite carrier’s eral Communications Commission for deter- nal to at least 90 percent of the households application for certification under this sec- mining such subscriber’s eligibility as in ef- in such designated market area based on the tion.’’. fect on the day before the date of the enact- most recent census data released by the SEC. 527. NONDISCRIMINATION IN CARRIAGE OF ment of this Act shall apply until the date United States Census Bureau. HIGH DEFINITION DIGITAL SIGNALS on which the translator station or low power ‘‘(D) For any satellite relied upon for cer- OF NONCOMMERCIAL EDUCATIONAL television station is licensed to broadcast a tification under this section, an affidavit TELEVISION STATIONS. digital signal. stating that, to the best of the affiant’s (a) IN GENERAL.—Section 338(a) is amended (c) DEFINITIONS.—As used in this subtitle: knowledge, there have been no satellite or by adding at the end the following new para- (1) LOCAL MARKET; LOW POWER TELEVISION sub-system failures subsequent to the sat- graph: STATION; SATELLITE CARRIER; SUBSCRIBER; ellite’s launch that would degrade the design ‘‘(5) NONDISCRIMINATION IN CARRIAGE OF TELEVISION BROADCAST STATION.—The terms performance to such a degree that a satellite HIGH DEFINITION SIGNALS OF NONCOMMERCIAL ‘‘local market’’, ‘‘low power television sta- transponder used to provide local service to EDUCATIONAL TELEVISION STATIONS.— tion’’, ‘‘satellite carrier’’, ‘‘subscriber’’, and any such designated market area is pre- ‘‘(A) EXISTING CARRIAGE OF HIGH DEFINITION ‘‘television broadcast station’’ have the cluded from delivering a good quality sat- SIGNALS.—If, before the date of enactment of meanings given such terms in section 338(k) ellite signal to at least 90 percent of the the Satellite Television Extension and Lo- of the Communications Act of 1934. households in such designated market area calism Act of 2010, an eligible satellite car- (2) NETWORK STATION; TELEVISION NET- based on the most recent census data re- rier is providing, under section 122 of title 17, WORK.—The terms ‘‘network station’’ and leased by the United States Census Bureau. United States Code, any secondary trans- ‘‘television network’’ have the meanings ‘‘(E) Any additional engineering, des- missions in high definition format to sub- given such terms in section 339(d) of such ignated market area, or other information scribers located within the local market of a Act. the Commission considers necessary to de- television broadcast station of a primary

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transmission made by that station, then ‘‘(1) CHANNEL CAPACITY REQUIRED.— (2) any recommendations for alternative such satellite carrier shall carry the signals ‘‘(A) IN GENERAL.—Except as provided in means to implement a timely and effective in high-definition format of qualified non- subparagraph (B), the Commission shall re- phase-out of the statutory licensing require- commercial educational television stations quire, as a condition of any provision, initial ments set forth in sections 111, 119, and 122 of located within that local market in accord- authorization, or authorization renewal for a title 17, United States Code; and ance with the following schedule: provider of direct broadcast satellite service (3) any recommendations for legislative or ‘‘(i) By December 31, 2010, in at least 50 per- providing video programming, that the pro- administrative actions as may be appro- cent of the markets in which such satellite vider of such service reserve a portion of its priate to achieve such a phase-out. carrier provides such secondary trans- channel capacity, equal to not less than 4 SEC. 533. REPORT ON COMMUNICATIONS IMPLI- missions in high definition format. percent nor more than 7 percent, exclusively CATIONS OF STATUTORY LICENSING ‘‘(ii) By December 31, 2011, in every market for noncommercial programming of an edu- MODIFICATIONS. in which such satellite carrier provides such cational or informational nature. (a) STUDY.—The Comptroller General shall secondary transmissions in high definition ‘‘(B) REQUIREMENT FOR QUALIFIED SAT- conduct a study that analyzes and evaluates format. ELLITE PROVIDER.—The Commission shall re- the changes to the carriage requirements ‘‘(B) NEW INITIATION OF SERVICE.—If, on or quire, as a condition of any provision, initial currently imposed on multichannel video after the date of enactment of the Satellite authorization, or authorization renewal for a programming distributors under the Commu- Television Extension and Localism Act of qualified satellite provider of direct broad- nications Act of 1934 (47 U.S.C. 151 et seq.) 2010, an eligible satellite carrier initiates the cast satellite service providing video pro- and the regulations promulgated by the Fed- provision, under section 122 of title 17, gramming, that such provider reserve a por- eral Communications Commission that United States Code, of any secondary trans- tion of its channel capacity, equal to not less would be required or beneficial to con- missions in high definition format to sub- than 3.5 percent nor more than 7 percent, ex- sumers, and such other matters as the Comp- scribers located within the local market of a clusively for noncommercial programming of troller General deems appropriate, if Con- television broadcast station of a primary an educational or informational nature.’’; gress implemented a phase-out of the current transmission made by that station, then (3) in paragraph (5), by striking ‘‘For pur- statutory licensing requirements set forth such satellite carrier shall carry the signals poses of the subsection—’’ and inserting under sections 111, 119, and 122 of title 17, in high-definition format of all qualified ‘‘For purposes of this subsection:’’; and United States Code. Among other things, the noncommercial educational television sta- (4) by adding at the end of paragraph (5) study shall consider the impact such a tions located within that local market.’’. the following: phase-out and related changes to carriage re- (b) DEFINITIONS.—Section 338(k) is amend- ‘‘(C) The term ‘qualified satellite provider’ quirements would have on consumer prices ed— means any provider of direct broadcast sat- and access to programming. (1) by redesignating paragraphs (2) through ellite service that— (b) REPORT.—Not later than 1 year after (8) as paragraphs (3) through (9), respec- ‘‘(i) provides the retransmission of the the date of the enactment of this Act, the tively; State public affairs networks of at least 15 Comptroller General shall report to the ap- (2) by inserting after paragraph (1) the fol- different States; propriate Congressional committees the re- lowing new paragraph: ‘‘(ii) offers the programming of State pub- sults of the study, including any rec- ‘‘(2) ELIGIBLE SATELLITE CARRIER.—The lic affairs networks upon reasonable prices, ommendations for legislative or administra- term ‘eligible satellite carrier’ means any terms, and conditions as determined by the tive actions. satellite carrier that is not a party to a car- Commission under paragraph (4); and riage contract that— ‘‘(iii) does not delete any noncommercial SEC. 534. REPORT ON IN-STATE BROADCAST PRO- ‘‘(A) governs carriage of at least 30 quali- programming of an educational or informa- GRAMMING. fied noncommercial educational television tional nature in connection with the car- Not later than 1 year after the date of the stations; and riage of a State public affairs network. enactment of this Act, the Federal Commu- ‘‘(B) is in force and effect within 60 days ‘‘(D) The term ‘State public affairs net- nications Commission shall submit to the after the date of enactment of the Satellite work’ means a non-commercial non-broad- appropriate Congressional committees a re- Television Extension and Localism Act of cast network or a noncommercial edu- port containing an analysis of— 2010.’’; cational television station— (1) the number of households in a State (3) by redesignating paragraphs (6) through ‘‘(i) whose programming consists of infor- that receive the signals of local broadcast (9) (as previously redesignated) as para- mation about State government delibera- stations assigned to a community of license graphs (7) through (10), respectively; and tions and public policy events; and that is located in a different State; (4) by inserting after paragraph (5) (as so ‘‘(ii) that is operated by— (2) the extent to which consumers in each redesignated) the following new paragraph: ‘‘(I) a State government or subdivision local market have access to in-state broad- ‘‘(6) QUALIFIED NONCOMMERCIAL EDU- thereof; cast programming over the air or from a CATIONAL TELEVISION STATION.—The term ‘‘(II) an organization described in section multichannel video programming dis- ‘qualified noncommercial educational tele- 501(c)(3) of the Internal Revenue Code of 1986 tributor; and vision station’ means any full-power tele- that is exempt from taxation under section (3) whether there are alternatives to the vision broadcast station that— 501(a) of such Code and that is governed by use of designated market areas, as defined in ‘‘(A) under the rules and regulations of the an independent board of directors; or section 122 of title 17, United States Code, to Commission in effect on March 29, 1990, is li- ‘‘(III) a cable system.’’. define local markets that would provide censed by the Commission as a noncommer- Subtitle C—Reports and Savings Provision more consumers with in-state broadcast pro- gramming. cial educational broadcast station and is SEC. 531. DEFINITION. owned and operated by a public agency, non- In this subtitle, the term ‘‘appropriate SEC. 535. LOCAL NETWORK CHANNEL BROAD- profit foundation, nonprofit corporation, or Congressional committees’’ means the Com- CAST REPORTS. nonprofit association; and mittees on the Judiciary and on Commerce, (a) REQUIREMENT.— ‘‘(B) has as its licensee an entity that is el- Science, and Transportation of the Senate (1) IN GENERAL.—On the 180th day after the igible to receive a community service grant, and the Committees on the Judiciary and on date of the enactment of this Act, and on or any successor grant thereto, from the Cor- Energy and Commerce of the House of Rep- each succeeding anniversary of such 180th poration for Public Broadcasting, or any suc- resentatives. day, each satellite carrier shall submit an cessor organization thereto, on the basis of SEC. 532. REPORT ON MARKET BASED ALTER- annual report to the Federal Communica- the formula set forth in section 396(k)(6)(B) NATIVES TO STATUTORY LICENSING. tions Commission setting forth— of this title.’’. Not later than 1 year after the date of the (A) each local market in which it— SEC. 528. SAVINGS CLAUSE REGARDING DEFINI- enactment of this Act, and after consulta- (i) retransmits signals of 1 or more tele- TIONS. tion with the Federal Communications Com- vision broadcast stations with a community Nothing in this subtitle or the amend- mission, the Register of Copyrights shall of license in that market; ments made by this subtitle shall be con- submit to the appropriate Congressional (ii) has commenced providing such signals strued to affect— committees a report containing— in the preceding 1-year period; and (1) the meaning of the terms ‘‘program re- (1) proposed mechanisms, methods, and (iii) has ceased to provide such signals in lated’’ and ‘‘primary video’’ under the Com- recommendations on how to implement a the preceding 1-year period; and munications Act of 1934; or phase-out of the statutory licensing require- (B) detailed information regarding the use (2) the meaning of the term ‘‘multicast’’ in ments set forth in sections 111, 119, and 122 of and potential use of satellite capacity for the any regulations issued by the Federal Com- title 17, United States Code, by making such retransmission of local signals in each local munications Commission. sections inapplicable to the secondary trans- market. SEC. 529. STATE PUBLIC AFFAIRS BROADCASTS. mission of a performance or display of a (2) TERMINATION.—The requirement under Section 335(b) is amended— work embodied in a primary transmission of paragraph (1) shall cease after each satellite (1) by inserting ‘‘STATE PUBLIC AF- a broadcast station that is authorized to li- carrier has submitted 5 reports under such FAIRS,’’ after ‘‘EDUCATIONAL,’’ in the cense the same secondary transmission di- paragraph. heading; rectly with respect to all of the perform- (b) FCC STUDY; REPORT.— (2) by striking paragraph (1) and inserting ances and displays embodied in such primary (1) STUDY.—If no satellite carrier files a re- the following: transmission; quest for a certification under section 342 of

VerDate Nov 24 2008 03:19 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00062 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.042 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S887 the Communications Act of 1934 (as added by (2) in subparagraph (B), by striking ‘‘March ter described in paragraph (2), or the offering section 526 of this title) within 180 days after 1, 2010’’ and inserting ‘‘October 1, 2010’’. of an amendment thereto or the submission the date of the enactment of this Act, the TITLE VII—DETERMINATION OF of a conference report thereon— Federal Communications Commission shall BUDGETARY EFFECTS ‘‘(A) the Chairman of the Senate Com- initiate a study of— SEC. 701. DETERMINATION OF BUDGETARY EF- mittee on the Budget may adjust the discre- (A) incentives that would induce a satellite FECTS. tionary spending limits, the budgetary ag- carrier to provide the signals of 1 or more (a) IN GENERAL.—The budgetary effects of gregates in the concurrent resolution on the television broadcast stations licensed to pro- this Act, for the purpose of complying with budget most recently adopted by the Senate vide signals in local markets in which the the Statutory Pay-As-You-Go-Act of 2010, and the House of Representatives, and allo- satellite carrier does not provide such sig- shall be determined by reference to the lat- cations pursuant to section 302(a) of the Con- nals; and est statement titled ‘‘Budgetary Effects of gressional Budget Act of 1974, by the amount (B) the economic and satellite capacity PAYGO Legislation’’ for this Act, submitted of new budget authority in that measure for conditions affecting delivery of local signals for printing in the Congressional Record by that purpose and the outlays flowing there by satellite carriers to these markets. the Chairman of the Senate Budget Com- from; and (2) REPORT.—Within 1 year after the date of mittee, provided that such statement has ‘‘(B) following any adjustment under sub- the initiation of the study under paragraph been submitted prior to the vote on passage. paragraph (A), the Senate Committee on Ap- (1), the Federal Communications Commis- (b) EMERGENCY DESIGNATION.—Sections 201, propriations may report appropriately re- sion shall submit a report to the appropriate 211, and 232 of this Act are designated as an vised suballocations pursuant to section Congressional committees containing its emergency requirement pursuant to section 302(b) of the Congressional Budget Act of 1974 findings, conclusions, and recommendations. 4(g) of the Statutory Pay-As-You-Go Act of to carry out this subsection. (c) DEFINITIONS.—In this section— 2010 (Public Law 111-139; 2 U.S.C. 933(g)) and ‘‘(2) MATTERS DESCRIBED.—Matters referred (1) the terms ‘‘local market’’ and ‘‘satellite section 403(a) of S. Con. Res. 13 (111th Con- to in paragraph (1) are as follows: carrier’’ have the meaning given such terms gress), the concurrent resolution on the ‘‘(A) OVERSEAS DEPLOYMENTS AND OTHER in section 339(d) of the Communications Act budget for fiscal year 2010. In the House of ACTIVITIES.—If a bill or joint resolution is re- of 1934 (47 U.S.C. 339(d)); and Representatives, sections 201, 211, and 232 of (2) the term ‘‘television broadcast station’’ ported making appropriations for fiscal year this Act are designated as an emergency for 2011, 2012, 2013, or 2014, that provides funding has the meaning given such term in section purposes of pay-as-you-go principles. 325(b)(7) of such Act (47 U.S.C. 325(b)(7)). for overseas deployments and other activi- ties, the adjustment for purposes paragraph SEC. 536. SAVINGS PROVISION REGARDING USE SA 3337. Mr. SESSIONS (for himself OF NEGOTIATED LICENSES. (1) shall be the amount of budget authority and Mrs. MCCASKILL) proposed an in that measure for that purpose but not to (a) IN GENERAL.—Nothing in this title, title amendment to amendment SA 3336 pro- 17, United States Code, the Communications exceed— posed by Mr. BAUCUS to the bill H.R. Act of 1934, regulations promulgated by the ‘‘(i) with respect to fiscal year 2011, Register of Copyrights under this title or 4213, to amend the Internal Revenue $50,000,000,000 in new budget authority; title 17, United States Code, or regulations Code of 1986 to extend certain expiring ‘‘(ii) with respect to fiscal year 2012, promulgated by the Federal Communica- provisions, and for other purposes; as $50,000,000,000 in new budget authority; tions Commission under this title or the follows: ‘‘(iii) with respect to fiscal year 2013, Communications Act of 1934 shall be con- In lieu of the matter proposed to be in- $50,000,000,000 in new budget authority: and strued to prevent a multichannel video pro- serted, insert the following: ‘‘(iv) with respect to fiscal year 2014, $50,000,000,000 in new budget authority. gramming distributor from retransmitting a SEC. l01. DISCRETIONARY SPENDING LIMITS. ‘‘(B) EMERGENCY SPENDING.—For fiscal year performance or display of a work pursuant to (a) IN GENERAL.—Title III of the Congres- an authorization granted by the copyright sional Budget Act of 1974 is amended by in- 2011, 2012, 2013, or 2014 for appropriations for owner or, if within the scope of its authoriza- serting at the end the following: discretionary accounts designated as emer- tion, its licensee. gency requirements, the adjustment for pur- ‘‘DISCRETIONARY SPENDING LIMITS (b) LIMITATION.—Nothing in subsection (a) poses of paragraph (1) shall be the total of shall be construed to affect any obligation of ‘‘SEC. 316. (a) DISCRETIONARY SPENDING such appropriations in discretionary ac- a multichannel video programming dis- LIMITS.—It shall not be in order in the House counts designated as emergency require- tributor under section 325(b) of the Commu- of Representatives or the Senate to consider ments, but not to exceed $10,454,000,000 for nications Act of 1934 to obtain the authority any bill, joint resolution, amendment, or 2011, $10,558,000,000 for 2012, $10,664,000,000 for of a television broadcast station before re- conference report that includes any provi- 2013, and $10,877,000,000 for 2014. Appropria- transmitting that station’s signal. sion that would cause the discretionary tions designated as emergencies in excess of SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT spending limits as set forth in this section to these limitations shall be treated as new OF COPYRIGHT. be exceeded. budget authority. ‘‘(b) LIMITS.—In this section, the term ‘dis- Unless specifically provided otherwise, this ‘‘(C) INTERNAL REVENUE SERVICE TAX EN- cretionary spending limits’ has the following title, and the amendments made by this FORCEMENT.— meaning subject to adjustments in sub- title, shall take effect on February 27, 2010, ‘‘(i) IN GENERAL.—If a bill or joint resolu- section (c): and all references to enactment of this Act tion is reported making appropriations for ‘‘(1) For fiscal year 2011— shall be deemed to refer to such date unless fiscal year 2011, 2012, 2013, or 2014 that in- ‘‘(A) for the defense category (budget func- otherwise specified. The secondary trans- cludes the amount described in clause (ii)(I), mission of a performance or display of a tion 050), $564,293,000,000 in budget authority; and plus an additional amount for enhanced tax work embodied in a primary transmission is enforcement to address the Federal tax gap not an infringement of copyright if it was ‘‘(B) for the nondefense category, $529,662,000,000 in budget authority. (taxes owed but not paid) described in clause made by a satellite carrier on or after Feb- (ii)(II), the adjustment for purposes of para- ruary 27, 2010 and prior to enactment of this ‘‘(2) For fiscal year 2012— ‘‘(A) for the defense category (budget func- graph (1) shall be the amount of budget au- Act, and was in compliance with the law as thority in that measure for that initiative in existence on February 27, 2010. tion 050), $573,612,000,000 in budget authority; and not exceeding the amount specified in clause Subtitle D—Severability ‘‘(B) for the nondefense category, (ii)(II) for that fiscal year. SEC. 541. SEVERABILITY. $533,232,000,000 in budget authority. ‘‘(ii) AMOUNTS.—The amounts referred to in If any provision of this title, an amend- ‘‘(3) For fiscal year 2013— clause (i) are as follows: ment made by this title, or the application ‘‘(A) for the defense category (budget func- ‘‘(I) For fiscal year 2011, $7,171,000,000, for of such provision or amendment to any per- tion 050), $584,421,000,000 in budget authority; fiscal year 2012, $7,243,000,000, for fiscal year son or circumstance is held to be unconstitu- and 2013, $7,315,000,000, and for fiscal year 2014, tional, the remainder of this title, the ‘‘(B) for the nondefense category, $7,461,000,000. amendments made by this title, and the ap- $540,834,000,000 in budget authority. ‘‘(II) For fiscal year 2011, $899,000,000, for plication of such provision or amendment to ‘‘(4) For fiscal year 2014— fiscal year 2012, $908,000,000, for fiscal year any person or circumstance shall not be af- ‘‘(A) for the defense category (budget func- 2013, $917,000,000, and for fiscal year 2014, fected thereby. tion 050), $598,249,000,000 in budget authority; $935,000,000. TITLE VI—OTHER PROVISIONS and ‘‘(D) CONTINUING DISABILITY REVIEWS AND SEC. 601. INCREASE IN THE MEDICARE PHYSI- ‘‘(B) for the nondefense category, SSI REDETERMINATIONS.— CIAN PAYMENT UPDATE. $550,509,000,000 in budget authority. ‘‘(i) IN GENERAL.—If a bill or joint resolu- Paragraph (10) of section 1848(d) of the So- ‘‘(5) With respect to fiscal years following tion is reported making appropriations for cial Security Act, as added by section 1011(a) 2014, the President shall recommend and the fiscal year 2011, 2012, 2013, or 2014 that in- of the Department of Defense Appropriations Congress shall consider legislation setting cludes the amount described in clause (ii)(I), Act, 2010 (Public Law 111–118), is amended— limits for those fiscal years. plus an additional amount for Continuing (1) in subparagraph (A), by striking ‘‘Feb- ‘‘(c) ADJUSTMENTS.— Disability Reviews and Supplemental Secu- ruary 28, 2010’’ and inserting ‘‘September 30, ‘‘(1) IN GENERAL.—After the reporting of a rity Income Redeterminations for the Social 2010’’; and bill or joint resolution relating to any mat- Security Administration described in clause

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00063 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.042 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S888 CONGRESSIONAL RECORD — SENATE March 1, 2010 (ii)(II), the adjustment for purposes of para- fiscal years resulting from that provision case may be, not so stricken. Any such mo- graph (1) shall be the amount of budget au- shall be treated as an emergency require- tion in the Senate shall be debatable. In any thority in that measure for that initiative ment for the purpose of this subsection. case in which such point of order is sustained not exceeding the amount specified in clause ‘‘(2) EXEMPTION OF EMERGENCY PROVI- against a conference report (or Senate (ii)(II) for that fiscal year. SIONS.—Subject to the limitations provided amendment derived from such conference re- ‘‘(ii) AMOUNTS.—The amounts referred to in in subsection (c)(2)(B), any new budget au- port by operation of this subsection), no fur- clause (i) are as follows: thority, outlays, and receipts resulting from ther amendment shall be in order. ‘‘(I) For fiscal year 2011, $276,000,000; for fis- any provision designated as an emergency ‘‘(6) CRITERIA.— cal year 2012, $278,000,000; for fiscal year 2013, requirement, pursuant to this subsection, in ‘‘(A) IN GENERAL.—For purposes of this sub- $281,000,000; for fiscal year 2014, $287,000,000. any bill, joint resolution, amendment, or section, any provision is an emergency re- ‘‘(II) For fiscal year 2011, $490,000,000; for conference report shall not count for pur- quirement if the situation addressed by such fiscal year 2012, $495,000,000; for fiscal year poses of sections 302 and 311 of the Congres- provision is— 2013, $500,000,000; for fiscal year 2014, sional Budget Act of 1974, section 201 of S. ‘‘(i) necessary, essential, or vital (not $510,000,000. Con. Res. 21 (110th Congress) (relating to merely useful or beneficial); ‘‘(iii) ASSET VERIFICATION.— pay-as-you-go), and section 311 of S. Con. ‘‘(ii) sudden, quickly coming into being, ‘‘(I) IN GENERAL.—The additional appro- Res. 70 (110th Congress) (relating to long- and not building up over time; priation permitted under clause (ii)(II) may term deficits). ‘‘(iii) an urgent, pressing, and compelling also provide that a portion of that amount, ‘‘(3) DESIGNATIONS.—If a provision of legis- need requiring immediate action; not to exceed the amount specified in sub- lation is designated as an emergency re- ‘‘(iv) subject to clause (ii), unforeseen, un- clause (II) for that fiscal year instead may be quirement under this subsection, the com- predictable, and unanticipated; and used for asset verification for Supplemental mittee report and any statement of man- ‘‘(v) not permanent, temporary in nature. Security Income recipients, but only if, and agers accompanying that legislation shall ‘‘(7) UNFORESEEN.—An emergency that is to the extent that the Office of the Chief Ac- include an explanation of the manner in part of an aggregate level of anticipated tuary estimates that the initiative would be which the provision meets the criteria in emergencies, particularly when normally es- at least as cost effective as the redetermina- paragraph (6). timated in advance, is not unforeseen. tions of eligibility described in this subpara- ‘‘(4) DEFINITIONS.—In this subsection, the ‘‘(e) LIMITATIONS ON CHANGES TO EXEMP- graph. terms ‘direct spending’, ‘receipts’, and ‘ap- TIONS.—It shall not be in order in the Senate ‘‘(II) AMOUNTS.—For fiscal year 2011, propriations for discretionary accounts’ or the House of Representatives to consider $34,340,000, for fiscal year 2012, $34,683,000, for mean any provision of a bill, joint resolu- any bill, resolution, amendment, or con- fiscal year 2013, $35,030,000 and for fiscal year tion, amendment, motion, or conference re- ference report that would exempt any new 2014, $35,731,000. port that affects direct spending, receipts, or budget authority, outlays, and receipts from ‘‘(E) HEALTH CARE FRAUD AND ABUSE.— appropriations as those terms have been de- being counted for purposes of this section. ‘‘(i) IN GENERAL.—If a bill or joint resolu- fined and interpreted for purposes of the Bal- ‘‘(f) POINT OF ORDER IN THE SENATE.— tion is reported making appropriations for anced Budget and Emergency Deficit Control ‘‘(1) WAIVER.—The provisions of this sec- fiscal year 2011, 2012, 2013, or 2014 that in- Act of 1985. tion shall be waived or suspended in the Sen- cludes the amount described in clause (ii) for ‘‘(5) POINT OF ORDER.— ate only— the Health Care Fraud and Abuse Control ‘‘(A) IN GENERAL.—When the Senate is con- ‘‘(A) by the affirmative vote of two-thirds program at the Department of Health & sidering a bill, resolution, amendment, mo- of the Members, duly chosen and sworn; or Human Services for that fiscal year, the ad- tion, or conference report, if a point of order ‘‘(B) in the case of the defense budget au- justment for purposes of paragraph (1) shall is made by a Senator against an emergency thority, if Congress declares war or author- be the amount of budget authority in that designation in that measure, that provision izes the use of force. measure for that initiative but not to exceed making such a designation shall be stricken ‘‘(2) APPEAL.—Appeals in the Senate from the amount described in clause (ii). from the measure and may not be offered as the decisions of the Chair relating to any ‘‘(ii) AMOUNT.—The amount referred to in an amendment from the floor. provision of this section shall be limited to 1 clause (i) is for fiscal year 2011, $314,000,000, ‘‘(B) SUPERMAJORITY WAIVER AND AP- hour, to be equally divided between, and con- for fiscal year 2012, $317,000,000, for fiscal PEALS.— trolled by, the appellant and the manager of year 2013, $320,000,000, and for fiscal year 2014, ‘‘(i) WAIVER.—Subparagraph (A) may be the measure. An affirmative vote of two- $327,000,000. waived or suspended in the Senate only by thirds of the Members of the Senate, duly ‘‘(F) UNEMPLOYMENT INSURANCE IMPROPER an affirmative vote of three-fifths of the chosen and sworn, shall be required to sus- PAYMENT REVIEWS.—If a bill or joint resolu- Members, duly chosen and sworn. tain an appeal of the ruling of the Chair on tion is reported making appropriations for ‘‘(ii) APPEALS.—Appeals in the Senate from a point of order raised under this section. fiscal year 2011, 2012, 2013, or 2014 that in- the decisions of the Chair relating to any ‘‘(3) LIMITATIONS ON CHANGES TO THIS SUB- cludes $10,000,000, plus an additional amount provision of this paragraph shall be limited SECTION.—It shall not be in order in the Sen- for in-person reemployment and eligibility to 1 hour, to be equally divided between, and ate or the House of Representatives to con- assessments and unemployment improper controlled by, the appellant and the manager sider any bill, resolution, amendment, or payment reviews for the Department of of the bill or joint resolution, as the case conference report that would repeal or other- Labor, the adjustment for purposes para- may be. An affirmative vote of three-fifths of wise change this subsection.’’. graph (1) shall be the amount of budget au- the Members of the Senate, duly chosen and (b) TABLE OF CONTENTS.—The table of con- thority in that measure for that initiative sworn, shall be required to sustain an appeal tents set forth in section 1(b) of the Congres- but not to exceed— of the ruling of the Chair on a point of order sional Budget and Impoundment Control Act ‘‘(i) with respect to fiscal year 2011, raised under this paragraph. of 1974 is amended by inserting after the $51,000,000 in new budget authority; and ‘‘(C) DEFINITION OF AN EMERGENCY DESIGNA- item relating to section 315 the following ‘‘(ii) with respect to fiscal year 2012, TION.—For purposes of subparagraph (A), a new item: $51,000,000 in new budget authority. provision shall be considered an emergency ‘‘Sec. 316. Discretionary spending limits.’’. ‘‘(iii) with respect to fiscal year 2013, designation if it designates any item as an $52,000,000 in new budget authority; and emergency requirement pursuant to this SA 3338. Mr. THUNE submitted an ‘‘(iv) with respect to fiscal year 2014, paragraph. amendment intended to be proposed to $53,000,000 in new budget authority. ‘‘(D) FORM OF THE POINT OF ORDER.—A point amendment SA 3336 proposed by Mr. ‘‘(G) LOW-INCOME HOME ENERGY ASSISTANCE of order under subparagraph (A) may be BAUCUS) to the bill H.R. 4213, to amend PROGRAM (LIHEAP).—If a bill or joint resolu- raised by a Senator as provided in section the Internal Revenue Code of 1986 to 313(e) of the Congressional Budget Act of tion is reported making appropriations for extend certain expiring provisions, and fiscal year 2011, 2012, 2013, or 2014 that in- 1974. for other purposes; as follows: cludes $3,200,000,000 in funding for the Low- ‘‘(E) CONFERENCE REPORTS.—When the Sen- Income Home Energy Assistance Program ate is considering a conference report on, or At the end, insert the following: and provides an additional amount up to an amendment between the Houses in rela- TITLE ——ADDITIONAL BUSINESS TAX $1,900,000,000 for that program, the adjust- tion to, a bill, upon a point of order being RELIEF ment for purposes of paragraph (1) shall be made by any Senator pursuant to this para- Subtitle A—General Provisions the amount of budget authority in that graph, and such point of order being sus- SEC. —01. PERMANENT INCREASE IN LIMITA- measure for that initiative but not to exceed tained, such material contained in such con- TIONS ON EXPENSING OF CERTAIN $1,900,000,000. ference report shall be deemed stricken, and DEPRECIABLE BUSINESS ASSETS. ‘‘(d) EMERGENCY SPENDING.— the Senate shall proceed to consider the (a) PERMANENT INCREASE.—Subsection (b) ‘‘(1) AUTHORITY TO DESIGNATE.—In the Sen- question of whether the Senate shall recede of section 179 is amended— ate, with respect to a provision of direct from its amendment and concur with a fur- (1) by striking ‘‘$25,000’’ and all that fol- spending or receipts legislation or appropria- ther amendment, or concur in the House lows in paragraph (1) and inserting tions for discretionary accounts that Con- amendment with a further amendment, as ‘‘$500,000.’’, gress designates as an emergency require- the case may be, which further amendment (2) by striking ‘‘$200,000’’ and all that fol- ment in such measure, the amounts of new shall consist of only that portion of the con- lows in paragraph (2) and inserting budget authority, outlays, and receipts in all ference report or House amendment, as the ‘‘$2,000,000’’,

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00064 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.028 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S889 (3) by striking ‘‘after 2007 and before 2011, ican Workers, State, and Business Relief Act SEC. —04. DEDUCTION FOR ELIGIBLE SMALL the $120,000 and $500,000’’ in paragraph (5)(A) of 2010. BUSINESS INCOME. and inserting ‘‘after 2009, the $500,000 and the ‘‘(3) EMPOWERMENT ZONE BUSINESSES.— (a) IN GENERAL.—Paragraph (1) of section $2,000,000’’, ‘‘(A) IN GENERAL.—In the case of qualified 199(a) is amended to read as follows: (4) by striking ‘‘2006’’ in paragraph small business stock acquired after Decem- ‘‘(1) IN GENERAL.—There shall be allowed as (5)(A)(ii) and inserting ‘‘2008’’, and ber 21, 2000, and on or before February 18, a deduction an amount equal to the sum of— (5) by striking paragraph (7). 2009, in a corporation which is a qualified ‘‘(A) 9 percent of the lesser of— (b) PERMANENT EXPENSING OF COMPUTER business entity (as defined in section ‘‘(i) the qualified production activities in- SOFTWARE.—Section 179(d)(1)(A)(ii) is amend- 1397C(b)) during substantially all of the tax- come of the taxpayer for the taxable year, or ed by striking ‘‘and before 2011’’. payer’s holding period for such stock, para- ‘‘(ii) taxable income (determined without (c) EFFECTIVE DATE.—The amendments graph (2)(A) shall be applied by substituting regard to this section) for the taxable year, made by subsections (b) and (c) shall apply ‘60 percent’ for ‘50 percent’. and to taxable years beginning after December ‘‘(B) CERTAIN RULES TO APPLY.—Rules simi- ‘‘(B) in the case of an eligible small busi- 31, 2008. lar to the rules of paragraphs (5) and (7) of ness for any taxable year beginning after SEC. —02. EXTENSION OF ADDITIONAL FIRST- section 1400B(b) shall apply for purposes of 2009, 20 percent of the lesser of— YEAR DEPRECIATION FOR 50 PER- this paragraph. ‘‘(i) the eligible small business income of CENT OF THE BASIS OF CERTAIN the taxpayer for the taxable year, or QUALIFIED PROPERTY. ‘‘(C) GAIN AFTER 2014 NOT QUALIFIED.—Sub- ‘‘(ii) taxable income (determined without (a) IN GENERAL.—Paragraph (2) of section paragraph (A) shall not apply to gain attrib- regard to this section) for the taxable year.’’. 168(k), as amended by the American Recov- utable to periods after December 31, 2014. (b) ELIGIBLE SMALL BUSINESS; ELIGIBLE ery and Reinvestment Tax Act of 2009, is ‘‘(D) TREATMENT OF DC ZONE.—The District SMALL BUSINESS INCOME.—Section 199 is amended— of Columbia Enterprise Zone shall not be amended by adding at the end the following (1) by striking ‘‘January 1, 2011’’ in sub- treated as an empowerment zone for pur- new subsection: paragraph (A)(iv) and inserting ‘‘January 1, poses of this paragraph.’’. ‘‘(e) ELIGIBLE SMALL BUSINESS; ELIGIBLE 2012’’, and (2) CONFORMING AMENDMENTS.— SMALL BUSINESS INCOME.— (2) by striking ‘‘January 1, 2010’’ each place (A) The heading for section 1202 is amended ‘‘(1) ELIGIBLE SMALL BUSINESS.—For pur- by striking ‘‘PARTIAL’’. it appears and inserting ‘‘January 1, 2011’’. poses of this section, the term ‘eligible small (b) CONFORMING AMENDMENTS.— (B) The item relating to section 1202 in the business’ means, with respect to any taxable (1) The heading for subsection (k) of sec- table of sections for part I of subchapter P of year— tion 168, as amended by the American Recov- chapter 1 is amended by striking ‘‘Partial ex- ‘‘(A) a corporation the stock of which is ery and Reinvestment Tax Act of 2009, is clusion’’ and inserting ‘‘Exclusion’’. not publicly traded, or amended by striking ‘‘JANUARY 1, 2010’’ and (C) Section 1223(13) is amended by striking ‘‘(B) a partnership, inserting ‘‘JANUARY 1, 2011’’. ‘‘1202(a)(2),’’. which meets the gross receipts test of sec- (2) The heading for clause (ii) of section (b) REPEAL OF MINIMUM TAX PREFERENCE.— 168(k)(2)(B), as so amended, is amended by tion 448(c) (determined by substituting Paragraph (7) of section 57(a) is amended by ‘$50,000,000’ for ‘$5,000,000’ each place it ap- striking ‘‘PRE-JANUARY 1, 2010’’ and inserting adding at the end the following: ‘‘The pre- pears in such section) for the taxable year ‘‘PRE-JANUARY 1, 2011’’. ceding sentence shall not apply to stock (or, in the case of a sole proprietorship, (3) Subparagraph (D) of section 168(k)(4) is issued after the date of the enactment of the amended by striking ‘‘and’’ at the end of which would meet such test if such propri- American Workers, State, and Business Re- etorship were a corporation). clause (ii), by striking the period at the end lief Act of 2010.’’. of clause (iii) and inserting a comma, and by ‘‘(2) ELIGIBLE SMALL BUSINESS INCOME.— adding at the end the following new clauses: (c) INCREASE IN LIMITATION.— ‘‘(A) IN GENERAL.—For purposes of this sec- ‘‘(iv) ‘January 1, 2011’ shall be substituted (1) IN GENERAL.—Subparagraph (A) of sec- tion, the term ‘eligible small business in- for ‘January 1, 2012’ in subparagraph (A)(iv) tion 1202(b)(1) is amended by striking come’ means the excess of— thereof, and ‘‘$10,000,000’’ and inserting ‘‘$15,000,000’’. ‘‘(i) the income of the eligible small busi- ‘‘(v) ‘January 1, 2010’ shall be substituted (2) MARRIED INDIVIDUALS.—Subparagraph ness which— for ‘January 1, 2011’ each place it appears in (A) of section 1202(b)(3) is amended by strik- ‘‘(I) is attributable to the actual conduct of subparagraph (A) thereof.’’. ing ‘‘paragraph (1)(A) shall be applied by sub- a trade or business, (4) Subparagraph (B) of section 168(l)(5), as stituting ‘$5,000,000’ for ‘$10,000,000’ ’’ and in- ‘‘(II) is income from sources within the so amended, is amended by striking ‘‘Janu- serting ‘‘the amount under paragraph (1)(A) United States (within the meaning of section ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. shall be half of the amount otherwise in ef- 861), and (5) Subparagraph (C) of section 168(n)(2), as fect’’. ‘‘(III) is not passive income (as defined in so amended, is amended by striking ‘‘Janu- (d) MODIFICATION OF DEFINITION OF QUALI- section 904(d)(2)(B)), over ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. FIED SMALL BUSINESS.—Section 1202(d)(1) is ‘‘(ii) the sum of— (6) Subparagraph (D) of section 1400L(b)(2) amended by striking ‘‘$50,000,000’’ each place ‘‘(I) the cost of goods sold that are allo- is amended by striking ‘‘January 1, 2010’’ and it appears and inserting ‘‘$75,000,000’’. cable to such income, and inserting ‘‘January 1, 2011’’. (e) INFLATION ADJUSTMENTS.—Section 1202 ‘‘(II) other expenses, losses, or deductions (7) Subparagraph (B) of section 1400N(d)(3), is amended by redesignating subsection (k) (other than the deduction allowed under this as so amended, is amended by striking ‘‘Jan- as subsection (l) and by inserting after sub- section), which are properly allocable to uary 1, 2010’’ and inserting ‘‘January 1, 2011’’. section (j) the following new subsection: such income. (c) EFFECTIVE DATE.—The amendments ‘‘(B) EXCEPTIONS.—The following shall not ‘‘(k) INFLATION ADJUSTMENT.— made by this section shall apply to property be treated as income of an eligible small ‘‘(1) IN GENERAL.—In the case of any tax- placed in service after December 31, 2009. business for purposes of subparagraph (A): able year beginning after 2010, the $15,000,000 ‘‘(i) Any income which is attributable to SEC. —03. INCREASED EXCLUSION AND OTHER amount in subsection (b)(1)(A), the $75,000,000 MODIFICATIONS APPLICABLE TO any property described in section 1400N(p)(3). amount in subsection (d)(1)(A), and the QUALIFIED SMALL BUSINESS STOCK. ‘‘(ii) Any income which is attributable to $75,000,000 amount in subsection (d)(1)(B) (a) INCREASED EXCLUSION.— the ownership or management of any profes- shall each be increased by an amount equal (1) IN GENERAL.—Subsection (a) of section sional sports team. to— 1202 is amended to read as follows: ‘‘(iii) Any income which is attributable to ‘‘(A) such dollar amount, multiplied by ‘‘(a) EXCLUSION.— a trade or business described in subpara- ‘‘(B) the cost of living adjustment deter- ‘‘(1) IN GENERAL.—In the case of a taxpayer graph (B) of section 1202(e)(3). mined under section 1(f)(3) for the calendar other than a corporation, gross income shall ‘‘(iv) Any income which is attributable to year in which the taxable year begins, deter- not include the applicable percentage of any any property with respect to which records mined by substituting ‘calendar year 2009’ gain from the sale or exchange of qualified are required to be maintained under section for ‘calendar year 1992’ in subparagraph (B) small business stock held for more than 5 2257 of title 18, United States Code. thereof. years. ‘‘(C) ALLOCATION RULES, ETC.—Rules simi- ‘‘(2) ROUNDING.—If any amount as adjusted ‘‘(2) APPLICABLE PERCENTAGE.—For pur- lar to the rules of paragraphs (2), (3), (4)(D), under paragraph (1) is not a multiple of poses of paragraph (1), the applicable per- and (7) of subsection (c) shall apply for pur- $1,000,000 such amount shall be rounded to centage is— poses of this paragraph. the next lowest multiple of $1,000,000.’’. ‘‘(A) 50 percent, in the case of stock issued ‘‘(3) SPECIAL RULES.—Except as otherwise after August 10, 1993, and on or before Feb- (f) EFFECTIVE DATES.— provided by the Secretary, rules similar to ruary 18, 2009, (1) IN GENERAL.—The amendments made by the rules of subsection (d) shall apply for ‘‘(B) 75 percent, in the case of stock issued subsections (a), (b), and (d) shall apply to purposes of this subsection.’’. after February 18, 2009, and on or before the stock acquired after the date of the enact- (c) CONFORMING AMENDMENT.—Section date of the enactment of the American ment of this Act. 199(a)(2) is amended by striking ‘‘paragraph Workers, State, and Business Relief Act of (2) LIMITATION; INFLATION ADJUSTMENT.— (1)’’ and inserting ‘‘paragraph (1)(A)’’. 2010, and The amendments made by subsections (c) (d) EFFECTIVE DATE.—The amendments ‘‘(C) 100 percent, in the case of stock issued and (e) shall apply to taxable years ending made by this section shall apply to taxable after the date of the enactment of the Amer- after the date of the enactment of this Act. years beginning after December 31, 2009.

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SEC. —05. NONAPPLICATION OF CERTAIN LABOR ‘‘(D) APPLICABILITY.—This paragraph shall At the appropriate place, insert the fol- STANDARDS. apply to any grant, contract, task order, or lowing: Section 1601 of the American Recovery and other type of funding mechanism— SEC. ll. ARRA PLANNING. Reinvestment Tax Act of 2009 is hereby re- ‘‘(i) made or entered into after the date of Section 1512(d) of the American Recovery pealed. enactment of this paragraph (including any and Reinvestment Act of 2009 (Public Law Subtitle B—Transfer of Stimulus Funds renewal of a grant, contract, task order, or 111–5; 123 Stat. 288) is amended— SEC. —11. TRANSFER OF STIMULUS FUNDS. other type of funding mechanism after the (1) in the subsection heading, by inserting Notwithstanding section 5 of the American date of enactment of this paragraph); or ‘‘PLANS AND’’ after ‘‘AGENCY’’; Recovery and Reinvestment Act of 2009 (Pub. ‘‘(ii) that includes terms allowing the (2) by striking ‘‘Not later than’’ and insert- Law 111-5), from the amounts appropriated terms of the grant, contract, task order, or ing the following: or made available and remaining unobligated other type of funding mechanism to be modi- ‘‘(1) DEFINITION.—In this subsection, the under such Act, the Director of the Office of fied by Act of Congress. term ‘covered program’ means a program for Management and Budget shall transfer from ‘‘(E) NONEXCLUSIVITY.—The imposition of a which funds are appropriated under this divi- time to time to the general fund of the civil penalty under this subsection shall not sion— Treasury an amount equal to the sum of the preclude any other criminal, civil, or admin- ‘‘(A) in an amount that is— amount of any net reduction in revenues and istrative remedy available to the United ‘‘(i) more than $2,000,000,000; and the amount of any net increase in spending States or any other person under Federal or ‘‘(ii) more than 150 percent of the funds ap- resulting from the enactment of this Act. State law. propriated for the program for fiscal year ‘‘(3) TECHNICAL ASSISTANCE.—Each agency 2008; or SA 3339. Mr. WARNER submitted an distributing recovery funds shall provide amendment intended to be proposed by ‘‘(B) that did not exist before the date of technical assistance, as necessary, to assist enactment of this Act. him to the bill H.R. 4213, to amend the recipients of recovery funds in complying ‘‘(2) PLANS.—Not later than July 1, 2010, Internal Revenue Code of 1986 to extend with the requirements to provide informa- the head of each agency that distributes re- certain expiring provisions, and for tion under subsection (c), which shall include covery funds shall submit to Congress and other purposes; which was ordered to providing recipients with a reminder regard- make available on the website of the agency lie on the table; as follows: ing each reporting requirement. a plan for each covered program, which shall, UBLIC LISTING.— At the appropriate place, insert the fol- ‘‘(4) P at a minimum, contain— lowing: ‘‘(A) IN GENERAL.—Not later than 45 days ‘‘(A) a description of the goals for the cov- after the end of each calendar quarter, and SEC. ll. ARRA REPORTING. ered program using recovery funds; subject to the notification requirements Section 1512 of the American Recovery and ‘‘(B) a discussion of how the goals de- Reinvestment Act of 2009 (Public Law 111–5; under paragraph (2)(B), each agency distrib- scribed in subparagraph (A) relate to the 123 Stat. 287) is amended— uting recovery funds shall make available on goals for ongoing activities of the covered (1) in subsection (f)— a website of the agency a list of all recipi- program, if applicable; (A) by striking ‘‘Within 180 days’’ and in- ents of recovery funds from the agency that ‘‘(C) a description of the activities that the serting the following: did not provide the information required agency will undertake to achieve the goals ‘‘(1) IN GENERAL.—Within 180 days’’; and under subsection (c) for the calendar quarter. described in subparagraph (A); (B) by adding at the end the following: ‘‘(B) CONTENTS.—A list made available ‘‘(D) a description of the total recovery ‘‘(2) PENALTIES.— under subparagraph (A) shall, for each recipi- funding for the covered program and the re- ‘‘(A) IN GENERAL.—Subject to subpara- ent of recovery funds on the list, include the covery funding for each activity under the graphs (B), (C), and (D), the head of an agen- name and address of the recipient, the iden- covered program, including identifying cy distributing recovery funds may impose a tification number for the award, the amount whether the activity will be carried out civil penalty in an amount not more than of recovery funds awarded to the recipient, a using grants, contracts, or other types of $250,000 on a recipient of recovery funds from description of the activity for which the re- funding mechanisms; the agency that does not provide the infor- covery funds were provided, and, to the ex- ‘‘(E) a schedule of milestones for major mation required under subsection (c) or tent known by the head of the agency, the phases of the activities under the covered knowingly provides information under sub- reason for noncompliance. program, with planned delivery dates; section (c) that contains a material omission ‘‘(5) OMB GUIDANCE AND REPORTING.— ‘‘(F) performance measures the agency will or misstatement. Any amounts received ‘‘(A) GUIDANCE.—Not later than 30 days use to track the progress of each of the ac- from a civil penalty under this paragraph after the date of enactment of this para- tivities under the covered program in meet- shall be deposited in the general fund of the graph, the Director of the Office of Manage- ing the goals described in subparagraph (A), Treasury. ment and Budget, in consultation with the including performance targets, the frequency ‘‘(B) NOTIFICATION.— Chairperson, shall promulgate regulations of measurement, and a description of the ‘‘(i) IN GENERAL.—The head of an agency regarding implementation of this section by methodology for each measure; shall provide a written notification to a re- agencies. ‘‘(G) a description of the process of the cipient of recovery funds from the agency ‘‘(B) REPORTING.— agency for the periodic review of the that fails to provide the information re- ‘‘(i) IN GENERAL.—Not later than July 1, progress of the covered program towards quired under subsection (c). A notification 2010, and every 3 months thereafter, the Di- meeting the goals described in subparagraph under this subparagraph shall provide the re- rector of the Office of Management and (A); and cipient with information on how to comply Budget, in consultation with the Chair- ‘‘(H) a description of how the agency will with the necessary reporting requirements person, shall submit to Congress a report on hold program managers accountable for and notice of the penalties for failing to do the extent of noncompliance by recipients of achieving the goals described in subpara- so. recovery funds with the reporting require- graph (A). ‘‘(ii) LIMITATION.—The head of an agency ments under this section. ‘‘(3) REPORTS.— may not impose a civil penalty under sub- ‘‘(ii) CONTENTS.—Each report submitted ‘‘(A) IN GENERAL.—Not later than’’; and paragraph (A) relating to the failure to pro- under clause (i) shall include— (3) by adding at the end the following: vide information required under subsection ‘‘(I) information, for the quarter and in ‘‘(B) REPORTS ON PLANS.—Not later than 30 (c) if, not later than 31 days after the date of total, regarding the number and amount of days after the end of the calendar quarter the notification under clause (i), the recipi- civil penalties imposed and collected under ending September 30, 2010, and every cal- ent of the recovery funds provides the infor- this subsection, sorted by agency and pro- endar quarter thereafter during which the mation. gram; agency obligates or expends recovery funds, ‘‘(C) GUIDELINES.—In determining the ‘‘(II) information on the steps taken by the the head of each agency that developed a amount of a penalty under this paragraph for Federal Government to reduce the level of plan for a covered program under paragraph a recipient of recovery funds, the head of an noncompliance; and (2) shall submit to Congress and make avail- agency shall consider— ‘‘(III) any other information determined able on a website of the agency a report for ‘‘(i) the number of times the recipient has appropriate by the Director.’’; and each covered program that— failed to provide the information required (2) by adding at the end the following: ‘‘(i) discusses the progress of the agency in under subsection (c); ‘‘(i) TERMINATION.—The reporting require- implementing the plan; ‘‘(ii) the amount of recovery funds provided ments under this section shall terminate on ‘‘(ii) describes the progress towards achiev- September 30, 2013.’’. to the recipient; ing the goals described in paragraph (2)(A) ‘‘(iii) whether the recipient is a govern- SA 3340. Mr. WARNER submitted an for the covered program; ment, nonprofit entity, or educational insti- amendment intended to be proposed by ‘‘(iii) discusses the status of each activity tution; and carried out under the covered program, in- ‘‘(iv) whether the recipient is a small busi- him to the bill H.R. 4213, to amend the cluding whether the activity is completed; ness concern (as defined under section 3 of Internal Revenue Code of 1986 to extend ‘‘(iv) details the unobligated and unexpired the Small Business Act (15 U.S.C. 632)), with certain expiring provisions, and for balances and total obligations and outlays particular consideration given to businesses other purposes; which was ordered to under the covered program; with not more than 50 employees. lie on the table; as follows: ‘‘(v) discusses—

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00066 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.029 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S891 ‘‘(I) whether the covered program has met progress of the covered program towards (c) if, not later than 31 days after the date of the milestones for the covered program de- meeting the goals described in subparagraph the notification under clause (i), the recipi- scribed in paragraph (2)(E); (A); and ent of the recovery funds provides the infor- ‘‘(II) if the covered program has failed to ‘‘(H) a description of how the agency will mation. meet the milestones, the reasons why; and hold program managers accountable for ‘‘(C) GUIDELINES.—In determining the ‘‘(III) any changes in the milestones for the achieving the goals described in subpara- amount of a penalty under this paragraph for covered program, including the reasons for graph (A). a recipient of recovery funds, the head of an the change; ‘‘(3) REPORTS.— agency shall consider— ‘‘(vi) discusses the performance of the cov- ‘‘(A) IN GENERAL.—Not later than’’; and ‘‘(i) the number of times the recipient has ered program, including— (C) by adding at the end the following: failed to provide the information required ‘‘(I) whether the covered program has met ‘‘(B) REPORTS ON PLANS.—Not later than 30 under subsection (c); the performance measures for the covered days after the end of the calendar quarter ‘‘(ii) the amount of recovery funds provided program described in paragraph (2)(F); ending September 30, 2010, and every cal- to the recipient; ‘‘(II) if the covered program has failed to endar quarter thereafter during which the ‘‘(iii) whether the recipient is a govern- meet the performance measures, the reasons agency obligates or expends recovery funds, ment, nonprofit entity, or educational insti- why; and the head of each agency that developed a tution; and ‘‘(III) any trends in information relating to plan for a covered program under paragraph ‘‘(iv) whether the recipient is a small busi- the performance of the covered program; and (2) shall submit to Congress and make avail- ness concern (as defined under section 3 of ‘‘(vii) evaluates the ability of the covered able on a website of the agency a report for the Small Business Act (15 U.S.C. 632)), with program to meet the goals of the covered each covered program that— particular consideration given to businesses program given the performance of the cov- ‘‘(i) discusses the progress of the agency in with not more than 50 employees. ered program.’’. implementing the plan; ‘‘(D) APPLICABILITY.—This paragraph shall ‘‘(ii) describes the progress towards achiev- apply to any grant, contract, task order, or SA 3341. Mr. WARNER submitted an ing the goals described in paragraph (2)(A) other type of funding mechanism— amendment intended to be proposed by for the covered program; ‘‘(i) made or entered into after the date of ‘‘(iii) discusses the status of each activity enactment of this paragraph (including any him to the bill H.R. 4213, to amend the carried out under the covered program, in- renewal of a grant, contract, task order, or Internal Revenue code of 1986 to extend cluding whether the activity is completed; other type of funding mechanism after the certain expiring provisions, and for ‘‘(iv) details the unobligated and unexpired date of enactment of this paragraph); or other purposes; which was ordered to balances and total obligations and outlays ‘‘(ii) that includes terms allowing the lie on the table; as follows: under the covered program; terms of the grant, contract, task order, or At the appropriate place, insert the fol- ‘‘(v) discusses— other type of funding mechanism to be modi- lowing: ‘‘(I) whether the covered program has met fied by Act of Congress. the milestones for the covered program de- ‘‘(E) NONEXCLUSIVITY.—The imposition of a SEC. ll. ARRA PLANNING AND REPORTING. scribed in paragraph (2)(E); civil penalty under this subsection shall not Section 1512 of the American Recovery and ‘‘(II) if the covered program has failed to preclude any other criminal, civil, or admin- Reinvestment Act of 2009 (Public Law 111–5; meet the milestones, the reasons why; and istrative remedy available to the United 123 Stat. 287) is amended— ‘‘(III) any changes in the milestones for the States or any other person under Federal or (1) in subsection (d)— covered program, including the reasons for State law. (A) in the subsection heading, by inserting the change; ‘‘(3) TECHNICAL ASSISTANCE.—Each agency ‘‘PLANS AND’’ after ‘‘AGENCY’’; ‘‘(vi) discusses the performance of the cov- distributing recovery funds shall provide (B) by striking ‘‘Not later than’’ and in- ered program, including— technical assistance, as necessary, to assist serting the following: ‘‘(I) whether the covered program has met recipients of recovery funds in complying ‘‘(1) DEFINITION.—In this subsection, the the performance measures for the covered with the requirements to provide informa- term ‘covered program’ means a program for program described in paragraph (2)(F); tion under subsection (c), which shall include which funds are appropriated under this divi- ‘‘(II) if the covered program has failed to providing recipients with a reminder regard- sion— meet the performance measures, the reasons ing each reporting requirement. ‘‘(A) in an amount that is— why; and ‘‘(4) PUBLIC LISTING.— ‘‘(i) more than $2,000,000,000; and ‘‘(III) any trends in information relating to ‘‘(A) IN GENERAL.—Not later than 45 days ‘‘(ii) more than 150 percent of the funds ap- the performance of the covered program; and after the end of each calendar quarter, and propriated for the program for fiscal year ‘‘(vii) evaluates the ability of the covered subject to the notification requirements 2008; or program to meet the goals of the covered under paragraph (2)(B), each agency distrib- ‘‘(B) that did not exist before the date of program given the performance of the cov- uting recovery funds shall make available on enactment of this Act. ered program.’’; a website of the agency a list of all recipi- ‘‘(2) PLANS.—Not later than July 1, 2010, (2) in subsection (f)— ents of recovery funds from the agency that the head of each agency that distributes re- (A) by striking ‘‘Within 180 days’’ and in- did not provide the information required covery funds shall submit to Congress and serting the following: under subsection (c) for the calendar quarter. make available on the website of the agency ‘‘(1) IN GENERAL.—Within 180 days’’; and ‘‘(B) CONTENTS.—A list made available a plan for each covered program, which shall, (B) by adding at the end the following: under subparagraph (A) shall, for each recipi- at a minimum, contain— ‘‘(2) PENALTIES.— ent of recovery funds on the list, include the ‘‘(A) a description of the goals for the cov- ‘‘(A) IN GENERAL.—Subject to subpara- name and address of the recipient, the iden- ered program using recovery funds; graphs (B), (C), and (D), the head of an agen- tification number for the award, the amount ‘‘(B) a discussion of how the goals de- cy distributing recovery funds may impose a of recovery funds awarded to the recipient, a scribed in subparagraph (A) relate to the civil penalty in an amount not more than description of the activity for which the re- goals for ongoing activities of the covered $250,000 on a recipient of recovery funds from covery funds were provided, and, to the ex- program, if applicable; the agency that does not provide the infor- tent known by the head of the agency, the ‘‘(C) a description of the activities that the mation required under subsection (c) or reason for noncompliance. agency will undertake to achieve the goals knowingly provides information under sub- ‘‘(5) OMB GUIDANCE AND REPORTING.— described in subparagraph (A); section (c) that contains a material omission ‘‘(A) GUIDANCE.—Not later than 30 days ‘‘(D) a description of the total recovery or misstatement. Any amounts received after the date of enactment of this para- funding for the covered program and the re- from a civil penalty under this paragraph graph, the Director of the Office of Manage- covery funding for each activity under the shall be deposited in the general fund of the ment and Budget, in consultation with the covered program, including identifying Treasury. Chairperson, shall promulgate regulations whether the activity will be carried out ‘‘(B) NOTIFICATION.— regarding implementation of this section by using grants, contracts, or other types of ‘‘(i) IN GENERAL.—The head of an agency agencies. funding mechanisms; shall provide a written notification to a re- ‘‘(B) REPORTING.— ‘‘(E) a schedule of milestones for major cipient of recovery funds from the agency ‘‘(i) IN GENERAL.—Not later than July 1, phases of the activities under the covered that fails to provide the information re- 2010, and every 3 months thereafter, the Di- program, with planned delivery dates; quired under subsection (c). A notification rector of the Office of Management and ‘‘(F) performance measures the agency will under this subparagraph shall provide the re- Budget, in consultation with the Chair- use to track the progress of each of the ac- cipient with information on how to comply person, shall submit to Congress a report on tivities under the covered program in meet- with the necessary reporting requirements the extent of noncompliance by recipients of ing the goals described in subparagraph (A), and notice of the penalties for failing to do recovery funds with the reporting require- including performance targets, the frequency so. ments under this section. of measurement, and a description of the ‘‘(ii) LIMITATION.—The head of an agency ‘‘(ii) CONTENTS.—Each report submitted methodology for each measure; may not impose a civil penalty under sub- under clause (i) shall include— ‘‘(G) a description of the process of the paragraph (A) relating to the failure to pro- ‘‘(I) information, for the quarter and in agency for the periodic review of the vide information required under subsection total, regarding the number and amount of

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00067 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.030 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S892 CONGRESSIONAL RECORD — SENATE March 1, 2010 civil penalties imposed and collected under this section and at such other times as the by such covered employee at a regular hour- this subsection, sorted by agency and pro- Secretary determines appropriate, the Sec- ly, daily, weekly, monthly, or similar peri- gram; retary and each covered employee (as defined odic rate, ‘‘(II) information on the steps taken by the in section 280I(e)) of the amount of covered ‘‘(C) in the case of a retention bonus, is Federal Government to reduce the level of excessive 2009 bonuses to which this section paid for continued service during calendar noncompliance; and applies and the amount of tax deducted and year 2009 or 2010, and ‘‘(III) any other information determined withheld on such bonuses. ‘‘(D) in the case of a payment not described appropriate by the Director.’’; and ‘‘(4) SECRETARIAL AUTHORITY.—The Sec- in subparagraph (C), is attributable to serv- (3) by adding at the end the following: retary may prescribe such regulations, rules, ices performed by a covered employee during ‘‘(i) TERMINATION.—The reporting require- and guidance of general applicability as may calendar year 2009 (without regard to the ments under this section shall terminate on be necessary to carry out the provisions of year in which such payment is paid). September 30, 2013.’’. this section, including— Such term does not include payments to an ‘‘(A) to prescribe the due date and manner Mr. WEBB (for himself and employee as commissions, contributions to SA 3342. of payment of the tax imposed by this sec- any qualified retirement plan (as defined in Mrs. BOXER) submitted an amendment tion with respect to any covered excessive section 4974(c)), welfare and fringe benefits, intended to be proposed by him to the 2009 bonus paid before the date of the enact- overtime pay, or expense reimbursements. In bill H.R. 4213, to amend the Internal ment of this section, and the case of a payment which is attributable Revenue Code of 1986 to extend certain ‘‘(B) to prevent— to services performed during multiple cal- ‘‘(i) the recharacterization of a bonus pay- expiring provisions, and for other pur- endar years, such payment shall be treated ment as a payment which is not a bonus pay- as a 2009 bonus payment to the extent it is poses; which was ordered to lie on the ment in order to avoid the purposes of this table; as follows: attributable to services performed during section, calendar year 2009. At the end, insert the following: ‘‘(ii) the treatment as other than an addi- ‘‘(2) DEFERRED DEDUCTION BONUS PAY- tional 2009 bonus payment of any payment of TITLE ll—TAXPAYER FAIRNESS ACT MENTS.— increased wages or other payments to a cov- SEC. l01. SHORT TITLE. ‘‘(A) IN GENERAL.—The term ‘2009 bonus ered employee who receives a bonus payment This title may be cited as the ‘‘Taxpayer payment’ includes payments attributable to subject to this section in order to reimburse Fairness Act’’. services performed in 2009 which are paid in such covered employee for the tax imposed the form of remuneration (within the mean- SEC. l02. FINDINGS. by this section with regard to such bonus, or Congress finds the following: ing of section 162(m)(4)(E)) for which the de- ‘‘(iii) the avoidance of the purposes of this duction under this chapter (determined with- (1) During the years 2008 and 2009, the Na- section through the use of partnerships or tion’s largest financial firms received ex- out regard to this section) for such payment other pass-thru entities.’’. is allowable in a subsequent taxable year. traordinary and unprecedented assistance (b) CLERICAL AMENDMENTS.— ‘‘(B) TIMING OF DEFERRED DEDUCTION BONUS from the public. (1) The heading and table of sections for PAYMENTS.—For purposes of this section and (2) Such assistance was critical to the suc- chapter 46 are amended to read as follows: cess and in many cases the survival of these section 4999A, the amount of any payment ‘‘CHAPTER 46—TAXES ON CERTAIN EXCESSIVE described in subparagraph (A) (as determined firms during the year 2009. REMUNERATION (3) High earners at such firms should con- in the year in which the deduction under this ‘‘Sec. 4999. Golden parachute payments. chapter, determined without regard to this tribute a portion of any excessive bonuses ‘‘Sec. 4999A. Excessive 2009 bonuses received obtained for the year 2009 to help the Nation section, for such payment would be allow- from major recipients of Fed- able) shall be treated as having been made in reduce the public debt and recover from the eral emergency economic as- recession. the calendar year in which any interest in sistance.’’. such amount is granted to a covered em- SEC. l03. EXCISE TAXES ON EXCESSIVE 2009 BO- NUSES RECEIVED FROM MAJOR RE- (2) The item relating to chapter 46 in the ployee (without regard to the date on which CIPIENTS OF FEDERAL EMERGENCY table of chapters for subtitle D is amended to any portion of such interest vests). ECONOMIC ASSISTANCE. read as follows: ‘‘(3) RETENTION BONUS.—The term ‘reten- (a) IMPOSITION OF TAX.—Chapter 46 is ‘‘Chapter 46. Taxes on certain excessive re- tion bonus’ means any bonus payment (with- amended by adding at the end the following muneration.’’. out regard to the date such payment is paid) new section: (c) EFFECTIVE DATE.—The amendments to a covered employee which— ‘‘SEC. 4999A. EXCESSIVE 2009 BONUSES RECEIVED made by this section shall apply to payments ‘‘(A) is contingent on the completion of a FROM MAJOR RECIPIENTS OF FED- of covered excessive 2009 bonuses after De- period of service with a major Federal emer- ERAL EMERGENCY ECONOMIC AS- cember 31, 2008, in taxable years ending after gency economic assistance recipient, the SISTANCE. such date. completion of a specific project or other ac- ‘‘(a) IMPOSITION OF TAX.—There is hereby SEC. l04. LIMITATION ON DEDUCTION OF tivity for the major Federal emergency eco- imposed on any person who receives a cov- AMOUNTS PAID AS EXCESSIVE 2009 nomic assistance recipient, or such other cir- ered excessive 2009 bonus a tax equal to 50 BONUSES BY MAJOR RECIPIENTS OF cumstances as the Secretary may prescribe, percent of the amount of such bonus. FEDERAL EMERGENCY ECONOMIC and ‘‘(b) DEFINITION.—For purposes of this sec- ASSISTANCE. ‘‘(B) is not based on the performance of the tion, the term ‘covered excessive 2009 bonus’ (a) IN GENERAL.—Part IX of subchapter B covered employee (other than a requirement has the meaning given such term by section of chapter 1 is amended by adding at the end that the employee not be separated from em- 280I(b). the following new section: ployment for cause). ‘‘SEC. 280I. EXCESSIVE 2009 BONUSES PAID BY ‘‘(c) ADMINISTRATIVE PROVISIONS AND SPE- A bonus payment shall not be treated as CIAL RULES.— MAJOR RECIPIENTS OF FEDERAL EMERGENCY ECONOMIC ASSIST- based on performance for purposes of sub- ‘‘(1) WITHHOLDING.— ANCE. paragraph (B) solely because the amount of ‘‘(A) IN GENERAL.—In the case of any cov- ‘‘(a) GENERAL RULE.—The deduction al- the payment is determined by reference to a ered excessive 2009 bonus which is treated as lowed under this chapter with respect to the previous bonus payment which was based on wages for purposes of section 3402, the amount of any covered excessive 2009 bonus performance. amount otherwise required to be deducted shall not exceed 50 percent of the amount of ‘‘(d) MAJOR FEDERAL EMERGENCY ECONOMIC and withheld under such section shall be in- such bonus. ASSISTANCE RECIPIENT.—For purposes of this creased by the amount of the tax imposed by ‘‘(b) COVERED EXCESSIVE 2009 BONUS.—For this section on such bonus. purposes of this section, the term ‘covered section— ‘‘(B) BONUSES PAID BEFORE ENACTMENT.—In excessive 2009 bonus’ means any 2009 bonus ‘‘(1) IN GENERAL.—The term ‘major Federal the case of any covered excessive 2009 bonus payment paid during any calendar year to a emergency economic assistance recipient’ to which subparagraph (A) applies which is covered employee by any major Federal means— paid before the date of the enactment of this emergency economic assistance recipient, to ‘‘(A) any financial institution (within the section, no penalty, addition to tax, or inter- the extent that the aggregate of such 2009 meaning of section 3 of the Emergency Eco- est shall be imposed with respect to any fail- bonus payments (without regard to the date nomic Stabilization Act of 2008) if at any ure to deduct and withhold the tax imposed on which such payments are paid) with re- time after December 31, 2007, the Federal by this section on such bonus. spect to such employee exceeds the dollar Government acquires— ‘‘(2) TREATMENT OF TAX.—For purposes of amount of the compensation received by the ‘‘(i) an equity interest in such person pur- subtitle F, any tax imposed by this section President under section 102 of title 3, United suant to a program authorized by the Emer- shall be treated as a tax imposed by subtitle States Code, for calendar year 2009. gency Economic Stabilization Act of 2008 or A. ‘‘(c) 2009 BONUS PAYMENT.— the third undesignated paragraph of section ‘‘(3) NOTICE REQUIREMENTS.—The Secretary ‘‘(1) IN GENERAL.—The term ‘2009 bonus 13 of the Federal Reserve Act (12 U.S.C. 343), shall require each major Federal emergency payment’ means any payment which— or economic assistance recipient (as defined in ‘‘(A) is a payment for services rendered, ‘‘(ii) any warrant (or other right) to ac- section 280I(d)(1)) to notify, as soon as prac- ‘‘(B) is in addition to any amount payable quire any equity interest with respect to ticable after the date of the enactment of to a covered employee for services performed such person pursuant to any such program,

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00068 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.033 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S893 but only if the total value of the equity in- SEC. ll. SMALL BUSINESS TECHNICAL ASSIST- which was ordered to lie on the table; terest described in clauses (i) and (ii) in such ANCE. as follows: person is not less than $5,000,000,000, (a) MICROLOAN PROGRAM.—Section ‘‘(B) the Federal National Mortgage Asso- 7(m)(4)(B) of the Small Business Act (15 At the end add the following: ciation and the Federal Home Loan Mort- U.S.C. 636(m)(4)(B)) is amended— TITLE VIII—STOP TAX HAVEN ABUSE gage Corporation, and (1) by striking ‘‘As a condition’’ and all ‘‘(C) any person which is a member of the that follows through ‘‘the Administration SEC. 801. AUTHORIZING SPECIAL MEASURES shall require’’ and inserting the following: AGAINST FOREIGN JURISDICTIONS, same affiliated group (as defined in section FINANCIAL INSTITUTIONS, AND OTH- ‘‘(i) IN GENERAL.—Subject to clause (ii), 1504, determined without regard to sub- ERS THAT IMPEDE UNITED STATES section (b) thereof) as a person described in as a condition of a grant made under sub- TAX ENFORCEMENT. paragraph (A), the Administrator shall re- subparagraph (A) or (B). Section 5318A of title 31, United States quire’’; and ‘‘(2) TREATMENT OF CONTROLLED GROUPS.— Code, is amended— (2) by adding at the end the following: All persons treated as a single employer (1) by striking the section heading and in- ‘‘(ii) WAIVER OF NON-FEDERAL SHARE.— under subsection (a) or (b) of section 52 or serting the following: subsection (m) or (o) of section 414 shall be ‘‘(I) IN GENERAL.—Upon request by an treated as a single employer with respect to intermediary, and in accordance with this ‘‘§ 5318A. Special measures for jurisdictions, any covered employee. clause, the Administrator may waive, in financial institutions, or international ‘‘(e) COVERED EMPLOYEE.—For purposes of whole or in part, the requirement to obtain transactions that are of primary money this section, the term ‘covered employee’ non-Federal funds under clause (i). laundering concern or impede United means, with respect to any major Federal ‘‘(II) CONSIDERATIONS.—In determining States tax enforcement’’; emergency economic assistance recipient— whether to waive the requirement to obtain (2) in subsection (a), by striking the sub- ‘‘(1) any employee of such recipient, and non-Federal funds under this clause, the Ad- section heading and inserting the following: ‘‘(2) any director of such recipient who is ministrator shall consider— ‘‘(a) SPECIAL MEASURES TO COUNTER MONEY not an employee. ‘‘(aa) the economic conditions affecting LAUNDERING AND EFFORTS TO IMPEDE UNITED the intermediary; STATES TAX ENFORCEMENT.—’’; In the case of any major Federal emergency ‘‘(bb) the impact a waiver under this economic assistance recipient which is a (3) in subsection (c), by striking the sub- clause would have on the credibility of the section heading and inserting the following: partnership or other unincorporated trade or microloan program under this subsection; ‘‘(c) CONSULTATIONS AND INFORMATION TO business, the term ‘employee’ shall include ‘‘(cc) the demonstrated ability of the BE CONSIDERED IN FINDING JURISDICTIONS, IN- employees of such recipient within the intermediary to raise non-Federal funds; and STITUTIONS, TYPES OF ACCOUNTS, OR TRANS- meaning of section 401(c)(1). ‘‘(dd) the performance of the inter- ACTIONS TO BEOFPRIMARY MONEY LAUN- ‘‘(f) REGULATIONS.—The Secretary may mediary. prescribe such regulations, rules, and guid- DERING CONCERN OR TO BE IMPEDING UNITED ‘‘(III) LIMITATION.—The Administrator STATES TAX ENFORCEMENT.—’’; ance of general applicability as may be nec- may not waive the requirement to obtain (4) in subsection (a)(1), by inserting ‘‘or is essary to carry out the provisions of this sec- non-Federal funds under this clause if grant- impeding United States tax enforcement’’ tion, including— ing the waiver would undermine the credi- after ‘‘primary money laundering concern’’; ‘‘(1) to prescribe the due date and manner bility of the microloan program under this (5) in subsection (a)(4)— of reporting and payment of any increase in subsection.’’. (A) in subparagraph (A)— the tax imposed by this chapter due to the (b) WOMEN’S BUSINESS CENTER PRO- (i) by inserting ‘‘in matters involving application of this section to any covered ex- GRAM.—Section 29(c) of the Small Business cessive 2009 bonus paid before the date of the Act (15 U.S.C. 656(c)) is amended— money laundering,’’ before ‘‘shall consult’’; enactment of this section, and (1) in paragraph (1), by striking ‘‘As a and ‘‘(2) to prevent— condition’’ and inserting ‘‘Subject to para- (ii) by striking ‘‘and’’ at the end; ‘‘(A) the recharacterization of a bonus pay- graph (5), as a condition’’; and (B) by redesignating subparagraph (B) as ment as a payment which is not a bonus pay- (2) by adding at the end the following: subparagraph (C); and ment in order to avoid the purposes of this ‘‘(5) WAIVER OF NON-FEDERAL SHARE RE- (C) by inserting after subparagraph (A) the section, or LATING TO TECHNICAL ASSISTANCE AND COUN- following: ‘‘(B) the avoidance of the purposes of this SELING.— ‘‘(B) in matters involving United States section through the use of partnerships or ‘‘(A) IN GENERAL.—Upon request by a re- tax enforcement, shall consult with the Com- other pass-thru entities.’’. cipient organization, and in accordance with missioner of the Internal Revenue, the Sec- (b) CLERICAL AMENDMENT.—The table of this paragraph, the Administrator may retary of State, the Attorney General of the sections for part IX of subchapter B of chap- waive, in whole or in part, the requirement United States, and in the sole discretion of ter 1 is amended by adding at the end the fol- to obtain non-Federal funds under this sub- the Secretary, such other agencies and inter- lowing new item: section for the technical assistance and ested parties as the Secretary may find to be ‘‘Sec. 280I. Excessive 2009 bonuses paid by counseling activities of the recipient organi- appropriate; and’’; major recipients of Federal zation carried out using financial assistance (6) in each of paragraphs (1)(A), (2), (3), and emergency economic assist- under this section. (4) of subsection (b), by inserting ‘‘or to be impeding United States tax enforcement’’ ance.’’. ‘‘(B) CONSIDERATIONS.—In determining whether to waive the requirement to obtain after ‘‘primary money laundering concern’’ (c) CONFORMING AMENDMENTS.— each place that term appears; (1) Subparagraph (F) of section 162(m)(4) is non-Federal funds under this paragraph, the Administrator shall consider— (7) in subsection (b), by striking paragraph amended— (5) and inserting the following: (A) by inserting ‘‘AND EXCESSIVE 2009 BO- ‘‘(i) the economic conditions affecting the recipient organization; ‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN- NUSES’’ after ‘‘PAYMENTS’’ in the heading, ING OR MAINTAINING CERTAIN CORRESPONDENT (B) by striking ‘‘the amount’’ and inserting ‘‘(ii) the impact a waiver under this clause would have on the credibility of the OR PAYABLE-THROUGH ACCOUNTS OR AUTHOR- ‘‘the total amounts’’, and IZING CERTAIN PAYMENT CARDS.—If the Sec- (C) by inserting ‘‘or 280I’’ before the period. women’s business center program under this section; retary finds a jurisdiction outside of the (2) Subparagraph (A) of section 3121(v)(2) is United States, 1 or more financial institu- amended by inserting ‘‘, to any covered ex- ‘‘(iii) the demonstrated ability of the re- cipient organization to raise non-Federal tions operating outside of the United States, cessive 2009 bonus (as defined in section or 1 or more classes of transactions within or 280I(b)),’’ after ‘‘section 280G(b))’’. funds; and ‘‘(iv) the performance of the recipient or- involving a jurisdiction outside of the United (d) EFFECTIVE DATE.—The amendments ganization. States to be of primary money laundering made by this section shall apply to payments concern or to be impeding United States tax of covered excessive 2009 bonuses after De- ‘‘(C) LIMITATION.—The Administrator may not waive the requirement to obtain enforcement, the Secretary, in consultation cember 31, 2008, in taxable years ending after with the Secretary of State, the Attorney such date. non-Federal funds under this paragraph if granting the waiver would undermine the General of the United States, and the Chair- man of the Board of Governors of the Federal SA 3343. Ms. LANDRIEU submitted credibility of the women’s business center program under this section.’’. Reserve System, may prohibit, or impose an amendment intended to be proposed conditions upon— to amendment SA 3336 proposed by Mr. SA 3344. Mr. LEVIN (for himself, ‘‘(A) the opening or maintaining in the BAUCUS) to the bill H.R. 4213, to amend Mrs. SHAHEEN, and Mr. WHITEHOUSE) United States of a correspondent account or the Internal Revenue Code of 1986 to submitted an amendment intended to payable-through account; or extend certain expiring provisions, and ‘‘(B) the authorization, approval, or use in be proposed to amendment SA 3336 pro- the United States of a credit card, charge for other purposes; which was ordered posed by Mr. BAUCUS to the bill H.R. card, debit card, or similar credit or debit fi- to lie on the table; as follows: 4213, to amend the Internal Revenue nancial instrument by any domestic finan- At the appropriate place, insert the fol- Code of 1986 to extend certain expiring cial institution, financial agency, or credit lowing: provisions, and for other purposes; card company or association, for or on behalf

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00069 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.034 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE S894 CONGRESSIONAL RECORD — SENATE March 1, 2010 of a foreign banking institution, if such cor- (1) in clause (i), by striking ‘‘$1,500,000’’ and than $500,000, the Administrator shall, upon respondent account, payable-through ac- inserting ‘‘$5,000,000’’; request of a pool assembler, divide the loan count, credit card, charge card, debit card, or (2) in clause (ii), by striking ‘‘$2,000,000’’ guarantee into increments of $500,000 and 1 similar credit or debit financial instrument, and inserting ‘‘$5,000,000’’; increment of any remaining amount less involves any such jurisdiction or institution, (3) in clause (iii), by striking ‘‘$4,000,000’’ than $500,000, in order to permit the max- or if any such transaction may be conducted and inserting ‘‘$5,500,000’’; imum amount of any loan in a pool to be not through such correspondent account, pay- (4) in clause (iv), by striking ‘‘$4,000,000’’ more than $500,000. Only 1 increment of any able-through account, credit card, charge and inserting ‘‘$5,500,000’’; and loan guarantee divided under this paragraph card, debit card, or similar credit or debit fi- (5) in clause (v), by striking ‘‘$4,000,000’’ may be included in the same pool. Incre- nancial instrument.’’; and and inserting ‘‘$5,500,000’’. ments of loan guarantees to different bor- (8) in subsection (c)(1), by inserting ‘‘or is SEC. 823. MAXIMUM LOAN LIMITS UNDER rowers that are divided under this paragraph impeding United States tax enforcement’’ MICROLOAN PROGRAM. may be included in the same pool.’’. after ‘‘primary money laundering concern’’; Section 7(m) of the Small Business Act (15 SEC. 827. ONLINE LENDING PLATFORM. (9) in subsection (c)(2)(A)— U.S.C. 636(m)) is amended— It is the sense of Congress that the Admin- (A) in clause (ii), by striking ‘‘bank secrecy (1) in paragraph (1)(B)(iii), by striking istrator of the Small Business Administra- or special regulatory advantages’’ and in- ‘‘$35,000’’ and inserting ‘‘$50,000’’; tion should establish a website that— serting ‘‘bank, tax, corporate, trust, or fi- (2) in paragraph (3)— (1) lists each lender that makes loans guar- nancial secrecy or regulatory advantages’’; (A) in subparagraph (C), by striking anteed by the Small Business Administra- (B) in clause (iii), by striking ‘‘supervisory ‘‘$3,500,000’’ and inserting ‘‘$5,000,000’’; and tion and provides information about the loan and counter-money’’ and inserting ‘‘super- (B) in subparagraph (E), by striking rates of each such lender; and visory, international tax enforcement, and ‘‘$35,000’’ each place that term appears and (2) allows prospective borrowers to com- counter-money’’; inserting ‘‘$50,000’’; and pare rates on loans guaranteed by the Small (C) in clause (v), by striking ‘‘banking or (3) in paragraph (11)(B), by striking Business Administration. ‘‘$35,000’’ and inserting ‘‘$50,000’’. secrecy’’ and inserting ‘‘banking, tax, or se- Subtitle B—Small Business Access to Capital crecy’’; and SEC. 824. NEW MARKETS VENTURE CAPITAL COM- SEC. 841. LOW-INTEREST REFINANCING UNDER (D) in clause (vi), by inserting ‘‘, tax trea- PANY INVESTMENT LIMITATIONS. Section 355 of the Small Business Invest- THE LOCAL DEVELOPMENT BUSI- ty, or tax information exchange agreement’’ NESS LOAN PROGRAM. ment Act of 1958 (15 U.S.C. 689d) is amended after ‘‘treaty’’; (a) REFINANCING.—Section 502(7) of the by adding at the end the following: (10) in subsection (c)(2)(B)— Small Business Investment Act of 1958 (15 (A) in clause (i), by inserting ‘‘or tax eva- ‘‘(e) INVESTMENT LIMITATIONS.— ‘‘(1) DEFINITION.—In this subsection, the U.S.C. 696(7)) is amended by adding at the sion’’ after ‘‘money laundering’’; and end the following: (B) in clause (iii), by inserting ‘‘, tax eva- term ‘covered New Markets Venture Capital company’ means a New Markets Venture ‘‘(C) REFINANCING NOT INVOLVING EXPAN- sion,’’ after ‘‘money laundering’’; and SIONS.— (11) in subsection (d), by inserting ‘‘involv- Capital company— ‘‘(A) granted final approval by the Admin- ‘‘(i) DEFINITIONS.—In this subparagraph— ing money laundering, and shall notify, in ‘‘(I) the term ‘borrower’ means a small writing, the Committee on Finance of the istrator under section 354(e) on or after March 1, 2002; and business concern that submits an application Senate and the Committee on Ways and to a development company for financing Means of the House of Representatives of ‘‘(B) that has obtained a financing from the Administrator. under this subparagraph; any such action involving United States tax ‘‘(II) the term ‘eligible fixed asset’ means enforcement’’ after ‘‘such action’’. ‘‘(2) LIMITATION.—Except to the extent ap- proved by the Administrator, a covered New tangible property relating to which the Ad- Markets Venture Capital company may not ministrator may provide financing under SA 3345. Ms. LANDRIEU submitted this section; and an amendment intended to be proposed acquire or issue commitments for securities under this title for any single enterprise in ‘‘(III) the term ‘qualified debt’ means in- to amendment SA 3336 proposed by Mr. an aggregate amount equal to more than 10 debtedness— BAUCUS to the bill H.R. 4213, to amend percent of the sum of— ‘‘(aa) that— the Internal Revenue Code of 1986 to ‘‘(A) the regulatory capital of the covered ‘‘(AA) was incurred not less than 2 years extend certain expiring provisions, and New Markets Venture Capital company; and before the date of the application for assist- for other purposes; which was ordered ‘‘(B) the total amount of leverage projected ance under this subparagraph; ‘‘(BB) is a commercial loan; to lie on the table; as follows: in the participation agreement of the cov- ered New Markets Venture Capital.’’. ‘‘(CC) is not subject to a guarantee by a At the end, add the following: Federal agency; SEC. 825. ALTERNATIVE SIZE STANDARDS. TITLE VIII—SMALL BUSINESS LOANS Section 3(a) of the Small Business Act (15 ‘‘(DD) the proceeds of which were used to SEC. 801. SHORT TITLE. U.S.C. 632(a)) is amended by adding at the acquire an eligible fixed asset; This title may be cited as the ‘‘Small Busi- end the following: ‘‘(EE) was incurred for the benefit of the ness Job Creation and Access to Capital Act ‘‘(5) ALTERNATIVE SIZE STANDARD.— small business concern; and of 2010’’. ‘‘(A) IN GENERAL.—The Administrator shall ‘‘(FF) is collateralized by eligible fixed as- establish an alternative size standard for ap- sets; and Subtitle A—Next Steps for Main Street Credit ‘‘(bb) for which the borrower has been cur- Availability plicants for business loans under section 7(a) and applicants for development company rent on all payments for not less than 1 year SEC. 821. SECTION 7(a) BUSINESS LOANS. loans under title V of the Small Business In- before the date of the application. (a) AMENDMENT.—Section 7(a) of the Small vestment Act of 1958 (15 U.S.C. 695 et seq.), ‘‘(ii) AUTHORITY.—A project that does not Business Act (15 U.S.C. 636(a)) is amended— that uses maximum tangible net worth and involve the expansion of a small business (1) in paragraph (2)(A)— average net income as an alternative to the concern may include the refinancing of (A) in clause (i), by striking ‘‘75 percent’’ use of industry standards. qualified debt if— and inserting ‘‘90 percent’’; and ‘‘(B) INTERIM RULE.—Until the date on ‘‘(I) the amount of the financing is not (B) in clause (ii), by striking ‘‘85 percent’’ which the alternative size standard estab- more than 80 percent of the value of the col- and inserting ‘‘90 percent’’; and lished under subparagraph (A) is in effect, an lateral for the financing, except that, if the (2) in paragraph (3)(A), by striking applicant for a business loan under section appraised value of the eligible fixed assets ‘‘$1,500,000 (or if the gross loan amount would 7(a) or an applicant for a development com- serving as collateral for the financing is less exceed $2,000,000’’ and inserting ‘‘$4,500,000 (or pany loan under title V of the Small Busi- than the amount equal to 125 percent of the if the gross loan amount would exceed ness Investment Act of 1958 may be eligible amount of the financing, the borrower may $5,000,000’’. for such a loan if— provide additional cash or other collateral to (b) PROSPECTIVE REPEAL.—Effective Janu- ‘‘(i) the maximum tangible net worth of eliminate any deficiency; ary 1, 2011, section 7(a) of the Small Business the applicant is not more than $15,000,000; ‘‘(II) the borrower has been in operation for Act (15 U.S.C. 636(a)) is amended— and all of the 2-year period ending on the date of (1) in paragraph (2)(A)— ‘‘(ii) the average net income after Federal the loan; and (A) in clause (i), by striking ‘‘90 percent’’ income taxes (excluding any carry-over ‘‘(III) for a financing for which the Admin- and inserting ‘‘75 percent’’; and losses) of the applicant for the 2 full fiscal istrator determines there will be an addi- (B) in clause (ii), by striking ‘‘90 percent’’ years before the date of the application is tional cost attributable to the refinancing of and inserting ‘‘85 percent’’; and not more than $5,000,000.’’. the qualified debt, the borrower agrees to (2) in paragraph (3)(A), by striking SEC. 826. SALE OF 7(a) LOANS IN SECONDARY pay a fee in an amount equal to the antici- ‘‘$4,500,000’’ and inserting ‘‘$3,750,000’’. MARKET. pated additional cost. SEC. 822. MAXIMUM LOAN AMOUNTS UNDER 504 Section 5(g) of the Small Business Act (15 ‘‘(iii) FINANCING FOR BUSINESS EXPENSES.— PROGRAM. U.S.C. 634(g)) is amended by adding at the ‘‘(I) FINANCING FOR BUSINESS EXPENSES.— Section 502(2)(A) of the Small Business In- end the following: The Administrator may provide financing to vestment Act of 1958 (15 U.S.C. 696(2)(A)) is ‘‘(6) If the amount of the guaranteed por- a borrower that receives financing that in- amended— tion of any loan under section 7(a) is more cludes a refinancing of qualified debt under

VerDate Nov 24 2008 01:33 Mar 02, 2010 Jkt 089060 PO 00000 Frm 00070 Fmt 4637 Sfmt 0634 E:\CR\FM\A01MR6.036 S01MRPT1 jbell on DSKDVH8Z91PROD with SENATE March 1, 2010 CONGRESSIONAL RECORD — SENATE S895 clause (ii), in addition to the refinancing lamation’s Water Conservation Initia- wishing to submit written testimony under clause (ii), to be used solely for the tive which includes the Challenge for the hearing record should send it to payment of business expenses. Grant Program, the Basin Study Pro- the Committee on Energy and Natural ‘‘(II) APPLICATION FOR FINANCING.—An ap- gram and the Title XVI Program. Resources, United States Senate, plication for financing under subclause (I) Because of the limited time available Washington, DC 20510–6150, or by email shall include— _ ‘‘(aa) a specific description of the expenses for the hearing, witnesses may testify to allison [email protected] for which the additional financing is re- by invitation only. However, those .gov. quested; and wishing to submit written testimony For further information, please con- ‘‘(bb) an itemization of the amount of each for the hearing record should send it to tact David Brooks at (202) 224–9863 or expense. the Committee on Energy and Natural Allison Seyferth at (202) 224–4905. ‘‘(III) CONDITION ON ADDITIONAL FINANC- Resources, United States Senate, f ING.—A borrower may not use any part of the Washington, DC 20510–6150, or by email ORDERS FOR TUESDAY, MARCH 2, financing under this clause for non-business _ purposes. to Gina [email protected] 2010 .gov. ‘‘(iv) LOANS BASED ON JOBS.— Mr. BAUCUS. Madam President, I ‘‘(I) JOB CREATION AND RETENTION GOALS.— For further information, please con- tact Tanya Trujillo at (202) 224–5479 or ask unanimous consent that when the ‘‘(aa) IN GENERAL.—The Administrator may Senate completes its business today, it provide financing under this subparagraph Gina Weinstock at (202) 224–5684. for a borrower that meets the job creation adjourn until 10 a.m. Tuesday, March 2; SUBCOMMITTEE ON NATIONAL PARKS that following the prayer and the goals under subsection (d) or (e) of section Mr. BINGAMAN. Mr. President, I 501. pledge, the Journal of proceedings be would like to announce for the infor- ‘‘(bb) ALTERNATE JOB RETENTION GOAL.— approved to date, the morning hour be The Administrator may provide financing mation of the Senate and the public deemed expired, the time for the two under this subparagraph to a borrower that that a hearing has been scheduled be- leaders be reserved for their use later does not meet the goals described in item fore the Subcommittee on National in the day, and the Senate proceed to a (aa) in an amount that is not more than the Parks. period of morning business for 1 hour, product obtained by multiplying the number The hearing will be held on Wednes- with the time equally divided and con- of employees of the borrower by $65,000. day, March 17, 2010, at 2:30 p.m., in trolled between the two leaders or ‘‘(II) NUMBER OF EMPLOYEES.—For purposes room SD–366 of the Dirksen Senate Of- their designees, with Republicans con- of subclause (I), the number of employees of fice Building. a borrower is equal to the sum of— trolling the first half and the majority ‘‘(aa) the number of full-time employees of The purpose of the hearing is to re- controlling the final half; that fol- the borrower on the date on which the bor- ceive testimony on the following bills: lowing morning business, the Senate rower applies for a loan under this subpara- S. 553, to revise the authorized route of the proceed to executive session to con- graph; and North Country National Scenic Trail in sider the nomination of Barbara Keen- ‘‘(bb) the product obtained by multi- northeastern Minnesota to include existing an, as provided for under the previous plying— hiking trails along Lake Superior’s north order. ‘‘(AA) the number of part-time employees shore and in Superior National Forest and The PRESIDING OFFICER. Without of the borrower on the date on which the bor- Chippewa National Forest, and for other pur- objection, it is so ordered. rower applies for a loan under this subpara- poses; graph; by S. 1017, to reauthorize the Cane River Na- f ‘‘(BB) the quotient obtained by dividing tional Heritage Area Commission and expand PROGRAM the average number of hours each part time the boundaries of the Cane River National employee of the borrower works each week Heritage Area in the State of Louisiana; Mr. BAUCUS. Madam President, by 40. S. 1018, to authorize the Secretary of the under a previous order, the time fol- ‘‘(v) NONDELEGATION.—Notwithstanding Interior to enter into an agreement with lowing morning business until 12:15 section 508(e), the Administrator may not Northwestern State University in p.m. will be equally divided and con- permit a premier certified lender to approve Natchitoches, Louisiana, to construct a cu- trolled between Senators LEAHY and or disapprove an application for assistance ratorial center for the use of Cane River Cre- SESSIONS or their designees. At 12:15 under this subparagraph. ole National Historical Park, the National p.m., the Senate will proceed to a roll- ‘‘(vi) TOTAL AMOUNT OF LOANS.—The Ad- Center for Preservation Technology and call vote on the motion to invoke clo- Training, and the University, and for other ministrator may provide not more than a ture on the nomination of Barbara total of $4,000,000,000 of financing under this purposes; subparagraph for each fiscal year.’’. S. 1537, to authorize the Secretary of the Keenan to be a U.S. circuit judge for (b) PROSPECTIVE REPEAL.—Effective 2 years Interior, acting through the Director of the the Fourth Circuit. after the date of enactment of this Act, sec- National Park Service, to designate the Dr. f tion 502(7) of the Small Business Investment Norman E. Borlaug Birthplace and Childhood Act of 1958 (15 U.S.C. 696(7)) is amended by Home in Cresco, Iowa, as a National Historic ADJOURNMENT UNTIL 10 A.M. striking subparagraph (C). Site and as a unit of the National Park Sys- TOMORROW (c) TECHNICAL CORRECTION.—Section tem, and for other purposes; Mr. BAUCUS. Madam President, if 502(2)(A)(i) of the Small Business Investment S. 1629, to authorize the Secretary of the there is no further business to come be- Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended Interior to conduct a special resource study of the archeological site and surrounding fore the Senate, I ask unanimous con- by striking ‘‘subparagraph (B) or (C)’’ and in- sent that it adjourn under the previous serting ‘‘clause (ii), (iii), (iv), or (v)’’. land of the New Philadelphia town site in the state of Illinois, and for other purposes; order. f S. 2892, to establish the Alabama Black There being no objection, the Senate, NOTICES OF HEARINGS Belt National Heritage Area, and for other at 6:37 p.m., adjourned until Tuesday, purposes; March 2, 2010, at 10 a.m. COMMITTEE ON ENERGY AND NATURAL S. 2933, to authorize the Secretary of the RESOURCES f Interior to conduct a special resource study Mr. BINGAMAN. Mr. President, I to determine the suitability and feasibility NOMINATIONS would like to announce for the infor- of designating the Colonel Charles Young Executive nominations received by mation of the Senate and the public Home in Xenia, Ohio, as a unit of the Na- the Senate: that the hearing scheduled before the tional Park System, and for other purposes; OVERSEAS PRIVATE INVESTMENT CORPORATION Committee on Energy and Natural Re- S. 2951, to authorize funding to protect and sources, previously announced for Feb- conserve lands contiguous with the Blue KATHERINE M. GEHL, OF WISCONSIN, TO BE A MEMBER Ridge Parkway to serve the public, and for OF THE BOARD OF DIRECTORS OF THE OVERSEAS PRI- ruary 9th, has been rescheduled and VATE INVESTMENT CORPORATION FOR A TERM EXPIR- other purposes; and ING DECEMBER 17, 2010, VICE COLLISTER JOHNSON, JR., will now be held on Tuesday, March 16, H.R. 3804, to make technical corrections to TERM EXPIRED. 2010, at 10 a.m., in room SD–366 of the various Acts affecting the National Park MICHAEL JAMES WARREN, OF THE DISTRICT OF CO- LUMBIA, TO BE A MEMBER OF THE BOARD OF DIRECTORS Dirksen Senate Office Building. Service, to extend, amend, or establish cer- OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION The purpose of this oversight hearing tain National Park Service authorities, and FOR A TERM EXPIRING DECEMBER 17, 2011, VICE DIANE M. is to receive testimony on the Bureau for other purposes. RUEBLING, TERM EXPIRED. of Reclamation’s implementation of Because of the limited time available DEPARTMENT OF DEFENSE the SECURE Water Act, (Title 9501 of for the hearing, witnesses may testify MICHAEL J. MCCORD, OF VIRGINIA, TO BE PRINCIPAL DEPUTY UNDER SECRETARY OF DEFENSE (COMP- P.L. 111–11) and the Bureau of Rec- by invitation only. However, those TROLLER). (NEW POSITION)

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